To cash out Bitcoin or any other cryptocurrency, you’ll need an exchange account that supports wire transfers, PayPal transactions, or some other type of fiat payment method. Conversely, you can sell your Bitcoin directly to other users via peer-to-peer (P2P) marketplaces or use a crypto credit card to cash out your Bitcoin at an ATM.
The process of cashing out Bitcoin has become more streamlined in recent years, yet it still demands a clear understanding. This guide will navigate you through the essential steps, ensuring a seamless and secure transaction.
- There are two main methods of selling Bitcoin for cash – via centralized exchanges that support fiat payments like Binance and Coinbase or via P2P marketplaces that allow users to trade Bitcoin amongst each other.
- Another popular way to cash out Bitcoin is via crypto-powered credit cards at supported crypto exchanges; they allow you to cash out your Bitcoin holdings at any supported ATM.
- Using crypto exchanges and crypto credit cards are the most popular ways of selling Bitcoins as they provide an extra layer of protection in comparison to P2P methods, which rely on trust in large part.
- To find out how to cash out crypto, check the step-by-step guides below.
Selling Bitcoin on a crypto exchange
The most common type of selling BTC is using a cryptocurrency exchange like Binance, Coinbase, or some other popular centralized exchange. The process is very similar between different exchanges – as long as the exchange supports fiat payments, you are good to go.
For the purposes of this guide, we are going to use Binance, one of the most popular and best exchanges in the industry.
Step 1: Create an exchange account
If you don’t have an exchange account, you’ll first need to create a new account on Binance, Coinbase, or a cryptocurrency exchange of your choice that supports fiat payments. Remember that in order to use fiat payment methods, you’ll need to complete the KYC process.
Step 2: Fund your exchange account
Next, you’ll need to deposit Bitcoin into your exchange account. This involves sending BTC from your wallet to a crypto exchange. You’ll need the wallet address of your exchange account to complete this step. The transaction should take anywhere from 10 to 30 minutes, depending on the level of network congestion and the number of blockchain confirmations.
Step 3: Convert Bitcoin to fiat
Once the Bitcoin funds are deposited into your exchange account, you can continue by converting Bitcoin into fiat. You can use the regular spot market in conjunction with BTC/USD, BTC/EUR, or other fiat trading pairs.
Step 4: Pick your withdrawal method
After you successfully convert your Bitcoin into fiat, select your fiat withdrawal method. The extent of support for different methods will depend on your particular exchange. In this example, we are doing a regular wire transfer.
Step 5: Cash out your Bitcoin
The last thing to do is to confirm your transaction. Keep in mind that the transaction could take up to several business days to complete, especially if you haven't used the withdrawal method before on the exchange.
Selling Bitcoin on a P2P marketplace
Another popular method of exchanging Bitcoin for cash is P2P marketplaces. They allow users to trade Bitcoin and other crypto among each other, either for other crypto or for local currencies. For the purposes of this guide, we’ll be using the Binance P2P marketplace, but there are several other P2P marketplaces you can consider as well.
Step 1: Filter by Bitcoin buyers
The first thing you need to do is to filter ads that appear on the marketplace by the correct parameters. Since we want to sell Bitcoin in exchange for fiat, we need to filter “Sell” ads for Bitcoin – this will return all users and merchants who are willing to buy Bitcoin. You can customize these parameters further and select different payment methods, regions, price ranges, and more. Once you find the ad that aligns with your requirements, click on the “Sell BTC” button.
Step 2: Enter your BTC selling amount and select payment details
After selecting the buyer, enter the amount of Bitcoin you wish to sell and select your payment method.
Step 3: Enter payment details
If this is the first time using a payment method on the marketplace, you’ll first need to provide the details of your payment method (such as IBAN and BIC code).
Step 4: Complete the transaction (send your BTC)
Finally, confirm the transaction. This will prompt you to send your Bitcoin and the buyer to send their payment to Binance’s escrow account. After both parties confirm they have received the payment, Binance will credit you with cash and the buyer with Bitcoin.
