How to Cash Out Bitcoin Easily

33 mins read
How to Cash Out Bitcoin Easily

Once you make a lot of money through Bitcoin and wish to withdraw it, then the question that would strike in your mind is how to cash out Bitcoin? The process is pretty simple and straightforward, but yes, the truth is that it is a little time-consuming process.

There are numerous options that they offer, such as peer-to-peer exchanges or through third-party exchanges, in a layman’s language through bank transfer, PayPal, or through cash deposit as well. But, do not always opt for the most economical ways of doing that; instead, check out all the possibilities, pros, and cons before opting for any method.

How to Cash Out Bitcoin Easily

Things to consider when cashing out Bitcoin

There are a few things that you should consider while checking out the mode of converting Bitcoin into cash:

  • Analyze the transaction fee of different modes so that you can select the one which offers more in less price
  • The next important thing to check is the steps required in every process. Choosing a method with lengthy steps can be monotonous and complicated as well sometimes.
  • See the amount you want to withdraw as if the amount is less than your criteria; you might change your mind.
  • Ask yourself if you wish to deposit the money in the bank account or your PayPal account.
  • Check the period as to how much time it will take to credit in your account.
  • Last but not least, always study the local rules and guidelines before opting for any method

These were the few things that you should look at before choosing any payment method. Also, there are a few questions that you should ask yourself before selecting a method.

Questions to ask before choosing any cash out method

Q1. Do you wish to opt for an easy and straightforward method or the most economical method?

Q2. You want the money to be deposited in the bank account or your PayPal account?

Q3. For how long can you wait for the cash to be credited to your account?

Q4. You want to change your Bitcoin into which currency?

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When you get the answer to these questions after that, only you should think of comparing the methods as you would be clear about your requirements.

Also Read: How to Mine Cryptocurrency?

How to Withdraw Bitcoin easily

How to Withdraw Bitcoin easily

These methods will provide you a clear answer on how to convert Bitcoin to cash. Here are all the significant methods for you:

1. Third-party broker exchanges: Many people think that this can be the easiest and straightforward method as your involvement would be less in it, but again, the first question that would strike in their mind is how to cash out Bitcoin using a third-party broker exchange. The answer for it is as simple as the method itself.

A third-party broker can also be referred to as an exchange. For example, a lot of cryptocurrency exchanges do not permit you to deposit funds using fiat money (it is a currency established as money by government regulation), but some exchanges do.

Procedure

First, you would deposit the Bitcoin into the exchange, and once they receive it after that, you can request a fiat currency withdrawal. One of the most prevalent methods of doing it is through a bank transfer.

Ensure that you withdraw the money to the same bank account from which you deposited, as it assures that the brokers are not breaking the money laundering laws. In case if you have never deposited fiat money in the broker exchange, then you would have to make a minimum of one deposit first.

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If you choose this method to cash out your Bitcoin, then it might take around 1-5 working days to reach the amount in your bank account. So this method is not that complicated, plus your involvement is also less after you do the first transaction but let us check out the other methods before concluding.

2. Peer to Peer: When people think about how to withdraw bitcoin, peer-to-peer is one method that always comes to mind. There are many peer-to-peer platforms that can be used to get the money credited to your account without waiting much. If you know well what you are doing, then this is a pretty safe and secure method.

The good thing about this method is that a lot of well-known platforms provide you an option to choose the payment method, which would include:

a. Cash Deposit: You have the option to request the buyer to get cash deposited straight away to your bank account. But, do not forget to check their ID proofs and proof of payment before releasing Bitcoins to them as there are many fraudsters in the market who take the coins and do not release the payments.

b. Bank Transfer: Another option is bank transfer. You can ask the buyer to make a bank transfer payment. In this method, always ask the buyer for his ID proof, and once you receive the payment before that, you can release the Bitcoins.

c. Meet in person for cash: If you want, you can arrange a meeting point with the buyer and take cash from them for your Bitcoins.

