From the present currency market perspective, Bitcoin is considered better than gold and traditional fiat currency because it moves well and is limited in supply. Now, when its turn to cash your Bitcoin after making millions, let me tell you the different ways to do so. There are
ways like a third party broker exchange or a peer-to-peer exchange and this may include bank transfer, PayPal and even cash deposit. Your answers to the following questions will also help you to choose the best method in your case.They are:
• What do you prefer the easiest or the cheapest method?
• How quickly you want to receive your cash?
• In which currency you would like to convert Bitcoin?
• Where do you want to get it, in the bank account or PayPal?
Here come the methods:
1. Third Party Broker Exchange and 2. Peer-to-Peer
1. Third Party Broker Exchange
It is another name of a cryptocurrency exchange. You have to deposit your Bitcoin into the
exchange. After the exchange received your Bitcoin, you can withdraw fiat currency. A bank
(wire) transfer is the most common way to do this. Here one thing you must do to make sure
that brokers follow money laundering laws and for that, use the same bank account for both
deposit and withdraw. At the very first time, you need to deposit the fiat once to regularize
the method. This process usually takes 1-5 days for the money to reach your account. In this
case, payments are made to EU customers via SEPA and withdrawals are paid in Euros, but
brokers use SWIFT payment method if you want USD in exchange of Bitcoin.
Here I would like to specially mention two names Coinbase and Kraken.
The most popular broker exchange for buying and selling Bitcoin is Coinbase with a 13
million customer base.
• Withdrawal Methods: You can sell Bitcoins for cash and then withdraw into your bank
account through Coinbase. In this case, the bank account that you have already used to buy
cryptocurrency on Coinbase is where you can cash out your Bitcoin. However, for the very
first time, it is better to purchase a small amount of cryptocurrency.
• Fees: A fee is deducted for this transaction as per the country where your bank is
located. It varies depending on whether you want to sell Bitcoin for USD or in Euros via wire
transfer or SEPA. The wire transfer fee is $25 for USD and just $0.15 for Euros.
• Cash out times: Withdrawal times are different for US withdrawals and EU withdrawals
depending on which country your bank is located. It normally takes between 4-6 working
days in the first case and 1-3 working days for the second.
It is another popular exchange for fiat currency deposits and withdrawals. Since 2011, it
processes the most Bitcoin to Euro transactions besides other major currencies like USD,
CAD, and JPY.
• Withdrawal Methods: You can turn Bitcoin into cash and withdraw to your local bank
account using Kraken.
• Fees: The withdrawal fees are meager at Kraken. For a SEPA, the withdrawal fees for
cash out are only €0.09 and $5.00 for USD using a local U.S. bank.
• Cash out times: Kraken withdrawals takes between 1-5 working days to reach your bank
There are many others like Bitfines, Bitstamp, Bitflyer, Bitmex, Livecoin, ZebPay, WazirX,
If you do not want to use exchange and wait for three days to convert your Bitcoin into cash,
then there is a peer-to-peer selling platform like LocalBitcoins. You can ask the buyers to
use the payment method as per your convenience. These can be:
• Bank Transfer: You can ask the buyer to pay you through a bank transfer. Here before
going ahead, you should always request for buyer’s proof of ID. You can release the Bitcoins
after you receive the payment.
• Cash deposit: You can ask the buyer for the cash deposit into your bank account. Before
you release Bitcoins to them, always ask for proof of ID and proof of Payment.
• Meet in person for cash: If your buyers are from your locality, you can meet and ask them
to pay you in cash for your Bitcoins.
Although peer to peer selling is comparatively safe, still you need to be aware of the
fraudulent persons. LocalBitcoins maintain safety because they act as an escrow manager.
Until you confirm that you have received payment from the buyer, it keeps your Bitcoins
The most recommended peer-to-peer exchange is LocalBitcoins. LocalBitcoins supports almost every country around the world. From anywhere in the world you will be able to find buyers to sell your Bitcoin.
You can request any payment method you want in Peer-to-Peer exchange. Some examples of the different payment methods available on LocalBitcoins are as follows:
• Local Bank Transfer
• International Bank Wire
• Western Union
• Gift Vouchers
• Web Money
• Bank Cash Deposit
In case of selling Bitcoin, sellers can choose the price at which they would like to sell. It’s easy to do by creating an advertisement at the cost of 1% of the total sale. But no fees will be charged if you sell to a buyer that has listed the price they want to pay.
The rating system is also there like eBay, where you can leave feedback for the buyer or seller. The feedbacks help a lot while choosing a buyer. If you are a beginner, pick buyers who have 100% positive feedback. You may stay anonymous in transactions through LocalBitcoins, but some sellers may inquire new buyers who are without any feedback to supply identification.
There is another way to turn you Bitcoin into cash, and that is by selling Bitcoins to your friends and family. If you want to make some profit, the ideal choice would be to sell Bitcoins directly to your friends and family. It will not only help them to get started with Bitcoin, but
both of you will save on the transaction (middleman) fees. All the methods mentioned above have their advantages and disadvantages. Coinbase is convenient and safe for beginners, but you may remain anonymous and sell at a higher price in LocalBitcoins. So it's always better to choose as per your convenience.