Having purchased at a low price, held on, and now prepared to reap the benefits of your cryptocurrency investments, it’s crucial to understand not just how to make direct payments with crypto, but also how to convert Bitcoin or other cryptocurrencies into cash. Here are the most effective methods for swiftly, economically, effortlessly, and securely transforming Bitcoin into cash.
Online Broker
Numerous leading internet brokers now enable cryptocurrency trading, and you can conveniently exchange your BTC to USD if you acquired it on these platforms. Trading applications such as Robinhood provide a range of cryptocurrencies for investment, and buying or selling crypto is as straightforward as doing so on a crypto exchange.
However, the top online brokers have one limitation: they do not permit the transfer of cryptocurrency into the brokerage account. Selling your Bitcoin for cash must be held within the platform. This implies that Bitcoins stored in a digital wallet or cryptocurrency exchange cannot be transferred to an online brokerage account for sale.
The trading fees for selling crypto on online brokerages are typically reasonable. For instance, eToro imposes a flat 1% trading fee to sell crypto, which is quite affordable. While Robinhood does not explicitly state its crypto trading fees, they average around 0.50% for crypto trades.
Peer-to-Peer
Sell your digital currency straight to another individual via a different platform. The most common method involves using an online peer-to-peer platform. IT allows sellers to compare and select the best offers through an exchange.
The peer-to-peer transaction enables cryptocurrency exchange for regular dollars over the Internet. These trades are typically managed by an exchange, with Binance operating a renowned online peer-to-peer system called Binance P2P.
After agreeing to a transaction, the platform holds your cryptocurrency in escrow. Following verifying the transaction record in the payment account and ensuring the receipt of money from the buyer, Binance then releases your cryptocurrency to the buyer within the platform.
Face-to-Face Transactions
Conducting peer-to-peer Bitcoin transactions in person is another feasible option. There are online platforms that support face-to-face selling of BTC for cash. Alternatively, individuals could independently arrange meetings with friends or family to trade Bitcoin for cash. To carry out such transactions, one must be adept at transferring Bitcoin and managing a crypto wallet, or the platform where your funds are stored, like an exchange for instance.
The value of Bitcoin is subject to constant changes, making it essential to be aware of its current price at the time of an in-person transaction. Many traders refer to rates from well-established exchanges. Online services are also available as an alternative to track the latest price of this digital asset. In different parts of the globe, there are physical outlets or stores where people can trade Bitcoin for hard cash, or vice versa.
Bitcoin ATM
Residing in a significant metropolitan area increases the likelihood of having a Bitcoin ATM in your vicinity. These machines offer the convenience of converting your wallet’s Bitcoin into physical cash. The process is simple.
- Scan the QR code of your wallet
- Input the amount of Bitcoin you wish to sell
- The machine will indicate the equivalent cash amount you can receive
Not all Bitcoin ATMs have the feature to exchange Bitcoin for cash. Many may necessitate identity verification or account creation with the respective ATM company. The process may not be as swift and straightforward as walking up to an ATM and instantly converting your cryptocurrency into cash.
Endnote
There are several methods to liquidate your Bitcoin, but understanding your objectives prior to selling is essential. If your aim is to utilize your crypto for buying goods, you can approach businesses that accept Bitcoin or use a crypto debit card to spend your crypto’s value at retail outlets.
If you aim to convert your crypto into cash, employing a centralized exchange, an online broker, or a money transfer app can be an economical way to sell. However, keep in mind the constraints each application may pose. While these methods may help you save on transaction fees, they might restrict your flexibility.
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