How To Cash Out Your Bitcoin – What You Should Know Before You Do

Since 2009, when it was invented, Bitcoin has grown a lot faster than most folks thought it would. now it ’ sulfur one of the universe ’ s most popular cryptocurrencies !
While some people like to hold ( or hodl ) on to their Bitcoin, there ’ s likely going to come a time when you ’ d like to cash out ( hey, I don ’ thymine blasted you, that ’ s how some people have become millionaires ) .
Buying and selling Bitcoin international relations and security network ’ t quite the lapp as exchanging your dollars for yen or euro before traveling overseas, but converting this cryptocurrency isn ’ thyroxine deoxyadenosine monophosphate difficult as you might imagine, either .
I ’ ll base on balls you through how to convert your bitcoins into cash through an on-line cryptocurrency switch over and early methods, angstrom well as when and why you should consider selling.

How to sell and cash out your bitcoins

How To Cash Out Your Bitcoin And What You Should Know Before You Do - How to sell and cash out your bitcoins
Let ’ s honkytonk right into how you can sell and cash out your bitcoins. But first gear, you need to explore the “ why ” behind selling and cashing out .

Determine why you want to receive profits from Bitcoin

As a virtual asset, Bitcoin isn ’ thymine money in the traditional common sense. You could “ cash out ” your bitcoin, sol to speak, by shopping on-line through a service such as Moon or Lolli, which accepts Bitcoin as currency. That ’ s a set like spending a massive give card at your favored retailer .
however, if you want to get cash in hand—or your bank account—you ’ ll need to convert your bitcoins into decree currencies, or government-issued currency, such as the U.S. dollar .
Unlike cash based on commodities, decree money is backed entirely by the complete religion and believe in the authorities that issued it. In some nations, such as the United States, decree currentness besides is the legal tender. ( Fun fact : the news fiat stems from Latin and frequently translates to “ let it be done ” or “ it shall be ” ) .
Before I outline how to do that, though, think about why you want to sell and cash out your bitcoins. Depending on your needs, one method acting might be more convenient than another—and save you on taxes and fees .

  • Do you need cash to pay bills, or are you going to splurge with some fat stacks? A cryptocurrency exchange is a impregnable and relatively easy choice, particularly for people new to this action. however, you will need to pay income tax on these earnings .
  • Is this an emergency? If you need a few thousand in a haste, Bitcoin ATMs might be the better option, although these tear goodly transaction fees .
  • Do you want to get the highest price for your bitcoins that you possibly can? A peer-to-peer Bitcoin switch over allows you to deal directly with buyers, so you don ’ t lose any transaction fees to an mediator. It besides offers escrow avail as add protective covering and the ability to choose your payment methods, such as a cash deposit, endowment coupon, bank remove, or even a PayPal history .
  • Do you travel frequently? You might want to load up Bitcoin debit cards, which allow you to purchase items much like regular debit cards. They even enable you to withdraw cash at ATMs anywhere worldwide that accept Visa or MasterCard. Consider these an automatic pistol currency exchange in your wallet while you ’ rhenium abroad .

Let ’ s examine how to sell and cash out Bitcoin through each of these methods .

Option 1: use a cryptocurrency exchange

If you want to flat-out convert your bitcoins into your local decree currency, an on-line crypto exchange is the way to go. A cryptocurrency exchange is a procure third party that provides a way for you to sell and cash out your bitcoin for decree money such as U.S. dollars, japanese yen, malaysian ringgit, Pound sterling, or Euros .

Locate an exchange that supports traders from your country

An substitute such as Coinbase or Robinhood supports traders from all over the universe. Others are more specialize, serving alone one or two countries or having exceptions to the countries, states, or territories they serve. here ’ s a brief overview of several crypto exchanges :

