Last Updated on February 13, 2023 by ANE Wiki
The demand for crypto, and Bitcoin in particular, has grown massively over the last few years. Crypto is now a highly popular investment option for people looking to make money online. If you hold some Bitcoin right now, you may stand to make large gains if you sell them for cash. Crypto holders may want to convert their cryptocurrencies to cash to make purchases of other assets.
There are some key factors to consider when changing your crypto to real money. Digital currencies are known to be volatile, so you should make sure you time your withdrawal just right. If you get the timing wrong, it is easy to trade your crypto at a loss if the market conditions are unfavorable. Risk-averse investors may wish to cash in on their crypto when they see uncertainties looming in the market.
Here is how to cash cryptocurrency
1. Third-Party Brokers
These are also called crypto exchanges. Provided you have funds in your crypto exchange account with a third-party broker, you can initiate a withdrawal request any time you believe the market is ripe to sell. Some crypto brokers allow users to withdraw their funds straight into their bank accounts via their debit cards.
Crypto brokers are regulated, so they strictly follow anti-money laundering laws. On average, third-party brokers take 4 to 5 days to process withdrawal transactions into their customers’ bank accounts. The fees may vary depending on your bank. Popular third-party brokers such as Coinbase and Kraken allow you to change your crypto to fiat money easily.
2. BTC ATMs
Bitcoin ATMs operate like crypto exchanges in the sense that they require you to sign up and verify your identity. While some Bitcoin ATMs allow people to sell Bitcoin for cash, the main downside to using a Bitcoin ATM is the relatively high transaction fees.
3. Peer-to-Peer Platforms
For instant crypto to cash transactions, you can sign up for P2P marketplaces and sell your Bitcoin to your peers.
The question is: how do you exchange cryptocurrency for cash on P2P crypto sites?
In selling BTC to other parties on peer-to-peer platforms, you can choose from a variety of payment methods including cash deposit, PayPal, wire transfer, and others. Sellers can also decide which payment is convenient for them when looking for buyers to purchase from.
One good thing about P2P exchange platforms is the flexible exchange rates.
On LocalBitcoins and Paxful, bitcoin sellers can ask buyers to make cash deposits into their bank accounts. P2P exchanges offer escrow accounts to protect buyers and sellers from scams. Just be sure to confirm you have received your payment before you release the bitcoins.
Why Should I Convert My Bitcoin to Cash?
Crypto is often seen as an investment strategy rather than an everyday payment method. Converting between fiat money and crypto can influence the value of your portfolio. Regular conversions can also attract unfavorable fees.
Having said that, if you have an urgent need for money, selling your crypto for cash may be the only option on your table for you. While the crypto movement is gaining momentum every day, not all businesses yet accept cryptocurrency as a payment method. Therefore, learning how to convert cryptocurrency into cash is well worth it.