There are many reasons why you might want to cash out your bitcoin. Cryptocurrencies are not yet widely accepted as payment options. In order to actually spend your crypto earnings, you need to cash them out. However, the process is quite effortless when picking the right tools. So, how do you cash out a bitcoin? Keep reading to find out!
When Should You Cash Out Bitcoin?
Are just starting out with crypto trading? We get it, there is tons of information circulating around you. Can bitcoin be converted to cash? Should I convert now or hold my earnings longer? The good news is that we can help you out with the answers.
Let’s start with the “why”. 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, there’s been a big leap in the industry since then. By now, there are several options for cashing out.
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. But this is certainly not the only reason for investing in crypto. Bitcoin still can’t be used as easily as fiat currencies. So, if your goal is to use your crypto gains for everyday purchases – you need to convert and cash out.
Sure, we can dream about going for a coffee round and paying in bitcoin. But, this doesn’t reflect reality quite yet. When talking about everyday purchases, we are still rather dependent on fiat. And the good news is that bitcoin can easily be converted to cash.
In conclusion, the moment for cashing out depends on your strategy and interests as a trader. If you are a visionary who bets on long term gains, you probably don’t need to cash out as often. If you are a day trader who uses crypto gains for covering common expenses, you’re probably withdrawing quite often.
How Do You Cash Out a Bitcoin? The Methods
Now that you’ve figured out when to withdraw bitcoin, you’re facing new questions. How to actually do it? How do you cash out a bitcoin? That question is well justified. This is because there are many options for transferring crypto. The most popular method is using an exchange who acts as an intermediary. You can also choose the peer-to-peer (or P2P) method. Alternatively, you can look for a bitcoin ATM to facilitate the transaction. In case of the latter, make sure to research the transaction fees. They can be quite hefty.
On-Exchange or Off-Exchange?
So, the most popular methods for cashing out bitcoin are an exchange and peer-to-peer transactions. Let’s look at both of them.
Starting with the exchange. It is probably the easiest and most beginner-friendly way of cashing out bitcoin. All you need to do is sell your bitcoin on the exchange. After that, you can transfer your fiat funds to your bank account. For example, CoinMetro offers withdrawals via SEPA transfers. And how long does it take to transfer bitcoin to your bank account? When using a SEPA transfer with CoinMetro, the funds arrive on your bank account in 1-2 days.
What if you don’t want to use an exchange? Then you can look into peer-to-peer transfers. This means selling your Bitcoin to other individuals, aka – peers. P2P can be quicker than using an exchange. It 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.
If you like a more extensive overview on cashing out bitcoin, check out our blog post on How do I transfer Bitcoin to my bank account.
So, cashing out bitcoin is not difficult at all. Now that you can answer “how do you cash out a bitcoin”, why not get to practice? You can start trading BTC to GBP or EUR on CoinMetro. In case you need any help, reach out to our support team. They are happy to help you.