Have you ever thought of converting your bitcoins into cash?
You may have made huge profits on Bitcoin’s bull run in December 2018 and decided now to cash them out. Or you may have lost everything with the crypto market’s correction after that and now want to get rid of BTC and forget it like a horrible nightmare. Whichever is your story, you need a step-by-step guide on how to convert Bitcoin into cash. No worries, we are here to help you.
The biggest problem with Bitcoin or any other cryptocurrencies is that they are still in the gray economical zone and there is no way to sell BTC and get cash directly to your bank account. Even in the countries that are most loyal towards cryptos, such as Malta or Switzerland, banks are reluctant to work with cryptocurrency. But the cunning mind of an investor will always find a workaround and use other options.
1. On fiat supporting exchanges
There are many cryptocurrency exchange platforms that support fiat trading pairs. The best thing about them is that in most cases they allow withdrawing fiat money directly to your local bank account.
Typically, such exchanges work only in a limited number of regions, so it may require some time to find one that works in yours. Also, verification may take a while, since converting cryptocurrency to fiat is a risky business and platforms must be sure that you are not anyhow involved in the criminal world.
Here’s the list of most trusted exchanges where you can convert BTC into cash:
- Bitfinex – USD / EUR
- Kraken – USD / EUR / JPY / CAD
- Bittrex – USD
- Cex.io – USD / EUR / GBP / RUB
- Coinbase – works in the US
- Bitstamp – works in Europe
- BTCC – works in China
- Wazirx – works in India
Apart from Bitcoin, you can also directly convert some altcoins such as Ethereum, Bitcoin Cash and Monero to fiat on these platforms.
2. Via LocalBitcoins
Local Bitcoins is a peer-to-peer cryptocurrency exchange platform where you can buy and sell Bitcoin by exchanging it for your local currency. This Finland-based startup works in 248 countries covering more than 16,000 cities. So unless you live in a very small and faraway village, you’ll be able to easily find a person in your home city willing to buy bitcoins for cash from you.
The best thing about this service is that you can receive fiat currency in practically any suitable way for you, be it a bank transfer, your PayPal account or mere cash. Specify the payment methods that suit you, set up your price and wait till the buyer appears.
The platform curates the deal so you can be sure to receive your money.
3. Convert BTC to USDT or any other stable coin
If your purpose behind converting BTC to real money is to keep your funds safe during the market downtrend, then you can stay within cryptos, but go to the stable haven.
Not all exchange platforms support fiat pairs, but there are much more of them that allow converting BTC to Tether (USDT). Also, recently some other stable coins have been released, such as PAX, TrueUSD, USD Coin and a few more. So you can diversify your portfolio and convert bitcoins to several different USD analogies.
4. Sell Bitcoin at crypto ATM
First launched in Vancouver in 2013, cryptocurrency ATMs now get more popular and can be found in almost all huge cities, at least in the US and in Europe. Most of them only allow to purchase BTC, but there are many that work in both buy and sell directions, too.
Bitcoin ATM is a very convenient tool for those who want to easily convert cryptocurrencies to fiat and backward. Also, some ATMs support altcoins such as Monero, Bitcoin Cash, Litecoin and more.
The downside of this service is the BTC conversion rate as it is typically worse than what is offered online. Also, although the ATM fees typically range 5-10%, there are some that charge higher commission.
5. Convert cryptocurrencies via Bitcoin debit card
Another easy way of converting cryptos to fiat is to use a Bitcoin debit card. Simply log into your online account, deposit bitcoins to the Bitcoin wallet provided by the app, convert it to your local currency and withdraw to your bank account.
After VISA blocked WaveCrest, the main card issuer in the cryptocurrency area, the geographical coverage of the companies selling such cards has significantly decreased. Most of them have found some local card issuers and now distribute them within dedicated regions. But still, you may be lucky to have such a company in your country.
Among the companies issuing Bitcoin debit cards are the following:
- Wirex – EU
- Bitwala – Germany
- Cryptopay – Russia
- BitPay – the US
6. Crypto loans
This is yet another way to cash out your bitcoins. The point is that you don’t have to sell it and you can get it back before the price reaches the critical level.
There are some companies that offer such services. They work in the following way. You deposit your digital currency to a smart contract and receive real money in exchange to your bank account. To get your cryptos back you simply make a reverse transaction.
Typically, if you loan 1 BTC, you get the sum that is equivalent to approximately 50% of its current price. If the price drops, you receive a notification. If you don’t purchase back your bitcoins before the price reaches some critical level, they will be sold off on an exchange.
One of the loans’ core benefits is that they allow avoiding taxation if you live in a country where cryptocurrencies are taxed.
In this article, we have reviewed the most popular ways to cash out bitcoins. Whatever method you select, always make your research. Rules may differ in different regions, and there’s a good chance that you can find an even better way of converting cryptos.
Also, don’t forget to follow the safety rules. Never give away your crypto if the deal is not protected by the third-party such as an exchange. Since cryptocurrencies are difficult to trace and transactions on the blockchain are impossible to reverse, they can be easily stolen with no chance of a refund.