You may have successfully raked in a lot of moolah by trading and investing in cryptocurrencies like the Bitcoin. But, now you want to convert this Bitcoin into cash. So, how do you go about it? There are actually many ways in which you can convert crypto coins into cash, but you must decide how you wish to receive the fiat currency. You could use a third party exchange for depositing the funds into a bank account, or you could even sell the Bitcoins for physical cash.
- Use a cryptocurrency exchange: This is by far the simplest way to cash out your Bitcoins. There are many third party exchanges that allow you to see the Bitcoins in exchange for USD, GBP, etc, and other fiat currencies through their mobile apps and websites. You only need to make sure that the exchange you choose works in your country. For instance, in the US, Coinbase, Kraken and Gemini will work; in Singapore, it is Coinbase, Luno, and Coinhako; in China, it is OKCoin, BTC China, and Huobi; in UK, it is Bitcoin Era and Bitcoin Evolution, etc.
- Sell Bitcoins through a P2P exchange: You can use LocalBitcoins which is a peer-to-peer exchange for selling your Bitcoins. This was founded in 2012 and it allows direct trading between sellers and buyers. You will find LocalBitcoins in almost every nations and it caters to more than 1.35 millions. It allows you to deal directly with buyers and there are no intermediaries. You are free to decide the rate at which you wish to sell the Bitcoins, and choose your preferred payment method.
- Use Bitcoin ATMs: You can always convert Bitcoin into cash by using the Bitcoin ATMs. This relieves you of the hassles of going through a rather tedious verification process, as in exchanges. You can conveniently get physical cash through this method. Unlike regular ATMs through which you get to withdraw the nation’s currency like AUD or USD, here you can actually sell Bitcoins for fiat currency. So, this is a physical center that lets you buy Bitcoins using fiat money, and sell Bitcoins for cash. You will only have to search for the closest Bitcoin ATM that lets you convert Bitcoins for cash. But, not all machines will be identical; their buying and selling limits and fees may vary. Moreover, this method only works for small transactions since ATMs will have withdrawal and deposit limitations.
- Use debit card: Bitcoin debit cards are not going to convert your Bitcoins into physical or hard cash per se, but will allow you to make use of the Bitcoins just like a regular debit card. So, you can load the Bitcoins into such debit cards, and they will convert the BTC into fiat currencies automatically. With Bitcoin debit cards you are free to buy anything online and offline, and even take out cash from ATMs anywhere. Examples of popular debit cards are BitPay, Cryptopay and Wirex.
- Sell to buyers: You can ask your buyer to first deposit cash into the bank account, but you need to get proof of payment and identity verification before you give them your Bitcoins. Alternatively, you could ask buyers to send you payments via bank transfer; here also, you need to request them for ID proof beforehand. On receiving the payment, you can release Bitcoins.
- Sell in person: Finally, you can always arrange to meet with buyers in person to sell the Bitcoins for cash. The buyer must however be someone who is local and who can pay cash in exchange of your Bitcoins. This is a secure method no doubt, but you must be wary of fraudsters.