Bitcoin is now 10 years old and it has evolved a lot over the years. Nowadays, there are so many ways to buy bitcoin and there are so many things to spend your bitcoin on. The bitcoin adoption rate is on the rise and more and more businesses are starting to accept bitcoin as payment. Still, there are so many commonplaces that absolutely won’t do without fiat currency. Even in that case, you need not to worry as the bitcoin ecosystem has come so far that exchanging bitcoin for cash is a breeze these days and you can turn any amount of BTC to cash.
There are a lot of reasons people would want to turn bitcoin into cash. First, you have to understand that although there are a lot of businesses that are starting to accept bitcoin, it’s still a small percentage of the market. Not all businesses accept bitcoin just yet and the ones that do are very dependent on location (the number of businesses that accept bitcoin around you depends on where you live). Let’s face it, converting your bitcoin into cash makes your money more usable around the world, at least until bitcoin gets adopted by every business. Second, keeping your funds in bitcoin form makes your money susceptible to the volatility of bitcoin’s price. Let’s say you bought bitcoin at X price. If the price takes a hit and you’re still holding onto your bitcoins, you might end up losing money…or earning more because the price of cryptocurrency keeps going up and down. It’s a risk you need to decide if you want to take.
Before asking yourself “How do I change bitcoin to cash?” you’ll probably find asking yourself is “Should I even bother turning bitcoin to cash?”
Whether you want to convert them or not is totally your call. Are you ready to let go of your bitcoin? Once you convert into cash, the price can no longer increase (or decrease). If the price goes up after you cash it out, you would lose potential earnings. Then again, it would also save you from potential loss if the price goes down. It’s a calculated risk that you need to look out for.
There’s really no “best time” to convert your bitcoins into cash. Once you’ve made a decent amount of profit from your investment, you can cash out at once. You could also run take the risk by leaving it in bitcoin form, allowing you to have a chance at even more potential earnings when the price goes up. The choice is yours!
So after spending hours pondering on your decision, you have made your mind to cash out your bitcoin and though it may be intimidating at first, converting bitcoin to cash is not that hard. If you consider these questions, it will make your life a lot easier.
Easy or Cheap?– Sometimes paying a bit extra make it way more convenient and secure
Do you want hard cash, online payment or bank balance?
How long is your wait time? Do you want your bitcoin cashed immediately or would you rather wait?
What currency do you prefer while converting your bitcoin? USD, EUR or any other?
How private do you want the transaction to be?
Keep in mind that when it comes to converting bitcoin into cash, there is no difference between converting large and small amounts, unless you’re scared of carrying around a lot of cash. There are several ways to convert bitcoin to cash, the most popular and significant ways are listed below.
Convert BTC to Cash using Fiat Exchanges
An easy way of converting your bitcoin to cash is to find a local bitcoin exchange that can turn bitcoin to cash. Depending on where you live, some bitcoin exchanges would gladly convert your bitcoin into cash. For example, if you live in the United States, Coinbase can help you transfer your bitcoin straight into your bank account.
There are several exchanges that work internationally. You can convert your bitcoin to cash using these popular Exchanges.
Read about the legality of the exchanges before making an exchange so you won’t get into any trouble.
Convert Bitcoin to Cash using Peer to Peer Marketplaces
One of the reasons bitcoin has evolved so much is that buying and selling bitcoin has been made easy by peer-to-peer marketplaces. On these platforms, there are hundreds of payment methods available which make it easier for users to trade. This method quintessencial to the growth of bitcoin because bitcoin–after all–was conceived for peer to peer transactions.
If you want to convert your bitcoins into cash via peer-to-peer platforms, you’ll have to scroll through the hundreds of payment methods available and look for “cash-in-person”. Peer-to-peer platforms will usually have this payment method. With this payment method, you’re connected with a buyer/seller for the sole purposes of setting details for a meetup. Once you meet up with this person, she/she will give you cash then you’ll be sending him bitcoin in person. This payment method also works if you’re looking to trade bitcoins anonymously as you won’t be needing to give much personal information.
Usually, these p2p platforms are so sophisticated that they offer myriads of ways to exchange your bitcoin. One of the leading marketplace Paxful, for example, offers more than 300 different options to exchange your bitcoin including Amazon and Itunes gift cards, PayPal to hard cash.
