4 Easy Ways to Cash out Bitcoin

Want to know how to cash out bitcoin easily for fiat money, and which tools allow you to do so? As more people became interested in cryptocurrency, the volume of BTC traded in a single day immensely increased at the beginning of 2021.

So, whether you want to trade or invest, you can always swap your bitcoins for real money. Below are four simple ways to accomplish this.

How to Cash out Bitcoin

Here is a detailed guide that will help you convert your BTC to fiat anytime and anywhere.

• Make use of cryptocurrency exchanges

You can swap or trade BTC and other cryptocurrencies on a crypto exchange. Usually, it provides a wallet to safely store your digital assets.

Consider which exchange service has the best crypto-fiat liquidity. Centralized exchanges (CEX) offer a variety of trading pairs, including fiat. This means withdrawals and deposits in local currency are possible. Conversely, decentralized exchanges (DEX) have fewer trading pairs and limited features. They are unregulated, so their functionality may be limited.

Before depositing your Bitcoin to an exchange, make sure you have all the needed information. Here are some guidelines to follow:

Find a trading platform that supports crypto-fiat transactions 

If you want to cash out bitcoin, the trading platform of your choice should accept fiat and crypto. Double-check to see if your country is listed on the exchange before making any deposits.

Create a user account

After deciding on a platform, the next step is to create a user account. You will be required to go through a KYC verification, depending on the type of exchange — CEX (KYC is required) or DEX — registration/verification is not mandatory.

Deposit your BTC

Hopefully, you already have some BTC in a decentralized wallet or a cold storage system. So, once you have your account ready and verified, you would have to deposit your bitcoins to your exchange wallet.

Exchange your bitcoin for cash

After a successful deposit, you can now cash out bitcoin for fiat or request a withdrawal to your preferred payment method, which may be a bank deposit.

Exchanges typically do not offer instant withdrawals to bank accounts, so you may have to wait for 1-5 days, depending on the payment method. You may also be charged some transaction fee to process your withdrawal request.

Exchange rate

If you want to convert bitcoin to your local currency, go with a platform that offers better cryptocurrency exchange rates so that you don’t lose money.

• Peer-to-Peer (P2P)

A peer-to-peer transaction connects you with interested bitcoin buyers, so you can sell to them directly and get paid in your local currency. Some P2P platforms also provide escrow services to ensure transactions are secured and non-fraudulent. Such services lock the deposit in an escrow and release them to the buyer only after the payment made by the buyer has been confirmed by the seller.

How to use a P2P service

• Deposit your BTC to an exchange that facilitates P2P transactions.
• Access the marketplace and search for interested buyers.
• Initiate a transaction.
• Specify the amount of BTC you wish to sell.
• Include your preferred means of payment that is also acceptable by the exchange.
• Release your bitcoin to the escrow (exchange).
• Confirm receipt of payment after you get paid by the buyer.

Depending on the exchange, there might be slight modifications to the above on how P2P transactions occur, but these are the general steps on most P2P websites.

• Use a Bitcoin ATM

Recent statistics have revealed over 14,000 Bitcoin ATMs globally, and the majority of them are in the USA. Bitcoin ATMs are still quite new and rare, unlike conventional ATMs. However, they remain a viable option to cash out your BTC if you have one near you.

Usually, withdrawal limits are capped at $10,000. Besides, it is not advisable to move about with so much cash.

Withdrawing via an ATM may require you to verify your identity or confirm your phone number before you go any further. After initiating the transaction, the machine will generate a QR code for you to scan. 

Like an exchange, Bitcoin ATMs also charge a processing fee, which is currently 8.4% on average for buying bitcoins from machines and 5.4% for selling bitcoins for cash.

• Make use of a bitcoin debit card

Cryptocurrency debit cards are also very new, with few investors and dealers using them. They are, however, a quick method to cash out your bitcoins.

A bitcoin debit card may be used to make purchases and payments everywhere MasterCard and Visa are accepted. The card converts BTC to local fiat money in real time. Its features are similar to prepaid cards (cashback, promotions, and low APRs).

Conclusion

Cashing out your BTC is getting easier these days. Several viable options would make your transaction fast and hassle-free. Go through the guide again and decide on the most convenient way for you.