How to Cash Out Bitcoin: 5 Simple Ways

How to cash out bitcoin

The ability to convert bitcoin to your local currency is not only convenient but also liberating. In this guide, you will discover five simple ways to cash out bitcoin.

Bitcoin ATMs

A two-way bitcoin ATM (BATM) allows users to purchase and sell bitcoin for cash. These ATMs are connected to the Internet and look like traditional automatic teller machines (ATMs). However, they are not connected to a bank account. They connect to a bitcoin wallet or exchange instead.

There are several bitcoin ATM providers in the world such as Bitnovo, Bitcoin Depot, LocalCoin, and Lamassu. To sell bitcoin for cash through a BATM, follow these steps:

Find a bidirectional bitcoin ATM near you.
When you get to the ATM, select bitcoin and choose “Sell.”
Enter the amount of bitcoin you want to sell and confirm the transaction.
The ATM will print a receipt with a QR code. Scan it with your mobile wallet to send the BTC you are selling.
Wait for your transaction to confirm.
Once the waiting time has lapsed, select “Redeem Ticket.”
Scan the printed QR code on the receipt.
If your transaction has garnered enough confirmations, you will receive your cash.

Pros

Easy to use
Convenient

Cons

It could take up to several hours to receive your cash.
BATM operators charge high transaction fees.
BTC ATMs are not available everywhere.

P2P Exchanges

Peer-to-peer (P2P) exchanges like Paxful and LocalBitcoins enable individuals to cash out bitcoin directly by trading with “peers”. The exchange provides the platform, escrow services, a wallet, and dispute resolution to help users to trade with ease.

Here is how it works:

Create an account on a P2P marketplace.
Fulfill the Know Your Customer (KYC) requirements.
Deposit BTC to your exchange wallet.
Next, create a sell offer and wait for a buyer to reach out to you.
The buyer will send you funds to your bank account or other platforms like PayPal or Skrill. Once you receive the payment, you should release the bitcoin from escrow to the buyer. Note that Paxful and LocalBitcoins accept a wide range of payment methods. Therefore, you will have plenty of choices.

Pros

You can transact privately.
It is fast.
The availability of many payment methods.

Cons

You could get scammed. Apply caution when trading.
You have to wait for someone to accept your sell offer.

Centralised Exchanges

Trusted centralised exchanges like Binance and Kraken are the other platforms where you can cash out bitcoin easily. You can cash out to the bank account you used to deposit funds.

Before using this option, research the transaction fees they charge and if they are any daily local currency withdrawal limits. Also, bear in mind that exchanges might ask for additional personal information before you make large transactions.

cash out bitcoin

Here is how you can use a centralised exchange to cash out.

Register an account.
Verify your personal details.
Deposit your local currency to your account using an accepted payment method. Some exchanges might require you to take this step first before you cash out your BTC.
Next, send bitcoin to your exchange wallet.
Sell or convert your bitcoin to local currency on the exchange.
Transfer the funds from the exchange to your bank.
Wait for the money to hit your bank account. This could take up to five days.

Pros

Secure as long as you use a trusted and reputable exchange.
It is simple to convert BTC to your local currency.
Centralised exchanges are available to most people across the globe.

Cons

Your withdrawal could take up to five days to reach your bank account.
You have to withdraw funds to the same bank account you used to make a deposit, according to anti-money laundering laws.

Prepaid Crypto Card

bitcoin debit cards

Crypto debit cards allow users to spend BTC and other cryptocurrencies anywhere bank cards are accepted.

Crypto cards are released in collaboration with Visa and MasterCard. That means that you can find many locations where you can spend your crypto. Also, when you pay for a cup of coffee, for example, the coffee shop will receive payment in your local currency. This means the card converts your crypto to fiat when you are making payments.

To use a crypto debit card, you don’t need a deep cryptocurrency knowledge base. You simply top-up bitcoin from your wallet and start spending.

Pros

You do not need a bank account to obtain a crypto card.
Users can make ATM withdrawals with the crypto card.

Cons

Only suitable for small daily transactions

OTC Bitcoin Brokers

You can access an over-the-counter (OTC) bitcoin broker to convert large amounts of bitcoin to cash. OTC traders get quotes from different liquidity venues and present the customer with the best offer. Moreover, the OTC trade price will depend on the order size and liquidity access.

To use an otc broker to cash out bitcoin, do the following:

Go to their website.
Create an account and verify your details.
Send a trade request with the amount you want to sell and the digital asset you are selling. Ensure that your trade request meets the minimum trade amount.
Wait for the OTC broker to respond to your request at the best price in the market.
If you are satisfied with the price, complete the trade by following the settlement instructions the broker has sent.

Pros