Bitcoin is a cryptocurrency used as a form of payment for many different things. However, you may be wondering how to cash-out your bitcoin and turn it into cold hard cash.
If you are one of those people who has purchased a significant amount of bitcoin and would like to know what your options for cashing out might be, this article will help guide you through some potential solutions.
We’ll discuss five ways to “cash-out” your bitcoin and use it in more traditional methods. For example, you could trade bitcoin for cash on the various exchanges that allow users to do so or sell it for money on sites like eBay or Craigslist.
You might also want to try mining bitcoins. Whatever method you choose, there are some basic concepts about bitcoin trading and selling that you should know first before making any decisions.
Step-By-Step: How to Sell Bitcoin
- Go to Coinbase or LocalBitcoins and purchase as much bitcoin as you want with USD from your local fiat wallet.
- Click “Sell” and select your bitcoin wallet address from LocalBitcoins or Coinbase, where you want to send the BTC once you have cashed out of your crypto exchange account.
- Cash-out of your cryptocurrency exchange account and send the BTC over to your wallet address from Coinbase or LocalBitcoins, which we just created above.
- Sell your BTC on the exchange platform you are currently using, either Binance, Bittrex, or Kucoin.
- Click the market you want to sell your bitcoin on, for example, BTC-USDT or ETH-BTC depending on what type of cryptocurrency pair you are selling at that time.
- Enter the amount of BTC you want to sell and select “Sell” at the bottom of your screen on Binance.
- Log into your account and withdraw the equivalent amount in cryptocurrencies that you want if it’s less than or equal to your balance into Coinbase (this step could be different depending on your wallet).
Figure out which currency you want to cash out in
This is usually the currency you used to buy your crypto. For example, if you purchased Bitcoin (BTC) with USD, then sell BTC for USD. If you want to cash-out in another currency like Ethereum (ETH), find a cryptocurrency exchange that trades ETH and trade it there for whatever currency looks good on that day.
Make a cryptocurrency account on a selling platform
You can use a platform like Coinbase or Binance. With the account you created, search for a market on which to buy and sell bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), etc. Using your money, buy the amount of crypto you want to sell and transfer it into a personal wallet. To find out how much bitcoin or other cryptocurrency is worth in US dollars, visit CoinMarketCap.com.
Transfer your coins to the platform
You can choose to transfer the coins from your exchange wallet into a digital platform wallet on an online crypto marketplace. However, be sure that you are using a reputable vendor that does not have issues with security or safety of funds in their possession. This is important because if something happens once you transfer your coins to the wallet, you will have little recourse for recovery.
Create a sell order
Create a sell order at your exchange of choice. Some exchanges will allow you to choose a limit or market price, and some will set the sell rate for you. Use cash as an alternative to PayPal if selling bitcoin face-to-face or via another person.
Direct trades (person-to-person)
Sell bitcoins through person-to-person trading. This process only works when dealing with local traders in your area and can be risky if you don’t know who you’re meeting.
Paxful, LocalBitcoins, and Local Monero are all platforms that allow you to buy or sell crypto directly with people in your community. For example, on Paxful, you can sell bitcoin (BTC) for cash by having someone send you a payment through Western Union (WU).
Online P2P selling
Online P2P selling is the easiest way to “cash-out” your cryptocurrency. By creating a listing on an online marketplace, you can sell your items in exchange for cash.
This is the easiest way to “cash-out” cryptocurrencies because it doesn’t require uploading ID or waiting days before receiving any money. However, listings are not always free, and there may be some fees when selling certain currencies like Bitcoin Cash.
Face-to-face transaction services like LocalBitcoins and Paxful are the easiest way to cash-out your cryptocurrency for physical fiat currency. In addition, you can have an in-person meeting at your local coffee shop. However, there are some extra precautions and security steps that you need to follow. Security is always paramount in cryptocurrencies, so make sure you are aware of the risks.
Best Way to Sell Bitcoin in Each Country
Sell Bitcoins in the United States
If you live in the US, CoinBase is the easiest way to sell Bitcoin for cash. CoinBase allows users to buy and sell Bitcoin online with a credit card or through their bank account. You can even deposit fiat currency into your PayPal account. Users who have used BitPanda in the past know that they charge hefty fees when buying and selling Bitcoin, but CoinBase charges a smaller fee.
