Newstricky| Can you cash out Bitcoin?
As a beginner, you might ask this question before investing in this cryptocurrency. Its value remains massive despite its recent decrease. If you can convert it to real-world money, you might feel more at ease.
The good news is you can cash out cryptocurrency, such as Bitcoin. How can you do it? Our guide can help, as long as you keep reading below:
Table of Contents
Cryptocurrency Exchanges
Exchanges are a one-stop solution when buying and selling Bitcoin. When you want to do the latter, these platforms can act as the middleman. They will hold both buyer and seller funds until the transaction concludes.
Set up an account to use a specific crypto exchange. Most reputable crypto exchanges require you to verify your identity. Before you can withdraw cash, you must connect to a valid bank account.
Consider your country’s exchange restriction when choosing your preferred exchange. After all, some will ban specific regions from making an account.
After making an exchange account, you must transfer your Bitcoin into it. Put a sell order and fill out the necessary information for the trade. These include:
-
Currency traded
-
Amount of currency
-
Asking price per unit
Whenever someone matches your offer, the exchange will automatically finish the transaction. However, this is a simple explanation since multiple order types exist.
After it credits the funds to your account, withdraw the money to your bank. Sometimes, this process will take a long while. It happens when the crypto exchange is experiencing technical issues or liquidity problems.
Direct Trades
Another method to cash out Bitcoin is to trade with another entity. It applies to both online and in-person transactions. You have several ways of accomplishing this, either through a direct meeting or using a specialized platform online.
Online P2P Selling
Several specialized platforms or applications enable these transactions. Like exchanges, Bitcoin buyers post their listings on these platforms. They will include information like their desired price or payment option.
You can cash out your Bitcoin by finding listings and following platform instructions to complete the trade. These platforms use escrow functions to secure both parties and ensure the transfer.
Face-to-Face Transactions
Some online platforms allow people to meet to cash out Bitcoin. You have the option to meet up with other people to sell Bitcoins. However, you must understand how to send Bitcoin through a crypto wallet.
Bitcoin and other cryptocurrencies have fluctuating prices due to market volatility. Knowing its current price is paramount during the selling process. Use the rates from reputable exchanges.
However, Bitcoin has varying prices, depending on your chosen exchange or your current location. Experts recognize this discrepancy as a premium.
Bitcoin ATMs
Bitcoin ATMs look like their traditional counterparts. However, they do not connect to your bank account. Instead, they enable Bitcoin transactions through an internet connection.
These machines allow you to scan a wallet QR code to sell Bitcoin for cash. You can find these ATMs around the world, but it is easier when you use ByteFederal.
Some ATMs charge expensive transaction fees compared to other methods. Also, not every machine has the buy and sell features. Keep these in mind when you are looking for Bitcoin ATMs to cash out your currency.
Sometimes, ATM providers require you to have an account before selling. The registration process often takes a long while. For example, some ATMs demand telephone numbers for activation, as well as the following:
-
Government-issued IDs
-
Palm scans
-
Photos from the ATM camera
The process depends on the machine operator’s specifications. However, it is always a requirement when you intend to sell Bitcoin.
Withdrawing Funds
Another best place to cash out Bitcoin is through a wire transfer. It happens after selling your currency through a crypto exchange platform. You can also use automated clearing house transfers (ACH).
Do you live in the European Union? If so, consider using the Single Euro Payments Area (SEPA) for cashing out. Most Europe-based exchanges prefer this transfer.
However, all these systems have some drawbacks. Most transfers can take a long time to process. The primary factors affecting the duration include the country and the amount of transferred money.
These systems will often result in additional fees. For example, banks charge a fixed price for SEPA payments. The price increases the faster you want the transfer to conclude.
Some banks are unfavorable when transferring funds coming from cryptocurrency sources. Do your research to discover the right bank for cashing out Bitcoin. You will likely find a suitable partner since over 4,300 banks exist in the United States.
How to Protect Your Bitcoin
Now you know how to cash out Bitcoin, protect your investments by discovering the most common scams around. Read on and avoid these now:
Imposter Website
A lot of fake websites exist on the internet. Most of these are replicas of reputable crypto exchanges and other companies. When you find no small lock icon near the URL bar, consider backing out.
It applies even when the site looks exactly like the one you visit all the time. For example, scammers make a fake URL by replacing a single letter. The most common replacement is the capitalized “I” since it resembles a lower-case “L.”
Fake Mobile Apps
Some scammers make fake cryptocurrency apps and post them on Google Play or the Apple App Store. It is a more common occurrence in the former since the latter has stricter guidelines for apps. Regardless, the risk applies to both platforms.
After downloading the app, check whether the app has misspelled words. Is the brand logo correct? When in doubt, consider looking somewhere else.
Can You Cash Out Bitcoin? Learn More Today
We hope this guide answered your question, “Can you cash out Bitcoin?” Use what you learned to make your hard-earned cryptocurrency into real-world cash.
However, investing in Bitcoin is risky, despite its reputation. Consider diversifying your portfolio by investing in other cryptos like Ethereum.
Did you find this guide helpful? If so, please consider reading our other posts for more.
