From cryptocurrency brokers to exchanges to Bitcoin ATMs, you have options on how to cash out your Bitcoin. Think of them as different routes to the same destination. Some prioritize speed, some security, and others prioritize both!
Here, we break the various options down.
Peer-To-Peer: The Need for Speed
Bitcoin peer-to-peer platforms allow you to quickly receive cash with low-to-no additional fees, but it’s a multi-step approach not ideal for beginners. You start by paying to post an ad declaring how much Bitcoin you intend to sell. Next, you select a pay-out option, such as a cash deposit into your bank or PayPal account. Some P2P platforms have escrow features and rating systems for buyers and sellers to help. Still, the P2P approach requires familiarity with protocols like requesting proof of a buyer’s identity, confirming a buyer’s payment account details, and understanding that payments you receive can be reversed.
You can also opt for direct trades with individuals, online or in-person. It doesn’t get more peer-to-peer than this. As with any other transaction involving items of value and/or face-to-face meetings, it’s best to exercise caution to ensure you’re selling to a trustworthy buyer. Remember to always do your own research!
Brokers & Centralized Exchanges: Like Limousines
Brokers and centralized exchanges are often discussed together because they provide similar user experiences. Like limousines, brokers and exchanges are readily available and run smoothly.
To cash out your Bitcoin, you essentially put it up for sale by depositing it into your account with the broker or exchange. You sell the Bitcoin, receive cash in your account, and then you can withdraw it–commonly via wire transfer to an established bank account. Some brokers accommodate withdrawing to PayPal accounts.
The process is straightforward, but brokers and exchanges can come with significant transaction fees and a waiting time of up to six days before the cash posts to your account. Remember: Limousines offer comfort and safety but can be costly and aren’t known for their speed.
BTMs & Bitcoin Debit Cards: Safe & Speedy
Two-way Bitcoin ATMs, which allow you to buy and sell Bitcoin, offer a user-friendly, convenient, and secure way to cash out. The best part? You can withdraw your cash then and there. You can transact as little as $5 and as much as $5,000 per day using a Coinsource BTM, and Coinsource’s fees are among the lowest for BTM operators in the U.S. This is a great option for many looking to convert Bitcoin into cash quickly and safely.
Another option is Bitcoin debit cards, which are Visa- or Mastercard-backed debit cards either connected to your Bitcoin wallet or preloaded with Bitcoin. You use a Bitcoin debit card the same way you use a bank debit card. Use it at brick-and-mortar stores and online, whether or not the merchant accepts Bitcoin. You can even withdraw cash from a regular ATM, which automatically converts your Bitcoin into fiat. By doing so, you can successfully cash out your Bitcoin.
Of note: Bitcoin credit cards are on the horizon!
Investopedia reminds users that, “You may pay withdrawal, transaction, or monthly account fees with a Bitcoin debit card. Keep in mind that since the price of Bitcoin fluctuates, the amount of Bitcoin needed to complete a transaction can fluctuate, even within a single day.”
The most important step in picking an option to cash out your Bitcoin is recognizing your priorities. How soon do you want your cash? What fees are you’re willing to pay? What are your non-negotiable security precautions? These questions are all key to your personal approach to cashing out Bitcoin.
Coinsource is the world leader in Bitcoin ATMs. With a focus on compliance and ease of use, Coinsource is aiming to bring Bitcoin to the masses. Follow for blogs about Bitcoin, finance, company updates and Bitcoin ATM information!