Numerous well-known P2P platforms offer this service and are safe but keep in mind that you have to be cautious of the fraudsters. In fact, there are some platforms whose security level is incredible as they use escrow service. This service keeps your Bitcoins locked until you validate that the payment has been received from the buyer.

Let us understand the escrow service with the help of an example:

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Just assume that ABC wants to buy 10 Bitcoins. He searches for people in his country who are selling them. ABC sees that XYZ is selling them at a good price and send the request to him. XYZ accepts the request; now, he will have to put all the 10 Bitcoins into the escrow.

Now, it will hold the Bitcoins till the ABC does not transfer the money. Once XYZ confirms that he has received the payment after that, he will release the Bitcoins from the escrow and sent them to ABC’s account.

The process is very easy, and the best thing is that the chances of fraudulent activities are relatively less in this method.

Also Read: 11 Best Cryptocurrency to Mine

Turn Bitcoin into cash using a Peer to Peer Exchange

When you are learning the various processes of how to cash out bitcoin, it becomes essential for you to know about this method as this method has proven to be quite beneficial to many users.

Turn Bitcoin into cash using a Peer to Peer Exchange

There are many P2P exchange platforms, but one of the most used and reputed platforms is Local Bitcoins. Let us understand more about it.

Local Bitcoins

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This platform was established in 2012, and because of its amazing services and massive customer base, they support almost every country worldwide. Thus, from whichever part of the country you are from, you would be able to get buyers for selling your Bitcoin.

As mention above, in P2P, you can select any payment method you want. There are several payment modes available on Local Bitcoins, such as:

  • International Bank Wire
  • Local Bank Transfer
  • Payoneer
  • Skrill
  • PayPal
  • Web Money
  • Western Union
  • Gift Vouchers
  • Neteller
  • Bank Cash Deposit

People who are already well versed about how to cash out Bitcoin can decide and upload the price they wish to trade the Bitcoin for. This can also be done by creating an advertisement, but that would cost you 1% of the total sale. On the contrary, if you want to sell it to a buyer who has already listed the price, you would not have to pay any fee.

How to Cash Out Bitcoins using Local Bitcoins

1. The first thing you would have to do is to open an account with them. For signing in, you would have to put a user name and a password. Plus, you would also have to add your email address as well.

2. As you open an account and log in after that select, Sell Bitcoins is located at the top of the page.

3. After that, you would have to select the country where your potential buyers are located. It is always recommended to choose your own country as it usually buyers and sellers select their own country because they are well aware of the rules and regulations of their country. After that, enter the amount for which you wish to sell your Bitcoin. Finally, you would see numerous means to cash out your Bitcoin.

4. Let us understand how to cash out bitcoin through local bitcoin with an example.  You can see that the buyer has completed more than 1000 trades in the above image and has a 100% rating; this means that he is a legitimate buyer.

5. Now, you just need to validate the cost again at which you want to exchange your Bitcoin and enter your PayPal email address. After that, hit enter on “Send Trade Request.”

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6. By doing this, your buyer would get a notification that you wish to sell your bitcoin to them. Once they accept your request that, you would have to send your Bitcoins to LocalBitcoins escrow. This means that the buyer will not receive the Bitcoin until you confirm that you have received the payment.

7. Once you receive the payment in your PayPal account, just confirm it to the buyer by clicking on “Payment received” and release the Bitcoin.

Also Read: How to Make Money through Affiliate Marketing

How to move Bitcoin to a Bank Account

Once you get the Bitcoin converted into cash, after that you can move them into a bank plus you can withdraw the money through various ways such as:

1. Bitcoin ATMs: People usually think about how to cash out bitcoin? There is another important thing to consider, which are the ways to make money out. One method is through Bitcoin ATMs; they are not like the traditional ATMs. It is a physical center that enables you to trade bitcoins with fiat money. You would be amazed to know that there are around 5000 crypto ATMs across 76 countries.

A website named Coin ATM Radar can find the nearest crypto ATM as per your location. These ATMs are suitable for doing small transactions as mostly all the ATMs have deposit and withdrawal limits. However, one of the major cons of using them is that there is a huge transaction fee that you would have to pay, which ranges from 7%-12%.

