Definitely there are better ways to cashout with much cheaper fees, for example, p2p sites like localbitcoin only will collect 1% as a fee from the total traded amount ad the advertiser end and also their withdrawal fee is pretty cheaper comparably coinbase and any other centralized exchange.
Paxful and Bisq also can be a better option but these are not from exchange account, it will be from someone's account to your account.
That's ok for smaller amounts.
For any amount, you can do this if you want to have fewer fees for your conversion. Sometimes I found people have trade limits starts from a few thousand bitcoin only so you need to realize people are trading larger amounts as well only you need to do is to pay your taxes if you cashed out your crypto profits.