How To Turn Your Bitcoin Into Cash
by Arnab Dey Finance Published on: 25 April 2022 Last Updated on: 21 October 2022
After you make your bitcoin profits, you need a secure way to cash them out. For a beginner crypto enthusiast, the process may appear complex and time-consuming.
This guide is here to make your life easier and take you by hand through the procedure of converting your bitcoin coins into hard cash.
What Is Bitcoin?
Bitcoin is a cryptocurrency that was introduced in January 2009. Unlike fiat currencies, this coin is run by a decentralized system and promises lower transaction costs than those in traditional online payment systems.
There are no physical bitcoins; instead, balances are kept on a public ledger available for everyone to see.
Bitcoin employs the Proof-of-Work protocol, which entails miners using their computer power to solve hashes in order to create blocks of bitcoin. It is an ingenious system with one drawback: it consumes a lot of electricity.
The Bitcoin network is made up of a network of computers called nodes that run Bitcoin code and store the blockchain. A blockchain may be considered a collection of blocks. All blocks are filled with data in a transparent manner.
Bitcoin Price Formation
The price of bitcoin is primarily determined by utility, mining, and demand. Because the cryptocurrency’s supply is restricted to 21 million coins, a rise in demand will result in an increase in price.
The price can also rise as the press promotes bitcoin, nations recognize it as legal money, and, most importantly, mining ceases in a few years.
Can You Convert BTC to Cash and Other Cryptocurrencies?
BTC may be converted to cash or any other altcoin via exchanges, peer-to-peer platforms, and bitcoin ATMs.
Choosing the method depends on your goal: for a BTC to ZEC exchange, choose a platform like Godex; for quick conversion to USD, choose a convenient ATM near you.
So exactly how to cash out bitcoin?
Find the way that suits you best in the descriptions below:
1. Cryptocurrency Exchanges
To purchase cryptocurrency via an online exchange, you must first create a trading account and pass their KYC protocol. Personal information, such as an ID, must be provided, and verification may take a few days.
Also, Make sure to pay attention to the fees the platform charges. For example, Binance has a fee rate of 0.01-0.1 depending on the monthly volume of transactions. Coinbase charges a fee of up to 0.5%.
At the same time, there are exchanges that do not require registration. On decentralized and anonymous platforms like Godex.io, you can make transactions without providing personal information or waiting for verification. However, such exchanges will only allow converting BTC to other coins — not fiat.
2. Individual Peer-to-Peer Transfers
You can also remain anonymous using peer-to-peer systems. To protect your connection, you can utilize a VPN and select payment options such as online money or gift cards.
First, you must determine which platform you intend to employ. Paxful and LocalBitcoins are the two most popular systems, with hundreds of nations available.
After you choose the platform, the next step is to search the marketplace for a buyer. Following that, on most platforms, you will send a trade request with an escrow option to carry out the transaction.
3. Bitcoin ATM
To use a bitcoin ATM, all you need is your digital wallet, your phone number, and a valid ID. When withdrawing money, you enter your wallet account info into the ATM and select the coin selling option.
A bitcoin ATM is a physical location where you can purchase or sell bitcoins using fiat currency. As of this writing, there are approximately 25,000 crypto ATMs in operation throughout the world.
The main advantage of an ATM is that you may withdraw BTC anonymously. There is no need to wait days for clearance on an exchange platform, and transactions are generally completed in a few seconds to a few minutes at most.
However, it’s important to remember that most ATMs have a deposit and withdrawal limit. The main drawback is that it has high transaction fees.
Conclusion
Perhaps you’d want to know how to convert bitcoin to cash so you can pay your bills. Or maybe you want to cash out on your investment now that it has generated a profit.
Cashing bitcoins through third-party broker exchanges is simple, and it may be easier and safer for cryptocurrency newcomers.
Try a peer-to-peer trading site if you want to sell your bitcoin for a better price or use an ATM if you need an instant withdrawal.
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