Many people don’t know exactly how to turn Bitcoin into cash. Even if you are a long term investor of Bitcoin, you may need to cash out your holdings one day. Bitcoin traders generally convert their Bitcoin earnings via crypto exchanges.
However, there are also some other ways which you will discover in this article. You might think that why should you know all the methods? The answer is simple: you can compare all of them and choose which one is the best for you. So, it’s essential to understand different ways of how to turn Bitcoin into cash.
How to Turn Bitcoin into Cash?
There are mainly four ways to cash out your Bitcoins; (1) Third-party broker exchange, (2) Peer-to-peer exchange, (3) Bitcoin ATMs, (4) Crypto debit cards.
How to Turn Bitcoin into Cash via Crypto Exchanges?
One of the easiest ways to cash out your Bitcoins is via a crypto exchange. You just need a third-party broker exchange that allows you to convert your Bitcoins into cash. Several crypto exchanges are available there, but you need to be careful while choosing a broker exchange.
Ensure that the third-party exchange you choose is a trusted one by checking its legitimacy and security features. Keep one thing in mind that your country should support the crypto exchange. Most of the crypto exchanges have websites and mobile apps. You can use any of the two options.
Follow the below steps to convert your Bitcoins into cash via a crypto exchange.
- Sign up for an account
- Complete the verification process and add your bank details
- Deposit your Bitcoins into the exchange account
- Request for converting your Bitcoins into cash.
It’s a secure and straightforward way to cash out your Bitcoin. However, it takes more time than the peer-to-peer exchange method. When you are converting your Bitcoins into cash via a crypto exchange, it may take around 1-5 days.
Some countries restricted crypto exchanges. If you have a limited option for crypto exchange, you can do it through a P2P exchange. Before I share how to turn Bitcoin into cash through the peer-to-peer exchange, here are the pros and cons of using a third-party broker exchange.
- It’s a secure and simple way to cash out your Bitcoins.
- It’s time-consuming and has a relatively higher processing fee than a P2P exchange.
How to Turn Bitcoin into Cash through P2P Exchanges?
Peer-to-peer exchange is a great way that connects buyers and sellers of Bitcoins. One of the best P2P exchanges is LocalBitcoin. Currently, it’s operational in almost every country and serving 1.35 million people around the world. However, New York City banned its operation due to local regulations.
The best thing about a P2P exchange is that you can directly sell your Bitcoins to buyers without an intermediary. That makes the process faster and relatively low processing fees. Additionally, LocalBitcoin offers an escrow service that helps both parties to protect their wealth.
Plus, you can also choose payment methods such as cash deposit, PayPal, bank transfer, etc. Another great thing about P2P exchanges is that you can fix the price of your Bitcoins irrespective of the crypto exchanges.
Here is how to turn Bitcoin into cash through a P2P exchange:
- Sign-up for an account.
- Complete the verification process.
- Select your country and payment method.
- Choose a buyer carefully by reviewing the ratings.
- Add your bank or payment details and confirm the amount of Bitcoin you want to sell.
- Send your Bitcoins to the escrow and wait for receiving payment.
- Release your Bitcoins once you receive your payment.
You can also find a buyer and meet in-person to make the transaction if the buyer belongs to your city. Now let me share the benefits and drawbacks of this method.
- The processing is faster.
- There are no intermediaries, so low transaction fees.
- You have more control over your wealth.
- It involves some security risks.
How to Turn Bitcoin into Cash from a Bitcoin ATM?
If you don’t want to go through the above two processes, Bitcoin ATM is a great option. However, you must have access to a Bitcoin ATM in your city. You can check it in the CoinATMRadar map that shows the Bitcoin ATMs worldwide.
It’s one of the best ways to turn your Bitcoins into cash. You don’t have to worry about the buyer or exchange, as in the case of the above two options. You can simply go to a Bitcoin ATM and scan the code or follow the ATM instructions to cash out your Bitcoins.
You must keep a few things in mind that all the Bitcoin ATMs are not the same and have daily buying and selling limits. So it’s suitable for small transactions. Now, let’s look at the pros and cons of this method.
- It’s the simplest way to cash out Bitcoins.
- You can convert your Bitcoins into cash quickly.
- The transaction fee is very high as compared to any other method.
- You may not have access to Bitcoin ATMs in your city.
How to Turn Bitcoin into Cash Using a Bitcoin Debit Card?
Finally, crypto debit cards are the best options to convert your Bitcoins into cash. All you need is to load these cards with your Bitcoins, and it will convert them to fiat money.
More importantly, you can use these cards online and offline worldwide. The crypto debit cards also allow you to shop, make payments, even withdrawing cash from a normal ATM. With all these benefits, crypto debit cards are the best option, among other options. Now, let’s discuss the pros and cons of this method.
- It’s suitable for everyone, even those who don’t have access to Bitcoin ATMs.
- Instant cash option and can withdraw from a normal ATM.
- It offers global online and offline shopping and access.
- The transaction fees are high.
Now that you understand how to turn Bitcoin into cash choose which is best for you. Remember, when you choose the first two options, i.e., crypto or P2P exchange, be careful about choosing the right platform. If you want to go with the Bitcoin ATM option, don’t forget to consider the transaction fees and transaction limit. Last, if you’re going to convert your Bitcoins into cash using crypto debit cards, consider the transaction fees. You can decide which is the best option after comparing the pros and cons of different methods. You can ask your queries in the comment section, and please share your opinion on this post.