If you have bitcoin, you may want to hold on to it for that reason. But, since demand has increased recently, you may be able to make a profit if you ‘sell’ your bitcoin now and transfer the equal value to your bank account. To use a crypto exchange, you must set up an account with the platform of your choice. Be mindful of exchange restrictions based on your country, however. However, you should remember that they usually charge high transaction fees compared with other cash-out methods. Moreover, not every Bitcoin ATM offers to buy and sell functionality.
- Purchasing with Bitcoin requires sending Bitcoin to the retailer’s digital wallet.
- To turn your crypto into cash, the machine will create an invoice from which you sell your crypto at an agreed upon rate.
- These apps support a very limited selection of crypto, with Cash App only supporting Bitcoin, and PayPal supporting Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Peer-to-peer platforms or local Bitcoin meetups can connect you with potential buyers who are willing to purchase Bitcoin in exchange for cash. It’s important to take appropriate safety precautions and conduct transactions in secure environments.
Factors to consider when cashing out Bitcoin
Interested parties then find listings they like and complete the sale by following the instructions provided by the platform. 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. Crypto is a speculative asset that can be part of a larger, diversified investing strategy, but don’t panic sell just because the news says “Bitcoin is dead” for the 1,400th time. Instead, take a level-headed approach to your investment strategies, and make decisions based on your long-term goals — not short-term feelings. Before selling off your crypto to stash piles of cash under your mattress, evaluate your overall crypto investing strategy.
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%.
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How to turn Bitcoin into Cash using Binance P2P
You must withdraw the amount to the same bank account that you deposited with earlier. However, if you have never deposited fiat onto a broker exchange, you should first make at least one deposit. And while Coinbase is a popular option to sell cryptocurrency, it’s likely most useful to go with whatever exchange currently holds your coins, if you don’t have custody of the coins yourself. You’ll quickly exchange cryptocurrency into cash, which you can access from your cash balance in Coinbase. From there, you can transfer the money to your bank account if you wish. Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first.
If you’re selling any asset, then you’ll want to understand the tax implications. You may owe a bundle if you’re booking a capital gain, and the tax rate will depend on the holding period, among other things. Of course, you may be able to claim a write-off, if you’re selling at a loss. But if you think crypto may rebound, it might be better to stick around and wait out the downturn.
Coinbase is a cryptocurrency exchange where you can purchase, sell, transfer, and store digital currencies. It securely stores a wide range of digital assets in offline storage. This crypto exchange platform is supported in more than 100 countries. P2P platforms allow you to trade hundreds and thousands of dollars in crypto. However, P2P platforms also have very low transactional limits and very high transactional fees.
In order to make a cash withdrawal and sell your Bitcoin from the ATM, the machine provides a QR code to which you send your Bitcoin. If a broker holds your crypto coins, then the easiest route is simply to go with that broker. For example, if you’re a client of Robinhood or Webull, both of which allow extensive crypto trading, then it will be easiest for you to just execute a trade on their platform and be done with it.
Clients can sell directly to over 3 million users worldwide, according to the platform’s website. The ultimate idea is that bitcoin will replace traditional currencies. People are currently investing in bitcoin because they view it as a commodity that will grow in value over time.
There are no additional fees to use the card at an ATM, though local ATMs may charge fees for use. At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict
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this post may contain references to products from our partners. The ‘exchange rate’ for this currency exchange is not determined by the economic actions of a government or a country’s central bank.
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You can use the card to pay for things in-store, shop online or even pull cash straight from an ATM. Many popular online brokers now allow crypto trading, and if you purchased your Bitcoin on one of these platforms, you can quickly exchange your crypto for cash. Trading apps like Robinhood and eToro offer several cryptocurrencies to invest in, and you can buy or sell crypto just like on a crypto exchange. Yes, fees are typically involved when converting Bitcoin to cash. Cryptocurrency exchanges may charge transaction fees, withdrawal fees, or currency conversion fees. Peer-to-peer transactions may involve negotiation and may not always have explicit fees, but be aware of potential hidden costs or price discrepancies.
Selling Bitcoin (BTC) can be similar to buying Bitcoin, except in a somewhat reversed process. There might be a time when you will be able to use Bitcoin for any purchase. For now, there are only a very few businesses and individuals who accept payments in Bitcoin. That is also a reason you may want to convert your Bitcoin to buy physical things.
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Most services will list the total fees separately, allowing you to see if it’s worth it or not to sell. On the whole, it is cheaper to sell crypto through a centralized exchange or online broker than through other services. 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. The most common options include using cryptocurrency exchanges, peer-to-peer platforms, Bitcoin ATMs, or selling Bitcoin directly to individuals or businesses who are willing to buy it for cash.
This can sometimes take an excessive amount of time, especially if the exchange is experiencing issues with its banks or facing liquidity problems. Several months before its bankruptcy, the Mt. Gox exchange experienced this exact problem. Moreover, some banks just outright refuse to process transactions with funds obtained via cryptocurrency trading. 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.
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. As always, it is also a good idea to consult with a tax professional when buying and selling assets.
- Bitcoin ATMs are specialized banking machines from which you can buy and sell crypto.
- We are an independent, advertising-supported comparison service.
- Brokers are restricted by money laundering laws, so you will need to withdraw to the same bank account that you deposited with.
- This means it is a secure form of currency that is devoid of government control.
- Load the card from your BitPay Wallet balance or connect to a Coinbase account.
Popular crypto exchanges are always a good bet, as they are reliable and well-known, while online platforms with peer-to-peer selling may allow for flexibility of payment. You can go the convenient route and use a Bitcoin ATM to get fast access to your crypto but at a significantly higher commission. Selling Bitcoin P2P at an in-person location is also a possible method. Some online platforms facilitate selling BTC in person for cash, while parties may also simply choose to meet up with friends or family on their own and sell Bitcoin for cash. These platforms typically involve escrow functions to provide a level of security for both parties and to help ensure asset transfer. After the funds are credited to your account, you will need to withdraw them to your connected bank account.
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There are numerous options available for you to cash-out Bitcoin, such as peer-to-peer exchanges or through third-party exchanges, bank transfers, PayPal, or cash deposits. You can check out all the options before opting for any method. Making purchases with Bitcoin does not directly turn your crypto into cash, but it allows you to utilize your Bitcoin like cash. Just be aware that sending crypto over the blockchain requires paying network fees, which can be high during times of crypto market volatility. If you hold Bitcoin or other crypto within Cash App, PayPal, or another money transfer app, you can sell it pretty easily.
The best thing about using a Bitcoin debit card is that it works for online and offline shopping in almost every business. These debit cards can withdraw cash from ATMs where these cards are accepted. It offers a platform for trading more than 150 cryptocurrencies. It provides an API that helps you to integrate your current trading application. However, you need to make sure that you do not break money laundering laws.
But because bitcoin is devoid of government control, the exchange process occurs privately. In theory, you will one day be able to use bitcoin for any type of sale. For now, there are still few businesses or individuals that accept payment in bitcoin. That is one reason you may want to convert your bitcoin to cash — to use the value of your bitcoin to buy actual things. Bitcoin has a stipulation, set forth in its source code, that there will only ever be 21 million bitcoins produced. As the demand for bitcoin increases, you can exchange a single bitcoin for more money or services.
We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. It may be useful to use a peer-to-peer platform that allows you to keep your bitcoins locked until you confirm the payment has been received from the buyer. So, if you’re opening a bank account specifically for withdrawing money made from Bitcoin sales, you need to do your research and choose the bank that best suits your needs. Bitcoin’s value constantly fluctuates, so it’s important to know its price at the time of an in-person sale.
