Cryptocurrencies have been the talk of the town (or should I say the world!) for a while now. It is not news that cryptocurrencies have brought a new revolution in the medium of exchange. It is well-known that Bitcoin leads the crypto market because of its high demand and limited availability. If you own Platform, you might want to cash out at some point or the other for various reasons. You might want to take advantage of a good opportunity and secure a profit by selling your Bitcoins, or you may need the cash for some immediate use. Before we look at the money-out methods for Bitcoin exchange, you need to know that these coins are digital and therefore volatile, so their values change significantly with every passing moment. Hence, it is advised to time your decision to sell Bitcoins wisely.
There are two ways to convert your Bitcoins into cash:
Third-party Broker Exchanges
Converting Bitcoin into cash using a cryptocurrency exchange or a third-party broker is similar to how we exchange currencies at the airport of a foreign country. For the withdrawal, you need to deposit the bitcoins in the exchange in the first place. After the exchange gets to receive it, you can place a withdrawal request. The amount would then be transferred to your bank account. The last step would be for you to withdraw the cash from your bank account. It is noteworthy that the amount would be sent to the same bank account you used to deposit Bitcoins because money laundering laws restrict third-party brokers. This is a simple and secure method; however, it is a little time-consuming process. The money reaches your account within 2-6 days, so it is not the fastest option. Not all the service fees are same; it varies in different places.
Bitcoin Erais a safe and one of the popular Bitcoin trading websites that can be used for cash withdrawal.
Steps to cash out Bitcoins using a third-party broker exchange:
- Pick the exchange you wish to use for the convert of crypto into cash.
- Sign up and verify your account
- Deposit the amount of Bitcoin that you wish to convert into cash
- Finally, cash out your Bitcoin by depositing the amount in your Bank account.
- You will be charged a transaction fee, and the average time for the money to reach your account would be 4-6 days.
Bitcoin ATMs also work similarly. These kiosks can also be used to cash out Bitcoins by selling them. Here’s how:
- A prerequisite would be to have an account with the Bitcoin ATM Operator.
- Using the ATM, log in to your account and specify the amount of Bitcoin you want to convert into cash and the wallet address from which you wish to do so.
- This process of selling a Bitcoin takes longer than buying because this calls for verification on the blockchain, and once verified, you will receive a notification. You will be able to withdraw physical cash.
- You will be charged a transaction fee for the same.
Another method that you may opt for is peer-to-peer platforms, which is a platform that allows you to directly sell your Bitcoins to a buyer where you also have the liberty to decide the payment method that you would prefer the buyer uses to send you the money. LocalBitcoins, Binance, and LocalCoinSwap are some popular platforms that allow a peer-to-peer exchange of Bitcoins.
Here are the steps to cash out Bitcoin on a peer-to-peer platform:
- Decide which peer-to-peer platform you want to use to carry out the transaction.
- Sign up for the platform
- Decide the location where you wish to sell; that is, the location of a prospective buyer.
- Find a buyer using the marketplace and send a trade request.
- Put your Bitcoin into the Escrow of the platform. This will hold your Bitcoins till you’ve confirmed the payment receive. that you have received the payment from the buyer.
- Once you confirm the reception of the payment, the Bitcoins will be released to the buyer. That’s it; you’re all done!
When using peer-to-peer platforms, beware of fraudsters and scams. It is always advised to use a platform that has an escrow option.