Can bitcoin be converted to cash? This is one of the most common questions among beginner traders. Starting out with crypto trading is a fascinating process. But there is so much information out there. Where do you start? How do you make sure you can later use your funds? This is what we will cover today. Let’s find out how to convert bitcoin to cash.
Why Do I Need to Convert Bitcoin?
Bitcoin has been around for more than a decade. When the crypto first started out, the options for withdrawing and using it were scarce. Luckily, the industry has developed a lot. By now, there are several options for cashing out. But why would you want to do that in the first place?
Many Bitcoin investors are visionaries. They believe that crypto will eventually replace fiat currencies. So, they are investing now to one day use the funds for everyday purchases. This is certainly not the only reason for investing in crypto. At present, Bitcoin still can’t be used as easily as say the British Pound. A BTC to GBP conversion is needed to use the funds.
This is because rather few businesses accept crypto payments. Sure, it is cool to dream about paying for your groceries in crypto. But in reality, you still need fiat. So, as a beginner trader you need to know how can bitcoin be converted to cash.
How Can Bitcoin Be Converted to Cash?
There are many options for converting Bitcoin or other cryptos to cash. They differ by method and fee. When choosing your preferred option, you should consider a few questions. For instance, are you looking for the cheapest option? Or the fastest option? Maybe the easiest one? Depending on your answer, you can choose from a variety of options. Have a look at them below.
Using an Exchange
This is perhaps the most common method for cashing out. It is quite intuitive and easy. So, how does the entire process work? Well, if you’re keeping your funds on a separate wallet, you first need to transfer them. Storing your bitcoin in a cold wallet offers more safety. So, you would have to transfer your funds to the provider. Next, you would sell your bitcoin. One of the options for doing this is CoinMetro. This step is quick and effortless. As a bonus, there is no fee on top of the fixed price with CoinMetro. Done with this step? Great, you now have fiat balance. All that’s left to do is withdraw funds to your bank account. If it’s a SEPA transfer, the funds arrive on your account the same or next business day.
Peer-to-Peer means selling your Bitcoin to other individuals, aka – peers. This method can be quicker than going through an exchange. Peer-to-peer also gives you more freedom in deciding the payment method. However, it provides less security. If you know the person you are transferring your crypto funds to, this is effective. But if you don’t, try using a third party escrow service. This gives you certainty that you are actually receiving your part of the deal.
The concept of ATMs is familiar to most traders. Bitcoin ATMs are a bit different. But similarly to cash ATMs, you have to watch out for the service fees. With Bitcoin ATMs, you can withdraw fiat from your bank account and buy or sell bitcoin with it. There are more than 5000 of such machines available across the globe. As the fees are quite high, this method is not a great fit for smaller transactions.
Bitcoin Debit Cards
Sounds futuristic, right? Well, for many providers, it still is. Crypto debit cards are a growing trend among crypto service providers. Many of them are planning to launch such products soon. Crypto debit cards make it easier to manage and use your Bitcoin. CoinMetro is launching one very soon, so keep your eyes open for that!