Before making financial investment decisions, do consult your financial advisor. If you have read this guide from start to finish, you should now know how to cash out Bitcoin! We have shown you two different methods — the crypto exchange way (Binance, but, it works almost the same with Kraken, Coinbase, Kucoin, and any other top-tier exchange), and also the peer-to-peer way. Some crypto enthusiasts are in it for the long haul while others may choose to cash out as soon as they make a profit.
- If you want to save as much money as possible when converting your crypto into cash, then it’s best to choose a method with lower fees.
- While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
- With a brokerage, however, there is no “other person” – you come and exchange your crypto coins or fiat money with the platform in question, without the interference of any third party.
- The most suitable option for you will depend on how fast you want to cash out your crypto, your experience level, and how much fees you’re willing to pay.
- If you don’t need cash right away and want to sell on your own terms then this may be a good way for you to convert crypto into cash.
How to cash out your crypto or Bitcoin
To summarise, there are five main ways to convert crypto into cash. The best method for you will depend on several factors, so it’s important to consider all your options before proceeding. You will likely encounter withdrawal and transaction fees when cashing out your crypto. This will vary depending on which method you opt for and which provider you choose. The amount of tax you have to pay and the process to do so will vary depending on which country you’re located in.
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While crypto wallets are designed to store and secure your crypto, many of them partner with crypto exchanges to offer trading services. Crypto brokers assist traders as they learn to navigate the crypto market, refine their trading skills, and build up their trading portfolios. With a crypto broker, you can trade multiple digital currencies after connecting your bank account or using another payment method to make a deposit. However, if you want a wide range of options for cashing out your crypto, then this is your best bet. These exchanges are also very reliable and user-friendly, which makes them an appealing option for many traders. Peer-to-peer selling is a terrific option for more experienced traders who are looking for a private and cost-effective way to sell crypto and convert it into cash.
Once they accept, you will then send your Bitcoins to the LocalBitcoins escrow (I explained an escrow earlier, remember?). So, the buyer will not receive your Bitcoins until they have paid you, and you confirm they have done so. There is also what is process costing a rating system like eBay, where you can leave feedback for the buyer or seller. If you are a beginner, I only recommend selling to buyers who have 100% positive feedback.
This method is a viable option for anyone looking for reduced fees when cashing out crypto and those who don’t want to pass various identification checks. But this option is most suited to those who already have experience with P2P platforms, as others may feel overwhelmed. Making a P2P trade can also be quite time-consuming, which may not be optimal for you if you’re looking for a quick cash-out option.
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After you complete the trade, you’ll have the cash in your account and be ready to trade again. These apps support a very limited selection of crypto, with Cash App only supporting Bitcoin, and PayPal supporting Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. You can also select the “sell” feature to only look for ATMs that allow you to sell your crypto. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. Our team of reviewers are established professionals with decades of experience in areas of personal finance and hold many advanced degrees and certifications.
There are a few to choose from, however, the one I most recommend is LocalBitcoins. You can sell various cryptocurrencies with BitPay, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Dogecoin (DOGE), USDC (USDC), and Tether (USDT) . Choose the optimal rate, transfer your crypto, and upon confirmation, cash will be swiftly sent to your preferred payout method. If you’re selling any asset, then you’ll want to understand the tax implications. You may owe a bundle if you’re booking a capital gain, and the tax rate will depend on the holding period, among other things.
The new-ness of cryptocurrency combined with the inexperience of many users makes it a prime target for hackers or scammers who would love nothing more than to lighten your crypto wallet. Some card issuers may automatically generate 1099 forms for their customers to use when filing taxes, but the consumer is still responsible for keeping track of their tax liability. Choose the option that aligns best with your trading preferences and financial goals. And while Coinbase is a popular option to sell cryptocurrency, it’s likely most useful to go with whatever exchange currently holds your coins, if you don’t have custody of the coins yourself. You’ll quickly exchange cryptocurrency into cash, which you can access from your cash balance in Coinbase. From there, you can transfer the money to your bank account if you wish.
Convenient off-ramp options
Before you can make the withdrawal, you need to exchange your Bitcoin for your local currency. Enter the amount of Bitcoin that you wish to sell, and the fiat currency equivalent will update. Binance is the most popular exchange platform for buying and selling Bitcoin. They tend to process more Bitcoin transactions than any other exchange and have a massive customer base of over 28 million. You bought low, hodl’d and now are ready to enjoy some of your crypto gains.
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The good thing is, some payment methods allow you to sell your Bitcoins at a higher price — so it’s worth getting used to. Local Bitcoins allows you to stay anonymous, too (when choosing such payment methods as web money or gift vouchers), especially if you also use a reliable and safe VPN to secure your connection. However, some sellers decide to ask new buyers (those who have no feedback) to supply identification. LocalBitcoins offer a good level of safety because of their escrow service. This keeps your Bitcoins locked until you confirm the payment has been received from the buyer.
If using a centralized exchange like Coinbase or Kraken, or loading the BitPay crypto debit card, you can convert your Ethereum to fiat currency almost instantly. Selling on a P2P exchange might get you a more favorable rate, but you may have to wait until you find an interested buyer before you’re able to make the exchange. At this time, the main benefit of this kind of banking is cryptocurrency debit cards. They allow you to use your digital coin balance like any other currency to make everyday purchases or withdraw it as cash instead of keeping it as an investment. An innovative bridge between the crypto and fiat realms, crypto debit cards allow users to load their cards with cryptocurrency, which gets converted to fiat upon transaction.
Load the card from your BitPay Wallet balance or connect to your Coinbase account and you’re ready to spend at millions of merchants both online or in store, anywhere Mastercard is accepted. Apply and get approved in minutes, then instantly start spending your crypto like cash. When used for transactions, the crypto is automatically converted to fiat currency, making it a convenient tool for daily expenses.
The best bet is to use a platform like Binance.us or FTX.us to save on fees, and quickly cash out your crypto for dollars. The mobile apps make it easy to sell, and you can connect your bank account to transfer funds after the crypto is sold. Additionally, other factors can affect how high your withdrawal and transaction fees will be.
Yes, cryptocurrency ATMs allow you to convert your digital assets into fiat currency. However, they might have higher transaction fees compared to online platforms. Platforms like Bitrefill offer users the chance to convert their cryptocurrency holdings into gift cards for a plethora of popular vendors. This method provides an indirect route to spend your crypto in the mainstream market without needing to convert it to traditional money first. In layman’s terms, a cryptocurrency exchange is a place where you meet and exchange cryptocurrencies with another person. The exchange platform (i.e. Binance) acts as a middleman – it connects you (your offer or request) with that other person (the seller or the buyer).
Through a decentralised peer-to-peer (P2P) exchange, you can exchange your crypto assets for cash or other digital assets with another trader. Both parties can negotiate a price that suits them both, and there is no need for a third party’s involvement. As crypto has evolved beyond the Wild West early days, know-your-customer (KYC) procedures have become the norm for most centralized exchanges. Converting to crypto triggers a taxable event, whether the transaction occurs on an exchange, P2P, using a crypto ATM or loading it onto a crypto debit card. It’s advisable to consult with a tax professional to understand how this impacts you and what crypto transaction taxes are imposed in your area.