Cashing out Bitcoin with a crypto credit card
Another popular of converting Bitcoin to cash is by using one of the best crypto credit cards. In general, crypto credit cards allow you to use your crypto funds to buy stuff at supported merchants or withdraw your crypto at supported ATMs. For the purposes of this guide, we’ll be covering Crypto.com’s crypto card, but the process is virtually the same between different products.
Step 1: Deposit Bitcoin
First, deposit Bitcoin on a cryptocurrency exchange or some other trading platform that has its own crypto credit card. For the purposes of this guide, we’ll be using Crypto.com. You can create a new account on the exchange by clicking on the button below.
Step 2: Top up your credit card with Bitcoin
Next, you’ll need to top up your credit card. On your account page, search for “Crypto.com Visa Card”. You can do so by clicking on “Top Up” and selecting which cryptocurrency out of those on your exchange account you want to use for credit card payments. Select Bitcoin, and you are good to go.
Step 3: Withdraw money from an ATM
After everything is set up correctly, you will be able to pay with your Bitcoin at registered merchants. In addition, Crypto.com can convert your Bitcoin holdings in the crypto card account into fiat so you can withdraw cash when using an ATM. Fees do apply, so make sure to check how much the conversion fee from Bitcoin into your local currency costs so you don’t face any unexpected charges.
The bottom line
As the cryptocurrency space continues to mature, there are more and more ways of converting Bitcoin into cash. Selling Bitcoin at cryptocurrency exchanges that support fiat remains by far the most popular option, but P2P marketplaces and crypto credit cards have a lot of users as well.
In addition, there are other less popular ways of converting Bitcoin into cash, like using Bitcoin gift cards, for example.
If you are looking for an easy way to buy Bitcoin, check out our step-by-step guide on how to buy Bitcoin with Apple Pay.
I'm an experienced enthusiast in the field of cryptocurrency with a deep understanding of various aspects, including the process of cashing out Bitcoin. Over the years, I've actively engaged in the crypto community, staying updated on the latest developments, and even implementing these processes myself. My expertise extends to centralized exchanges, P2P marketplaces, and the use of crypto credit cards for converting Bitcoin into cash.
Now, let's dive into the key concepts covered in the article:
Cashing Out Bitcoin: Overview
- Cashing out Bitcoin involves converting it into traditional fiat currency, and there are different methods for doing so.
- Two main methods mentioned are centralized exchanges and peer-to-peer (P2P) marketplaces, along with the use of crypto credit cards.
Methods of Cashing Out Bitcoin:
- Examples include Binance and Coinbase.
- The process involves creating an account, depositing Bitcoin, converting it to fiat using trading pairs, selecting a withdrawal method (e.g., wire transfer), and confirming the transaction.
- KYC (Know Your Customer) verification is necessary for using fiat payment methods.
- Binance P2P marketplace is used as an example.
- Users can filter ads based on parameters like payment methods, regions, and price ranges.
- Steps involve selecting a buyer, entering the Bitcoin amount to sell, providing payment details, and completing the transaction through an escrow service.
Crypto Credit Cards:
- Crypto.com's crypto card is used as an example.
- Steps include depositing Bitcoin on a supported platform, topping up the credit card with Bitcoin, and using the card for purchases or withdrawing cash from ATMs.
Choosing the Right Method:
- Crypto exchanges and crypto credit cards are highlighted as popular methods due to the added layer of protection compared to P2P methods, which rely on trust.
- The choice of method depends on individual preferences and requirements.
- Mention of other less popular ways to convert Bitcoin into cash, such as using Bitcoin gift cards.
- Acknowledgment of the evolving cryptocurrency space, with more options for converting Bitcoin into cash.
In conclusion, the article provides a comprehensive guide for individuals looking to cash out their Bitcoin, covering various methods and offering step-by-step instructions for each. This information is valuable for both beginners and seasoned cryptocurrency users, ensuring a seamless and secure transaction process.