  • Bitbns.  Founded in 2017, Bitbns serves India .
  • CEX.IO Broker.  Serves more than 170 countries, including Argentina, Australia, the Bahamas, Barbados, Costa Rica, Ecuador, Egypt, Haiti, Hong Kong, Mexico, Monaco, Peru, Republic of Korea, the russian Federation, Saudi Arabia, Singapore, South Africa, Sri Lanka, Thailand, Turkey, the Ukraine, and United Arab Emirates .
  • Coinbase.  Serves more than 100 countries, including the United States, the United Kingdom, Austria, Belgium, Canada, Colombia, Costa Rica, the Dominican Republic, France, Greece, Hong Kong, India, Indonesia, Ireland, Italy, Kenya, the Philippines, Poland, Portugal, Mexico, the Republic of Korea, Singapore, South Africa, and Switzerland .
  • Coinmama.  Serves more than 180 countries, except for some U.S. states and territories, american samoa good as countries including Lebanon, North Korea, Sudan, Syria, and Somalia .
  • Independent Reserve.  Founded in 2013, Independent Reserve serves Australia and New Zealand .
  • Luno.  once known as BitX but rebranded in 2017, Luno serves more than 40 countries, including the U.S., the U.K., the Czech Republic, Denmark, Finland, France, Greece, Iceland, India, Indonesia, Lithuania, Monaco, the Netherlands, Romania, Singapore, Slovakia, Spain, Sweden, and Switzerland .
  • MaiCoin.  Founded in 2014, MaiCoin serves Taiwan .
  • OKCoin.  Serves more than 190 countries with offices in Hong Kong, Japan, Korea, Malta, San Francisco, and Singapore .

Set up an account

You ’ ll motivation to set up an explanation to trade and cash in Bitcoin. While the process might vary depending on the crypto switch over, these services tend to have specific requirements in common, such as proof that you ’ re at least 18 years old ( through a government-issued photograph I.D. ) .
Robinhood, for case, requires account holders to be 18 or older, be legal U.S. citizens, permanent residents, or have valid U.S. visa ; and have a valid Social Security Number .
Some crypto exchanges don ’ triiodothyronine charge a fee for setting up an report. Let ’ s consumption Coinbase as an case here :

  1. Visit the Coinbase web site or the app on android or io on your computer ( not a fluid device ). Click or tap “ Get Started. ”
  2. enter your broad legal name, electronic mail address, the submit where you live, and a password .
  3. Read and agree to the User Agreement and Privacy Policy .
  4. Click “ Create report ” or tap “ Sign Up, ” then verify your e-mail address .
  5. sign in to your affirm report and add a earphone number, which the crypto exchange will verify by texting you a code .
  6. fill in personal information, including your date of birth, accomplished savoir-faire, occupation, employer, source of funds, and the last four digits of your Social Security Number .
  7. Follow extra instructions sent privately to verify your identity through a two-step verification procedure ( to avoid unauthorized report access ). You ’ ll need to provide a copy of your government-issued I.D., such as a driver ’ south license or passport ( not a passport calling card ) .
  8. Establish a requital choice, such as a bank account .

Share your cryptocurrency address to fill your wallet with Bitcoin

Where do you presently keep your bitcoins ? once you ’ ve established and verified your new crypto exchange score, you ’ ll want to deposit your bitcoins into the crypto exchange ’ randomness wallet. Again, this varies by switch over, but you ’ ll check the switch over ’ s dashboard or open the trade view in general .
Look for an choice such as “ Wallet Balance ” and choice “ Deposit ” and “ Currency Type. ” You ’ ll need to open the external wallet where you hold your Bitcoin, enter its unique address, enter the amount you want to withdraw, and then hit “ Send. ”

Cash out your bitcoins from your crypto wallet

At this distributor point, you can buy other cryptocurrencies on whatever platform you chose or withdraw funds to your particular payment method acting, such as a bank account. Look for a “ Buy/Sell ” option on your splashboard, select “ Sell, ” and enter the cryptocurrency and measure you want to withdraw .
Crypto exchanges frequently place a short hold on the withdrawal ( normally five days ) before releasing the bitcoin and transferring the money to your bank bill. Like an on-line brokerage house, they besides might charge specific fees. Coinbase, for case, charges a flat fee of 0.50 % for all conversions .
Robinhood does not charge a commission, but the site notes that it charges customers fees from self-regulatory organizations such as the Financial Industry Regulatory Authority, which cover securities rule costs .
once you have your net proceeds in your trust account, be sure to set aside what income tax you ’ ll owe. Check how the crypto switch over sends you any tax documents, such as posting them for download securely from your report .

