How to Cash Out Bitcoin & Other Cryptocurrency: Complete Guide

  • Vera Thornpike
    ⭐ Features

    Learn about all possible ways to cash out Bitcoin and other cryptocurrencies


How to Cash Out Bitcoin & Other Cryptocurrency: Complete Guide

You might be a Bitcoin millionaire, but what’s the point in that, if you cannot use the digital money in the real world? All your trading efforts would have gone in vain if you don’t know how to cash out Bitcoin.

If you already possess a few valuable coins and want to turn them into fiat, this definitive guide is here to help you out. Find out what can be done to sell Bitcoin for cash, as well as all other cryptocurrencies. These methods differ by both how do you cash out Bitcoin, and how much time it takes.

Which way of Bitcoin cash out is best for me?

Before you start turning digital currency into a real one, you need to decide which of methods appeals to you. Here are a few questions to ask yourself for making an informed decision:

  • Do I need the cheapest or the easiest option?

  • How long are you ready to wait to transfer Bitcoin to cash?

  • Where the money should be stored– in PayPal or a bank account (you are free to select the way how to cash out Bitcoin on some platforms).

  • In which currency will you be cashing out Bitcoin?

Now it must be easier to figure out the best method. Let’s move on and find out how to get cash from Bitcoin.

Cryptocurrency exchange

Today, this is the most widespread way of money financial transfer. An exchange platform is a website where you can sell Bitcoin for cash (or other currencies depending on which coins are supported by projects) to other users and transfer money to your bank account.

So, how to withdraw Bitcoins to cash using a cryptocurrency exchange platform?

  1. Create an account using your personal data (every platform has different requirements for personality verification) and provide a link to your bank account or debit/credit card.

  2. Leave a request for exchange– specify the amount of cash out Bitcoins, the currency you want to turn it into, how to cash out cryptocurrency (where to transfer money to), and post your offer.

  3. As soon as someone replies your request and initiates a transaction, the exchange process will be launched. It may take from a couple of minutes to several days– it depends on the bank card provider and currencies chosen, as well as the sum.

There are several exchange platforms available in the Net:

Exchange Platforms

Supported Currencies

Transaction fee

Kraken

Over 53 currencies

0.16% for BTC-fiat exchange

CoinBase

Bitcoin, Bitcoin Cash, Litecoin, or Ethereum

Up to 3.75%

BitStamp

Ethereum, Litecoin, Bitcoin Cash, Bitcoin, Ripple

2% or $10

CoinMama

Ethereum and Bitcoin only

Up to 6%

Binance

Almost 100 currencies

0.1%

Poloniex

108 currencies

0.25%

Peer-to-peer exchangeMostly, exchanges offer pretty agreeable fees, but there are certain drawbacks connected with this method of withdrawal. It’s not an option if you need money urgently– most likely, you will need to wait at least two days for the bank to process the request. Besides, the fees can be pretty high depending on how do you cash out Bitcoin, and which fiat currency you select.

Don’t want to wait for two to three days to exchange Bitcoin for cash? How to cash Bitcoin quicker? Consider using a platform for P2P (peer-to-peer) exchange like LocalBitcoins. When you sell BTC to other people, you are free to select the payment method for them to use. You choose how to cash out Bitcoins:

  • Cash deposit on your bank account (proof of ID and proof of Payment will be required).

  • Bank transfer. It also requires ID verification and proof of payment provided in advance.

  • Meeting in person. You can arrange a meeting with people nearby and cash out Bitcoin literally.

This is a convenient method, but you should be aware of the fraud. Select LocalBitcoins and similar services that feature the escrow service– this way, Bitcoin will be kept until you receive the payment. How to cash out Bitcoins to PayPal? This method is also suitable for such transfers!

Still confused and wonder how to cash in Bitcoins on such websites? There’s a screenshot that will clear things up:

LocalBitcoins interface
Step-by-step selling of crypto on LocalBitcoins

In other words, you post an offer, someone finds it and replies back. You accept the offer, and your Bitcoins are put in the escrow. As soon as the replier sends you money, you approve of this fact, and he gets your BTC.

Bitcoin prepaid cards

How to cash out Bitcoins to USD instantly? Consider debit cards. This is a relatively new method, but it has a lot of supporters thanks to the benefits it provides. Such cards function as regular ones, they are just funded by BTC and other coins. How to turn Bitcoin into cash using such a card? Just make micropayments in shops and restaurants, or use it in ATMs (crypto will be instantly converted into fiat).

You can order such a card in a few websites, including Monaco. Although it takes some time for the card to be released and sent to you, it is truly worth efforts and waiting. Cashing out Bitcoin with a debit card is beneficial thanks to:

  • low commission fees,

  • chip and PIN support,

  • transparency of fees, and so on.

Please, keep in mind that you will need to verify your personality to receive the card (you need to verify your ID card, as well as address). How to cash out large amounts of Bitcoin with a card? Limits can be raised after going through the Know Your Customer (KYC) procedure. It proves that you’re not involved in money laundering or any other fraudulent activities.

Check out the video guide to cashing out Bitcoins:

https://www.youtube.com/watch?v=imkXqSgpSsY

Crypto loans

Can you cash out Bitcoin so that to pay for your loans? Yes, it’s possible. Some companies allow you to deposit crypto into a smart contract– it will be held– and receive fiat at your bank account to pay back the loan when you need it. This method is great because it avoids a taxable event, and you can take out a loan without selling your currency. Besides, you avoid loss caused by cryptocurrency fluctuations.

How to cash in Bitcoin?

Wonder how do you cash in Bitcoin? The reverse process can be done using exactly the same methods as above: cryptocurrency exchange, peer-to-peer platforms, and loans. There are different ways to purchase Bitcoin and other currency (they are discussed in this article).

How to buy Bitcoins?
5 ways to cash in Bitcoin

Bottom Line

As you can see, there are many ways to convert Bitcoin into fiat– it’s not as impossible as it was a few years ago. Before you make the final solution you should decide how to cash out of Bitcoin beneficially. Set your priorities: you need lower fees or shorter time? The above-mentioned options aren’t equally suitable for all situations.

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