How to Convert Bitcoin to Cash
So if you have made a lot of millions to cryptocurrency market, one question strikes your mind now- how to convert bitcoin to cash now. No matter how big and small your balance is, we will help you how to turn Bitcoin currency into cash.
Before going for how to convert Bitcoin to cash, we need to understand why there is a need to transfer bitcoin to your bank account.
One day you will be able to use bitcoin for any type of purchase. It will be a replacement for fiat currencies like US Dollars, which will no longer be required. The reason that bitcoin will replace fiat currencies is the reason many people are investing in this cryptocurrency market.
Currently, the reality is that few businesses or individuals accept payment in bitcoin. This is one of the main reasons you would like to convert BTC into cash- so that you can utilize the value of your Bitcoin to buy the real things.
Another reason for converting Bitcoin to a bank account is to cash out those bitcoins when a market is in declining graph. If you predict or think that bitcoin price is going to keep sinking and you feel the need to avoid losses then it makes sense to convert bitcoin into fiat currency.
How BTC Can Be Transferred To Bank Account
There are several ways of converting bitcoin into cash and ultimately into a bank account:
1. You need to sell bitcoin on a crypto-currency exchange, such as Coinbase or Kraken platform. This is the easiest method to sell the Bitcoin and withdraw resulting cash directly to a bank account.
2. Bitcoin ATM should be used. There is around 2300 bitcoin ATM available around the world. If one happens to be near you, you can use it to exchange for hard cash.
3. Get issued a bitcoin debit card. Several platforms allow selling bitcoin and receiving a prepaid debit card.
4. Selling bitcoins to friends. If any of your friend who is interested in Bitcoin, you can exchange those crypto coins to hard cash. This process needs bitcoin seeking friends and whom you trust to pay.
Important Things to Remember in Converting Bitcoin to Cash
Before transferring all BTC to a bank account, keep in mind the following pitfalls in converting bitcoin
Taxes are inevitable in this converting process even for bitcoin investors. Some jurisdiction needs to clarify stance on Bitcoin and taxes. Tax authorities say that you have to pay taxes on profits that you earn while selling for cash.
Many of the BTC to bank account methods charge exchange fees. Different Cash Out Method
There are many things when cashing out Bitcoin. Here are few:
- Do you want to go with the cheapest method or easiest method?
- Do you need your money to be deposited in a bank account or PayPal?
- How long you can wait to receive the cash?
- Which currency is needed to change Bitcoin in to?
Before going for how to convert Bitcoin to cash, you need to ask some question to yourself. So before deciding to go for following methods, read through this:
Third Party Broker Exchange:
This is just another name for an exchange. Most of the cryptocurrency exchanges do not permit to deposit funds using fiat money. There are some that could help you:
It works like this: deposit bitcoin into the exchange, after receiving bitcoins, a request can be made for a fiat currency withdrawal. The most common method to do this is a bank transfer.
Make sure brokers do not override money laundering laws. You need to withdraw to the same bank account in which you deposited Bitcoins. You need to make at least one deposit if you have never deposited fiat on to a broker exchange.
This can be a frustrating little bit but you need to go this way. Once you decided to cash out Bitcoin-using a broker exchange like Coinbase, then it will generally take 1-5 days for the money to reach your account. If you need to sell Bitcoin for US dollars, brokers generally use the SWIFT payment method. That’s how to convert bitcoin to cash using a broker exchange.
Peer to Peer:
If you do not want to wait for three days to turn Bitcoin into cash, you should use peer to peer platform like LocalBitcoins.
While selling bitcoins to people on LocalBitcoins, you can choose which payment method you want the buyers to go through. These methods are:
- Cash Deposit: You can for the buyer to submit cash into your bank account. You
should ask for ID and proof of payment before releasing your Bitcoin.
- Bank Transfer: Ask the buyer to go for a bank transfer payment. You should request
for proof of ID to the buyer. Once you received money, release the bitcoins to a
- Meet in person: The buyer who is local to you, you can arrange to meet up. They
will pay you in cash for Bitcoins.
P2P selling is safe and secure if you know the way. It is important that you be aware of
If you have gone through this article, you have known that how to convert Bitcoin to cash. The above two methods will help you to cash out Bitcoins. These both methods have their advantages and disadvantages.
Coinbase can be proved more convenient and safe for the beginners, while LocalBitcoins help you to
remain anonymous and selling Bitcoins at a higher price.
Before going to cash out bitcoins, make sure you are using a safe and secure way as there is much fraud
also. Choose wisely even it is payment method or the buyer. And enjoy after cashing out Bitcoin with profits.