How to Cash Out Bitcoin A Guide for Beginners

Secondly, Binance is one of the cheapest exchanges, with a default 0.10% fee for transactions on the exchange. Once the Bitcoin has been converted to fiat, the user can then proceed to withdraw the swapped fiat to their bank account. What makes Binance stand out as the best place to sell Bitcoin is its ability to convert Bitcoin into fiat and stablecoins with zero fees. When you cash out bitcoin, the exchanges generally charge a small fee to process the transaction.

Load your Bitcoin wallet

You cannot simply deposit digital currency into your checking account at the bank down the street. The same goes for stocks, bonds, mutual funds, and many other investments. Most banks do not yet accept bitcoin for deposit, so you’ll need to convert your bitcoin into cash before you can deposit it. One of the advantages of peer-to-peer exchanges is that they help utilize one of the core benefits of crypto.

Ledger has a built-in exchange service, “Ledger Live,” and partners with Coinify to sell crypto for cash. As a decentralized currency, Bitcoin was originally designed as a peer-to-peer payment system. Sticking with those roots, using a peer-to-peer (P2P) crypto exchange allows you to sell your Bitcoin directly to another individual in exchange for cash. Online brokerages typically have reasonable trading fees for selling crypto. For example, eToro charges a flat 1% trading fee to sell crypto, which is a fairly low rate.

Transaction fees

• If you have Skrill, you can also use Paybis or Coinmama and convert your bitcoin to EUR/USD in less than 15 minutes.
• However, the most popular option for selling Bitcoin is to use a central trading platform like Binance to convert crypto to regular fiat.
• So while Bitcoin ATMs are an option to quickly access physical cash by selling your crypto, there is a high cost for the privilege of using them.
• This setup makes peer-to-peer platforms especially worthwhile if you’re concerned about scams or fraud while interacting with someone over the internet.
• To demonstrate, here is a full guide on how to sell Bitcoin on Binance.
• Many crypto exchanges charge high fees if you use their simple “sell my crypto” option.

Whichever is your reason, in this step-by-step guide, I am going to demonstrate to you how to exchange Bitcoin for cash in just 5 steps. Furthermore, I am going to give you practical examples of how to exchange Bitcoin for cash on major types of platforms. If you need to convert Bitcoin to any currency to pay your bills or merely to spend it, the fastest way to do it is via MoMo or an online payment service like PayPal or Skrill. Cashing-out to digital gift cards gives you more freedom, discretion, and control over how you spend your BTC.

Confirm and click on ‘Send,’ and the crypto asset will be deposited into the Binance wallet once all verifications have been made on-chain. To create a personal account, fill in a valid email address on the next page and add a unique, strong password. We strive to provide up-to-date information, but make no warranties regarding the accuracy of our information. FinanceBuzz does not provide credit cards or any other financial products. Some or all of the offers that appear on this page are from third party advertisers from which FinanceBuzz receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear).

You may send these proceeds to your bank account, debit card, payment gateway, or cash app, depending on what you consider as your best way. We analyzed over 100+ payment methods over the last 30 days to figure out what’s the best way to cash out bitcoin or crypto in any country on ThinkMaverick. Tap on ‘Trade’ from the list of options to open up the trading terminal. A web programming on a chromebook limit order allows an investor to set the price to trade a coin, while a market order allows the user to sell at the current market price. Users should note that placing at-market trades to quickly convert Bitcoin to cash can incur higher fees.

• Through peer-to-peer exchanges (also known as P2P exchanges), you can transact directly with other people.
• With that said, there are some ways to avoid paying taxes on cryptocurrency.
• However, keep in mind that you don’t need to use just one method when learning how to cash out Bitcoin!
• The downside of Bitcoin ATMs is the high fees that most of them charge.
• However, you can choose other crypto exchanges if you want to try something different.
• You are required to pay taxes on the gains, just like any other investment.

Types of Crypto ATMs

You have the freedom to set your own rates, and also the luxury of multiple payment options to get paid for the Bitcoin you cash out. Selling Bitcoin can be taxable depending on the location of the investor. Overall, Gate.io is one of the oldest and most trustworthy exchanges for cashing out of BTC. The only disadvantage is that US investors are not allowed on the platform.

