Despite its volatility, the price of Bitcoin has been on the rise in recent years. It’s unsurprising, therefore, that buying this cryptocurrency has become an appealing investment for many.
When you buy Bitcoin at the exchanges, you can move it to a hassle-free Bitamp Bitcoin wallet or leave it right there. At some point, though, you might want to sell your coins for cash.
It might be that the price is right, or perhaps you need fiat currency for something specific. Either way, there are several ways you can go about turning Bitcoin into cash.
Things to Consider When Cashing Out Bitcoin
If you were fortunate enough to see your crypto investment grow, cashing out when the price is high is what many users do.
But before you click on the “Withdraw” button, there are a few essential considerations to keep in mind. If you’re cashing out to your bank account, the process may take a few days.
Furthermore, converting Bitcoin to fiat currency involves an exchange fee charged by the brokerages. And if you’ll be making a profit from cashing out Bitcoin, you’ll need to pay taxes. This is something to remember when rounding up the tax year.
Bitcoin Cash Out Methods
There are several ways users can turn their digital tokens into cash. In most cases, third-party brokerages are the preferred choice, but not the only one.
Users holding substantial funds should be aware of all the options before choosing the suitable cash out method.
Third-party brokerages are usually called crypto exchanges, but they represent the same type of platform. The well-established brokerages make the cashing out process relatively easy.
All you have to do is find the “Sell” button, choose the preferred fiat currency, and enter the amount you want to sell.
The crypto exchange platform already has your bank account information, which was necessary during registration. Again, this isn’t a quick process and will take at least a few days. However, it’s important to note that some users don’t store their Bitcoin tokens at the brokerages.
If you’ve created a hassle-free Bitamp Bitcoin wallet or use any other non-custodial storage, you’ll need to take an additional step.
First, you’ll need to send the amount you want to cash out at the exchange and then withdraw the funds in fiat currency. Hardware wallets usually have designated software that facilitates moving the money to a brokerage before converting it.
Probably the fastest way to get cash for your tokens is to use a Bitcoin ATM. Despite the speed, these devices often have withdrawal limits and high processing fees.
It might not, therefore, be the best solution in every situation. However, in an emergency, locating the nearest Bitcoin ATM could be incredibly convenient.
Peer-to-Peer Bitcoin Exchange
Relying on a third-party system is not the only way to sell your Bitcoin. The benefit of using a peer-to-peer or P2P exchange is that you don’t have to wait for days to receive cash.
These platforms also offer anonymity and give you the option to choose your preferred payment method. Often, you will also find that exchange rates are better than at third-party brokerages.
When you sell your tokens to a buyer, you can decide whether they should send the money to your PayPal, bank account, or some other form of payment.
You might even have the option to advertise your Bitcoins, although that is not a free service. Also, buyers and sellers are rated. The downside of the P2P exchange is that there is more potential for fraud than with third-party platforms.
Bitcoin Debit Cards
If you want to use your Bitcoins for purchases, a crypto credit card is a great solution. There are several options on the market, and they all typically allow users to use both digital and fiat currency.
This makes Bitcoin debit cards an excellent spending option for international travelling. Plus, they don’t charge any foreign exchange fees.
Spending Your Bitcoins Safely
When you choose to sell your digital assets, you’ll hopefully do so for a profit. Unless it can’t be avoided, it’s best not to cash out when the Bitcoin price is low.
Some Bitcoin enthusiasts buy and hold Bitcoin to wait for the price to skyrocket. But even then, cashing out is the goal. Crypto brokerages are the mainstream option for cashing out, but that takes time.
The alternatives are Bitcoin ATMs and P2P exchanges. All methods have unique advantages and disadvantages and utilising all three is often the best choice.