Guide to Cashing out Crypto in Mexico
Using ATM Codes and Bank Apps To Exchange Crypto for Cash In Mexico
Story Time
I have been part of the crypto/blockchain community for close to a decade, and while stacking sats has always been the move, at a certain point, I wanted to convert some of my crypto to cash. What's the point of having a pile of Bitcoin, Ethereum, Solana, or whatever if, at some point, you can’t realize your gain?
Sometimes, you want cash to travel, make large purchases, settle upfront living expenses, maybe even buy a vehicle. The problem is usability, fees, and in many cases, KYC and security.
1. Usability: Despite the love for crypto, there are still very few places where you can open a crypto wallet on your phone and send a Bitcoin Lightning payment for your meal. Even if you’re not heavy into crypto. You probably have multiple wallets on multiple exchanges. maybe even a couple telegram wallets you use to trade shitcoins
2. Banking Challenges: If you don’t have residency in Mexico or you simply don’t have a strong need to open a bank account, it can be very difficult to acquire and hold a large amount of pesos or other currencies. Even if you did, you would still have to convert crypto typically to USD, then pay additional ATM fees to withdraw (it’s nearly impossible to get large amounts in Latin America simply because of the purchasing power disparity).
3. KYC Issues: Sure, it’s understandable that companies want to cover their bases, but the big interest in crypto is the opportunity to be anonymous and bankless with your money. The secondary issue is that even if you do KYC, if you’re bouncing between countries often, getting the proper IDs for that country can be difficult.
Coinbase, Gemini, and Binance all have some form of KYC, but unfortunately, they are not friend options for some countries.
4. Security Concerns: Latin America, in general, can often be a “low-trust” society. For both personal and security reasons, you need a trusted person and a trusted method that can also be as anonymous as possible.
Solution:
”Bankless In Latam”
Whether you have residency or not, here are some reliable methods to move money in and out of Mexico using crypto.
Here are methods I and my friends personally use.
How to Get Started
1. Connect on Telegram: Reach out to @banklessinlatam on Telegram. Mention my name, "Bowtied Passport,” as a reference. Otherwise, your message may be ignored.
2. Be prepared. Meanwhile, “banklessinlatam” will give you clear instructions. You should be prepared to make your transaction in a timely manner and know how much you are trying to transact
* Crypto and blockchain prices fluctuated based on the website you chose. CoinMarketCap and other blockchain websites will all have slightly different rates. Sure, Decentralized finance is great, but until everyone is on the same page. there needs to be a standard. BanklessInLatam uses the XE.com exchange rate, which provides a fair and transparent rate for your exchanges.
1. ATM Codes
For those without Mexican residency or who just want cash immediately, ATM codes are a convenient way to access cash. This method allows you to withdraw money without needing a Mexican bank account or debit card.
How It Works:
It's well known that a large percentage of Latin Americans do not have bank accounts but still need to transfer money between people who do. Almost every bank in Latin America has created a system that allows any person to create a transaction code, which can be given to the withdrawer. That person can then go to the bank's ATM and withdraw a set amount. This is called "retiro sin tarjeta."
Upon contacting BanklessInLatam and making your transaction, you will be asked which banks are around you and given a code. You simply enter this code into the ATM, withdraw the cash, and be on your way.
**BanklessInLatam** facilitates transactions between 9,000 and 11,500 MXN per transaction from any ATM, and you can transact up to 70,000 MXN per day.
This service is incredibly useful for travelers and temporary residents who need quick access to cash without the hassle of opening a local bank account. I often use it when I am low on cash for large purchases or just to minimize withdrawal fees in general. If you are prepared, the process takes only a couple of minutes.
2. In Person Cash Transactions
Mexico thrives on cash transactions. Many crypto enthusiasts trade their digital assets for cash, especially in cities like Playa del Carmen and Mexico City (CDMX). Typically, transactions start at around $5,000 USD. If you want to meet in person to handle medium to large transactions, BanklessInLatam can facilitate this. They will also meet P2P if available.
3. Online Debit and Credit Cards
If you have Mexican residency, opening online debit and credit cards is straightforward. These cards can be a practical solution for everyday transactions.
Once you make the transaction, cash will be sent to one of your cards.
Dólar App: This is my top recommendation and referral link. They have excellent English customer support. You can also move and spend Mexican, Colombian & Argentine pesos.
I hope this has been helpful. If you have any questions - Feel free to contact me on Twitter or Telegram @btpassport
If you’re ready to take the next step in your journey—making the jump to travel in Latin America Or Mexico, Gain Residency, Work Visas, Or open an offshore bank account—schedule a Call Today.
