How to Cash Out Bitcoin? [Selling Bitcoins in 2024] | CoinCodex (2024)

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.

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.

Create Binance Account

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.

Create Crypto.com Account

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.