Bitcoin has seen a rise and experienced ever-increasing demand. Bitcoin has been around for more than 10 years and has now become a popular alternate currency. The most genuine question minds of its users is whether they can convert Bitcoin to cash.
Converting Bitcoin to Cash – Can I convert Bitcoin to cash
The world is changing fast and so are the technologies. Bitcoin is an active tech player which allows several avenues to convert bitcoin to cash and further move it to a bank account. Here are some of the ways to help you guide through this process.
- One of the easiest ways to obtain cash in return for bitcoin is that the user sells the bitcoin on a cryptocurrency exchange. Some examples of these cryptocurrency exchanges are Coinbase or Kraken.
- This method will allow you to first of all sell the bitcoin and then withdraw the resulting cash directly to a bank account. It is very important to highlight that to prevent brokers do not break any type of money laundering laws, the user has to make sure that they withdraw to the same bank account where they first deposited it.
- Although this method is easy and secure by far it is not the quickest of all. In the US itself, it takes an average time of around 4-6 days for the money to reach a customer’s account. This number varies from country to country. Some amount of associated fees depends on the country in which your bank is located.
- One of the most popular broker exchange platforms for buying and selling bitcoin is Coinbase. They process the maximum number of bitcoin transactions than any other broker and hold a robust customer base of 13 million.
- Following are the steps to facilitate the process of cash conversion:
- Sign up to complete the verification process.
- Deposit (or buy) Bitcoin in your account
- Cash-out your Bitcoin to fiat via bank transfer or PayPal (applicable to some services)
- Bitcoin ATMs: A traditional ATM allows users to withdraw currency from a bank account. While a Bitcoin ATM is a physical center that allows users to buy or sell bitcoins with the fiat money in their pockets.
- As per recent records there exist around 4990+ crypto ATMs across 76 countries. To make this process easier a website named Coin ATM Radar helps users to find a Bitcoin ATM or other cryptocurrency ATM nearest to their location.
- While we have already discussed the advantage of this method it is necessary to look into the disadvantages as well. This method is only helpful for small transactions because most of the Bitcoin ATMs or even other Cryptocurrency ATMs have deposit and withdrawal limits.
- Moreover using a bitcoin ATM brings with it a high transaction fee, which usually ranges between 7-12%.
- Bitcoin Debit Cards: There exist various websites that allow you to sell bitcoin and in exchange receive a prepaid debit card which allows you to use it like a regular debit card.
- Each of these cards is either powered by VISA or Mastercard which implies that they can be used for shopping through both online and offline mode. These cards will be of use in most businesses over the world.
- Another added advantage of these Bitcoin Debit Cards is that they can be used to withdraw cash at ATMs where VISA or Mastercard are accepted.
- Peer-to-Peer Transactions: This is a much quicker and more anonymous way, users can opt for a peer-to-peer platform to sell bitcoin for cash. This method is quite flexible and hence attracts more users to adopt it.
- A user here can decide which payment method they want the buyers to use when selling bitcoins to other people.
- Cash Deposit: In a Cash deposit the seller can simply ask the buyer to deposit cash into his/her bank account. It is very vital to ask the buyer for their ID proof and proof of payment. Both these details should be collected before releasing the Bitcoins to them.
- Bank Transfer: In a Bank Transfer the seller can ask the buyer to provide their bank transfer payment. This can also be initiated over PayPal if both parties use it.
- In this method as well, the seller must request ID proof from the buyer before going ahead. Once the money is successfully received, the seller can release the bitcoins to the other party.
- Bitcoin can be used for payment locally and globally.
- Bitcoin and other cryptocurrencies in the market can be transferred faster at lower transaction fees.
- Only 21 million bitcoins will ever be created, which is deflationary and on the other hand, the paper currency remains inflationary.
Bitcoins are digital currencies that have gained popularity over the past years. It is now globally accepted by many companies and businesses. The cryptocurrency market is quite volatile and involves risk. The traders invest based on the level of risk-taking ability. One genuine concern for all traders is can they convert bitcoin to cash. Well, the answer ‘yes’.
There exist several ways through which one can convert their Bitcoins into cash. One of the greatest alternatives is the existence of Bitcoin ATMs that can be used for conversion. However, the high fees I demand ranging from 7-12% of the total transaction may not be friendly.
Therefore, it is up to the users to wisely choose the method listed above in the article that best suits them. An appropriate method can be selected that is not only convenient but secure and cheap too.
- Is the conversion of Bitcoin to cash legally?
In the United States of America, selling an own legally acquired Bitcoin is a crime. To sell one’s Bitcoin or any other cryptocurrency one has to go through a regulated exchange.
- What is the fee to convert bitcoin to cash?
An online exchange usually charges an average 0.1%-1% fee, whereas Bitcoin ATMs typically charge 7-12% for selling bitcoins. In simpler words, a seller will get fewer dollars if he/ she is selling bitcoins using an ATM compared to other options.
Written By: Ayushi Sarin