2. Bitcoin Debit cards: Many websites enable you to market your bitcoin and get a prepaid debit card in return. You can use this card like the normal debit card powered by either Visa or Mastercard. The good part is that these cards work both for online and offline shopping in almost every business worldwide. Furthermore, these debit cards can be used to withdraw cash from ATMs where visas and MasterCard are accepted.

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How to Cash Out Bitcoin using a Broker Exchange?

The methods mentioned above are most common and liked by people because of the ease of transactions and safety. Now, let us understand and know more about how can you easily cash out bitcoin by using a broker exchange-

Coinbase: This is one of the most renowned broker exchanges for trading Bitcoins. If you analyze and compare it with the other famous exchanges, you would see that Coinbase processes more Bitcoin transactions than anyone else in the market. They have a huge customer base of more than 13 million people.

Here are some of its features:

a. Withdrawal methods: One of the highlighting parts about them is that you can sell your Bitcoins for cash through them. You can later withdraw into your bank account if you want. There is one condition to it that you would be able to cash out your Bitcoin into the bank account you used to purchase cryptocurrency on Coinbase.

If you have not purchased any cryptocurrency through them, then you would have to buy a small amount from them so that the money can be cashed out in your account.

b. Fees: The fee they charge depends on the country in which your bank account is. For example, if you are selling your Bitcoin in USD, then a wire transfer would be $25; on the contrary, if you are in the EU and possess SEPA, then you would just have to pay $0.15.

c. Cash-out times: The time in which the amount gets credited to your account would also vary from country to country. For example, in the US, the withdrawal time ranges from 4-6 working days, whereas in the EU, it just takes 1-3 working days.

Steps to turn Bitcoin into cash using Coinbase

1. The first step is to open an account with Coinbase and then link your bank account with them. Once this is done that deposit in that account. If you already have an account with them, then skip this step and move to Step 2.

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2. As you have established your account now, you are required to transfer your Bitcoin to the Coinbase Bitcoin address provided to you. For doing this, you will have to go to the accounts tab, from their click and open Bitcoin wallet, and select ‘Receive.” Once you do this, you would see your Coinbase Bitcoin address where you need to send your Bitcoin address.

3. Now, you would see the options Buy/Sell on the top of the page.

4. As you want to sell your Bitcoin, you need to click on Sell.

5. Now comes the most significant step: to cash out Bitcoin in the wallet. When you see your wallet, there would be Bitcoin in it plus your default first currency as well. The deposit would show the amount as per your currency and the location that you chose.

It would also reflect your withdrawal limit. People who have verified the account would have higher limits, and if you wish to increase the limit, you need to click on the option “See Limits,” and there would be a few instructions that you would have to follow to increase the limit.

6. You would have to exchange the money in your local currency before withdrawing the amount. For instance, you just need to put the amount you wish to sell your Bitcoin for, and the fiat currency would automatically update the equivalent amount.

7. As soon as you click on the tab ‘Sell Bitcoin Instantly,’ the funds will be in your fiat currency wallet.

8. Go to the fiat currency wallet and press the button “Withdraw.”Now the amount will be credited to the bank account. This would be the same account of which you gave the details in the first step.

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The process might seem lengthy, but it is not; you would just take a couple of minutes to set up the account and cash out Bitcoin.

Also Read: How to Earn Free Bitcoins Daily without Investment

How to turn Bitcoin into cash using Kraken

Kraken is another well-known exchange that enables withdrawals and fiat currency deposits quickly. This exchange was established in 2011, and the maximum transactions that they process are Bitcoin to Euro. They also deal in other big currencies as well such as USD, JPY, and CAD.

Here are some of its features:

  • Withdrawal methods-You can withdraw the Bitcoin into cash to your local account with Kraken.
  • Fees– The withdrawal fee of Kraken is relatively low than other similar platforms. For example, if you wish to sell your Bitcoin for USD using a local bank, you would have to pay $5; for the SEPA cash out, you just need to pay 0.09 euros.
  • Cash-out times– Your account would be credited in 1-5 working days in your bank account.

