Can Bitcoins Be Converted to Cash?

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So you own bitcoin and you want to turn it into cash? You will be presented with different possible ways to convert bitcoin to Euros/USD/cash and transfer the cash into your bank account. The bitcoin is converted over a cryptocurrency exchange, for instance, Kraken or Coinbase.

It is the easiest way for you to sell bitcoin and transfer the resulting funds directly to a bank account. A report conducted by Betway Online recently stated that the value of bitcoin reached a 17-month off the back of increased traction surrounding Libra, the new Facebook’s crypto initiative, in February 2019.  

The good news is that all Bitcoin transactions can be tracked. Most people think that bitcoin is an anonymous way to move money. Firms involved in tracking have developed software which traces coins’ movement and this assists the law enforcers to track illicit earning.

The following article will discuss how you can convert BTC and deposit them in your bank account for easier access. It will include possible methods of how to convert Bitcoin into cash and how to withdraw using, for instance, peer-to-peer, and broker change.

Different Cash Out Methods

There are several factors you should consider before deciding the method you will use to convert. The factors include:

  • Whether you want the cheapest method or the easiest method?

  • Is the money deposited into your PayPal or bank account?

  • The period you will have to wait?

These are some questions you need to ask yourself. Read the following methods and decide what is best for you.

  1. Third-Party Broker Exchange

How does it work? You deposit your bitcoin into the exchange, when the exchange has received your bitcoin, you can request for flat currency withdrawal. While most exchanges do not allow deposit of funds using flat money some will allow. The common way to withdraw is via wire transfer(bank).

To ensure that brokers do not go against money laundering laws, you will have to withdraw to the same account that you deposited with. If you have never deposited flat on to a broker exchange, then you are expected to make at least one deposit first.

If you use a broker exchange to cash out your bitcoin, for instance, CoinBase, it will take 1 to 5 days for the cash to reach your specified account.

It is recommendable for EU customers to use SEPA to make your payment, however, for the US, brokers will use the SWIFT method of payment.

2.Peer-to-peer

Are you not ready to wait for 3 days for cashing out Bitcoin, then peer-to-peer platforms such as LocalBitcoins will be best for you.

When using LocalBitcoin to sell to other people, you can decide either of these methods of payment.

Bank transfer: It is crucial you ask the buyer to send you the bank transfer payment. Before using this payment method, ask for proof of ID from the buyer and once you have received the money you can release the Bitcoins to them.

Meet in person for cash: It involves arranging for a meet up with the buyer who is local to you and the payment will be in cash form.

Cash deposit: You can ask the buyer to deposit cash into your bank account. However, be sure to ask for proof of payment and ID before releasing Bitcoins to them. 

P2P selling is a safe method if you are aware of what you are doing. LocalBitcoin offers a good level of safety due to its escrow service. It means that your Bitcoins are locked until you confirm that you have received the payment from the buyer.

How to Cash Out Bitcoin Using a Broker Exchange

So now you are aware of the differences between the two methods, now we will discuss how to cash using broker exchange.

Coinbase

The most common broker exchange for you to sell and buy bitcoin - xcoins.com". It is involved in many Bitcoin transactions than any other broker and has an extensive customer base of 13 million.

  • Withdrawal methods: in Coinbase, you can sell your Bitcoins for cash which you can then withdraw into your account. It is only possible to cash out your Bitcoin into the account that you bought cryptocurrency with. If you haven't done this, it recommendable you purchase a small amount of cryptocurrency first.

  • Fees: the fees to be charged will depend on the region your bank is located. For instance, for Bitcoin sales in USD, a wire transfer is $25. If you are located in the EU and have a SEPA payment method, the transfer will only cost $0.15. Make sure you understand the fees in your region.

  • Cash-out times: withdrawal time depends on the locality of your bank account. For instance, in the US, withdrawals period will take between 4 to 6 days while in the EU the period is between 1 to 3 days.