Whether you are a bitcoin holder, trader, or investor who has some bitcoins or plan to have some anytime soon, you want to know how to turn this leading cryptocurrency into cash you can use.
There are many ways to turn Bitcoin into cash, with each method having its unique perks and stand-out features.
This post will examine four easy ways to liquidate your bitcoin and other cryptocurrencies without incurring exorbitant network charges. Let’s get started.
1. Using a Cryptocurrency Exchange
Cryptocurrency exchanges are like marketplaces. Here, you can buy crypto with cash or exchange coins for one another. Depending on your region, there are many crypto exchanges you can easily access on the web.
Some examples are Luno, Coinbase, Kraken, Binance, and Bittrex. Most exchanges have a web version, but some will ask you to download an app instead.
To convert your Bitcoin into cash, you need to sign up on the exchange you have selected. After that, you can receive BTC through the exchange’s BTC wallet or link your wallet to the exchange. You have to check how much different exchanges charge and the minimum amount of BTC permitted.
All you have to do is sell the amount of Bitcoin you want for fiat (regular money). There are different models of converting your bitcoin on different exchanges. For some, you may decide to swap your Bitcoin with the exchange directly. And there are others where the exchanges merely connect you with an interested buyer.
You can also sell Some other cryptocurrencies (like Ethereum, Litecoin, etc.) and stable coins (BNB, USDT, etc.) easily on exchanges. From there, you can transfer the cash to your bank account and spend it. Easy.
● Accessible from your device.
● Available 24/7.
● User-friendly and easy to operate.
● Fiat withdrawal can be a bit on the high side.
● Verification on an exchange might not be immediate.
2. Getting a Peer-to-Peer Agent/Company
If you feel the process of selling and withdrawing your BTC on an exchange is quite stressful, you can always opt for peer-to-peer transactions (P2P). This simply means transferring your Bitcoin to someone and getting cash in exchange for it.
Let’s say, for example, you want to change 0.5 BTC to cash. One dealer might give you a rate of $51,000 to 1 BTC, while another might give you a rate of $57,000 per BTC.
The downside with P2P is that it is easy for rookie buyers to pay more than necessary for Bitcoin. Some peer-to-peer companies are fake too.
To avoid this, you have to double-check any company you are using for your exchange, and else you could fall victim to a scam.
You can get peer-to-peer agents online, check for those in your locality, or even ask a friend to help you out. Be careful of scammers that pose as Bitcoin sellers as they can disappear with your BTC and give you no money in return. Cryptocurrency exchanges like Paxful, LocalBitcoin, and Binance ( most recently) feature a P2P option.
● Very simple to execute.
● Charges could be less than that of any other method.
● Transactions are carried out directly.
● Different BTC to cash rates
● Not the most secure.
3. Locate a Bitcoin ATM
If you are looking for how to change Bitcoin to cash on the go, Bitcoin ATMs are needed. Bitcoin ATMs are just like normal ATMs; the only difference here is dealing with Bitcoin instead of cash. In America alone, there are more than 5000 of these ATMs across the country.
To use a Bitcoin ATM, you will have to enter your wallet address. This is necessary because your Bitcoins are stored there. After that, select the amount of BTC you want to sell, and you get your cash instantly. Bitcoin ATMs can be used to transfer any BTC unit as well.
Where can you find a Bitcoin ATM? You can use a Bitcoin ATM finder to locate the nearest one. Coin ATM Radar is a good example of an ATM finder you can use.
● The best method for an emergency.
● Available if you lose your device or are in a new country.
● Very convenient method.
● Charge as high as 12% per transaction.
● Some ATMs do not pay out small amounts of BTC.
4. Using BTC to Shop Online
Can you use Bitcoin to pay for goods and services online? Absolutely yes! More and more companies have started accepting cryptocurrencies, including Bitcoin, as a method of payment.
There are hundreds of companies you can transact in Bitcoin with, some of which include well-known names like AT&T, Microsoft, Virgin Atlantic, and Tesla. You can also use BTC to play casino games, bet online, and purchase CBD.
Before you purchase on a site, ensure it is genuine. Many people have fallen victim to fraudulent sites that claim to accept Bitcoin.
Purchasing goods with BTC is straightforward. Just pick what you want to purchase, put in your wallet details, and voila! Not sure how much your BTC is worth in dollars? Most sites do the conversion for you, but you can quickly use an online calculator to be sure if you are still in doubt.
● Easy way to shop online.
● It can be used to shop even if your bank account has issues.
● Great for those who want to buy things discreetly.
● It might not be helpful as you can only buy things with it.
In this article, we have looked at how to convert Bitcoin into cash. Remember that Bitcoin is a highly volatile asset, and its price can change in a millisecond. For example, the amount of money you might get for 0.33 BTC might be $17,000 now but can drop to $16,700 in 30 minutes or rise to $18,050 in an hour.
If you are a Bitcoin trader, you should stick with exchanges faster and better for trading. If you are an occasional Bitcoin user, you might buy things online, as companies usually collect small fees on Bitcoin compared to other payment methods. We hope you enjoyed this article!