Cashing Out—Converting Bitcoin to Cash

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If you bought Bitcoin toward the end of 2018, you have certainly realized a tremendous gain in your Bitcoin value. As of this writing, Bitcoin it is priced at $8,464 per coin.

Bitcoin has enjoyed a robust spring and summer months for 2019. Starting 2019 on January 1, Bitcoin price was at $3,823. (Coinbase)   From there it broke $8,000 on May 24th , and continued to climb to over $10,000 June 21st –where the price held about $10K until September 21, when the price fell below $10K, and then plunged to the $8,000 level.  You may now be wondering how you can cash out.

Cash Out

There are many ways to cash out from online exchanges to getting together with Bitcoin enthusiasts at a local Meetup group meeting. In this article, I address the two methods, and I provide you with a list of options you can choose from.

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Broker Exchange

The third party broker exchange is a service that makes it easy for you.  However, there bank delays with this method. According to Investopedia, a “bitcoin exchange is a digital marketplace where traders can buy and sell bitcoins using different fiat currencies or altcoins.” The bitcoin currency exchange is an online platform that uses third party intermediaries where buyers and sellers can exchange cryptocurrency.

A few things to consider …

According to Ray King (BitDegree Journals) there a few things you will need to consider when using an exchange.

Because most cryptocurrency exchanges do not allow you to deposit funds with fiat money, you will need to deposit Bitcoin into the exchange. Once the exchange receives your Bitcoin, you can request a withdrawal to fiat money. Typically this is completed through a bank wire transfer.

EU customers will make payments with SEPA and withdrawals are paid in Euros. US customers will normally use the SWIFT method and paid in USD. It can take from 1 to 5 business days before you can see the money in your account.

Laundering money is such a dirty business—something banks have to contend with. To ensure brokers do not break any money laundering laws, customers have to withdraw to the same bank account used for the deposit.

If this is the first time, and you haven’t deposited fiat currency with an exchange—you need to make at least one initial deposit with fiat currency to the exchange.

Here are a few exchanges that you can research. The following are examples of Bitcoin exchanges from Bitcoin.

Binance. Headquarters are in Malta, Binance is the world’s largest Bitcoin exchange by volume.

Bitcoin.com. Headquartered in Saint Kitts and Nevis, Bitcoin.com is a trading platform where you can exchange one asset for another in Bitcoin’s exchange ecosystem.

BitForex. Headquarters are in Singapore. BitForex is the most active cryptocurrency exchange. According to Bitcoin. It features the “fastest token listings, lowest fees, and easiest way to buy Bitcoin.”

BW.com. Headquartered in Singapore, BW.com is a leading one-stop financial services platform that includes Bitcoin mobile trading platform, trading platform for Bitcoin transactions, and Bitcoin exchange, touted as the most secure Bitcoin trading platform.

Changelly. Headquartered in Malta, Changelly provides an instant cryptocurrency exchange platform with competitive exchange rates for BTC, ETH, LTC, XRP, ADA—among 130 plus cryptocurrencies.

DigiFinex. Headquarters are in Singapore. DigiFinex provides Bitcoin and over 100 kinds of digital currency assets trading and investments—including spot currency trading, currency leverage trading, offsite foreign currency trading, among others.

The PIT. Headquarters are in Egypt, The-PIT is the fastest crypto exchange in the world powered by blockchain.com. According to Bitcoin it is the only place to buy, sell, and trade Bitcoin Cash in microseconds.

Peer to Peer

If you want a faster turn-around time to cash out on Bitcoin, then consider peer-to-peer (P2P) platforms. A good explanation of P2P platform comes from Brian Anderson writing for Medium: “P2P Exchanges match Buyers with Bitcoin Sellers. These are individuals trading back and forth with other individuals.”

Sellers set their own price and the type of payment.  The platform matches people wanting to sell Bitcoin with those looking to buy it.  The platform makes money by taking a small fee to cover the transaction. According to BitDegree Journal, “P2P selling is safe if you know what you’re doing.” However, there are fraudsters.  If you use a P2P platform, make sure it uses an escrow service. It’s a way to lock the transfer until you can confirm the transaction has been completed from the buyer.

When selling Bitcoins to others you can decide the payment method such as a cash deposit directly to your bank account. However, you’ll want to get proof of ID and payment before you release any of your Bitcoins to the buyer.

You request a bank transfer. Here too, you will need to request proof of ID from the buyer before completing the transaction. Once you have received the money, you can release the Bitcoins to them.

And, you can always meet in person for cash and you can complete the exchange in real time. Cryptalker reviewed a number of P2P platforms. Here’s a summary.

LocalBitcoins. Headquartered in Finland, LocalBitcoins provides an escrow service, and the transactions are instant—so long as both parties have sufficient funds in their accounts. With this platform you have the option to contact the other party for a face-to-face transaction if that’s preferred.

Paxful. A Delaware company, Paxful connects sellers to buyers. Bitcoin can be easily exchanged with over 300 payment methods. There is a 1% fee of the transaction amount. A legitimate crypto exchange, it has solid security measures to safeguard bitcoins in your wallet.

Meetup.com. That’s right, you can find like-minded Bitcoin enthusiasts at your local meetup group. Meet other Bitcoin enthusiasts and trade directly with them in a safe environment.

Bitcoin ATM. To sell coins instantly, Bitcoin ATMs are a terrific option. The first ATM appeared in 2013—and the number of ATMs continues to grow. It is one of the fastest ways to cash out. However—they may involve a lengthy drive to an ATM machine, and the hours of operation are typically limited to business hours.

Conclusion

While cashing out on Bitcoin is more involved than cashing a check, or even converting fiat currency to USD—it is more convenient than cashing out a bond or mutual fund. Bitcoin remains as an asset that isn’t quiet defined as a currency, but it can also be used as a currency.

The more accepted Bitcoin becomes, the more of a demand will be placed on the ability to cash out, or simply to use Bitcoin for every day purposes.

You have many options for cashing out on your Bitcoin so you can use your cash for that long awaited vacation or to invest in your next property or business project.

 

Samuel H. is an author, writer and speaker with over twenty years in the educational technology sector.

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