How to Cash Out Bitcoin: 6 Tried-and-True Methods
In this article we review some of the most common ways to easily cash out bitcoin while also offering a few alternatives that you may not have previously considered, as well.
6 Tried-and-True Ways to Cash Out Bitcoin
So, you’ve accrued some BTC and are looking to sell it for your local currency. Whether it be cashing out to USD, EUR, GBP, CAD, AUD, RUB or NZD, there are plenty of ways to make this happen. First you must establish which of the following variables matter the most to you: speed, fees, or security. Very seldom is there a single method that combines all 3 of these items, but with a little bit of searching (and after reading this article), you’ll likely be able to find a method that suits your particular needs.
- Exchanges. The most obvious way to cash out bitcoin for fiat currency is via a cryptocurrency exchange. If you are in the U.S., the go-to exchange for this would be Coinbase. If you are outside of the U.S., we would recommend Binance. You can easily exchange bitcoin through a number of different payment providers with the most common being bank transfer or wire transfer. This method does have its limitations, of course. For one, you will have to verify your identity after making an account, which involves providing the exchange with a copy of your ID, a selfie of you holding your ID, and quite often proof of residence, as well. The other limitation is that Coinbase will readily block accounts that have received funds from crypto casinos, meaning casino players wanting to cash out will have to look elsewhere.
- Bitcoin ATMs. This method is usually the easiest and most hassle-free way to instantly convert your bitcoin into real cash. There are now over 8,000 Bitcoin ATMs located around the world across 73 countries. Many such ATMs only offer “one way” transactions, which means that they will only take cash for bitcoin and not the other way around, so you will have to make sure you locate a “two way” Bitcoin ATM. As they usually do not require any sort of user verification prior to use, this is often the best way to sell bitcoin anonymously and instantly. Besides being relatively scarce outside of major metropolitan areas, the only downside to Bitcoin ATMs is they tend to have much higher fees than exchanges (5% is standard). You can find the Bitcoin ATM nearest you here.
- P2P Trading Sites. These are websites that charge a small fee to connect people looking to buy and sell bitcoin and other cryptocurrencies all around the globe. 3 of the most popular of these sites include LocalBitcoins, LocalCryptos, and Paxful. With the first 2 options, buyers and sellers can arrange to meet in person to conduct a trade at pre-negotiated rates. All 3 options allow for trades to be done through the website. Whether you want to receive cash in the form of PayPal, WebMoney, bank transfer, or a dozen other methods, there are buyers waiting to make the deal.
- Changelly. Although mainly for crypto-to-crypto swaps, Changelly can also be used to cash out bitcoin for euros. Having been around for a few years now, it is considered to be relatively trustworthy, although the BTC-to-EUR option is available only to residents of the EU. Bitcoin sales on Changelly are outsourced to a different website that uses SEPA as its method of transfer.
- Stablecoins. In theory, just about every dollar-backed stablecoin should be exchangeable for U.S. dollars. As an example, you can create an account at TrustToken.com and exchange the Ethereum token TrueUSD (TUSD) for dollars deposited straight to your bank account. Theoretically, it should be possible to cash out Tether (USDT) as well, but it isn’t easy and not recommended as a cash-out solution. Basically, cashing out through a stablecoin is usually an option reserved for big businesses, financial institutions or brokerages, but as a last resort it may be worth the hassle setting up an account on TrustToken.
- Trading on Forums. For those who are a bit more experienced and understand the risks of making an online trade without a middleman, it is quite possible to use a forum to find somebody looking to accept your bitcoin in exchange for their PayPal, Skrill, Neteller, WebMoney, etc. This, of course, requires that you trust them to not chargeback the amount sent to your account, and they trust you to send them the bitcoin. Usually, experienced bitcoin buyers on forums will require that you send the BTC first, and after the transaction has received one confirmation, they will send you the money. With some money transfer services, such as PayPal, it is quite easy to perform a chargeback, so be sure you are only dealing with reputable exchangers who have built a degree of trust in the community. An example of such a forum marketplace can be found in the Currency Exchange section of Bitcointalk.
Have any questions about any of these methods to cash out bitcoin? Let us know in the comment box below and we’ll be sure to get back to you as soon as we can.