Points to remember when converting Bitcoin into cash

Points to remember when converting Bitcoin into cash

There are a few things that one must keep in mind before converting all the Bitcoins to your bank account-

1. Taxes: It is rightly said that taxes and death are two imminent things. Even the Bitcoin investors would have to pay the tax for the money they get converted into their bank accounts. Although there are a few jurisdictions that have not provided any clarity about bitcoins and taxes.

Yet, some tax authorities say that you will have to pay the tax on the profits you make if you sell Bitcoin for cash.

2. Fees: Mostly, all the Bitcoin to bank account methods charge a fee for it. Therefore, you will have to analyze the fee of all the exchanges before choosing one.

But, if you still want to convert your Bitcoin into cash, then always check a few things such as ease of transaction, charges, whether you want to get it deposited to the bank account or PayPal account, currency in which you want to get it converted and how long you can wait to get the amount credited to your bank account.

Also Read: Top 15 Cryptocurrencies to Invest other than Bitcoin

List of Banks that Accept Bitcoin

Just to make it easy for you, here is the list of banks that accept Bitcoins:

Name Country Note
Chime Bank United States
  • It was established in 2013 by great entrepreneurs Chris Britt and Ryan King.
  • It is headquartered in San Francisco, California.
  • The company provides no monthly fees, no overdraft fees, no minimum balance fees, and they let you round up purchases to the next dollar and save the remainder.
  • They have more than 38,000 ATM locations in CVS, Walgreens, and 7-Eleven stores. All their ATMs are free to use
  • You get your direct deposit payments as soon as they are processed with Chime Bank, and they are a safe place to keep your money.
  • It is an online-only financial company that partners with two banks to provide its checking and savings accounts.
  • Online transfers initiated through Chime are limited to $200 per day.
  • A mobile check deposit is only available if you’re also signed up for a direct deposit.
  • They released an official statement that bitcoin purchases are not allowed with their VISA debit card; however, you can utilize other platforms and use their escrow system to move money to pay friends straight away with their username, phone number, or email.
Wirex United Kingdom
  • It was established in 2014; it is a London-based enterprise that enables customers to open a crypto-friendly business account.
  • Their app can be used on both iOS and Android devices. Within their app, you can effortlessly buy, store and exchange digital and traditional currencies anytime.
  • Wirex is PCI DSS Level 1-certified, giving your funds the highest level of protection possible.
  • It lets you open a crypto-friendly business account that is secured with multi-signature cold storage.
  • They make it easy to own both cryptocurrency and fiat dollars under one smart and simplified account.
  • Customers can also fund their accounts using a debit or credit card, bank transfer, or crypto.
  • You can customize the app the way you want it by selecting from over 12 traditional and cryptocurrency accounts.
  • Wirex can also be linked to a third-party service such as Curve, Revolut, or Paypal.
  • The Wirex Visa card automatically converts more than 12 digital currencies and traditional currencies at the point of sale, letting you seamlessly spend your crypto and multiple currencies in real life, anywhere Visa is accepted.
Ally United States
  • It is one of the most Bitcoin-friendly banks.
  • Ally Bank is a full-service online bank offering competitive rates, low fees, no minimums, and 24/7 customer service, plus an online chat feature.
  • Link your bank account to Coinbase and buy desired coins with your debit card is pretty simple.
  • You can also try buying crypto with your credit cards, as they have not announced they are against it, but you will have to pay the fee for it.
  • Headquartered in Sandy, Utah, and founded in 2009, Ally Bank is the digital-only banking division of Ally Financial Inc., which has roots dating back to the 1920s.
Fidor Bank Germany
  • Fidor has stated that it will amalgamate with Kraken to operate a fully functioning altcoin bank.
  • Fidor Bank is Europe’s original digital challenger bank. Founded in 2009 in Germany, Fidor has become the world’s first ‘fintech bank.’ Pioneering the collaboration between traditional financial services and technology
  • businesses, Fidor Bank, offers a customer-centric banking service
