Cryptocurrencies, especially Bitcoin, have become a very popular investment for everyone. However, it is very unfortunate that we are still not able to pay for our dinner with crypto. Still, there are ways to exchange Bitcoin for cash, you just have to go through a couple of steps in order to do so. The good news is that this process is not very complicated; the downside is that you need to create multiple accounts on different platforms.
There are several factors you need to consider before you convert your BTC to cash. Its value fluctuates a lot considering it is extremely volatile, so if you make your exchange at the wrong time, you could potentially be losing money. There’s also a risk in the fact that it might lose its value, therefore you will be losing money again.
How to do it?
As you probably already know, Bitcoin evolution always take place in the blockchain network. The coin is usually transferred from wallet to wallet, and wallets are almost always virtual. Even you can purchase bitcoins virtualy through bitcoin machine in Montreal. The coin can also be sent from peer to peer, and that can be done without an intermediator. Nobody is able to interfere with digital money except the two parties who are participating in the exchange.Â
At some point, you will probably want to convert your bitcoin to fiat currency. The process of how you’re going to do it will largely be determined by the way you got the original crypto in the first place. It won’t be the same if you got it from mining cloud services, if you bought the coin yourself, if you got it as an airdrop, or if you traded bitcoin with a different type of crypto.
Crypto Exchanges
The most popular method to exchange bitcoin to fiat currency is through crypto exchanges. The process is very similar to when you want to transfer your money from one country to another. Basically, this type of exchange allows you to convert your bitcoin to a local currency like the dollar, euro, or even rupees. However, there is a big disadvantage to this method considering that there’s a huge delay in withdrawing the money in fiat currency after the transaction is completed.
Crypto exchanges are made with an inbuilt crypto converter. This is where you can see how much money you can get from the current bitcoin you have. The most popular exchanges are Binance, Coinbase, and Gemini. The good side to these services is that their interface is very user-friendly, so you shouldn’t have too much trouble going through the actual process.
The exchanges are negatively affected during bull run time, which leads to technical difficulties resulting in delays. One of the most suitable options seems to be Coinbase since the developers improved their downtime over the years by working on the infrastructure capability. If you choose to make an exchange through Coinbase, you can expect your money wired directly to your bank account without going through multiple accounts.
Debit Cards for Bitcoin
Probably the fastest way to convert your bitcoin to cash is to get your hands on one of the Bitcoin debit cards. The process is very straightforward – you make an account on a website where you can deposit the bitcoins and convert them automatically into your desired fiat currency. This method is used wherever you can use a debit card. The only difference is that your funds won’t be transferred from a bank account, but rather from your crypto wallet.
There is, of course, a downside to this method considering that debit card providers usually take charge of every transaction you make. In addition, the number of transactions is limited for each debit card you have. You need to go to the bank and do KYC in order to register for one of these debit cards too.
Peer to Peer Exchange
Considering Bitcoin has no centralized authority, bitcoin can easily be transferred between two peers in just a few steps. All you have to do is to buy someone who is out to buy some BTC and offer them exchange in return for cash. However, you need to keep in mind that bitcoin transactions are irreversible with no exceptions.
The downside to this method is that you need to find a trustworthy buyer who is going to pay you in cash for bitcoin with no risks involved. This is why this might seem like the riskiest method, and it probably is. Still, it is one of the fastest ways to sell your bitcoin.
ATMs
You can find Bitcoin Teller Machines in some countries. In fact, they became very popular in the past few years. These machines are very similar to ATMs you regularly use for your fiat currency. It allows you to withdraw cash, and all you need is a QR code and two-factor authentication. The BTM allows you to buy bitcoin as well, but mostly at an undesirable rate.
Using a BTM is a very convenient and fast way to convert your BTC to cash. They became more popular after the digital currency era and you should be able to find them in all developed cities in the world. The only downside to these machines is that they have a maximum transaction limit and that they charge way too much on conversion.
Money Transfer Apps
It should be fairly easy to find a money transfer app that will allow you to exchange your bitcoin for cash. In most cases, you will be required to complete KYC in order to use the app to its full potential. Still, once you’re done with filling up the bank details, you will be able to receive, send, sell, and buy bitcoin. In addition, you will be able to convert it to fiat currency and wire the money to your bank.
Most of these apps allow for converting many different types of cryptocurrency, so you’re not just limited to Bitcoin. It is a reliable way of exchanging bitcoin for cash, so you should give it a try.