Can you convert Bitcoin to cash? If you’re wondering how to turn Bitcoin into cash, this article is for you.
Over a decade since the genesis of Bitcoin (BTC), it has finally broken into the mainstream with many institutions providing options on how to convert crypto to cash.
Although the popular strategy is to HODL or trade due to skyrocketing values, emergencies can happen, and you might need some liquidity for your immediate needs.
Questions like “how to convert Bitcoins to cash” and “how long does it take to turn Bitcoin into cash” are just some of the things this article will tackle.
How much does it cost to turn Bitcoin into cash? Fees will differs based on the method you choose for cashing out. We have chosen five of the best ways to convert Bitcoin to cash and discuss each one in-depth
- 1 5 Different Ways to Cash Out Bitcoin
- 1.1 1. Use Cryptocurrency Exchange to Cash Out Bitcoin
- 1.2 2. Using Cash App to Turn Bitcoin to Cash
- 1.3 3. Bitcoin to fiat using a Bitcoin Debit Card
- 1.4 4. Selling Bitcoin via LocalBitcoins
- 1.5 5. Get Cash with a Bitcoin ATM
- 2 Is it a good idea to cash out your Bitcoin?
- 3 Final Thoughts
How easy is it to turn Bitcoin into cash? There are several methods for converting BTC into cash, but first you need to decide the where and how you prefer receiving your cash or fiat currency. Fiat currency is basically your traditional currencies, like USD, GBP, SGD, etc.
If you are over HODLing or trading, or you simply need some much-needed injection of cash and you want to know how to transfer Bitcoins to cash, you can:
- Use a crypto exchange platform
- Use Cash App to turn Bitcoin to cash
- Convert BTC to cash using a Bitcoin Debit Card
- Sell BTC via LocalBitcoins
- Withdraw cash from a Bitcoin ATM
You can also leverage crypto for cash, so you do not have to sell them. Check out the best crypto loan apps for this option.
There are crypto exchanges to convert Bitcoin to cash and even an option for in-person exchange for money. If staying anonymous is important to you, there are options here on how to turn Bitcoin into cash anonymously including the pros and cons of each method.
When it comes to the question of how to turn Bitcoin into cash, third-party exchanges make it easy to sell Bitcoin and Altcoins for EUR, USD, GBP, etc.
Crypto trading or exchange platforms, such as how to turn Bitcoin into cash on Coinbase, usually have features and services for Bitcoin to fiat currency conversion.
But not all exchanges will support crypto-fiat exchanges and there are sometime jurisdiction restrictions. For example, results on how to turn Bitcoin into cash Australia will differ from available crypto apps in Europe.
These are just some of the most recommended third-party crypto exchanges with options to sell your Bitcoin for cash or Bitcoin to cash converter.
|Country||Recommended Crypto Exchange|
|China||BTC China, Huobi, OKCoin|
|Singapore||Luno, Coinhako, Coinbase|
|South Korea||Bithumb, Korbit, Coinplug|
|US||Bitstamp, Coinbase, Gemini, Kraken|
No need to worry about how to turn Bitcoin into cash Canada because these crypto exchanges are typically available worldwide.
Steps to selling Bitcoin for cash on crypto exchanges
- To withdraw Bitcoin to bank account, the first step is to sign up to the platform by completing the verification process.
- You can buy BTC or deposit Bitcoin to your account.
- Finally, convert Bitcoin to a fiat currency using the bank transfer option or sending to your PayPal account (generally available in some crypto apps).
Pros and cons of crypto exchanges for cashing out Bitcoin
The upside of using crypto exchanges are the simplicity of the platform, security, and overall ease of use.
On the other hand, it can take longer to get your money depending on platform and location, usually 1-5 working days. The approval process can also take weeks, even months, just to get into the platform. So, this is not the ideal option for quick cash.
There are also jurisdiction restrictions, so if you are travelling and you need the money, you may not be able to readily withdraw funds if it is not available in your current jurisdiction. Finally, anonymity is not guaranteed if this is something that you want.
Recently, the search on how to turn Bitcoin into cash on Cash App has increased in popularity with the wide use of the platform.
Here the steps on how to turn Bitcoin into cash using Cash App:
- Select Banking on the app’s homepage, then choose Bitcoin.
- Select Withdraw Bitcoin.
- Enter your digital wallet address by scanning the QR code address or manually enter your wallet address.
- Enter your PIN or Touch ID for confirmation.
To withdraw cash from Cash App, you need to maintain a balance of 0.0001 Bitcoin or more. Daily withdrawal limit is $2,000 worth of Bitcoin and $5,000 weekly. Transfers to your external crypto wallet can take between 30–40 minutes.
As with any crypto platform, there are fees associated with Cash App. If you want low or zero fees, you can use a non-custodial wallet like Coinomi or Coinbase Pro if you want a more trusted and robust system.
Pros and cons of cashing out Bitcoin via Cash App
Cash App allows instant buying and selling Bitcoin in most US states. Transferring USD and BTC among Cash App users as well as businesses is fast and easy. It can also easily let you withdraw and deposit Bitcoin or fiat and pair your account with a debit/credit card.
Features aside, the downside of Cash App is that sending or receiving Bitcoin to and from a non-Cash App user entails enabling Bitcoin withdrawal and deposits plus a standard verification process first.
Withdrawals take about 30 minutes to complete the blockchain process.
Another recommended answer as to how to turn crypto into cash is through Bitcoin Debit Cards.
Bitcoin debit card lets you load your Bitcoin into it and the coins get automatically converted into a fiat currency, such as AUD, GBP, EUR or whichever you prefer.