Change Estonia
  • It is a crowd-funded blockchain project and is looking to make banking functions available to altcoin users.
  • It is part of the European System of Central Banks. Established in 1919, the Estonian central bank formulates its economic strategy and manages its currency and credit system.
  • They are doing this by providing a wallet for the storage of altcoins, an altcoin spending card, rendering a marketplace that will aggregate the best investment and insurance opportunities, and onboarding them on one platform.
Worldcore Czech Republic
  • It is a payment institution regulated by the National Bank of the Czech Republic and provides various global payment services such as multi-currency payment accounts for bank transfers, prepaid debit cards, mass payments, API for e-commerce, payroll solutions, international money transfers to Visa/MasterCard worldwide.
  • Its PayAnyCard can be loaded with altcoins to make digital currency spending a simple matter.
Bankera United Kingdom
  • It is an international payment services business that offers financial solutions to individuals and companies.
  • It is built with a focus on digital businesses; therefore, it welcomes clients from different digital industries like affiliate marketing, eCommerce, gambling, cryptocurrency exchanges, P2P finance, etc.
  • The operational arm of SpectroCoin, Bankera, seeks to be a fully functional bank that provides payment accounts, interbank foreign exchange rates, debit cards, lending—enabling altcoins as collateral—and payment processing.
USA United States
  • It provides insurance, banking, investments, and retirement products to more than 13 million members. … USAA was founded in 1922 and is headquartered in San Antonio, TX
  • USAA enables Coinbase users to check their bitcoin balances from their apps and have invested in the exchange.
Goldman Sachs United States
  • Goldman Sachs launched an altcoin trading desk and offers altcoin products in 2018.
  • It is an American multinational investment bank and financial services company headquartered in New York City.
Revolut United Kingdom
  • Revolut is a financial technology company that offers banking services. Headquartered in London, England, it was founded in 2015 by Nikolay Storonsky and Vlad Yatsenko.
  • It offers accounts featuring currency exchange, debit cards, virtual cards, Apple Pay, interest-bearing “vaults,” commission-free stock trading, crypto, commodities, and other services.
  • You can receive cryptocurrency interests sent by another Revolut user. Yet, you will not be able to receive cryptocurrencies sent from outside of the Revolut platform, e.g., external wallets.
  • This is a closed offering whereby you can trade within the Revolut platform.
National Bank of Canada Canada
  • See TDB.
Simple Bank United States
  • The company provided FDIC-insured checking accounts to US citizens but not to Permanent Residents through a partnership with BBVA USA and is part of the Allpoint network for surcharge-free access to around 55,000 ATMs
  • Simple Bank collaborates with most bitcoin exchanges and permits direct buy-sell transactions for bitcoin.
  • Since 2014, Simple has been part of the BBVA Group, one of the largest banks in Europe.

Banks that Ban or Limit Bitcoin Purchasing

Name Country
Bank of America United States
Chase United States
Citigroup United States
Lloyds Bank United Kingdom
Halifax UK United Kingdom
Bank of Scotland United Kingdom
MBNA United Kingdom
Wells Fargo United States
Commonwealth Bank of Australia Australia
CitiBank United States
Capital One United States
Discover Bank United States
Virgin Money United Kingdom
Visa European Union
TD Bank United States
PNC Bank United States
Royal Bank of Canada Canada
Toronto-Dominion Bank (TDB) Canada
By now, it must be clear about how to cash out Bitcoin, various ways of doing it, their fee, and taxes that imply. Majorly there are two ways of doing it one is P2P, and the other is broker exchange. Both have their pros and cons; it would solely depend on your requirements which method you choose.

Recommended: How To Get Bitcoins In India For Free

The various factors that you should consider are the amount that needs to be cashed, the fee they charge, the safety of funds, and the period in which you want the amount to be credited to your account. So choose wisely and spend less while cashing out your Bitcoins.

Happy trading!

Sushma Singh

Sushma is a full-time blogger and financial expert. Join Sushma and 10,000 monthly readers here to learn how to save and invest your money wisely.

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