Whether you want to sell a small amount of bitcoin or cash out of bitcoin completely, you may not be sure where to start. It may seem like there are a lot of options at first, but finding the right choice that provides exactly what you need can help you convert your bitcoin to cash fast. Even if you are new to bitcoin and this is your first time selling bitcoin, it's not as hard as you may think. Traders around the world are buying and selling bitcoin every day!
If you are wondering how to cash out bitcoin into your bank account or physical fiat currency, read on to find out out more.
Factors Involved in Cashing Out Bitcoin
- The amount of bitcoin you want to sell
- How quickly you need the money
- What payment type you would like to use
- How concerned you are about your privacy
- Local regulations and bitcoin tax obligations
- Transaction fees to move your bitcoin
How Much Bitcoin Can You Cash Out?
The amount of bitcoin you can cash out will primarily depend on the method used to cash out the bitcoin. If you have a considerable amount of bitcoin to cash out, you may just wish to spend a little extra time comparing your options to ensure you get the best price for your bitcoin when you sell it. Fees can add up with larger trades, so take this into consideration. It's also worth noting that often the fees aren't always immediately apparent. For some cryptocurrency exchanges, the fees are hidden in the price spread itself, common for instant cryptocurrency exchange services.
How Do You Redeem Bitcoin for Cash?
While this is a common question, it is one that is a little confusing; bitcoin isn't a form of credit. It’s a digital asset in its own right and is not redeemable in any way directly. So while you can't redeem bitcoin, especially as there's no company or third-party that owns and operates the bitcoin network, you can sell bitcoin for cash.
Can you cash out Bitcoin at any time?
Yes, however, some approaches can take a lot longer than others. For example, with P2P trading, you can cash out bitcoin fast as you can choose a suitable payment method. For other methods like order book exchanges or OTC service providers, you may run into issues with delays associated with how the money is sent to you, commonly with things like wire transfer or international bank transfers. The only limits on when you can sell bitcoin are those imposed by how you are choosing to do it. Unlike the stock market, the bitcoin and cryptocurrency markets never shut down.
How to Convert Bitcoin to Cash
As mentioned earlier, there are a few ways to cash out bitcoin, and each has its pros and cons. Still, one approach stands out from the rest and is suitable for almost any circumstances you may encounter or specific needs you may have. Many types of cryptocurrency exchanges will allow some ways to get money in and out of the cryptocurrency markets. However, getting physical cash often requires the help of P2P trading.
Order Book Cryptocurrency Exchanges:
The first place you might have thought to look for a place to sell bitcoin is one of the many order book exchanges out there. The problem with this approach is that they are typically extremely limited in the types of withdrawal they accept regarding fiat. There's also no way to directly get cash for bitcoin when using an option like this unless you first withdraw the funds to your bank account and then head off to the nearest ATM.
You may also run into verification issues when using an order-book cryptocurrency exchange. Verification issues can be extremely problematic if you don't have documentation or ID accepted by these types of cryptocurrency exchanges. What is required will vary between them and the regions that are based. However, if you simply don't have enough ID to verify your account, you are likely stuck or extremely limited in what you can do with your account. Many exchanges of this type will even place withdrawal limits on verified accounts, so this is something to consider as well.
If you can find a bitcoin ATM near you, it can be one possibility to consider when you are looking for a way to convert bitcoins into cash. The primary issue with using a bitcoin ATM to cash in bitcoin is that it often comes with significantly higher fees than some alternative methods. Often the costs aren't apparent either and can be hidden in the machines’ price spreads. In recent years regulations have resulted in many bitcoin ATMs requiring more verification, making them less convenient depending on the requirements. So if you are looking to cash out bitcoin, the bitcoin ATM may be an option; it’s just not a great one in most cases.
There are a number of instant exchange services around. However, these services are often targeted traders wanting to exchange one crypto for another, also called crypto to crypto exchange. If you are looking to cash out bitcoin, it's likely you won't have much luck using these platforms, and if you do find something with third-party integration that supports these types of trades, it is more likely to be an afterthought. While instant cryptocurrency exchange platforms can be sufficient to quickly exchange a little bitcoin to ethereum or something else, for getting money for your bitcoin or topping up your accounts with some extra funds, they likely won't be an ideal solution.