I’ll show you how to withdraw Bitcoins to cash using an exchange (namely, Binance) and through a peer-to-peer exchange. Cryptocurrency exchanges are one of the most popular ways to sell Bitcoin. This is because high liquidity ensures faster sales and their secure platforms provide escrow and insurance. Deciding where to cash out bitcoin to depends on your individual goals, location and circumstances. You can certainly look for the potential benefits and drawbacks based on the accessibility, convenience, fees or even tax implications.

Selling crypto for cash typically comes with fees, but sometimes it is more than you think. While most exchanges and money apps allow you to sell your crypto at a reasonable rate, places like crypto ATMs charge extremely high fees, which may eat into your profits. BitDegree aims to uncover, simplify & share Web3 & cryptocurrency education with the masses. Join millions, easily discover and understand cryptocurrencies, price charts, top crypto exchanges & wallets in one place. If you decide to cash out your Bitcoin using a broker exchange such as Coinbase, then it’ll normally take about 1-5 days for the money to reach your account. For EU customers, payments are made via SEPA (withdrawals paid in Euros).

To prevent fraud and ensure liquidity, most crypto exchanges place withdrawal limits on accounts. Depending on the exchange, you may have different limits based on the type of account you have, the currency of the withdrawal, and other criteria. No matter which payment option you prefer, you need to protect yourself from fraud. A good P2P exchange has adequate safety protocols in place to ensure a legitimate transaction occurs. For example, if you’re receiving a gift card instead of cash, the gift card needs to be valid, and it must be safe from the seller using the balance after they’ve received your bitcoin.

Sell Bitcoin via Over-the-Counter Trading

While most people prefer cash, sometimes you may find more lucrative options. Some exchanges enable you to trade your bitcoin for gift vouchers and other items of value. The closest comparison to using a cheapest way to buy bitcoin third-party broker exchange is exchanging foreign currency for U.S. dollars (USD). Many travelers convert their foreign currency at a bank or exchange company and receive cash immediately.

FinanceBuzz does not include all financial or credit offers that might be available to consumers nor do we include all companies or all available products. Information, including rates and fees, is accurate as of the publishing date and has not been provided or endorsed by the advertiser. Bitcoin is a legitimate asset that has value and can be cashed out legally. You can convert bitcoin to cash just as if you sold a stock, piece of art, or vehicle. If you sold your bitcoin for a profit, you must report the income on your tax returns. This is true even if the exchange you sold it on does not provide you with a Form 1099.

Cash Out Bitcoin for Gift Cards

However, P2P platforms might offer better rates or convenience for smaller transactions. You should stay cautious to avoid potential fraud, so it’s essential to use trusted platforms and brokers. The fees incurred when selling Bitcoin depend on the method selected and the platform the investor uses. When using an exchange to sell BTC, the fees charged usually come at a flat rate. For instance, Binance is one of the most economical exchanges that charges 0.1% to sell Bitcoin and is an ideal platform for those who want to lower their crypto fees.

Withdrawing cash via ACH is also free and can be processed within 1-2 business days in the US. For Bitcoin investors that are looking for a reliable way to sell Bitcoin, Kraken offers good value with multiple options to convert BTC to fiat. Third-party exchanges and fiat gateways typically charge fees from 3% to 5% for converting crypto into cash, which is high. But if you need cash and don’t want to transfer your Bitcoin to an exchange, this is a decent option. Many crypto wallets have built-in crypto exchanges, and some even allow you to exchange your crypto for cash directly.

Investors can trade their BTC using the Sell option on the Coinbase website or mobile. The Sell option lets users exchange their BTC for their desired fiat currency, which can be withdrawn into their bank account. The advantage of using Coinbase is the user interface which is simple and easy to use on the desktop or mobile app to perform a sell trade.

If you’ve never deposited fiat onto a broker exchange, then you’ll more than likely need to make (at least) one deposit first. They are considered the best bet by those crypto holders who put privacy first. They are also ideal for those seeking customized solutions bitcoin price charts and news 2021 not availed by ordinary crypto exchange platforms.

LocalBitcoins was created in 2012 and supported almost every country in the world. So, no matter where you were from, you should have been able to find buyers to sell your Bitcoin for USD. Now that you have at least a general idea about how to cash out Bitcoin, let me show you how to do it using a peer-to-peer exchange, Binance P2P. It lets you buy and sell Bitcoin for USD by connecting you with various sellers, vendors, and other merchants.