Turn Bitcoins into Cash: Easy Conversion Guide

These are some of the questions that you will need to ask yourself. So, read through the following methods on how to cash out bitcoin and then decide which is best for you. It is meanwhile important to know that most of the exchanges comply with global anti-money laundering laws.

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1. Converting crypto into fiat is a taxable event whether you are selling on an exchange, P2P, using a Bitcoin ATM or loading onto a crypto debit card.
2. You can also earn crypto rewards that deposit into your Coinbase account (reward rates vary).
3. You can go the convenient route and use a Bitcoin ATM to get fast access to your crypto but at a significantly higher commission.
4. For example, eToro charges a flat 1% trading fee to sell crypto, which is a fairly low rate.

If you are simply looking to access cash, the Coinbase card can be used at an ATM to withdraw up to $1,000 per day. There are no additional fees to use the card at an ATM, though local ATMs may charge fees for use. Bitcoin ATMs are popping up everywhere, with tens of thousands of them located around the world. Bitcoin ATMs are a physical kiosk — typically located in a gas station or grocery store — that allow you to buy crypto with cash or a digital wallet.

Easy Ways to Convert Bitcoin to Cash Instantly

To start, you’ll need to find an exchange that is available in your country. This will solve the problem of cashing out small amounts of BTC that eats into your crypto asset.

What is the difference between a crypto exchange and a brokerage?

Here’s how to cash out bitcoin to deposit money into your bank account. Popular crypto exchanges are always a good bet, as they are reliable and well-known, while online platforms with peer-to-peer selling may allow for flexibility of payment. You can go the convenient route and use a Bitcoin ATM to get fast access to your crypto but at a significantly higher commission. Sellers have the ability to set their own rates and can choose from more than 350 payment options, such as cash, gift cards or other digital currencies.

In turn, you will receive payment through Zelle, PayPal, or another method of deposit to your bank account. Once you’re ready to convert your bitcoin to dollars (or your local currency), the exchange should let you quickly do so. You can then send the cash equivalent of your bitcoin to your bank account. You might need to wait several days for the money to reach your account, but it will eventually arrive. Bankrate.com is an independent, advertising-supported publisher and comparison service.

In some ways, cryptocurrencies act like fiat money you can use to make purchases. However, in other ways, they are an investment, like a stock or a piece of art. These machines allow consumers to buy and sell bitcoin and store the coins and money in their wallets. Some of the most common Bitcoin ATM providers are Bitcoin Depot, Genesis, and Lamassu. With a peer-to-peer platform, or P2P exchange, you are selling your coins to what is a reduced value a private buyer, similar to how you’d buy products from someone on Etsy or eBay. If you’re itching to exchange your crypto for some cold, hard cash, you’ll want to consider the implications of selling.

It is advisable to stay alert about how much you’re paying to have your Bitcoin converted to cash. To use a P2P exchange, create an account with your platform of choice, then find ideal buyers and request trades. Once a buyer approves your request, the platform will keep your bitcoins locked until you confirm that you’ve received the buyer’s cash, like an escrow function. This setup makes peer-to-peer platforms especially worthwhile if you’re concerned about scams or fraud while interacting with someone over the internet. The closest comparison to using a third-party broker exchange is exchanging foreign currency for U.S. dollars (USD).

And that’s how to cash out Bitcoin using a broker exchange — skip the next section to follow instructions on how to do this. Selling Bitcoin via third-party services and moving proceeds to a banking account remains the most common and straightforward procedure. That has made Bitcoin an emerging hedging asset against macroeconomic turmoils. If you are located anywhere in Africa, the best way to cash out bitcoin fast is on Noones.

While most exchanges and money apps allow you to sell your crypto at a reasonable rate, places like crypto ATMs charge extremely high fees, which may eat into your profits. Similarly, Bitcoin debit cards are connected to a wallet service that holds the users’ Bitcoin. So instead of cashing out Bitcoin, users can directly spend their cryptocurrency at point-of-sale. Typically, these Bitcoin ATMs are connected to cryptocurrency exchanges, not bank account. For instance, US-based Coinbase protects its users from the risks of thefts and other losses by insuring its crypto reserves. Meanwhile, traders can quickly sell their Bitcoin holdings on the exchange for a fee and withdraw their US dollar balances to their local bank account without breaking a sweat.

Therefore, they would definitely inspect your transaction for any potential discrepancies. Should they find one, they can certainly lock your funds until further clarification from your end. Part of the reason is Bitcoin’s limited use at the point of sale counters. Despite its merits, the cryptocurrency is too slow to be called a real currency. Each of its transactions takes at least 10 minutes to get confirmed. As a result, merchants cannot accept Bitcoin at risk of losing — say — 10% of the PoS value in less than 10 minutes.

Debit cards and Bitcoin ATM attempt to combine the best of crypto and traditional finance. Depending on where you live, you can find an exchange registered and regulated as per the local jurisdictions. In doing so, you will be able to protect your Bitcoin from a range of common issues exchanges face, mainly security-related, that lead to theft or wipeout of Bitcoin balances.

Later, a user needs to decide whether he wants to sell or buy Bitcoin. To sell Bitcoin, the user sends Bitcoin from his wallet to the Bitcoin QR code presented on the ATM screen. Depending on the machine, some will dispense cash immediately, while others will take a bit of time. Nonetheless, the same risk-free settlement cannot be guaranteed in the case of unregulated brick-and-mortar exchanges.