There are numerous options that they offer, such as peer-to-peer exchanges or through third-party exchanges, in a layman’s language through bank transfer, PayPal, or through cash deposit as well. But, do not always opt for the most economical ways of doing that; instead, check out all the possibilities, pros, and cons before opting for any method.
How to Cash Out Bitcoin Easily
Things to consider when cashing out Bitcoin
There are a few things that you should consider while checking out the mode of converting Bitcoin into cash:
Analyze the transaction fee of different modes so that you can select the one which offers more in less price The next important thing to check is the steps required in every process. Choosing a method with lengthy steps can be monotonous and complicated as well sometimes. See the amount you want to withdraw as if the amount is less than your criteria; you might change your mind. Ask yourself if you wish to deposit the money in the bank account or your PayPal account. Check the period as to how much time it will take to credit in your account. Last but not least, always study the local rules and guidelines before opting for any method
These were the few things that you should look at before choosing any payment method. Also, there are a few questions that you should ask yourself before selecting a method.
Questions to ask before choosing any cash out method
Q1. Do you wish to opt for an easy and straightforward method or the most economical method? Q2. You want the money to be deposited in the bank account or your PayPal account? Q3. For how long can you wait for the cash to be credited to your account? Q4. You want to change your Bitcoin into which currency? When you get the answer to these questions after that, only you should think of comparing the methods as you would be clear about your requirements. Also Read: How to Mine Cryptocurrency?
How to Withdraw Bitcoin easily
These methods will provide you a clear answer on how to convert Bitcoin to cash. Here are all the significant methods for you:
- Third-party broker exchanges: Many people think that this can be the easiest and straightforward method as your involvement would be less in it, but again, the first question that would strike in their mind is how to cash out Bitcoin using a third-party broker exchange. The answer for it is as simple as the method itself. A third-party broker can also be referred to as an exchange. For example, a lot of cryptocurrency exchanges do not permit you to deposit funds using fiat money (it is a currency established as money by government regulation), but some exchanges do. Procedure First, you would deposit the Bitcoin into the exchange, and once they receive it after that, you can request a fiat currency withdrawal. One of the most prevalent methods of doing it is through a bank transfer. Ensure that you withdraw the money to the same bank account from which you deposited, as it assures that the brokers are not breaking the money laundering laws. In case if you have never deposited fiat money in the broker exchange, then you would have to make a minimum of one deposit first. If you choose this method to cash out your Bitcoin, then it might take around 1-5 working days to reach the amount in your bank account. So this method is not that complicated, plus your involvement is also less after you do the first transaction but let us check out the other methods before concluding.
- Peer to Peer: When people think about how to withdraw bitcoin, peer-to-peer is one method that always comes to mind. There are many peer-to-peer platforms that can be used to get the money credited to your account without waiting much. If you know well what you are doing, then this is a pretty safe and secure method. The good thing about this method is that a lot of well-known platforms provide you an option to choose the payment method, which would include: a. Cash Deposit: You have the option to request the buyer to get cash deposited straight away to your bank account. But, do not forget to check their ID proofs and proof of payment before releasing Bitcoins to them as there are many fraudsters in the market who take the coins and do not release the payments. b. Bank Transfer: Another option is bank transfer. You can ask the buyer to make a bank transfer payment. In this method, always ask the buyer for his ID proof, and once you receive the payment before that, you can release the Bitcoins. c. Meet in person for cash: If you want, you can arrange a meeting point with the buyer and take cash from them for your Bitcoins. Numerous well-known P2P platforms offer this service and are safe but keep in mind that you have to be cautious of the fraudsters. In fact, there are some platforms whose security level is incredible as they use escrow service. This service keeps your Bitcoins locked until you validate that the payment has been received from the buyer. Let us understand the escrow service with the help of an example: Just assume that ABC wants to buy 10 Bitcoins. He searches for people in his country who are selling them. ABC sees that XYZ is selling them at a good price and send the request to him. XYZ accepts the request; now, he will have to put all the 10 Bitcoins into the escrow. Now, it will hold the Bitcoins till the ABC does not transfer the money. Once XYZ confirms that he has received the payment after that, he will release the Bitcoins from the escrow and sent them to ABC’s account. The process is very easy, and the best thing is that the chances of fraudulent activities are relatively less in this method. Also Read: 11 Best Cryptocurrency to Mine
Turn Bitcoin into cash using a Peer to Peer Exchange
When you are learning the various processes of how to cash out bitcoin, it becomes essential for you to know about this method as this method has proven to be quite beneficial to many users. There are many P2P exchange platforms, but one of the most used and reputed platforms is Local Bitcoins. Let us understand more about it. Local Bitcoins This platform was established in 2012, and because of its amazing services and massive customer base, they support almost every country worldwide. Thus, from whichever part of the country you are from, you would be able to get buyers for selling your Bitcoin. As mention above, in P2P, you can select any payment method you want. There are several payment modes available on Local Bitcoins, such as:
International Bank Wire Local Bank Transfer Payoneer Skrill PayPal Web Money Western Union Gift Vouchers Neteller Bank Cash Deposit
People who are already well versed about how to cash out Bitcoin can decide and upload the price they wish to trade the Bitcoin for. This can also be done by creating an advertisement, but that would cost you 1% of the total sale. On the contrary, if you want to sell it to a buyer who has already listed the price, you would not have to pay any fee.
