If you’re wondering how to go about turning Bitcoin into cash, then this article is for you. Bitcoin has been a part of our lives for more than a decade, and the industry has since caught up by providing several options for us to convert our Bitcoins into cash. So, let’s get straight into it.
– Reasons to Convert Bitcoin to Cash
One of the main reasons people are investing in Bitcoin today is because of the belief that Bitcoin will eventually replace all fiat currencies. This means that someday in the future, we’ll be able to purchase anything using Bitcoin. But let’s face it, that day isn’t tomorrow.
For one, there are relatively few individuals and businesses that accept Bitcoin as payment. And that’s likely why you may be looking to convert your Bitcoin to cash – to somehow make use of the value in your Bitcoin. Secondly, the market is exceptionally volatile, which means that there’s a good chance you’ll see a decline in value. And unless you’re an avid investor, this is another reason for you to cash-out. Lastly, it makes perfect sense to feel the need to protect yourself from potential losses for fear that Bitcoin will continue to sink in value. So converting Bitcoin to cash could be a way to protect your money in order to re-invest it when the market recovers.
– Ways to Convert Bitcoin to Cash
There are several ways in which to convert Bitcoin to cash. Here’s a shortlist of the most used methods:
- Converting Bitcoin using an eWallet (electronic wallet). This is one of the easiest and safest ways to convert Bitcoin to cash. Bitcoin to Payeer is a leader in this space, offering several additional payout & exchange options.
- Selling Bitcoin on cryptocurrency exchanges. This is possible with service providers like Coinbase or Kraken. You can cash-out your Bitcoin via PayPal or bank transfer.
- Withdraw cash using Bitcoin ATMs. The ATM allows you to buy and sell bitcoins with fiat money at a physical center. There are almost five thousand of these across seventy-six countries.
- Withdraw cash using Bitcoin debit cards. Several platforms allow users to sell Bitcoin in exchange for a prepaid debit card. You can use your Bitcoin debit cards to withdraw cash at any ATM.
- Peer-to-peer Bitcoin transactions. This is a quicker, more anonymous way to sell Bitcoin for cash. You can decide which method of payment you prefer buyers to use. These include cash deposits and bank transfers made directly into your bank account.
– Things To Consider When Converting Bitcoin To Cash
Before converting your Bitcoin to cash, keep in mind the two major pitfalls that come with it. (1) The tax implications. Most tax authorities require that you pay taxes on any profits you make on Bitcoin. (2) The associated fees. Most of the cash-out methods we’ve covered here have an exchange fee, which means you’ll technically get a bit less than your Bitcoin market value.
So when you’re ready to convert your Bitcoin to cash, consider the various factors that make each option unique. Compare the cost & ease of the cash-out method, where you’d prefer it to be deposited (PayPal, bank account, etc.), the type of currency you need to convert your Bitcoin into, and how long you’d need to wait before receiving your cash. Whatever your needs may be at this present moment, there are several ways to cash-out your Bitcoin – and we are likely to see more options emerge as the industry grows.