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    How to Cash Out Bitcoin: Complete Guide

    Posted On October 2, 2023

    how to withdraw bitcoins to cash

    You can sell Bitcoin for cash through several methods, but crypto exchanges and P2P platforms are the most widespread and easiest to use. They allow you to easily buy, sell, or trade different digital coins. One of their biggest perks is their user-friendly design so you can convert crypto to fiat within a few clicks. All you need is to pick the token and enter the exact sum to be sold. In layman’s terms, a cryptocurrency exchange is a place where you meet and exchange cryptocurrencies with another person.

    With an online peer-to-peer trade, you can sell cryptocurrency online in exchange for dollars. These transactions are often facilitated by an exchange, and Binance runs a well-known online peer-to-peer platform called Binance P2P. Once you check the transaction record in the payment account and make sure you have received the money from the buyer, Binance will release the crypto to the buyer on the platform.

    How to Withdraw Bitcoin using an ATM

    However, in other ways, they are an investment, like a stock or a piece of art. These machines allow consumers to buy and sell bitcoin and store the coins and money in their wallets. Some of the most common Bitcoin ATM providers are Bitcoin Depot, Genesis, and Lamassu.

    how to withdraw bitcoins to cash

    You bought low, hodl’d and now are ready to enjoy some of your crypto gains. In addition to paying with crypto directly, cashing out Bitcoin or other cryptocurrencies is something every crypto holder should know about. Here are the top ways to convert Bitcoin to cash fast, cheaply, easy and securely. Reading through various best crypto exchange reviews online, you’re bound to notice that one of the things that most of these exchanges have in common is that they are very simple to use. While some are more straightforward and beginner-friendly than others, you shouldn’t encounter any difficulties with either of the top-rated exchanges. That said, many users believe that KuCoin is one of the simpler exchanges on the current market.

    Use an exchange to sell crypto

    I’ve been writing about money and lifestyle design since 2006. I created this site, grew it to 2 million monthly readers, sold it, and bought it back again. These apps support a very limited selection of crypto, with Cash App only supporting Bitcoin, and PayPal supporting Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.

    But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. Want to store, send, accept, stake, or trade cryptocurrencies?

    Stellar USDC provides users with a fast, cheap, and easy-to-use alternative to other USDC enabled blockchains. But despite the limitations, converting your crypto to cash has become much easier than it used to be. So no matter what crypto app you prefer, you should be able to quickly convert it to a stack of Benjamins. Many centralized exchanges also offer P2P exchange options, including Binance, KuCoin, and ByBit. If you are simply looking to access cash, the Coinbase card can be used at an ATM to withdraw up to $1,000 per day.

    Step 5: Confirm and Complete the Withdrawal

    Online brokerages typically have reasonable trading fees for selling crypto. For example, eToro charges a flat 1% trading fee to sell crypto, which is a fairly low rate. Robinhood does not disclose its crypto trading fees, but averages around 0.50% for crypto trades. If you sell your cryptocurrency, however, it’s important to understand that you could be creating a tax liability, so you’ll want to be sure you account for taxes in your decision to sell. With the introduction of spot Bitcoin ETFs in 2024, investors have a simple way to buy and sell Bitcoin using a familiar structure.

    how to withdraw bitcoins to cash

    It’s one thing to know you want to convert your bitcoin to cash, but it’s another to know how to cash out bitcoin. Sure, there are several cashout methods, but depending on your situation, each one’s structure, fees, and cashout timeframes might be either a burden or a boon. The best bet is to use a platform like Binance.us or FTX.us to save on fees, and quickly cash out your crypto for dollars. The mobile apps make it easy to sell, and you can connect your bank account to transfer funds after the crypto is sold. Some exchanges do not allow the conversion or selling of some cryptos to dollars, so you’ll need to take an indirect route to get your cash. Depending on which exchange you use, you may need to transfer or convert your cryptocurrency to another popular currency such as the stablecoin Tether, before finally converting to dollars.

    Get cash from a Bitcoin ATM

    While crypto wallets are designed to store and secure your crypto, many of them partner with crypto exchanges to offer trading services. Sellers have the ability to set their own rates and can choose from more than 350 payment options, such as cash, gift cards or other digital currencies. Clients can sell directly to over 12 million users worldwide, according to the platform’s website. The closest comparison to using a third-party broker exchange is exchanging foreign currency for U.S. dollars (USD). Many travelers convert their foreign currency at a bank or exchange company and receive cash immediately. With bitcoin, you deposit your coins into an exchange, and then you can request a withdrawal in the currency of your choice.

    1. From there, you can transfer the money to your bank account if you wish.
    2. However, in other ways, they are an investment, like a stock or a piece of art.
    3. Depending on how large or small your transaction is may determine which method you use.

    In turn, you will receive payment through Zelle, PayPal, or another method of deposit to your bank account. The catch with the best online brokers is that these platforms don’t allow you to transfer crypto into the brokerage. do credit notes have an expiry date You must be holding your Bitcoin with the platform to be able to sell it for cash.

    This means that if you hold Bitcoin in a digital wallet or on a crypto exchange, you cannot move it to an online brokerage account to sell. Many crypto exchanges charge high fees if you use their simple “sell my crypto” option. Coinbase, for example, charges $0.99 when selling under $10 worth of crypto (which makes it nearly a 10% fee), and around 1.50% for larger transactions when selling through their platform. The only way around this is to use the “Advanced Trade” platform on Coinbase to sell your crypto, with fees as low as 0.60%.

    LocalBitcoins is freeto use unless you create an advertisement for selling your bitcoins, then thereis a small percentage fee charged. Some cryptocurrency exchanges don’t automatically provide a Form 1099, which you’ll need since you’re required to report income from cryptocurrency on your tax returns. If the exchange doesn’t provide a Form 1099, you’ll have to fill one out by adding up your bitcoin purchase and sell orders to determine your profits or losses. This can be a tedious process that may require hiring a bookkeeper or accountant, but it’s cheaper than getting in trouble with the IRS. However, you are dealing with cryptocurrency instead of “fiat currency” (e.g., U.S. dollars), and you connect to a Bitcoin exchange instead of a bank to process transactions.

    Most crypto-to-cash fees are reasonable, plus they let you conduct transactions worth thousands of dollars. Selling crypto for cash typically comes with fees, but sometimes it is more than you think. While most exchanges and money apps allow you to sell your crypto at a reasonable rate, places like crypto ATMs charge extremely high fees, which may eat into your profits. At this step, it’s vital to check all the details of your request once again. It includes the amount, the recipient’s payment method, and fees. Processing time depends on several factors we’ve covered earlier in this article.