Here are the leading p2p platforms
Be careful while choosing the platforms. Just recently, one of the leading platform Localbitcoins was hacked and wallets were compromised by the attackers. Select your platform wisely and also there will be a lot of hustlers who will try to scam you. Stay within the platform and check the reputation of the person you are dealing with to avoid getting scammed.
These p2p platforms also allow you to meet the person in real life and do transactions. However, recommend doing the following for your safety.
Using Bitcoin ATMs to Convert your Bitcoin into Cash
Bitcoin ATMs are another solution to cash your bitcoin out without any fuss. These ATMs work like regular ATMs but instead of utilizing fiat currencies, they use bitcoins. Bitcoin ATMs have been growing crazy fast and grew by 720% since 2016. They are already available in most major cities around the world and they provide a quick way to convert your BTC and other cryptocurrencies to cash. You might be asking yourself is there a bitcoin atm near me or how do I even know there is one close to where I live? In that case, just use Coinatmradar to find out.
Some ATMs even have the option to redeem your bitcoin to cash anonymously. Although with the new KYC laws being implemented, the ATMs that allow you to cash out anonymously are starting to disappear. They’re not extinct but they’re harder to find nowadays.
Beware that these ATMs will charge you hefty sum per transaction and they are much higher than many existing exchanges and peer to peer platforms.
Read our detailed guide on how to use bitcoin ATMs.
Turn your Bitcoin to Cash using Bitcoin Debit Cards
If you didn’t already know, cryptocurrency debit cards exist. These cards allow users to deposit their coins via an online website. The website will then convert them into fiat currency with the US dollar and the Euro is the most popular. Monaco and Bitpay are the most widely used cryptocurrency debit card services. Monaco and Bitpay are among the popular cryptocurrency debit cards. Revolut has also been making waves in this industry since its inception.
Using Cash App to Sell your Bitcoins for Cash
Cash App is getting really popular for buying and selling bitcoins and they claim to do it without a fee but they may be compensating that by slightly manipulating the price of bitcoin. It’s very simple to sell using cash app by following these steps.
- Select Cash Card or the dollar amount at the top of your screen to access your Cash App balance.
- Swipe left, you’ll see the BTC symbol in the upper right-hand corner.
- Select Sell and use the slider to choose the amount you’d like to sell or swipe up to enter using a keyboard. Tap Sell BTC.
- Enter your Cash pin, or use your Touch ID is enabled, and select Confirm.
How to Convert Bitcoins into Cash Anonymously
With the recent KYC laws being implemented, it’s getting harder and harder to convert your bitcoins into cash anonymously. Although it’s much harder now, it’s still possible.
Two ways of cashing out your bitcoins anonymously have already been specified. Peer-to-peer platforms have a “cash-in-person” payment method that allows you to cash your bitcoins out without having to give out much personal information. Bitcoin ATMs are another way although it may be difficult to find bitcoin ATMs that will still allow you to withdraw anonymously.
The other way to convert anonymously is to make use of gift cards. There is now a good (but not good enough) number of businesses that accept bitcoins. A way to circumvent the no-bitcoins-barrier would be to use buy gift cards with your bitcoin and use them on websites. When it comes to gift cards, you can purchase almost anything if you’re willing to do the work.
Let’s use Apple and their iTunes gift cards as an example. Go on a peer-to-peer marketplace and trade your bitcoins for iTunes gift cards (you’ll find that iTunes gift cards are one of the more popular payment methods of peer-to-peer platforms). The gift card payment method usually doesn’t need a lot of personal information on your end. Usually, it’s just the gift card code and a receipt of the gift card that is needed. With enough gift cards, you could eventually buy one of Apple’s products (like an iPhone or MacBook). Once you’ve obtained let’s say an iPhone, you can sell it on eBay and make some cash by doing so.
For the gift card method, I recommend using Paxful since they specialize in gift cards. Not only will you have a wide array of gift cards available on the website but you’ll also have the chance to get gift cards at a discounted price.
Do you know of any other method to cash out bitcoin? Let us know in the comments below!