Today we will discuss How to sell Bitcoin holdings and cash out your BTC? Also, this can be a difficult question to answer, as exchanging Bitcoins for cash (or other currencies) can vary from one cryptocurrency exchange to another.
Many people prefer using local currency, so if you’re looking to sell BTC and get dollars, Euros, or another fiat currency in return, you’ll need to find an exchange that offers this service.
In this guide on how to sell Bitcoin, we’ll cover the most popular methods of cashing out your BTC holdings so you can choose the one that works best for you.
Cryptocurrency Exchanges
There are dozens of cryptocurrency exchanges, so don’t assume you can’t find a place to convert your cryptocurrency into cash. Once you figure out which ones work best for you, choose an exchange with low fees and offers fast conversion (for security reasons). If possible, withdraw funds as soon as they appear in your account.
As for converting cryptocurrency into USD or EUR, sites like Coinbase and Coinmama allow customers to buy bitcoin with a credit card or bank transfer, which can be withdrawn as cash from an ATM.
Some exchanges even offer savings accounts that can be linked directly with a bank account. You can deposit USD into one account and withdraw it as bitcoins from another. For more information on how to sell bitcoin, check out our guide here.
It would help if you never share your private keys or passwords with anyone, especially when selling bitcoin. However, one way to prevent fraud is by using trusted escrow services, such as LocalBitcoins or BitQuick.
Although these third-party platforms use public-key encryption to secure transactions and block sensitive data from users until their trades have been completed, it’s still wise to proceed with caution when buying and selling bitcoins through them.
Lastly, always ensure your coins are transferred via a secure connection that uses SSL encryption.
Direct Trades (person-to-person)
A growing number of platforms allow you to buy and sell bitcoin directly from other people in your community; here is one more answer to your question that is how to trade bitcoin?
LocalBitcoins, for example, is a peer-to-peer network exchange that connects buyers and sellers of bitcoin all over the world. A key advantage here is privacy—your personal information won’t be shared with third parties like banks or payment processors.
However, using LocalBitcoins can be tricky since its pricing information depends entirely on user-submitted data; its interface can also be buggy. It doesn’t allow users to buy or sell cryptocurrency other than bitcoin. It’s best used to meet up with locals interested in trading bitcoins face-to-face.
Online P2P selling
You can’t cash out of an ICO or crypto platform directly into a bank account. Multiple services allow people to exchange cryptocurrency for fiat currency—and vice versa. Coinbase is one option (we’ll use it as our example), but there are other similar platforms with user interfaces that vary by country.
All four methods below rely on selling your cryptocurrency for cash through either a marketplace or peer-to-peer (P2P) exchange. However, in most cases, you can do so without any personal information needed beyond a valid email address or phone number.
The exception will be if you’re using LocalBitcoins, which requires buyers and sellers to sign up with their real names and upload identification documents. The service also limits how much money you can spend in a single transaction based on how many ratings and feedback comments you have.
Finally, once your transaction is complete, all online traces of your activity will be removed from LocalBitcoins servers. To summarize: You can quickly convert bitcoin or ether into U.S.-dollar cash via peer-to-peer (P2P) sites like Paxful and LocalBitcoins if you don’t mind giving up some anonymity in return for convenience and speed.
Face-To-Face Transactions
Several sites and companies will help you buy and sell bitcoin in exchange for cash. However, two of the most popular options are LocalBitcoins and Paxful, which allow users to find people near them who will meet up in person, usually at a coffee shop or library, and trade bitcoins for cash.
Coinbase also has an option for buying and selling bitcoin with money (although it takes 4-5 days for bank transfers to go through), as does Glidera.
Using any of these services means paying transaction fees and whatever fees they charge. On LocalBitcoins, there’s also an added risk of dealing with fraudsters if you don’t use an escrow service like LocalBitcoins offers.
Bitcoin ATMs
A good option for selling large amounts of bitcoin at once, but you’ll likely pay high fees and may need to provide a photo ID. For example, Coinbase charges a 3.99% fee for all purchases made via a bank account or ACH transfer, but credit and debit card purchases are free from fees.
If you decide to use an ATM, don’t forget there will be significant network transaction fees. For example, if you sell $5 worth of bitcoin via an ATM (an ATM trade), more than $5 was likely deducted from your account balance.
The reason? The ATM operator has to convert bitcoin into cash—and then send it to your bank account—and they have their exchange rate. You can see how much they charge by looking at their fee schedule. It’s important to note that while ATMs offer a convenient way to convert bitcoins into cash, they aren’t necessarily anonymous.
Also, there are many cases where people are caught. After purchasing something with Bitcoin from ATMs, their identities were linked to their public address.
Withdrawing Funds
The most obvious way to sell bitcoin is through an exchange that converts them into a fiat currency, such as US dollars or Euros.
Depending on which business you use, withdrawing funds might be free or involve a fee. If you’re converting many bitcoins at once—say 20 or more—be sure to confirm with customer service before initiating a transaction.
However, this will ensure that you are appropriately protected if something goes wrong and that there are no hidden fees (which have been known to happen).
When withdrawing funds from an exchange, double-check all steps and verify that all information is correct before submitting. If anything looks suspicious or incorrect, stop immediately and contact customer support for clarification before proceeding further.
You can also withdraw bitcoins directly to a bank account by selling them for cash. However, banks may charge significant fees when depositing money from cryptocurrency exchanges. Be aware of these potential charges and plan accordingly.
You can also withdraw bitcoin directly to your bank account by selling them for cash. However, banks may charge significant fees when depositing money from cryptocurrency exchanges. Be aware of these potential charges and plan accordingly.
