How to Turn Bitcoin into Cash
Bitcoin has become very popular as an asset that everyone wants to have. There are many ways to acquire this crypto, but most people don’t know how to turn Bitcoin into cash. This does not mean that it cannot be spent on its own. In fact, there are thousands of stores worldwide that accept BTC […] The post How to Turn Bitcoin into Cash appeared first on Coindoo.
Bitcoin has become very popular as an asset that everyone wants to have. There are many ways to acquire this crypto, but most people don’t know how to turn Bitcoin into cash. This does not mean that it cannot be spent on its own. In fact, there are thousands of stores worldwide that accept BTC as payment. However, it is still not accepted widely enough, so some would rather have it converted to cash.
In this guide, we will give you detailed instructions on how to actually turn it into spendable fiat cash. There are several ways to do this, but we will only cover the commonest ones that you can easily carry out.
Use of Exchanges
Cryptocurrency exchanges are the traditional destination for buying and selling cryptocurrencies with fiat money and for exchanging one for another as well. To turn Bitcoin into cash, you can head to any cryptocurrency exchange and create an account. It is impossible for a platform that is considered to be the best cryptocurrency exchange not to have Bitcoin listed.
Creating an account on an exchange is usually as easy as using an email and a password. Some may require you to go through KYC, while others may not, but make sure you choose a trusted exchange. Examples of such exchanges are Binance, Coinbase, Gemini, and Bitstamp.
Once you create an account, you can transfer your Bitcoin from a private wallet to the exchange wallet address. From there, you can then place an exchange order to get USD, Eur, AUD, or whatever you want. Once you have that in your exchange wallet, you can then initiate a withdrawal and get it in your fiat bank account. Note that you may be required to do some additional verification prior to withdrawing your cash.
Peer-to-Peer (P2P) Trading
If you are looking for how to turn Bitcoin into cash, then this is another way that is becoming very popular – P2P trading. A number of cryptocurrency holders would argue that this is far more convenient than the conventional use of an exchange to change Bitcoin to cash. Interestingly, some crypto exchanges facilitate this trade by serving as the middlemen to ensure that no one cheats.
There are also P2P marketplaces meant for this kind of trade, such as LocalBitcoins, Localcrypto, Paxful, and more. You may also be required to create an account in a very easy way, and then you will access the market. There, you will choose from the options to sell and then pick a listed buyer. Upon agreeing to buy, the platform locks your Bitcoin and notifies the buyer to send the agreed cash amount (to the bank account number you provided) within a stipulated time. The BTC will be sent to the buyer once you confirm receipt of the payment.
Bitcoin Debit Cards
The use of Bitcoin debit cards is becoming increasingly popular. This is because it offers more flexibility for the use and spending of the asset. One of the key things you can do with these debit cards is to turn Bitcoin into cash.
If you have such a card with Bitcoin on it, you can easily convert your Bitcoin to cash at a Point of Sale or Bitcoin ATM. There are many companies that issue bitcoin debit cards, such as Wirex and BitPay. If you need to turn Bitcoin to cash regularly, and this method sounds great to you, then you might want to get one of those cards.
Convert and Over the Counter Trading
The Convert and Over the Counter (OTC) trading is an emerging method of changing Bitcoin into cash by simply converting it into any supported fiat currency of choice. This service is also made available by the exchanges and is free of charge. All you have to do is move your Bitcoins to an online exchange wallet where the service is supported and then carry out the trade and withdraw. Exchanges that support this include Binance and Poloniex.
Bitcoin ATMs are starting to become popular, just like conventional ones. Their purpose is simple, to buy or sell BTC, therefore, you could just approach one in your area that supports the sale of Bitcoin. Note that most Bitcoin ATMs are for buying Bitcoins rather than selling, so be sure it allows selling. You can use this cool service known as Coin ATM Radar to find ATMs around you.
Once you start the process, you will be given clear instructions on the screen to follow and easily sell your BTC and get cash in return.
Things to Remember When You Turn Bitcoin into Cash
If you want to know how to turn Bitcoin into cash in the right way, then you should know that there are two major things to consider.
The first one is taxes. In the United States, for instance, the regulatory framework for crypto is still a bit fuzzy, but they are very clear on crypto taxation. The IRS has released many documents about filing taxes from crypto transactions. One of the actions that will clearly attract taxation is buying and selling cryptocurrencies. Some exchanges provide details of your crypto profits and transactions to tax authorities, so this is not something you can avoid if you are in such a jurisdiction.
The second important aspect is fees. While some of these services are free of charge, others such as using an exchange to sell your Bitcoin (the first point) attracts fees. Even P2P trading on places like LocalBitcoins charges fees so you should be prepared for that. Also note that fees can change significantly, especially for Bitcoin, depending on the prevailing market condition.
To conclude our guide on how to turn Bitcoin into cash, let’s delve into these ways again. So, you can use an exchange to sell, engage in P2P trading, use a Bitcoin debit card, and use OTC service or a Bitcoin ATM. Remember that you may have to pay tax for this in some countries, while in others you only have to worry about fees. Having said that, we hope this information helps you in your quest to turn your Bitcoin into cash.
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