Bitcoin is one of the most prominent cryptocurrencies that has been in circulation since 2009. Since its circulation, it has slowly and steadily gained popularity, though not as much as traditional currencies like Dollar, Pound or Euro. Despite the building of several products and blockchains, it has not yet attained the status of a stable form of money.
How to Cash Out Bitcoin and Other Cryptocurrency
Regulation of bitcoin transactions is also a major issue with banks and therefore, it does not find acceptance in businesses too. Since you cannot use bitcoin for purchasing goods or paying for services, many people who own Bitcoin are looking to convert them into authorised currencies which can be easily used.
Though Bitcoin has proved to be a great investment, market fluctuations or demand/supply chain can cause a change in its value. If a Bitcoin user wishes to convert it into cash, there are four ways available to do so. These include.
Bitcoin ATM
You can use credit card or cash to buy/sell Bitcoin. The Bitcoin ATM is like any other ATM except it is not associated with any bank account. With 2000 Bitcoin ATMs spread across the world, it is an excellent way to cash out your Bitcoins without involving the exchanges.
The entire process is secure and quite straightforward and does not require any registration. However, you require the Bitcoin ATM machine to cash them out which are not yet common in developing countries. Luckily, if you want to cash out Bitcoin or any other altcoin in Canada, then you can use Localcoin ATMs.
- Locate the nearest Bitcoin ATM using internet and choose the cash withdrawal option.
- Choose Bitcoin among the currency options available on ATM.
- Select withdrawal amount.
- Send BTC from mobile wallet to QR code given by ATM and collect cash.
3rd party broker exchange
They are centralised cryptocurrency exchanges which handle Bitcoin exchange for cash. On any such platform, a user looking for Bitcoin can enter purchase request and will be connected to another sell order. The sale is handled by the exchange with some additional service charges.
This method is best suited for those people who do not wish to deal directly while buying or selling Bitcoin. The exchange is held liable in case of any fraud or theft since their platform was involved in the transaction. Therefore, if any user’s Bitcoin exchange account is compromised, the funds will be replaced by the exchange.
This option is ideal for those who wish to withdraw cash into their accounts after Bitcoin exchange. It is more secure than other forms of exchange, however, the exchange has more control over funds and withdrawal is slow at times. The steps involved are.
- Choose a broker exchange depending on your personal requirements.
- Register for exchange account and deposit Bitcoin into the wallet.
- Place sell order and wait for connecting with buyer to get your funds.
Peer-to-peer exchange
In this method, the peer-to-peer exchanges connect Bitcoin users depending on the buying and selling orders. The exchange is thus, carried out by individuals themselves. Exchange does not interfere in the transaction process and is faster compared to 3rd party broker exchange.
This method of cashing Bitcoin is appropriate for those users who wish to avoid the price set by centralised exchanges. They also end up avoiding charges and have total control over whom they are conducting transaction with.
When you cash out Bitcoin using this method, you can accept cash either in person, through a cash deposit or via a bank transfer. To avoid any fraudulent transactions, ensure that you ask for identity proof during bank transfer and cash deposits. The steps involved are.
- Register on P2P exchange and set Bitcoin selling price.
- Contact the buyer once exchange matches you with them.
- Make arrangement for transaction (cash deposit, bank transfer or actual money).
- Put Bitcoins in escrow till you receive payment and then release them to buyer.
Bitcoin debit card
One of the easiest ways to encash your Bitcoin is to use Bitcoin debit cards. Just like normal debit card, you can withdraw cash instantly. The debit cards linked to exchanges are an excellent way to cash out Bitcoins as compared to Bitcoin ATMS (which are rare to find in developing nations), traditional ATMs can be found relatively easily.
Though these debit cards provide instant cash withdrawal, there is a transaction fees of $3 per withdrawal which is quite high. Additionally, you need an exchange account most of the times. The steps involved are.
- Find a crypto debit card provider and register for it.
- Add the card to the exchange wallet of your choice.
- You can either sell Bitcoin on the exchange and withdraw cash to debit card or send Bitcoin directly to the wallet.
- Withdraw the cash using the card from a normal ATM.
With these methods, you can easily cash out Bitcoins. You can also try Bitcoin Billionaire trading software to earn more. Bitcoin-billionaire.com is the effective and whether you are completely new to the online trading world or a seasoned professional, this automated trading app/software will enable you to trade accurately and profitably.
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