How to Turn Bitcoin Into Cash

How to Turn Bitcoin Into Cash

If you have been owning bitcoin for some time, you might have reached a point where you are considering converting the bitcoin into cash. Bitcoin or BTC has now existed for over a decade and several options have arisen to cash out the Bitcoins. 

We have compiled this guide to help you out with the different options available out there to turn Bitcoin into cash. This can be done via bank transfer, PayPal, or cash deposition. However, it might first be handy to know why turning Bitcoins into Cash might be necessary.

Why Turn Bitcoin into Cash?

People have been involved in the act of investing in Bitcoin in the world of today due to its prospect of replacing fiat money. This means, theoretically, we will reach a world where bitcoins can be used for almost every kind of purchase and you will no longer require the use of other currencies like the U.S. Dollars, Euros, etc. 

As of today, not many businesses accept Bitcoin payment as a means of payment. Hence, it might be useful to consider changing your earnings in Bitcoin into cash. This way you will be able to use the money earned through this cryptocurrency to purchase real-life products or services. 

A different but yet important reason can be the fall of the value of Bitcoin in the market. When you realize that the Bitcoin curve is likely to keep declining, you may want to help yourself from making losses. This is when you may need to convert the currency into cash and wait for the price of the cryptocurrency to get better. 

It is true that despite how volatile Bitcoin is, the value of the cryptocurrency is only expected to rise over time. More and more businesses will, in the future, start to accept Bitcoins as a method of payment. 

It is important to realize that when Bitcoin started, 10,000 bitcoins would only be sufficient for a Pizza. Today, for just 10 Bitcoins, you can get yourself a top-class Tesla Model X. If the same trend follows, in a decade, you can use 1 Bitcoin to get you wealthy. Hence, it can be also an idea to not cash out all of it. 

How to Convert Bitcoin to Bank Transfer?

Now that you are aware of the need to turn bitcoin into cash, it might be a good idea to explore how to change your BTC earnings to your bank account. There are a few different ways of doing so.

Selling Bitcoin to Coinbase or Kraken (in the US) or other Cryptocurrency exchange platforms: Coinbase and Kraken are cryptocurrency exchanges where you can sell the Bitcoin and deposit the cash directly to the bank account of your choice. It is the simplest way to move BTC to a bank account. To avoid money laundering risks, you are required to withdraw using the same account as you deposit in.

There are several online platforms for such cryptocurrency exchanges. However, these vary per country. We have prepared a list of few options for you to check which country supports what platform. 

  • The U.S.A – Coinbase, Kraken, Bitstamp, Gemini
  • Malaysia- Luno
  • India- Bitbns
  • China- Huobi, OKCoin, BTC China
  • Singapore- Luno, Coinhako, Coinbase
  • Taiwan: Maicon
  • Australia- Independent Reserve
  • The U.K.- Coinbase, CEX
  • European Countries- Coinbase, CEX
  • South Africa- Luno
  • South Korea- Bithumb, Korbit, Coinplug
  • Japan- Coinmama, Kraken

Some of the countries in the world are restricted from using these platforms.

When talking about the U.S.A, it takes around 4 to 6 days for the money to be transferred to your bank account. This of courses differs per country.

If you are an EU resident, payments are most likely to be done through SEPA. When you want to sell Bitcoin, you are likely to see brokers using the SWIFT method of payment. 

The process that you need to follow to process such a bitcoin transaction is explained below:

Step 1: Register and complete the process of verifying your identity in the platform.

Step 2: Buy the Bitcoin (or deposit) into the bank account.

Step 3: Cash out the Bitcoin to the U.S. Dollar, Euro, or other fiat currency through bank transfer or via PayPal transfers.

How to Turn Bitcoin Into Cash

photo-Bermix Studio

ATMs for Bitcoins: Have you heard of a bitcoin ATM? It is a center, where you can physically exchange (buy or sell) the Bitcoin currency for some fiat currency. As of today, there are more than 5000 such ATMs all over 76 countries in the world. You can check out the website Coin ATM Radar to find one such ATM in your area. 

However, it is important to bear in mind that this kind of transaction can only make sense for small amounts because these ATMs come with deposit and withdrawal limits. Moreover, such ATMs will also have quite a large fee for the transaction. This usually ranges between 7 and 12 percent. 

Debit Cards for Bitcoins: Did you know that using many websites today, you can sell your Bitcoin earnings to get a prepaid debit card? This debit card, also called the Bitcoin Debit Card, can be then used like any usual debit card, powered by VISA or Mastercard. You can utilize it both online and offline, almost everywhere in the world. You may also use these debit cards to withdraw cash in the ATMs which accept VISA and Mastercard. 

Peer-to-peer transactions: This has been growing in practice in the world of today. It is partially because it is a faster, and anonymous mode of transaction through a peer-to-peer platform whereby you can sell your bitcoins and convert your earnings to cash. 

As you sell the bitcoins to other users, you have the opportunity to decide on the method of payment that you want your customers to use. There are two methods in this regard: Cash deposition and bank transfer.

With a Cash deposit, you can request the buyer to deposit cash in the bank account of your choice. In this regard, you must not forget to request proof of identification and a receipt of payment before giving your Bitcoins to the buyer.

When it comes to a bank transfer, you can request the client to send you the payment through a bank transfer or via PayPal, if that is what you both can use. In this regard as well, you must not forget to request proof of identification and a receipt of the payment beforehand. After you receive these verifications, you can hand over your bitcoins to the buyers. 

The Peer-to-Peer (P2P) selling is pretty secure if you are well-aware of your actions. However, it is always necessary to keep frauds in check. There are several platforms that you can use for P2P selling. One such platform is the LocalBitcoins.

The LocalBitcoin is one we recommend given its increased security. They come with an escrow service that can help keep the Bitcoins locked until the payment has been received for sure. It supports almost all nations around the world. Furthermore, you can also request the payment method of your preference. 

Some of the payment methods that are available through the platform include:

  • Transfer to your local bank
  • International wire transfer through bank
  • PayPal
  • Skrill
  • Payoneer
  • Western Union
  • Bank Cash Deposit
  • Vouchers from different stores (gift cards)
  • Web Money
  • Neteller

Moreover, if you are a seller and you are aware of the different cashing out options of your Bitcoin, you can choose the price at which you want to sell your bitcoin. You can do this by simply creating an ad. You will only need to pay a 1% fee for the total sale. Nevertheless, if you are simply selling at the listed price that the buyer is ready to pay, you will not have to pay any fee. 

You can use the LocalBitcoins platform using the following steps:

  1. Create an account in LocalBircoins.com. 
  2. Create a username and an adequately strong password. You will also have to confirm your email address as a verification process.
  3. Log in using your user details and click on ‘Sell Bitcoins’ at the top of the page. 
  4. You can then select the country where you expect your most buyers to be located. 
  5. You will be given a choice of the different cashing out options for your Bitcoin. 
  6. Confirm how much Bitcoin you are wanting to sell and enter the details of your cash-out option. Next, choose ‘Send Trade Request’.
  7. The buyer gets the notification. If they accept, they will make the payment, and only after you get the confirmation of payment, your Bitcoin is released.

Conclusion

You are now aware of the most feasible options of converting your Bitcoins into cash. However, each method will require your prudence and you need to be careful to choose a safe and easy option. The processing time may vary per country, but mostly all countries worldwide have access to quite some options. 

You can also read- How to Make $1,000 Fast

Written by adminbitkch

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