How to Cash Out Bitcoins using Local Bitcoins
- The first thing you would have to do is to open an account with them. For signing in, you would have to put a user name and a password. Plus, you would also have to add your email address as well.
- As you open an account and log in after that select, Sell Bitcoins is located at the top of the page.
- After that, you would have to select the country where your potential buyers are located. It is always recommended to choose your own country as it usually buyers and sellers select their own country because they are well aware of the rules and regulations of their country. After that, enter the amount for which you wish to sell your Bitcoin. Finally, you would see numerous means to cash out your Bitcoin.
- Let us understand how to cash out bitcoin through local bitcoin with an example. You can see that the buyer has completed more than 1000 trades in the above image and has a 100% rating; this means that he is a legitimate buyer.
- Now, you just need to validate the cost again at which you want to exchange your Bitcoin and enter your PayPal email address. After that, hit enter on “Send Trade Request.”
- By doing this, your buyer would get a notification that you wish to sell your bitcoin to them. Once they accept your request that, you would have to send your Bitcoins to LocalBitcoins escrow. This means that the buyer will not receive the Bitcoin until you confirm that you have received the payment.
- Once you receive the payment in your PayPal account, just confirm it to the buyer by clicking on “Payment received” and release the Bitcoin. Also Read: How to Make Money through Affiliate Marketing
How to move Bitcoin to a Bank Account
Once you get the Bitcoin converted into cash, after that you can move them into a bank plus you can withdraw the money through various ways such as:
- Bitcoin ATMs: People usually think about how to cash out bitcoin? There is another important thing to consider, which are the ways to make money out. One method is through Bitcoin ATMs; they are not like the traditional ATMs. It is a physical center that enables you to trade bitcoins with fiat money. You would be amazed to know that there are around 5000 crypto ATMs across 76 countries. A website named Coin ATM Radar can find the nearest crypto ATM as per your location. These ATMs are suitable for doing small transactions as mostly all the ATMs have deposit and withdrawal limits. However, one of the major cons of using them is that there is a huge transaction fee that you would have to pay, which ranges from 7%-12%.
- Bitcoin Debit cards: Many websites enable you to market your bitcoin and get a prepaid debit card in return. You can use this card like the normal debit card powered by either Visa or Mastercard. The good part is that these cards work both for online and offline shopping in almost every business worldwide. Furthermore, these debit cards can be used to withdraw cash from ATMs where visas and MasterCard are accepted.
How to Cash Out Bitcoin using a Broker Exchange?
The methods mentioned above are most common and liked by people because of the ease of transactions and safety. Now, let us understand and know more about how can you easily cash out bitcoin by using a broker exchange- Coinbase: This is one of the most renowned broker exchanges for trading Bitcoins. If you analyze and compare it with the other famous exchanges, you would see that Coinbase processes more Bitcoin transactions than anyone else in the market. They have a huge customer base of more than 13 million people. Here are some of its features: a. Withdrawal methods: One of the highlighting parts about them is that you can sell your Bitcoins for cash through them. You can later withdraw into your bank account if you want. There is one condition to it that you would be able to cash out your Bitcoin into the bank account you used to purchase cryptocurrency on Coinbase. If you have not purchased any cryptocurrency through them, then you would have to buy a small amount from them so that the money can be cashed out in your account. b. Fees: The fee they charge depends on the country in which your bank account is. For example, if you are selling your Bitcoin in USD, then a wire transfer would be $25; on the contrary, if you are in the EU and possess SEPA, then you would just have to pay $0.15. c. Cash-out times: The time in which the amount gets credited to your account would also vary from country to country. For example, in the US, the withdrawal time ranges from 4-6 working days, whereas in the EU, it just takes 1-3 working days.