After conversion, you can then use that to purchase products and services online or withdraw into hard cash using the traditional fiat currency ATMs.
Popular Bitcoin debit cards (comparison table)
|Bitcoin Debit Card||Best Features||Pros||Cons|
||Overall features||– Accepted at any Visa-supported outlets
– Top-notch security
|– You need an account
– High fees
||No fee||– Zero-fee issuance
– No monthly fees
– World-class security
|– Exclusive in Europe
– Account required
||Cashback||– 1.5% cashback up to 3.5% (within 4-6 months)
– Up to $250 cashback for $3000 spend in 3 months
|– $200 fee per year|
||Perks||– Referral bonus + cashback
– No monthly or issuance fees
|– Not available in US
– Requires Wirex balance for perks
||Cashback||– 8% cashback
– No monthly or issuance fees
|– For Europe users only
– Binance balance required to avail cashback
Pros and cons of Bitcoin debit cards
While debit cards can be used anywhere in the world and convenient for travelers, the cards with the best cashback and reward programs are limited to certain jurisdictions.
4. Selling Bitcoin via LocalBitcoins
Another method of how to get cash for Bitcoins is through LocalBitcoins. This is a P2P (peer-to-peer) Bitcoin trading platform which allows direct trading instead of a brokerage system.
These are some of modes of payments you can use to get cash for your Bitcoin:
- Cash deposit
- Bank transfer
- Western Union
- In-person exchange
You can also post ads for your Bitcoin to attract potential buyers. Ads usually come with a 1% charge on the sales proceeds.
How to sell Bitcoin on LocalBitcoins
- The first step is to register or create an account on LocalBitcoins. This gets you a digital wallet for your Bitcoin free of charge and with necessary security features.
- From the main page, select “Quick Sell” then fill out the necessary details, including the price for your Bitcoins on sale and preferred payment methods. You will then get a list of offers for your Bitcoins.
- Check the offers for reputation etc. and click Sell once you have made a choice.
- After receiving the payment, you can release your Bitcoins.
Pros and cons of selling Bitcoin through LocalBitcoins
One of the main advantages of LocalBitcoins is that you get to deal directly with buyers, no middleman needed. The platform employs escrow service for protection.
Escrow basically holds the agreed-upon fee until the Bitcoin to ensure safe transaction for both parties. This also comes with dispute resolution and mediation.
LocalBitcoins is also widely available with over a million users in 15,000 cities from more than 200 countries. Sellers can likewise decide the Bitcoin price and choose preferred MoP for maximum profit.
Downside, this is not available in New York due to regulatory issues.
To avoid a lengthy, possibly complicated, registration process for crypto exchanges and crypto trading platforms, you can instantly convert Bitcoins to cash with a Bitcoin ATM.
If you are looking for reviews about how to turn Bitcoin into cash, Reddit has a wealth of user testimonials to help inform your decision.
Please note that each Bitcoin ATM may offer different limits for buying and selling Bitcoin, supported digital currencies as well as fees may also differ machine to machine.
You can use Coin ATM Radar to find a Bitcoin ATM nearby.
How to withdraw Bitcoins to cash using Bitcoin ATM
Selling Bitcoin using an ATM may vary depending on the machine and its system. It is best to look up the process of withdrawing from a nearby Bitcoin ATM before you go.
Fortunately, Bitcoin ATMs are adequately programmed with step-by-step instructions. For example, here are the steps for withdrawing cash from a Coinsource Bitcoin ATM:
- Create a free account with Coinsource. It is quick and easy.
- Search CoinATMRadar for an ATM near you.
- Get your Digital Wallet address where you store your Bitcoins ready.
- At the machine, log in to your account and choose “Withdraw Cash,” enter the amount you want to withdraw and send Bitcoins to the QR indicated.
Transactions usually last within 30 minutes.
Pros and cons of cashing crypto via Bitcoin ATM
Bitcoin ATMs are convenient channels for quickly cashing out your Bitcoins.
Although there are almost 5000 Bitcoin ATMs worldwide, it is still not widely available compared to exchanges. It is also reserved for small transactions because withdrawal limits range between $1000- $10000.
If you are withdrawing large amounts, this can be very conspicuous and inconvenient. There may be a security issue as well. Finally, transaction fees can go as high as 12%!
Is it a good idea to cash out your Bitcoin?
HODL or sell? Before you jump right in and convert crypto to cash, consider the repercussions of selling your Bitcoins.
First, consider Bitcoin taxes. Depending on your geographical location, it is your duty to pay taxes from the sales of your Bitcoin. In the US, Bitcoins and other digital currencies are under the property classification and subject to capital gains taxes. You only have to pay this tax once you actually sell your Bitcoins.
Second, due to the decentralized digital scarcity of Bitcoin, its value appreciates over time. Cashing out now could mean forfeiting future gains. So, think about selling only if you have no other option but to sell or if it is an emergency.
You also have the option of leveraging your crypto for cash instead of selling.
Ultimately, the decision is up to you.
The choice on how to turn Bitcoin into cash UK or any other location will depend on factors like speed, fees, jurisdiction, fiat currencies supported, security, ease of use, and perks.
For beginner-friendly interface, security, wide accessibility, and reputation, crypto exchanges and Cash App both tick the boxes.
For getting the most bang for your buck in terms of low fees and price control for maximum profit, it goes to LocalBitcoins.
If you want quick cash and a straightforward process, go for Bitcoin ATMs.
Finally, for globally accepted options with associated perks, try using Bitcoin debit cards.
Do you want to easily keep track of BTC price and of your portfolio value?