Cryptocurrency!! Finally, you invested in one of the most controversial currencies and earned huge profits even in a short period. I hope you don’t have an emergency instead you had made millions, and now you wanted to cash out bitcoin! But wondering how? Are you confused, whether to choose exchange or peer-to-peer to redeem your bitcoin? Turning Bitcoin into cash is not at all a daunting task, and till you know, you must be well aware of the exchanges and other platforms to trade. Same platforms can be used to convert your bitcoins to cash. So, let us help you and explain in detail for easy conversion of cryptocurrencies to fiat or cash.
Factors To Ponder Before You Cash Out Bitcoin!
So now if you have made up your mind to convert bitcoins to cash, you must consider a few factors to make your transaction smooth and efficient.
- Amount of conversion (Huge or small!).
- Cost or transaction fees involved in the conversion.
- Vault to reserve your cash, i.e., whether bank account, PayPal etc.
- Type of fiat currency (USD, Yen, INR etc.).
- Wait time or delay time of conversion ( emergency or you can wait!).
- National rules and regulations related to crypto space.
Thus, depending on your needs and requirements, you can choose the method for your conversion or cash out bitcoin.
How To Redeem Bitcoin?
Consider your factors carefully before choosing any method to get your cash with bitcoin. Now, after thorough consideration, let us explain how to redeem bitcoin! Broadly, there are two methods to convert bitcoin: On-exchange and off-exchange.
On Exchange Method
Kraken, Coinbase or Bitstamp or any of the top cryptocurrency exchanges can provide you with a reliable network for faster and secured conversion.
- The first step is obviously to create your account (Don’t create another one if you already have!).
- Maybe you had skipped the step of verification when you started trading, but this time you have to compulsorily verify that you own that account (For your safety!).
- To double-check that your bank account (in which you wanted to have your cash) is connected to exchange, deposit a small amount of money to your account on the exchange.
- Finally, verification is done, bank account check done. It’s time to get set go. Send your BTC to the wallet of your exchange.
- And then withdraw the needed amount to your linked bank account. (Oops! That might take 2-3 days).
Every crypto exchange has its own rules related to transaction fees, withdrawal limits; fiats supported, etc., thereby, policies must be read carefully before choosing as a platform to cash out bitcoin. Most of the exchanges allow you to trade in fiat and enables you to link your bank account rather than Paypal or any online wallet, helping to withdraw money directly and also combating money laundering. Generally, exchanges put a limit on per day withdrawal amount, so in that case, you can use multiple exchanges, divide your bitcoins and in this way you can increase your withdrawal limit.
Problems of anonymity (due to centralised exchange), no negotiation in prices and the delay in completion of the transaction, are the significant problems which might let you explore the other option of an off-exchange method to liquidate bitcoin.
Off-Exchange Method (P2P Exchange)
When the transaction takes place directly between the peers, it turns out to be an off-exchange method to sell your bitcoin. So, can you trade bitcoin for cash? Yes, why not, in the same way, you purchase on the peer to peer platforms and over the counter brokers. Undoubtedly, platforms beside centralised exchanges provide you with the option of anonymity(Be Cautious! This might trap you in the scam too!), chance to control transaction prices and also to negotiate the amount you want to trade.
Localbitcoins and Paxful are two of the best options for peer to peer exchange, operating in almost every country across the globe.
- The same old step, you have to create your crypto account on the platform that you choose to cash out bitcoin.
- Details need to be entered along with some personal information not as many as that of centralised exchanges (Oops! It is not entirely anonymous!).
- So, set up your account completely and then start looking for a person on the marketplace which is offering almost similar amount to purchase BTC as you wish to sell.
- Finally, when you find someone, send them the request to sell your BTC.
- Once they accept, negotiate prices, confirm the mode of transfer and yes eventually cash out bitcoin. (Don’t worry, the escrow account of the platform ensures that your transaction will be completed and you won’t be deceived!).
Some of the features you can enjoy while trading off-exchange are: publish an advertisement for the fees you wish to charge, a rating system for feedback of buyers and sellers, utilise reliable VPN to make your identity completely anonymous etc. You can use a variety of options to transfer or receive the currency like PayPaleer, Western Union, gift vouchers, web money and also the most commonly used bank transfer.
So, can you sell bitcoins for cash now? I hope after reading the two methods, you can start withdrawing your BTC (Don’t pull all of them, you need to earn more!). But still, if you’re confused, how can you transfer bitcoin to bank, then convert your BTC into cash and use the mode of transfer like Paypal, bank transfer or debit/credit card to transfer some money to a bank account.
Now that you know the response to- how to liquidate bitcoin, you won’t be anxious next time you think to encash your bitcoins. There is a small piece of suggestion, try to settle your small amount of BTC today. So that you can have the tried and tested method of conversion and the other time when you need the money, you can cash out bitcoin in a hassle-free manner, without reading any guide or asking any crypto trader. Liquidation of bitcoins into cash is not a tedious task but you need to be cautious!
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