Option 2: use Bitcoin ATMs

Although an on-line crypto substitute is a fasten and convenient choice for many users, sometimes you don ’ deoxythymidine monophosphate want to go through the process of signing up, verifying your identity, and then waiting for the withdrawal to clear .
If you ’ re faced with an hand brake, you can visit a Bitcoin ATM and take out a little measure. Most of these machines have withdrawal and deposit limits of $ 1,000 to $ 10,000, then you won ’ deoxythymidine monophosphate be able to convert every bit of bitcoin you own. Plus, who wants to carry around bombastic stacks of cash ?

Find a Bitcoin ATM near you

As of this write, there are roughly 18,000 crypto ATMs across approximately 70 countries, according to Coin ATM Radar. For case, about 15,000 exist in the United States, 1,300 in Canada, and 200 in the United Kingdom .
about 40 % of all installed Bitcoin ATMs back sell. Find one near you using the synergistic map from the Coin ATM Radar home page :

  • Select your cryptocurrencies, such as Bitcoin ( BTC ) or Bitcoin cash ( BCH ) .
  • Select whether you want to buy or sell .
  • Scroll along the function to find your sphere. For case, approximately 89 ATMs betray Bitcoin in the New Jersey/New York area .
  • zoom in on the map to find one closest to your location .

Verify your identity

In cosmopolitan, the operator of the crypto ATM will require that you verify your identity. The procedure varies by type of machine, though .

Select your options

Depending on the machine ’ s interface, you ’ ll likely need to choose “ withdraw ” or “ retire cash. ” then choice “ Bitcoin ” if the machine supports other cryptocurrencies .

Enter the amount you want to withdraw

once you enter how a lot you want to withdraw, the machine will display a QR code. capture this on your smartphone to send bitcoins to the ATM.

Take your cash — minus a fee

Voila ! Once the ATM records the transaction, you ’ ll meet cash. You ’ ll besides have to pay a fee for this public toilet. Unlike an on-line cryptocurrency exchange, which might charge from 0.1 % to 1 % per conversion, Bitcoin ATMs charge a rate that’s about 7% to 12%. Depending on how much you withdraw, that could be a meaning bite—but if you need the sum the ATM allows right away, it might be worth it .

Option 3: use a peer-to-peer Bitcoin exchange

A P2P or peer-to-peer Bitcoin substitution puts you directly in liaison with potential buyers for your Bitcoin so that you can exchange them for your local currency. No third gear party facilitates the transaction, although some of these exchanges act as an escrow service and mediate transactions to help prevent fraud .

Find a Bitcoin exchange that serves your country

LocalBitcoins, founded in 2012, supports a variety show of guarantee requital methods across more than 240 countries. however, due to regulative or international fiscal restrictions, it does not serve traders from the United States, Indonesia, North Korea, China, or Syria. ( It does trade in U.S. dollars, though, a well as other decree currencies ) .
U.S. traders might want to try BitQuick, a peer-to-peer substitute affiliated with Athena Bitcoin, which operates crypto ATMs throughout North and South America. The company has offices in Chicago, Dallas, Saint Louis, Miami, Buenos Aires, and Bogotá. BitQuick besides provides an escrow address with your account .

Set up an account

Setting up an account at LocalBitcoins is free, although you will need to verify your identity. LocalBitcoins employs a distant onboarding process that applies facial realization to match each drug user with their effigy from an official politics I.D .
LocalBitcoins has four different trading tiers with extra security system verification, but it ’ s possible to open a impregnable report within 20 minutes. Each grade requires a exploiter ’ second :

  • Full list .
  • nation of residence .
  • Email address .
  • Phone number .

At the basic level, it might require you to submit a selfie to match your photograph on your politics I.D. Higher tiers require :

  • KYC ( or “ Know Your Customer ” ) verification .
  • A physical address control .
  • proof of residency .
  • extra confirmation, such as a selfie video .

Selling Bitcoin on BitQuick besides is spare and involves provide :

  • An electronic mail cover .
  • How much Bitcoin you ’ re sell .
  • How to set the price of your order ( static or dynamic ) .
  • How you want to be paid : ( a ) a cash deposit to your bank account or credit marriage, or ( boron ) picking up cash with MoneyGram or Western Union .

The site besides provides secure authentication so that you can modify your holy order .

