| Updated: October 30, 2024Now that you have acquired a particular amount of Bitcoins and have them secured in your wallet, you may want to cash them out. You can do that at a reasonable rate with the help of several methods.
Cashing out on-line
If you prefer to cash your Bitcoins out via the web, you will have to get in touch with a potential buyer. In order to do so, you need to contact a specialized website, which will act as an intermediary and charge you a fee for its service.
As soon as you come across with such a website, you will have to establish a seller’s account, after which you will be asked for its verification. Once you specify the amount of Bitcoins you wish to cash out, the website will have those coins ”frozen” in order to avoid fraudulent behavior. After you receive the anticipated payment, the coins will be transferred to the buyer by the web service.
If you are looking for options, Coinbase is one place where you can cash out your cryptocurrency. You will be charged a service fee in dependence on what payment method you prefer to use – a PayPal transaction, a transaction to a Coinbase USD wallet, or a transfer to a US bank account.
Cashing out off-line
If you prefer to sell your Bitcoins in person and avoid cash withdrawal or service fees, you can use web services such as Mycelium or LocalBitcoins, where you will be able to arrange a meeting with a buyer. Such web services will automatically detect where you are currently located on the globe and present you a list of actual offers in your region.
As soon as you have a Bitcoin wallet established, you will be able to look for potential buyers by using websites as the ones mentioned above. What is interesting about such web services is that they will grant you the opportunity to check in advance to what extent a potential buyer is trustworthy. This way you can more easily decide which person to contact.
Once you meet a buyer and receive cash payment for the sale, you will need to confirm the receipt of payment in your account. This way the transaction can be finalized by the web service.
Using cryptocurrency converters to cash out
Another way to cash your Bitcoins out is by using exchange services, which convert digital currency into conventional currency such as US Dollar, Pound Sterling, Euro etc. What you need to do in this case is simply specify the type of cryptocurrency you own, the amount you wish to convert and the conventional currency you wish to receive in exchange. After the transaction is complete, you can use an ATM to withdraw cash with the help of a pre-paid debit card. For that purpose, you need to contact one of the financial service providers listed on the website, where you found the converter.
Before using this method of cashing out cryptocurrency, however, it is advisable that you first obtain the following information: the date when the website was created, its ratings, reviews by other users and the available reserve for the selected conversion pair. To get such information, you may use special aggregators, which allow you to search through digital currency exchange services based on certain parameters such as testimonials, exchange rates among others.
If you have come across several on-line conversion services, you should check their conversion rates and opt for the one offering the best rate, so that you can get the most out of your digital currency.
What you should also consider is the fee charged by on-line conversion services. Some of these services may charge you a flat fee, regardless of the amount of coins you are willing to exchange. Others may charge you a percentage of the amount exchanged. In either case, note that service fees are subject to change over time. Thus, you should make sure you have obtained actual information of each web service’s fee schedule. Then, choose the service offering the fee scheme that suits your preferences the most.
Next, check the transfer times offered by each of the web services. Some websites may convert your digital currency into conventional currency and make the transfer to your bank account in about 5 business days. Faster services, on the other hand, may execute the conversion and the transfer within 3 business days.
And, last but not least, you should verify whether the on-line conversion service is secure. In order to do that, you may look for some reviews of the respective website in reliable information sources. Another way to ensure safety is to use web conversion services, which allow for two-factor identification. This means you will be the only person who can approve conversion of your digital currency.
Using electronic payment systems to cash out
Such systems allow you to do operations such as conversion and fund withdrawal at one place all by yourself. What you need to do in this case is create a Bitcoin account, through which you will be able to withdraw funds by using a pre-paid debit card or a wire transfer. This way you can avoid doing multiple transactions and being charged a multitude of fees.
There are electronic payment systems, which allow you to store your Bitcoins or other cryptocurrency. At the same time, other systems allow for the automatic conversion of your account balance to US Dollars or Euros.
Cashing out via Bitcoin trading exchanges
Another way you can cash out is by using the services of cryptocurrency exchanges such as Bitfinex or Kraken. It is not necessary always to look for a potential buyer locally. Instead, you can try using a trading platform, which combines the features of Forex trading and a Bitcoin exchange. Once you open an account, you can submit an order to sell Bitcoins, where you specify a desired amount and a desired price. If there is a corresponding buy order at the exchange, the transaction will be finalized by the system.