The best ways to cash out Bitcoin
Okay Google, I got several coins through trading and investing. How do I cash out Bitcoin?
This question appears very often and Google knows the answer. We know it too, so now we’re going to share the best ways of doing it, look at their pros and cons, and give a quick step-by-step guide for some methods.
Best ways to convert Bitcoin to cash
Exchanges, desktop wallets, mobile wallets, offline wallets and more – there are many ways to store Bitcoin. All of them have good features and a high level of security. Nonetheless, there is no unique method to convert Bitcoin to cash.
There are some factors that will influence your preferences:
- your ‘time reserves’;
- the amount of cash you need;
- the method of converting BTC to fiat;
- cryptocurrency regulations in your country.
For example, if you want to get fiat into your Payoneer wallet, you have to find exchanges that work with this payment system and analyse their terms.
Moreover, Bitcoin is a very expensive cryptocurrency. If you are going to withdraw 1 BTC or more, you have to notify your bank about the big sum of money that will appear on your account.
We can’t claim that some methods are the best. However, we can tell you as much as possible about popular ways to cash out Bitcoin, so that you choose the best option for yourself.
This method is the most various, because each exchange has BTC on its lists and more than 90% of all cryptocurrency services allow the withdrawal of coins to fiat money. Frequently speaking, mos exchanges don’t provide the possibility of a direct cash out, so you would use third-party services.
Coinbase is one of the most popular Bitcoin exchanges. It is trusted, highly secure and very fast. Many traders, investors and other cryptocurrency enthusiasts use Coinbase for buying and cashing out BTC.
- Create and verify an account. Connect it to a bank account and deposit at least $10.
- Add your BTC address to Coinbase.
- Sell your BTC to Coinbase so that you have fiat in an exchange wallet.
- Press the ‘withdraw’ button in this wallet.
- Fill in the gaps and confirm the request.
Seeing as you added your payment and personal information during the registration, there is no need to enter it for every withdrawal. Coinbase takes up to a week to withdraw money. Next, after receiving fiat in your bank account, you can cash it out.
There are other cryptocurrency exchanges that allow you to cash out Bitcoin. Such examples are Stormgain, Kraken and Liquid. They have many different benefits. Stormgain provides one of the lowest fees, while Liquid gives more buyers. It is crucial that they have the same algorithm for withdrawing money, so that you can use the most preferable exchange.
The other popular service for cashing out BTC is LocalBitcoins. This platform provides the possibility of receiving cash for cryptocurrency without third parties. The main feature of this service is that you can use any payment method. This means you can get cash for your BTC.
- Create an account.
- Push ‘Sell BTC’.
- Choose the area where you want to find a seller. The best way is to choose your own country, because the deal will happen faster.
- Enter the amount of coins you want to sell.
After creating such a post, you just have to wait until someone sends you a message. You can thus agree on terms with this person, get cash and sell him BTC.
Pros and cons
Cryptocurrency exchanges are highly secure, so you can be sure that no data will be stolen. Moreover, each transaction is secured and anonymous. For example, Coinbase has never been hacked. There have been some attempts, but hackers have never succeeded.
Cryptocurrency exchanges store your personal and payment information, so you only have to give it for the first time. Doing so will result in your requests being processed faster.
Nonetheless, cryptocurrency exchanges don’t allow you to convert Bitcoin to cash. You have to send money to your bank account (or to an electronic payment system) and then cash out from there. It’s awkward and you have to pay additional fees to the bank or to the payment systems.
LocalBitcoins solves this problem, but there is another pitfall. There are many conmen on this service. In general, they hide among sellers. However, there have been reports of some BTC buyers trying to cheat and steal other people’s Bitcoin. That’s why you have to check out their history.
It’s possible that know at least 10 Bitcoin wallets for different devices and purposes. However, there is no Bitcoin wallet with a direct withdraw function. You have to send BTC to your wallet on an exchange or use exchange services to withdraw them to a bank account. Only after such a withdrawal process can you get money in cash.
Nonetheless, there are some tricks. You could use an ATM and your wallet QR-code to withdraw money. If you know of any ATMs in your city, this is one method you can use to convert Bitcoin to cash.
Alternatively, you could download the Mycelium wallet on your smartphone. There is an option called ‘Mycelium Local Trader’. People mostly use it to buy BTC with cash. However, you can become a ‘Local Trader’ and sell your BTC.
Once you post an order on this application, all the potential buyers in your area will receive a message. Contact them and agree on a deal to convert Bitcoin to cash.
