Do you want to know how to cash out Bitcoin? It’s essential to understand why someone would tend to convert their Bitcoins into cash. Unlike fiat currencies, Bitcoin isn’t adopted as a stable form of money. Although it has become very popular in the last couple of years, many businesses still do not accept it.
Moreover, some countries have banned it due to a lack of regulation and complexity. There is no point in holding Bitcoins if you cannot spend them when you need it. That’s why most people want to liquidate their earnings from investing or trading Bitcoin.
Volatility is also a significant reason why investors want to cash out their bitcoin earrings. Otherwise, they’ll risk their profits and regret it if the price of Bitcoin drops. Regardless of the reason, this guide is useful if you want to cash out Bitcoin.
How To Cash Out Bitcoin
You can convert your Bitcoin into cash in several ways. Here you will learn about different methods on how to cash out Bitcoin. I will also explain the pros and cons of each method. After reading this guide, you can decide which way is best for you.
How To Cash Out Bitcoin By Crypto Exchange
Some crypto exchanges allow you to convert your Bitcoin into cash. This method is also known as a third-party broker exchange. All the crypto exchanges do not accept fiat currency deposits; however, some exchanges do.
All you need is to deposit your Bitcoin to the crypto exchange. Once the broker receives them, you can request it for cash withdrawal. One of the common ways to withdraw your money is via bank transfer.
However, ensure that you withdraw your money into the same bank account through which you have deposited fiat money. If you have never deposited fiat currencies to the exchange, you may need to do it once. It may feel intimidating, but that’s how it works. Generally, it takes around 1-5 days to cash out your Bitcoins using a broker exchange. Now let’s explore the pros and cons of this method.
Pros:
- It is a secure method to liquidate your Bitcoins, and you don’t have to take much risk.
Cons:
- It’s time-consuming, and the exchange has more control over the user’s fund.
If you want to convert your Bitcoins faster and in anonymous ways, check out the peer-to-peer method.
How To Cash Out Bitcoin By Peer-To-Peer Exchange
If you cannot wait for 2-3 days, you may opt for a peer-to-peer exchange method. In this method, the p2p exchanges connect the users according to the buy and sell orders. That means if a user wants to sell Bitcoins worth of $5000 per unit and another user wants to buy in the same price range, then the platform matches them.
It’s a great way to cash out bitcoin via p2p exchange if you want to avoid the price set by centralized exchanges. It also allows you to convert faster and avoid exchange fees accompanied by third-party broker exchanges.
You can convert your Bitcoins into cash in three ways via p2p exchange, such as bank transfer, cash deposit, in-person. Although bank transfer and cash deposits can be made safely with an escrow service, in-person is a great option.
Bank Transfer
In this method, the buyer makes a bank transfer payment. Ensure that you request proof of ID before trying this method. Once you get the payments, you can send the Bitcoins. There are many p2p exchanges which offer excellent services for such type of transactions. However, you must be aware of fraudsters.
Cash Deposit
It is quite similar to the bank transfer method. The only difference is the buyer will deposit cash to your bank account instead of making a bank transfer.
In-person Meeting
Above all, it is the best way because you meet the buyer in person. However, the buyer must be local or from your city and agree to meet you in-person.
If you want to cash out Bitcoin on a peer to peer exchange, follow the steps.
- Register on a P2P exchange and set your desired price
- Wait until the exchange finds a buyer according to your requirement.
- Once the exchange matches a buyer, contact the buyer, and make arrangements for payments.
- Put your Bitcoins in escrow and release them once you receive your payments.
Now, let’s analyze the advantages and disadvantages of this method.
Pros:
- It gives more control over the transactions.
- It is a faster method as compared to a third-party exchange.
- The transaction fees are less.
Cons:
- The only concern is, it’s less secure than a centralized broker exchange.
How To Cash Out Bitcoin Using A Bitcoin ATM
Another great way to cash out Bitcoin is via a Bitcoin ATM. You can buy Bitcoin and sell Bitcoins using a Bitcoin ATM. It’s quite similar to a traditional ATM, and the only exception is it does not link to a bank account. There are more than two thousand Bitcoin ATMs around the world. You can locate the nearer Bitcoin ATM using a CoinATMRadar.
It’s one of the easiest ways if you have access to Bitcoin ATM as you don’t have to deal with any exchange. This process is also secure, and you don’t have to take much stress for withdrawing cash or Bitcoin using a Bitcoin ATM. Follow the below steps to convert your Bitcoins into cash:
- Find the nearest Bitcoin ATM.
- Choose the cash withdrawal option.
- Enter the amount of your choice
- Send Bitcoins by scanning the QR code provided by the Bitcoin ATM.
- Collect your cash
Now, it’s time to analyze the pros and cons of using a Bitcoin ATM for converting your Bitcoins into cash.
Pros:
- It’s relatively more straightforward than any type of exchange.
- It’s secure and doesn’t need any registration.
Cons:
- You cannot cash out your Bitcoin from anywhere; you need to physically present at the Bitcoin ATM.
- Bitcoin ATMs are not widely available.
You will find Bitcoin ATMs in shopping malls, restaurants, city centers, airports, etc. Next, let’s see how to cash out Bitcoin using crypto debit cards.
Crypto Debit Cards
A new way to cash out your Bitcoins is by using a Bitcoin debit card in recent years. Unlike the previous method, you can withdraw cash from a normal ATM using a Bitcoin debit card like a CEX.io debit card. CEX.io is a popular crypto exchange that offers such services. Let’s see the steps on how to cash out Bitcoin using a crypto debit card.
- Find a crypto debit card provider.
- Register and avail of a crypto debit card
- Link the card with exchange and your wallet
- Next, withdraw your Bitcoins to the debit card by selling Bitcoins from an exchange or sending bitcoin from a wallet.
- Now you can withdraw cash from a normal ATM.
Now, let’s look at the benefits and drawbacks of crypto debit cards.
Pros:
- It’s a better option for users who don’t have access to a Bitcoin ATM.
- It allows you to withdraw cash instantly.
Cons:
- Transaction fees are high.
- You need an exchange wallet for this.
Final Words
I hope you have understood how to cash out Bitcoin using different methods. Now, it’s your turn to analyze and decide which way is suitable for you. No matter where do you live, you can cash out Bitcoin using a third-party exchange or a peer-to-peer exchange. But you need to have access to Bitcoin ATMs if you want to convert your Bitcoins into cash using Bitcoin ATMs. Crypto debit cards are suitable for every user as it allows you to withdraw money from normal ATM.
However, it’s your choice, and you need to weigh the pros and cons of each option and choose the most suitable one. Lastly, you can drop your queries in the comment section if you have any questions. Please don’t forget to share your opinion on this post.
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