Cryptocurrency trading offers numerous opportunities to make money. While there are multiple platforms that allow you to pay for services with crypto, in most cases you’ll still need to convert your crypto to cash. This article discusses steps to follow when selling BTC and methods you can use to convert it to cash.
Before we get into the specific methods of Bitcoin conversion, you should learn about the preliminary general steps in the crypto conversion process.
- Decide the fiat currency you want to cash in. The significance of this step is that certain currencies may not be supported depending on your location.
- Open an account on a crypto exchanging platform. This should be done on a platform that offers conversion of Bitcoin to the fiat you choose. The process of account creation on each platform varies slightly, but the general steps are the following:
- Choose an account username.
- Create a strong password with characters, letters, and numbers.
- Provide info for 2FA (Two-factor authentication) protection.
- Understand and go through the Know-Your-Customer process.
1. Bitcoin ATMs
These special ATMs enable you to buy or sell your Bitcoins. The first Bitcoin ATM was created in 2013 in Vancouver, Canada. Since then, they’ve grown in popularity and are available in most major cities in Europe and the US. The majority only permit Bitcoin conversion to cash, but a few options supporting other altcoins such as Monero, Bitcoin Cash, and Litecoin, are emerging.
Bitcoin ATMs require some form of identification. However, these requirements vary from the most strict requiring ID scans or fingerprints to the least strict. You’ll have to choose with care and inquire in advance.
The conversion fees can be quite high, with the typical ATMs charging between 5% and 10%. However, it is a safe and quick process of cashing in on your Bitcoins.
2. Bitcoin Exchange Platforms
These platforms allow you to convert Bitcoins into your preferred fiat currency. Popular exchanges offer conversion of Bitcoins and altcoins such as Bitcoin Cash, Litecoin, and Ethereum into local currencies.
Cashing in on your Bitcoin is possible because the platforms connect to bank accounts. With these exchanges, you can even exchange a different altcoin for Bitcoin and then convert it into fiat.
Most exchanges provide a lengthy verification process, especially when converting more than $1,000 worth of Bitcoins. This is a measure taken to curb the use of crypto to fund illegal activities such as terrorism or drug trafficking.
The most popular platforms include:
- Bitfinex: Supports Bitcoin conversion into USD, EUR, GBP, JPY, and CNH.
- Kraken: Allows you to cash in USD, EUR, CAD, AUD, GBP, CHF, and JPY.
- Coinbase: Ideal for Bitcoin to USD conversions in the US.
Conversion through an online exchange takes between 3 to 5 days. The fees are lower than using a Bitcoin ATM; you can also use the platforms virtually from any location.
If you’re holding altcoins that are not withdrawable to your bank, you can convert them to Bitcoin by using a cryptocurrency converter and calculator before converting it to cash.
3. Use a Bitcoin Debit Card
Bitcoin debit cards can be used to deposit your cryptocoins via an online service and convert them into cash.
This method is quite affordable and straightforward. The steps involved include:
- Create or log in into your account at an exchange that provides bitcoin debit cards.
- Open a bitcoin wallet and connect the card to it.
- Convert the bitcoins into the fiat currency of your choosing.
- Withdraw to your bank account or at an ATM.
Some common Cryptocurrency debit cards providers include Bitpay, CoinJar, Bitwala, and CryptoPay in Europe and US.
The advantage of using these cards is that they are powered by VISA and MasterCard. They can also be used for both offline and online shopping.
However, the cards are limited geographically and can have monthly usage limits. You need personal research to help you get the perfect one for you.
4. Peer-to-Peer Exchange
You can use a peer-to-peer platform like LocalBitcoins that allows you to sell and buy Bitcoin using government-issued currencies. LocalBitcoins covers more than 16,000 cities in 248 countries, making it one of the most outreaching Bitcoin to fiat conversion methods.
Through LocalBitcoins, you can get your fiat currency in multiple ways. There are physical agents who issue hard cash. You can also opt for the online process to withdraw it via bank. If you’re looking for a secure online store for your fiat, you can use LocalBitcoins to find someone willing to send you cash to your Paypal wallet once you’ve sent them your BTC.
5. Private Sell
Privately selling your Bitcoins for cash has its advantages. It’s a method that is dependent on trust and usually requires no fees or commissions because there’s no third party. You simply transfer your Bitcoins to an individual who is buying them and receive cash in exchange.
To find potential Bitcoin buyers in your locality, you can frequent Bitcoin conferences and meetings.
Conclusion
Bitcoin to fiat conversion can come in handy when you want to boost your cash savings and supplement your budget. Choosing a fast, secure and cheap method will ensure you get your cash in time and unaffected by crypto’s volatility. These 5 popular methods should help you convert your Bitcoin at your convenience.