Pros and cons
The main disadvantage is that you have to find a way to withdraw BTC from your cryptocurrency wallet and into cash. This is always uncomfortable, because you will face high fees and spend a lot of time on the process.
Moreover, if you sell BTC via Mycelium Local Trader, you could come across a conman. Thus, contact a potential buyer, organize a meeting in a public places and don’t come to the appointment alone.
Some may be amazed at how many services provide direct exchanges from BTC to cash. They can even send a courier to your house. The best thing about this way is that there are at least 20 trusted exchange services online:
Choose one of them and simply fill in the forms on the homepage. Next, give your payment data and wait for a confirmation message or e-mail. Confirm the request and wait for 20-30 minutes. If everything is ok, you will receive information on a courier (if available) or a place, where you will receive the money.
Pros and cons
Exchange services are very user-friendly, because you can create a request within 2-3 minutes. Moreover, there are good supports, so you may find the answer for any question.
Also, exchange services are anonymous. You don’t need to register and all payment data will be deleted once you get the money.
However, when you want to get fiat in cash, you will have to wait for a courier or go somewhere (e.g. Western Union point). It takes time for convert BTC into cash using such method.
If you are an active BTC user, you should have at least one friend who is also a cryptocurrency enthusiast. This gives you the possibility of offering him a deal. This method is one of the best, because there is high probability that your friend will agree. Why? It’s a good opportunity for him to get BTC fast and without fees.
However, if you don’t have any friends who are into cryptocurrency, go to a Bitcoin conference. There will be a dozen of good summits with 500 and more delegates in 2020:
- Bitcoin 2020 (San-Francisco);
- Magical Crypto (New York);
- The Bitcoin Reformation (Antwerpen);
- Understanding Bitcoin (Malta);
- CoinFestUk (Manchester).
Firstly, you will get a lot of useful information on Bitcoin improvements and regulations. There will probably be some hints about new ways of withdrawing Bitcoin.
Secondly, you can find new friends who use BTC as their main payment method. Thus, you could sell them your BTC and get cash.
Pros and cons
Obviously, with such deals, you won’t pay any fees and you’ll get the biggest sum. Your friends, or new crowd, will not cheat you. That being said, it is difficult to make such deals very often.
Five years ago, it would be difficult to find a simple fiat ATM. Today, they’re on every street, but there are still some difficulties with finding a cryptocurrency ATM. Nonetheless, big cities like New York have many Bitcoin ATMs, so finding them to convert your Bitcoin to cash is easy enough.
If you want to get cash as fast as possible, find an ATM, choose the ‘Sell BTC’ option and fill in all the necessary gaps. After confirmation, you will get cash.
If you haven’t seen any Bitcoin ATMs in your area, go to Coinatmradar to check whether there are any ATMs nearby. In this context, you’re unlucky if you live in a small town, because the Bitcoin Foundation currently only has such apparatus in big cities.
Pros and cons
ATMs are very useful for those who need to get cash as fast as possible, but there aren’t any other special advantages.
ATMs are not available worldwide. Their reserves are limited (as usual, there is fiat money for a maximum of 1 BTC). ATMs have very high fees, because they’re not very popular. Lastly, you have to fill in all information manually, which is a hindrance.
As we can see, Bitcoin is being recognized by more and more countries. Thus, within a few years or even months, more ATMs will appear and demand will grow. This should lead to lower fees. ATM withdrawals may become of the most convenient ways to get cash.
The fastest way to convert Bitcoin to cash
We mentioned five ways to convert Bitcoin to cash. There are many services under these methods, so you may want to analyse them and choose the best platform.
We consider using an ATM to be the fastest way. However, they’re not available in small towns. Hence, the other fastest way to cash out Bitcoin is using a cryptocurrency wallet. You can create an order for a maximum of 5 minutes and wait for a buyer for several hours or less.
The cheapest way to cash out Bitcoin
As mentioned before, personal contacts allow you to make any cryptocurrency deal without fees. Therefore, it’s worth finding as many friends as possible and converting Bitcoin into cash with their help.
Another cheap way is to use cryptocurrency exchanges like Coinbase or Kraken. They maximum charge will be 2% of the sum of the transaction. Some services don’t even establish any fees. However, you have to wait for your money for a whole week.
The most reliable way to convert Bitcoin to fiat
Again, your friends and other personal contacts are the most reliable way to convert Bitcoin to fiat. That’s why you have to be in touch with them at any given time.
Cryptocurrency exchanges are also a very reliable way to turn Bitcoin into fiat money. However, they could be hacked. Your transaction could thus be resent to another wallet or bank account. Moreover, hackers can steal your personal data (e.g. information that you give to verify an account).
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