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Cashing out is the fastest option to liquidate your Bitcoin investment. Bitcoin can be converted into cash via different methods. Outlined below are five ways to cash out your Bitcoin.
1. Leverage crypto exchange
Cryptocurrency exchanges allow you to sell or buy in digital currencies like Bitcoin. A crypto exchange charges a cost for your transactions depending on your transaction volume or your kind of trading. As such, you should check the transaction fees plus the rates for converting 1 BTC to USD before settling on a specific crypto exchange. Ensure you have a bank account where you’ll deposit your cash.
Cashing out your Bitcoin on an exchange is easy, mainly if your coins are kept in a custodial wallet or you already use a centralized exchange. Considering the various types of crypto exchanges available, including decentralized and centralized platforms, selecting the best requires scrutinizing. A trustworthy crypto exchange must have a legitimate social media presence and customer support system.
2. Get a crypto debit card
A crypto debit card operates the same way as a standard debit card. Nonetheless, the debit card pulls money from a cryptocurrency wallet rather than utilizing a bank account. Crypto debit cards are a quick way to convert Bitcoin into cash, and you get your money almost instantly. While Bitcoin is more adopted today, some jurisdictions have completely banned cryptocurrencies. While a crypto debit card can work at all POS systems where debits are accepted, it will be useless if you’re in a crypto-hostile country.
Before getting a crypto debit card, note that you’ll have to pay taxes on your transactions depending on your profits and how long you’ve held the tokens. Ensure the crypto debit card you get supports Bitcoin, otherwise it will be useless. Crypto debit providers charge varying transaction fees, so check the costs and exchange rates they apply.
3. Leverage a Bitcoin ATM
A Bitcoin ATM is a specially designed banking machine that supports Bitcoin trading. To cash out your Bitcoin, the machine will generate an invoice that you’ll use to sell the coins at a price agreed upon. Bitcoin ATMs are an easy and fast way to sell crypto without a bank account.
4. Use a peer-to-peer exchange
In a peer-to-peer exchange, a transaction happens between two traders. The seller and the buyer interact directly without the need for an intermediary. All you have to do is send your Bitcoin from your digital wallet directly to the person buying it. Peer-to-peer exchanges are a profitable way to cash out your Bitcoin because you’re responsible for setting the price, and the fees involved are less.
Unlike most apps and exchanges, selling your cryptocurrency via these exchanges doesn’t involve ID verification. You can find peer-to-peer exchanges in the majority of the centralized exchanges. Note that selling Bitcoin via P2P exchanges is a process that can take time. This means they aren’t an ideal option for anyone looking for quick cash.
5. Utilize a money transfer app
Many money transfer apps like PayPal have in-built crypto exchanges where you can buy or sell cryptocurrency. However, your Bitcoin must already be held in the app to cash out. The transaction fee in these apps is quite reasonable, helping maximize profits.
If you’re ready to convert your Bitcoin into cash, there are several options you can leverage. Familiarize yourself with different ways to cash out your Bitcoin to choose the most suitable method.