Bitcoin has been around for more than 10 years now. Some of the stores have already adopted bitcoin and other cryptocurrencies as payment methods. In a few years’ time, hopefully, cryptocurrency will be adopted by every store in the world. But until then, you need to rely on fiat money to conduct day to day transactions.
There are so many ways to cash out bitcoin. But every method is different in terms of transaction fees, speed, and security. You must choose the payment method that is most preferable to you. Here are the best ways to cash out bitcoin:
1) Use a Bitcoin Exchange
Using a Bitcoin exchange is the most surefire way to convert your Bitcoin to fiat money. There are so many bitcoin brokerage services that enable you to buy and sell Bitcoin. Here are some of the most popular ones:
- Create an account at CEX
- Click on the finance tab and deposit bitcoin to your CEX wallet.
- Once bitcoin is available on your wallet, click on “Trade” on the top menu.
- Select the pair you want from USD, EUR, GBP, and RUB
- Input how much Bitcoin you want to sell on the sell tab
- Click on place order.
- Once the order is filled, the money will be available on your account balance.
- Click on “Withdraw” on the top menu.
- Choose from “payment card”, “international bank transfer” and “domestic bank transfer”.
- Confirm and withdraw money to your bank.
- Cash-out this money using an ATM.
Although, we should warn you that CEX is not the cheapest when it comes to fees. Before you sell your bitcoin at CEX, it is important that you check out their fee structure here.
- Open an account at Coinbase
- Deposit Bitcoin to Coinbase wallet
- Click “trade” on the top menu
- Click “sell”
- Select Bitcoin and sell to your USD wallet
- Select USD wallet and click “withdraw”
- Add bank details and withdraw money to your bank.
- Withdraw this money using an ATM.
Coinbase fees are reasonable. You can check out the breakdown of their fee structure here. Withdrawal times can vary depending on the country you reside in. It can take anywhere from 1 – 5 business days. You can check out their withdrawal times here.
Cryptocurrency brokers like CEX and Coinbase are reliable, safe, and easy to use. However, there are some downsides when using such exchanges. The major downside is not accepting customers from all countries. Selling Bitcoin and other cryptocurrency is only allowed for customers from a handful of countries. When it comes to speed, these exchanges aren’t the fastest. This brings us to the next best way to cash out Bitcoin:
2) Using a Peer-to-peer Exchange
As of today, there are so many peer-to-peer exchanges to choose from. These exchanges allow buyers and sellers of bitcoin to interact directly with each other. A peer-to-peer exchange like LocalBitCoins supports a variety of payment methods; which means, there are multiple ways to cash out bitcoin. These are some of the payment methods that can be utilized to cash out bitcoin:
- Western Union
- Cash deposit
- Credit card
- Intentional wire
- National bank transfer
You must select the payment method that is most convenient for you. Although, we should warn you that some payment methods are riskier than others. PayPal, for example, is the easiest way someone could steal your money.
“Cash deposit” is one of the safest ways to sell your Bitcoin. There are two ways to sell your bitcoin at LocalBitCoins. You can create an ad and wait for a buyer to respond or, look for advertisements from buyers that want to buy Bitcoin. If you select the latter, it is very important that you check the bitcoin price the buyer is willing to buy bitcoin at. It is usually valued less than the current market price of bitcoin. If you consider this discounted price to be fair, go ahead and sell your Bitcoin.
Whichever payment method you choose, it is important that you ask for the buyer’s government ID before selling your Bitcoin.
When you start a trade, your bitcoin will be held in escrow until you confirm the buyer’s payment. Depending on the payment method you choose, it can take anywhere from a few minutes to 5 days to complete the transaction. Once the payment is confirmed, release your Bitcoin from escrow.
Another popular peer-to-peer exchange is Paxful. The process of converting Bitcoin to cash is similar to that of LocalBitCoins. However, Paxful supports an additional payment method that LocalBitCoins doesn’t. That is the “cash in person” payment method. This method of converting Bitcoin to cash is very straightforward.
You can look for advertisements from buyers that are willing to buy Bitcoin for cash. “Cash in person” method isn’t for everyone. If you opt in to this method, you will more than likely have to travel to a distanced place. But, if a buyer is nearby, it is very convenient. Again, there is the chance of you getting robbed here. That is why it is important to check the buyer’s reviews from other sellers before you open a trade.
If you do not like the idea of meeting someone in person, you can always opt into other methods of converting Bitcoin to cash.
Pros & Cons of Peer-to-peer Exchanges
In terms of speed, it is entirely dependent on the payment method and the buyer of bitcoin. As mentioned previously, it can last anywhere from a few minutes to a few days.
In terms of fees, again it is dependent on the buyer and the payment method. Cash in person, cash deposits and other methods that deal directly with cash have some of the lowest fees. Sometimes you will find buyers willing to buy bitcoin even at a loss. On the other hand, the PayPal method has some of the highest fees. This is because of the risks associated with PayPal transactions.
In terms of security of funds, a peer-to-peer exchange is the worst. You have the highest chance of getting scammed here. Although, this can be avoided with the right payment method and by checking buyers’ reviews.
3) Use A Bitcoin ATM to Cash Out Bitcoin
Another way to cash out Bitcoin is with the use of a Bitcoin ATM. These are like regular ATMs, but for Bitcoin. If you know how to operate a regular ATM, you can use a Bitcoin ATM. Unfortunately, as of today, there are only a limited number of Bitcoin ATMs available. You can check the nearest ATM here.
Bitcoin ATM is one of the most convenient ways to cash out Bitcoin. If you are lucky enough to find one nearby, go ahead and cash out your bitcoin.
Every Bitcoin ATM has a similar procedure when cashing out Bitcoin. It is as follows:
- Select withdraw cash option
- Select Bitcoin
- Enter the amount you wish to withdraw
- Scan the QR code from your mobile Bitcoin wallet and send bitcoin to the given address
- Wait for transaction confirmation
- Collect your cash
Some Bitcoin ATMs require you to get verified before you are allowed to transact. This can take in the form of a mobile number, government ID, selfie or any other form. If that is the case, cashing out Bitcoin using an ATM will take additional time.
Pros & Cons of Bitcoin ATMs
Bitcoin ATM is the fastest and the most convenient way to cash out Bitcoin. These ATMs are growing in demand and you will likely see a Bitcoin ATM in your city in the near future.
The downsides of a Bitcoin ATM are the fees and availability. These fees can range anywhere from 7% to 10% or even higher. This makes the Bitcoin ATM the most expensive method of cashing out Bitcoin on our list.
Above are some of the ways to cash out Bitcoin. As you now know, these methods of cashing out vary in terms of fees, speed, and security. You must select the method that is best suited for your needs. If you want to learn how to cash out bitcoin anonymously, check here.