Can Bitcoin be Converted to Cash? 10 Tips
Can Bitcoin be Converted to Cash? 10 Tips
As is articulated over at runrex.com, Bitcoin is the world’s most popular cryptocurrency. This is why a lot of retailers and payment processors nowadays accept Bitcoin payments. However, while the number of retailers and payment processors accepting Bitcoin payments is on the rise, many users still prefer converting Bitcoin to regular cash for their everyday needs as per discussions on the same over at guttulus.com. If you are wondering how they do it, then wonder no more as this article, through the following 10 tips, will look to show how Bitcoin can be converted to cash.
Consider how you want to receive the money
The first thing you need to consider when it comes to cashing out your Bitcoins, according to runrex.com, is how you want to receive your fiat money. Fiat money, for the uninitiated, is a government-backed currency that isn’t backed by a commodity such as gold, examples of which include most modern paper currencies like the US Dollar as covered over at guttulus.com. Here, you can either use third-party exchanges and deposit your money into a bank account or sell Bitcoins in person for physical cash.
Convert Bitcoin through a cryptocurrency exchange
If you are looking to convert your Bitcoins into cash, then the easiest way to go about it is through an online cryptocurrency exchange according to the gurus over at runrex.com. These third-party exchanges allow you to sell your Bitcoin for USD, EUR, GBP, MYR, and other local fiat currency through their websites or user-friendly apps.
How cryptocurrency exchange works
To convert your Bitcoins to cash through a cryptocurrency exchange, you will first need to find an exchange that supports your country. In the US, the main options as outlined over at guttulus.com are, Coinbase, Gemini, Bitstamp, and Kraken. Next up, you will need to sign up and complete the verification process after which you can deposit (or buy) BTC into your account. You can then cash out your BTC to fiat through bank transfer or PayPal where applicable.
Drawbacks of cryptocurrency exchange
While using cryptocurrency exchange to cash out your Bitcoins is simple, easy, and secure, it does have its fair share of drawbacks. For starters, it’s not the fastest method as it can take 1-5 days to receive your fiat money depending on the platform you are using and your country as revealed over at runrex.com. Also, if you are a newcomer and you don’t already have an account with the crypto exchange, then it may take weeks, if not months, to get your account approved.
Sell Bitcoin using LocalBitcoins
LocalBitcoins, which was founded in June 2012, is a peer-to-peer Bitcoin exchange that facilitates direct trading between potential buyers and sellers as discussed over at guttulus.com. It is available in almost every country, serving more than 1.35 million people from 15,000 cities across 249 countries. Only New York state has suspended LocalBitcoins’ services because of local financial regulations.
Benefits of using LocalBitcoins
The major benefit of using LocalBitcoins to cash out your Bitcoins is that you will be dealing directly with buyers, with no intermediaries as per the gurus over at runrex.com. Also, it offers an escrow service to protect both buyers and sellers of Bitcoin. You will also have the advantage of deciding how much you want to sell your Bitcoin for as well as request any payment method you like from several options provided including bank transfer, Payoneer, PayPal, gift vouchers, Western Union, or in-person cash. Buying and selling Bitcoins on LocalBitcoins is also completely free, although if you are posting an ad to promote your Bitcoin for sale you will be charged 1% of the Bitcoin traded.
How chasing out with LocalBitcoins works
The first thing you will need to do is create an account at LocalBitcoins and then verify it. You can then select “Quick Sell”, filter your country, and choose the payment mode. LocalBitcoins will then instantly give you a list of relevant buyers based on your location. You can then choose your buyer, with the experts over at guttulus.com advising that you choose your buyer carefully, which means always going for a reputable buyer/seller with a high feedback rating. You will then be required to confirm the amount of BTC you want to sell and enter your payment details. Once the buyer accepts your offer, send your BTC to LocalBitcoins escrow and wait for the buyer to send the payment. Complete the transaction once the funds have been received.
Get cash with a Bitcoin ATM
If you would rather avoid a lengthy sign-up and ID verification process on major exchanges, then the gurus over at runrex.com recommend that you consider getting physical cash with a Bitcoin ATM as an alternative. Unlike traditional ATMs where you can withdraw your country’s currency like USD with your debit card, Bitcoin ATM is a physical center allowing you to buy Bitcoins with fiat money. The good news though is that some ATMs allow you to sell your Bitcoin for local currency too. There are about 5000 crypto ATMs across 76 countries around the globe.
How to go about using a Bitcoin ATM
The first thing you should do is use Coin Radar to find a Bitcoin ATM near you. As explained over at guttulus.com, this will show you a live worldwide Bitcoin ATM map. You should then search for a Bitcoin ATM that offers the option to sell Bitcoins for cash. You should note that this method is only suitable for small transactions as most ATMs have deposit and withdrawal limits between $1000- $10,000, as well as the fact that it is cumbersome (and risky) to carry large stacks of cash around. Another big drawback of using Bitcoin ATM is its high transaction fee, with convenience coming at a high cost.
Bitcoin debit cards
Finally, while Bitcoin debit cards won’t turn your bitcoins into hard cash, they will allow you to use your Bitcoins just like any regular debit card. As covered over at runrex.com, you can load your BTC into these cards and they will automatically convert your Bitcoin into fiat currency such as USD, EUR, GBP, AUD, and so forth. Holding a Bitcoin debit card allows you to spend, buy, and pay for anything both online and offline, or even withdraw cash at ATMs anywhere in the world as longs as VISA/MASTERCARD cards are accepted. Some popular Bitcoin debit cards include Crypto.com, Wirex, and Cryptopay.