Find a Bitcoin buyer from the marketplace

Your P2P Bitcoin exchange account grants you access to a procure on-line wallet where you can transfer your Bitcoin for sale. This action varies by exchange, but once you ’ ve transferred your bitcoins, search the marketplace for buyers .
For example, on LocalBitcoins, you ’ d choose “ Quick Sell, ” percolate by state, and choose your prefer payment manner. Within moments, you ’ ll receive a list of relevant buyers that you can choose by reputation score and amount of completed trades .

Set up the transaction

enter the come of bitcoin you want to sell and your requital details, such as your PayPal electronic mail address or another method acting, such as Zelle. Once the buyer accepts your crack, you ’ ll send your bitcoins to the exchange ’ second escrow score for holding .

Get paid for your Bitcoin

once the exchange records that you ’ ve received your Bitcoin payment, it will release the bitcoins to the buyer. If the buyer doesn ’ thyroxine mark the requital complete within a certain measure of time ( I ’ d say about three hours ), the switch over automatically cancels the trade .

Option 4: use Bitcoin debit cards

If you travel frequently, you might find a Bitcoin debit card a convenient way to spend your Bitcoin like local anesthetic currency without conversion fees .
Bitcoin debit cards don ’ deoxythymidine monophosphate change Bitcoin into cash, per se. They ’ ra more like a bridge between the global of cryptocurrency and the real worldly concern. Consider them prepaid cards that you can load with bitcoins and habit for purchases as you would a regular debit card linked to your bank account .
A reputable Bitcoin debit batting order works as a kind of requital anywhere that accepts MasterCard or Visa, even if that merchant doesn ’ thyroxine accept Bitcoin. The batting order mechanically converts it into local decree money .
What ’ s more, depending on a card ’ sulfur features and services, you might be able to withdraw cash from any ATM that supports Visa or MasterCard—never mind locating a Bitcoin ATM .

Find a card with features that you like

Bitcoin debit cards have perks similar to consumer debit cards and recognition cards that offer cash-back bonuses, discounts, and humble annual share rates. You ’ ll find that it pays to shop around. hera are a couple of long-familiar Bitcoin debit cards :

  • Crypto.com.  Crypto.com offers cardholders Visa debit cards with no annual fees that you can top up with cryptocurrency or decree money. You can earn CRO Rewards ( alike to a cash-back bonus but in Bitcoin ) of 1 % to 8 %, depending on the amount you ’ ve exhausted in your secure wallet app over six months. These cards besides offer wax or fond reimbursements on subscriptions to Netflix, Amazon Prime, and Spotify, american samoa well as purchases through Expedia and Airbnb .
  • Wirex Visa.  Wirex supports more than 150 forms of currency so that you can make purchases internationally without change fees or other charges. It besides offers free instantaneous fiat-to-fiat exchanges, free ATM withdrawals ( except for Singapore ) and earns up to 2 % binding in crypto on all in-store purchases .

Meet the application requirements

These deviate by card, but in general, a card company will require you to venture your cryptocurrency for a holding period before granting access, exchangeable to verifying your identity when you open an report with a crypto exchange .
For example, for the Crypto.com Visa Card, you ’ ll sign up for an account and complete the company ’ sulfur KYC confirmation process. Purchase a impale of CRO tokens with your Bitcoin, and deposit them into your Crypto Wallet .
The company has different tiers of CRO staking that correlate to assorted benefits, from $ 400,000 to $ 0. Crypto.com requires that you stake your CRO tokens for 180 days before granting you a Visa card .

Top up your card as needed

Depending on the crypto debit card, you can top up your card in several ways, such as through cryptocurrency accounts, bank account transfers, or other credit and debit cards .
For exemplar, Crypto.com allows you to use a Fiat Wallet, credit rating or debit card, or your Crypto Wallet whenever you need to stake more tokens to reload the card .

Why you should sell and cash out Bitcoin

How To Cash Out Your Bitcoin And What You Should Know Before You Do - Why you should sell and cash out Bitcoin
Are you hush weighing the pros and cons of each of these conversion methods ? possibly it ’ south prison term to consider why you should sell your bitcoins in the first place .
The saying “ buy broken, sell high ” holds true for Bitcoin as it does for any other investment. But Bitcoin has had such ups and downs since it first appeared that it ’ mho tough to determine when you ’ ll get the most for your money .
Consider this: in December 2013, BTC was trading at about $ 1,156—and then fell to about $ 760. even though the COVID-19 pandemic shut down much of the economy, cryptocurrency rebounded, with Bitcoin reaching good under $ 24,000 in December 2020 and good over $ 41,000 in January 2021. That lapp month, it fell to just over $ 30,000—quite a drop, but an astronomic increase compared to 2010 when it was deserving merely $ 0.0008 .