Steps to turn Bitcoin into cash using Coinbase
- The first step is to open an account with Coinbase and then link your bank account with them. Once this is done that deposit in that account. If you already have an account with them, then skip this step and move to Step 2.
- As you have established your account now, you are required to transfer your Bitcoin to the Coinbase Bitcoin address provided to you. For doing this, you will have to go to the accounts tab, from their click and open Bitcoin wallet, and select ‘Receive.” Once you do this, you would see your Coinbase Bitcoin address where you need to send your Bitcoin address.
- Now, you would see the options Buy/Sell on the top of the page.
- As you want to sell your Bitcoin, you need to click on Sell.
- Now comes the most significant step: to cash out Bitcoin in the wallet. When you see your wallet, there would be Bitcoin in it plus your default first currency as well. The deposit would show the amount as per your currency and the location that you chose. It would also reflect your withdrawal limit. People who have verified the account would have higher limits, and if you wish to increase the limit, you need to click on the option “See Limits,” and there would be a few instructions that you would have to follow to increase the limit.
- You would have to exchange the money in your local currency before withdrawing the amount. For instance, you just need to put the amount you wish to sell your Bitcoin for, and the fiat currency would automatically update the equivalent amount.
- As soon as you click on the tab ‘Sell Bitcoin Instantly,’ the funds will be in your fiat currency wallet.
- Go to the fiat currency wallet and press the button “Withdraw.”Now the amount will be credited to the bank account. This would be the same account of which you gave the details in the first step. The process might seem lengthy, but it is not; you would just take a couple of minutes to set up the account and cash out Bitcoin. Also Read: How to Earn Free Bitcoins Daily without Investment
How to turn Bitcoin into cash using Kraken
Kraken is another well-known exchange that enables withdrawals and fiat currency deposits quickly. This exchange was established in 2011, and the maximum transactions that they process are Bitcoin to Euro. They also deal in other big currencies as well such as USD, JPY, and CAD. Here are some of its features:
Withdrawal methods-You can withdraw the Bitcoin into cash to your local account with Kraken. Fees– The withdrawal fee of Kraken is relatively low than other similar platforms. For example, if you wish to sell your Bitcoin for USD using a local bank, you would have to pay $5; for the SEPA cash out, you just need to pay 0.09 euros. Cash-out times– Your account would be credited in 1-5 working days in your bank account.
Points to remember when converting Bitcoin into cash
There are a few things that one must keep in mind before converting all the Bitcoins to your bank account-
- Taxes: It is rightly said that taxes and death are two imminent things. Even the Bitcoin investors would have to pay the tax for the money they get converted into their bank accounts. Although there are a few jurisdictions that have not provided any clarity about bitcoins and taxes. Yet, some tax authorities say that you will have to pay the tax on the profits you make if you sell Bitcoin for cash.
- Fees: Mostly, all the Bitcoin to bank account methods charge a fee for it. Therefore, you will have to analyze the fee of all the exchanges before choosing one. But, if you still want to convert your Bitcoin into cash, then always check a few things such as ease of transaction, charges, whether you want to get it deposited to the bank account or PayPal account, currency in which you want to get it converted and how long you can wait to get the amount credited to your bank account. Also Read: Top 15 Cryptocurrencies to Invest other than Bitcoin
List of Banks that Accept Bitcoin
Just to make it easy for you, here is the list of banks that accept Bitcoins:
Banks that Ban or Limit Bitcoin Purchasing
Recommended: How To Get Bitcoins In India For Free The various factors that you should consider are the amount that needs to be cashed, the fee they charge, the safety of funds, and the period in which you want the amount to be credited to your account. So choose wisely and spend less while cashing out your Bitcoins. Happy trading!