Sell Bitcoins in Canada
Changelly is one of the most popular platforms for exchanging cryptocurrencies. To sell bitcoins in Canada, you will need to do it through them. It’s straightforward and fast, so if this happens to be your first time selling bitcoin, you can use their service for safety purposes. You can also buy bitcoins with a credit or debit card on their website.
Coinmama is another excellent online platform to sell bitcoins in Canada for cash. They are known worldwide because of the variety of cryptocurrencies that you can buy with your credit or debit card, such as BTC, BCH (Bitcoin Cash), DASH, ETH (Ethereum), etc.
Sell Bitcoins in Europe
If you live in Europe, BitPanda is likely the easiest way to sell Bitcoin for cash. BitPanda allows users to buy and sell Bitcoin online with a credit card or through their bank account. You can even deposit fiat currency into your PayPal account.
Users who have used CoinBase in the past know that they charge hefty fees when buying and selling Bitcoin, but BitPanda charges a smaller fee.
Sell Bitcoin in the UK
If you live in the UK, finder.com is a great place to sell Bitcoin for cash. The website features tens of thousands of classified listings, including ads for people willing to buy or sell digital currency. You can also check out Craigslist and Facebook Marketplace if you want more diverse options.
Sell Bitcoins in Australia
If you live in Australia, check out preev.com to sell Bitcoins for cash. This site allows users from all over the world, including Australians, to conduct transactions online through bank transfers and local meetups.
Sell Bitcoins around the World
Selling bitcoins is hard work, and it takes time. Fortunately, there are now plenty of options for those looking to sell their bitcoins safely and conveniently. You can sell Bitcoins worldwide using various payment methods such as bank transfers, cash deposits, or PayPal at top exchanges, including CoinMama, BitPanda, BitQuick, and LocalBitcoins.
Sell Bitcoins for Cash
Paxful is a peer-to-peer marketplace that allows individuals to safely buy, sell, send and receive bitcoin using cash deposit or PayPal as payment methods. The site features over 150 payment options, so any country-specific currency is valid to purchase bitcoins at a low fee.
Users can place ads with specific payment or shipping instructions, and interested buyers will contact them to purchase bitcoins using the advertised payment method. The site makes it easy for users to buy bitcoin online from local sellers quickly and safely without having to use a bank account.
Paxful also features an escrow service that holds funds until the transaction is complete, and trusted sellers can earn positive feedback for their efforts.
LocalBitcoins is one of the top peer-to-peer exchanges that allow bitcoin buyers and sellers to meet up locally or use an online escrow service. Local Bitcoins also enables users to purchase bitcoins using PayPal for a small fee.
Once the transaction is complete, LocalBitcoins will release funds to the buyer or seller, depending on who initiated the transfer first.
Alternatively, buyers and sellers can use an escrow service that holds bitcoin until all parties are satisfied with any transactions during the trade. Sellers should be aware of scams that can take place during in-person trades.
BitQuick is a peer-to-peer bitcoin exchange. BitQuick is very similar to LocalBitcoins, but serves more countries and offers higher buying limits for many of its services. In addition, BitQuick provides an escrow service for Bitcoin transactions for thousands of American banks. Although they charge a fee of about ten percent, using BitQuick is a fast and convenient process.
You can find someone on localbitcoins.com and use the trade service to make your purchase or sale with cash in hand for some privacy sake while also ensuring that all parties avoid a fraud charge. You agree on a price over the phone or in-person and meet someone locally who will pay for it with real money.
Another way to sell bitcoins is through Bitcoin ATM’s in many cities around the world. However, this option may not be available in your area so you’ll have to do some research online before getting started.
This service allows users to deposit cash into a machine and receive the equivalent amount of bitcoin. Some ATMs have daily withdrawal limits, while others require verification from a team member of the machine’s owners.
However, since ATMs have fees of about ten percent, they are generally used for cashing out rather than buying bitcoins. The device will let you convert bitcoins into cash in just seconds. However, they only work if the machine has been set up with cash and it’s within your geographical area.
If you are a beginner to the crypto scene, knowing which method is best for cashing out your bitcoin can be difficult. The five methods discussed in this blog post all have their pros and cons but may suit different people better than others, depending on what they want from the process.
If you have to meet for a face-to-face transaction, you should meet sellers at a public location. You should also avoid using bank accounts or online wallets to transfer funds and never reveal personal information until secure transactions are complete.
Buyers looking for quick purchases without the need to establish trust with the seller may want to consider escrow services to be sure payments are going smoothly.