Bitcoin Wallet Integrations:
Some bitcoin wallets offer built-in ways to exchange cryptocurrency, usually provided through third-party partnerships; precisely what is being provided (if anything) varies, as does the experience you would have using them. If you choose to go this route, beware that while they are often simple enough to use, the pricing can sometimes be unpredictable or can result in your losing out quite a bit on fees.
The best way to cash out bitcoin for most people is to use P2P trading. This trading style allows you to trade anywhere in the world and in ways that otherwise would be often impossible. Using countless payment methods and dealing more directly with other traders using escrow for safety opens up substantial potential benefits. If you want to cash out bitcoin fast, you can trade with local bank transfer, cash deposit, cash in person, and so much more at LocalCoinSwap. P2P trading is exceptionally flexible and allows you to exchange your digital currency for any payment type you are likely to want.
Can You Use an Escrow Service to Sell Bitcoin?
Escrow can help keep you safer when trading cryptocurrency. There are some specialists in cryptocurrency escrow for single or regular transactions, but these are often best suited to more institutional use cases. For traders, holders, and just about bitcoin investors or users, LocalCoinSwap can offer a great alternative.
Trading with escrow on LocalCoinSwap allows you to trade in whatever way suits you and your trading partner, while the platform handles any disputes that could arise. The benefits of using escrow are significant and allow you to trade with people anywhere in the world without worrying about counter party risk. It doesn't matter if you want to sell bitcoin or convert cash to bitcoin, using an escrow service is important to help you trade safely. Trading outside of escrow is a significant risk and something that often results in losing funds.
How to Cash Out Bitcoin With LocalCoinSwap
Step 1: Head over to LocalCoinSwap.com and sign up if you haven't already
Step 2: Use the search bar to find suitable trade offers to buy or sell bitcoin. If you can't find a trade offer that suits your preferences or would like to make one yourself, you can do so in just a few moments by following the prompts.
Step 3: Start trading!
Can You Sell a Small Amount of Bitcoin?
Absolutely, just as you can buy a small amount of bitcoin you can sell a small amount. Bitcoin is quite flexible and allows you to exchange just a portion of a bitcoin, so if you want to only sell a small amount of bitcoin you can do just that without an issue. Trading less than one bitcoin is increasingly common as the value of bitcoin has increased over the years.
If you are going to trade a small amount of bitcoin just make sure to take into account any fees that may be required to move the bitcoin between wallets (if required) so that you are able to get the exact cash from your cryptocurrency you were looking to receive if you wanted to obtain a specific amount.
Popular Payment Methods to Cash Out Bitcoin
Even if you are looking to use cash, there is a range of ways to use cash to trade bitcoin. You could for example trade using cash by mail, cash deposit, or cash in person. If you just want the money in your bank account, you can look at options like a local bank transfer. If you just want to convert bitcoin to cash fast you may prefer to use cash in person which is a popular way to trade P2P across the world. If you do happen to want to use a payment type that is currently unavailable even on LocalCoinSwap you can contact support and it can be considered for addition to the platform in less than 48 hours.
Some other popular payment methods include:
- Gift cards
- Cardless cash
- Google Pay
Cashing Out Bitcoin Privately
If you are privacy-conscious it's crucial to take that into consideration whenever you are planning to sell cryptocurrency. Using exchanges that require KYC can reduce your ability to cash out bitcoin privately. If you want to exchange bitcoin anonymously the most important things to consider are where you trade and the payment methods you use. P2P trading on LocalCoinSwap can be a more private way to trade as KYC is optional, and you can choose from a range of payment methods. Some payment methods provide increased privacy over some common offerings on order-book exchanges. Accepting actual fiat currency for bitcoin is one of the more private ways to cash out; just make sure you trade safely by choosing a public location that you are comfortable doing the exchange and be sure to use the escrow provided by LocalCoinSwap.
Withdrawing from any exchange that has your personal details reduces your privacy and associates that transaction with you personally, how much this concerns you is up to you to consider but it is worth considering when considering using bitcoin exchanges that require KYC or excessive verification.
The Primary Conclusion
While there is a range of ways you can sell bitcoin, P2P trading provides the flexibility, privacy, and access that anyone can trade bitcoin fast and effectively. Whatever your needs are, it's likely that P2P trading will be a great fit. If you'd like to learn more about P2P trading you can read many more articles like this on our blog. You can also join our Telegram community or follow us on Twitter & Facebook.
So when it comes to how to cash out bitcoin? The best answer is LocalCoinSwap. Start trading P2P today and you can get started buying or selling bitcoin in minutes, not days or weeks.