Through trading and investing, you have earned some Bitcoin and now you want to sell Bitcoins for cash. If you are new to cryptocurrency and don’t know how to sell it, the article below from CoinMinutes is for you.
CoinMinutes will provide the best ways to sell Bitcoins for cash, highlighting the pros and cons of each method to help you choose the most suitable way.
How to Sell Bitcoins for Cash?
Using an Exchange to Sell Crypto
Using an exchange to sell cryptocurrency is the most widely used method because every exchange has BTC in its listings.
One of the safest, easiest, and most reliable ways to sell your cryptocurrency or Bitcoin for cash is to use a centralized exchange like Coinbase. The number of investors and other cryptocurrency enthusiasts using Coinbase to buy and convert BTC to cash is up to 13 million, which is a huge number.
Coinbase has an easy-to-use “buy/sell” button and you can choose the cryptocurrency you want to sell and the amount. You’ll quickly exchange crypto for cash in Coinbase. From there, you can transfer money to your bank account if you want.
And while Coinbase is a popular choice for selling Bitcoin for cash, you can also check out a number of other exchanges that might suit your account better. Some of the top exchanges include Stormgain, Kraken, and Liquid. These platforms have various benefits. Stormgain has the lowest fees, while Liquid has more buyers.
Pros and Cons
- The security of exchanges is very high, so you can be sure that no data will be stolen.
- Every transaction is secure and anonymous. Many times bad guys have tried to hack into the Coinbase system but have never succeeded
- Simply providing your personal and payment information once the first time helps your requests be processed faster.
- It’s quite inconvenient because you have to pay extra fees to banks or payment systems. Cryptocurrency exchanges do not allow you to convert Bitcoin directly into cash, but rather through your bank account, which you can then withdraw from.
Using a Broker to Sell Crypto
A cryptocurrency broker is a company or individual that acts as a financial intermediary that helps exchange fiat currency for cryptocurrency or convert your cryptocurrency to fiat. A cryptocurrency broker, like Bitpanda, provides online financial services to users looking to buy or sell cryptocurrencies (and other assets). If a broker holds your cryptocurrency then the easiest way is simply to work with that broker. For example, if you are a customer of Robinhood or Webull, both of which allow extensive cryptocurrency trading, it will be easy for you to place a trade on their platform and complete it. After completing the transaction, you will have money in your account.
Pros and Cons
- Simple and suitable for beginners. Brokers like Bitpanda are easy to use and navigate, eliminating confusion during the buying and selling process.
- More affordable compared to other ways of selling cryptocurrency. Cryptocurrency brokers typically allow users to buy and sell cryptocurrencies at a variety of prices set by the broker.
- It’s easy to encounter brokers that are not reputable, provide bad service, and are not accessible 24/7. When choosing a cryptocurrency broker, you should verify their credentials and ensure that they are competent and safe.
Go with a Peer-to-peer Trade
You can also do live trading, P2P trading allows you to buy and sell cryptocurrencies in your local currency with other users on a P2P trade platform, short for peer-to-peer trade. The most common way is through a peer-to-peer online platform that allows sellers to find the best deals through an exchange, although one can even do it directly if needed.
For sellers, this functionality allows you to easily sell Bitcoins for cash or other cryptocurrencies and receive the currency you want. You will be able to choose from a range of payment methods that you would like to use to receive your payment. P2P will keep the cryptocurrency secure and only allow the seller to unlock the cryptocurrency after the seller receives payment from the buyer. Some P2P platforms that you can refer to are Binance, Paxful, Kucoin, and OKX.
Pros and Cons
- They are more private than traditional centralized exchanges.
- Fees are lower than conventional exchanges.
- Provides balance for group and hierarchical transactions.
- No need for intermediaries.
- There are many scam platforms. So these platforms may require you to do many steps to verify users.
- P2P exchanges lack liquidity due to the limited number of users.
Cash Out at a Bitcoin ATM
On every street, we can very easily see an ATM. However, finding a Bitcoin ATM can be much more difficult. However, in big cities, there are still many Bitcoin ATMs so it is very convenient to convert your Bitcoin into cash.
Withdrawing cryptocurrency to cash using a Bitcoin ATM is probably the fastest way. If you want to receive cash as quickly as possible, find a Bitcoin ATM, select the ‘Sell BTC’ option, and fill in all the necessary information. After full confirmation, you will receive cash. Very fast, right?
Here’s a tip: If you don’t see any Bitcoin ATMs in your area, visit Coinatmradar to check if there are any nearby. In case you live in a small town, it will be difficult to find a Bitcoin ATM because the Bitcoin Foundation currently only installs such machines in large cities.
Pros and Cons
- Very fast and easy to use
- Not available worldwide.
- The amount of money stored in the machine is limited.
- ATMs have very high fees because they are not very common.
These disadvantages can be overcome when within the next few years or even months, more ATMs will appear because Bitcoin is being recognized by more and more countries. This will result in lower fees. ATM withdrawals can become the most convenient way to get cash.
Trade One Crypto for Another and Then Cash Out
Some exchanges do not allow conversion or sale of certain cryptocurrencies to dollars, so you will need to take an indirect route to get your cash. Depending on the exchange you use, you may need to transfer or convert your cryptocurrency to another popular currency like stablecoin Tether. Accordingly, you will sell your Bitcoin to a stablecoin whose value is linked to the USD such as USDT, or BUSD. Stablecoins are cryptocurrencies with greater price stability than Bitcoin.
After successfully converting Bitcoin into stablecoin, you can sell this stablecoin for USD on the exchange, then you just need to withdraw the USD amount to your personal bank account to complete the transaction.
This is a relatively safe and convenient way for users to easily convert Bitcoin into cash without facing many risks from Bitcoin price fluctuations.
Pros and Cons
- Avoid the risk of strong price fluctuations of Bitcoin.
- Easily done through simple steps on a reputable trading floor.
- Stablecoins can be sold for USD at any time.
- Transaction fees must be paid when converting between different cryptocurrencies.
- Risk of losing money if the wallet address is confused or the exchange is not reputable when converting money.
Considerations When Cashing Out Bitcoin
There are many ways to convert Bitcoin into cash, you can choose the one that suits you best. But note, no matter which method you use, you need to consider the following to avoid certain risks:
- Comply with the law on payment and payment of personal income tax: you will have to pay tax on your profit income after selling Bitcoin.
- Exchange fees will apply for most Bitcoin to bank accounts. Consider withdrawal fees to choose the most reasonable withdrawal method.
- Third-party brokers may take several days to transfer funds to your bank account.
- Choose a reputable and safe exchange to ensure successful withdrawals and avoid the risk of fraud.
- Always update new information about the trading floor and payment policies to ensure compliance with regulations.
Above is a detailed article about the pros and cons of 5 ways to sell Bitcoins for cash that CoinMinutes has compiled. Hopefully, this article will help you choose the safest and most reliable way to withdraw Bitcoin to cash.