Often, we find people who come to us asking how to withdraw Bitcoins to cash only after they’ve piled up a good number of Bitcoins. While it’s seen often, it’s not wise.
Before you start with Bitcoin trading, you should know all the basics, at least. And this falls in that category as well. So, it doesn’t matter even if you’re completely new to the industry, or just trying to learn what Bitcoin is about. This article is for you!
Even if you’ve started quite some time ago and already made some progress, it doesn’t matter. It’s never too late to learn! And today, we’ll take a deep dive and teach you how to withdraw Bitcoins to cash. But before that, let’s talk about Bitcoins!
Introduced in January 2009, Bitcoin is a virtual currency that’s maintained by a decentralized network. The ledger system that records all the transactions is known as Blockchain. The value of Bitcoin is very turbulent, and it seldom rests.
Back in 2017, a single Bitcoin was being sold at twenty-grand. However, the price reduced to half of that right now. Bitcoins can be mined using specialized processing units or Graphics Processing Units (GPUs). Mining Bitcoins can earn rewards for the miners.
As for how to withdraw Bitcoins to cash, we’ll talk about how to withdraw Bitcoins to cash through bank transfer, cash deposit, or even PayPal.
You’ll learn how to withdraw through a broker, and how to withdraw through a peer to peer system. And after you go through this, you’ll be able to identify the best process for you!
There aren’t many platforms that offer this service. However, the most popular website LocalBitcoins is very trustworthy. The platform was created back in 2012, and now it’s supported almost everywhere. The best part of this system?
You can get cash in any form you want! You can ask the buyer to send the money to your bank account, Skrill, PayPal, Payoneer, Neteller, or even in the form of gift vouchers!
LocalBitcoins offers a rating system as well. We found this very convenient as you can see the review of the buyer before you sell him the Bitcoin. This enables the seller to know what kind of buyer he’s dealing with.
The process of using LocalBitcoins is very easy. At first, you have to register at their site. Make sure you choose a strong password as you’ll be conducting searches that’ll lead you to potential buyers. Once you’re logged in, click on the “sell Bitcoins” tab. Then, you’ll have to select the country.
Note here that you can select any country of the world, irrespective of where you are. If you’re in the USA, you can always select the UK and sell your Bitcoins to someone over there. Then, you’ll be presented with a list of buyers. The medium of the trade shall be mentioned as well. Make sure you pick a buyer with enough positive reviews.
Once you pick a potential buyer, send him your address (bank account, PayPal, or anything). After that, if the buyer confirms the transaction, you’re all set!
Moving Bitcoin to Bank Account
The easiest way to do this is through an exchange. At first, you have to find out an interested buyer who would buy the Bitcoins you’re offering in exchange for cash. Then, ask him to send the money to your bank account. It’s as easy as that!
In such cases, there’s often an escrow service that holds onto the assets of both parties until both confirm that they got what they asked for. Usually, this is done through a platform that offers peer to peer exchange.
Meeting in Person for Cash
In this way, you have to find a buyer through a peer to peer network at first. Once you find a buyer who’s in the same city as you and agrees to meet up, you can meet him in person and complete the transaction.
Once you find a buyer through a peer to peer network, simply as them to deposit the agreed amount of cash in your bank account, however, make sure you ask for proof of payment before you give away your precious Bitcoins.
This refers to third-party brokers. There are lots of online platforms that offer this service. This is a lot different and hassle-free than the peer to peer transactions. Unlike peer to peer transactions, you won’t have to look for a potential buyer.
Instead, you have to deposit your Bitcoins to your exchange account. Once these platforms confirm that they’ve received your Bitcoins, they will provide you the cash. Usually, this cash is taken through bank transfer.
When it comes to exchanges, Kraken and Coinbase are simply the best. Kraken was first introduced in 2011, and it earned quite a lot of fame since then. You can convert your Bitcoins to cash through this platform, and receive them via a bank account.
Kraken comes with low fees. If you want to sell a Bitcoin, the fee incurred will be as low as five dollars. That is to say, if you sell Bitcoin for USD. However, Kraken takes some time for withdrawal. They might take from one to five working days before you can withdraw your cash.
Coinbase is another popular broker that works in the same way. You deposit Bitcoins that can later be withdrawn via a bank account in the form of cash.
The withdrawal fees in Coinbase vary from region to region. If you’re in USD, you’ll have to pay as high as twenty-five dollars if you’re converting your Bitcoin to cash! However, this takes fewer days than Kraken. You might need to wait for one to three days maximum.
If you wish to use Coinbase, you have to follow a simple process. At first, you’ll have to open an account using an active email ID and a strong password. After setting up your ID, send the desired number of Bitcoins to the address of your ID.
Simply click on the receive button, and then click on the buy/sell button. Once you’ve done that, click on the sell button. Now you have to set the amount and the currency. Then, click on the “Sell Bitcoin Instantly” button, and you’re done!
Bitcoin ATMs function similarly to normal bank ATMs. These are centers where you can buy or sell Bitcoins in exchange for fiat money. Although these aren’t available everywhere, there’s a considerable number of Bitcoin ATMs in the world.
There are approximately five thousand Bitcoin ATMs scattered across 76 countries. How would you locate any of these?
Use the Coin ATM radar website. This website will help you locate bitcoin ATMs nearby. However, there’s one downside to this. Bitcoin ATMs usually charge a high transaction fee that ranges from seven to twelve percent.
Bitcoin Debit Cards
Some websites allow traders to sell their Bitcoins in exchange for debit cards. These debit cards can be used like any normal debit card, and they’ll come with the equivalent value of the Bitcoins you’ve sold. These cards come as Visa or Mastercard. So you’ll be able to conduct any sort of online or offline shopping with these cards.
What You Should Consider
No matter which technique you’re using to convert Bitcoins into cash, you should consider two things.
The first thing you should look out for is tax. Even Bitcoin traders aren’t free from taxes. Although these aren’t regulated that much, there are certain rules in some countries that require a certain amount of tax from the profit the user is making.
However, you can always choose to ignore these. But if this is reported to the wrong guy, you’ll be in deep trouble. So, if your country requires you to pay taxes on the profits you make from Bitcoin, we urge you to pay them.
Nothing is free. The platforms you’ll be using to conduct the transactions successfully aren’t open-source platforms. These platforms take a small amount of fee from the transactions you make, and they use that to provide you better customer support, higher security, and improved features.
So, whenever you’re selling Bitcoins, look out for the fees and keep them in consideration.
Mining Bitcoin is hard enough. Sometimes, withdrawing Bitcoins to cash can be harder. Moreover, this process gets tougher when you have to pay a huge sum as fees and taxes.
However, keep in mind that each platform costs differently according to different regions. So, be wise, and do your research before you select a platform for yourself.
For example, Coinbase costs a lot in the US. However, it doesn’t cost that much as a fee in the EU region.
You don’t want to lose even a fraction of the money you worked so hard for. So, before you set out to withdraw Bitcoins as cash, make sure that you pick the way that will lead to the least amount of fees and taxes!