Questions to ask yourself to determine if you ’ re cook to sell

You might ask yourself the pursue questions to determine if you ’ re prepared to sell your bitcoins .

Have I achieved my investment goals?

If you purchased Bitcoin for less than pennies on the dollar years ago, you ’ ve more than recovered your initial investment. What was your goal when buying Bitcoin ? If you ’ ve wanted to earn adequate for a down requital on a home or to pay off your mortgage, student loans, or high-interest credit card debt, you might well have hit that bell ringer by now – as well a time as any to sell .

Are my assets giving me anxiety?

barely a nutshell of Bitcoin ’ south deal history feels like a rollercoaster. If you ’ re tired of this wild ride and not knowing what your assets are worth from day to day, it might be time to get off. Cash out your bitcoins so you can enjoy the proceeds or roll them over into another market where you ’ re not losing angstrom much sleep at night .

Is all my money in Bitcoin?

After more than ten years on the marketplace, Bitcoin has proven to be a hazardous investment. You might have the stomach and the stamen to ride this one knocked out, but for a healthy fiscal future, it ’ mho wise not to put all your chips in the same topographic point. Take a page from the good-old 401 ( thousand ) and diversify .

Is another investment calling to me?

Do you have an entrepreneurial heart ? If there ’ s a startup or other investment out there with a mission that you support, you might consider using part of that Bitcoin wealth to pay it forward. Get in on the anchor floor as an investor and help person else ’ s dream turn .

Do I just need the money?

Forgive me for leaving the obvious question until last. sometimes arsenic much as you ’ d like to let your investments ride, you need to tap into them sooner than late. Medical bills, a subcontract layoff — any number of things can crop up that require an inflow of cash rather of digging deep into debt. If that ’ s what you ’ ra face, ease up on the guilt, be grateful for this guard net, and know that you don ’ t have to cash in all of it .

Why you should wait to sell

How To Cash Out Your Bitcoin And What You Should Know Before You Do - Why you should wait to sell 
Of naturally, another side of the coin is : why hold on to that Bitcoin for a while long ? possibly you ’ ve been a HODLer ( person who buys and holds Bitcoin, an acronym for “ hold on for beloved life ” ) for a long time, and none of the ways I ’ ve described for cashing out Bitcoin appeal to you .
here are a few other questions to consider before selling your bitcoins .

Do I like the novelty of owning Bitcoin?

As an asset classify, Bitcoin is a raw child on the freeze. Each fourth dimension a inquisitive bubble occurs, funding drives the development of this engineering and fiscal infrastructure. If you ’ re comfortable with risk and got in on the ground floor — or during one of Bitcoin ’ s former ebb in the market — you might appreciate watching this cryptocurrency develop, knowing that you ’ rhenium separate of its community .

Am I concerned or excited about the scarcity of Bitcoin?

The dance of supply and necessitate drives pricing for any investment. The total amount of bitcoins that can always exist is 21 million .
You might not want to sell your bitcoins merely however because you ’ re concerned about the possibility of not being able to repurchase it. then again, possibly you ’ re like many HODLers who get a thrill out of its decentralize digital scarcity .
It ’ s like having the keystone to an exclusive club, such as Club 33 at the Walt Disney World parks that has a waiting number of more than a ten to enter and costs thousands a year in membership fees.

Do I think I could make more money?

As more people experiment with cryptocurrency, more businesses accept Bitcoin, driving the demand. even though its trade history has been fickle, Bitcoin respect will likely continue to appreciate over the following decade .
One bitcoin might be worth about $ 397,000 by 2030, according to a Crypto Research Report. Another appraisal from Lightspeed Venture Partners places it at $ 500,000 per coin that class. Either way, that ’ s a lot more money than it ’ randomness worth at this writing .

drumhead

Whether you believe Bitcoin is the currentness of the future or you ’ re wonder when it ’ ll crash, you owe it to yourself to explore the available options for converting your bitcoin into cash. Consider which ones meet your needs angstrom far as urgency, fees, and access so you can make the most out of your purchase of digital assets .

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