Do you want to cash out your Bitcoins? Is it time to book some profit and convert your Bitcoins to traditional bills?
Read on to learn the ways to cash out Bitcoin and get some real-world money.
Slow but steady, everyone in the world is getting caught up in the novel idea of Bitcoin. And the most asked question continues to be – Have you invested in Bitcoin yet?
And why not, considering it is better than gold and traditional fiat currency, and not to mention, it is in limited supply and is subject to various economic laws that suggests its future growth too. I have covered that aspect of Bitcoin in my previous article too: What Determines The Value Of Bitcoin? [6 Reason You Should Know]
However, I would like to re-iterate in the words of first Bitcoin Evangelist – Trace Mayer.
Gold is sound money and limited in supply but it doesn’t move well. The dollar moves well but is not limited in supply. Bitcoin moves well and is limited in supply which is why it has been outcompeting both since its creation in 2009.
It is only natural for it to grow in its value over time, irrespective of what the pundits say, and when it bound is to increase in its value, the obvious question of realizing your profits come in.
For realizing the profits one needs to sell BTC in exchange for fiat/cash as acceptable in their native countries.
Hence, I think it is apt to talk about the questions that come to mind mind while selling Bitcoins for cash.
- How to convert Bitcoins into dollars (USD) or any other fiat?
- How to redeem Bitcoins for cash?
How To Turn Bitcoin Into Cash?
There are some easy ways to convert BTC into USD, INR, EUR or GBP, some of which are listed below.
However, before you pick any of the listed methods, you need to find out how you want to receive your fiat. You can sell Bitcoins in person for cash or you can sell it on exchanges and get the money directly deposited into your bank account. You also have the option to spend your Bitcoin to buy stuff from Amazon using services llike Purse.io. However, I assume for now you want to sell your Bitcoins and get hard cash in person or directly in your bank account.
1. Via Fiat Accepting Exchanges
The easiest way is to find out fiat accepting exchanges in your country. You can then sell them your Bitcoins in exchange for fiats like USD, EUR or GBP. Some of the exchanges that allow you to do so are listed below.
- bitFlyer– USD/JPY
- WazirX(India Only)- Convert BTC to INR via a P2P method or USDT
- Bitbns (India Only)-Convert BTC to INR via a P2P method
I understand that all the above options might not work globally because the cash system varies from country to country. For such sellers, there is another option of P2P selling/buying of Bitcoins via LocalBitcoins (aka LBC).
2. Via LocalBitcoins
LocalBitcoins is a Bitcoin start-up based out of Helsinki, Finland, which has been operating since 2012. It is a P2P Bitcoin exchange. It has on-ground buyers and sellers in more than 15,000 cities across 248 countries. Chances are, you will find a buyer in your country via LocalBitcoins.
The beauty of Localbitcoins is that you dealing with the buyer directly and you can receive money in any of the supported formats (bank deposit, PayPal, Payoneer, cash). When it comes to converting Bitcoin into fiat, Localbitcoins is one of the most preferred choices of those who don’t want to use an exchange.
You can meet buyers/sellers online and execute a trade offline. You can either pay in cash or wire the amount. You can also choose from various other options like PayPal or SEPA or direct bank deposits for converting Bitcoins into cash (USD, EUR, INR, JPY, CNY, AUD, Dinar etc) [all depending on the buyer/seller].
You can simply filter your country based on the payment mode you want to choose. Just so you know, all the fees here is set by the seller while LocalBitcoins acts as an escrow manager.
Caution: Be sure to check the reputation of the buyer/seller; a higher reputation means a more trustable buyer/seller.
LocalBitcoin is surely the easiest way for the resident of any country to redeem their Bitcoin for cash.
3. Convert BTC Into USTD Like Digital Fiat
If you are not in a hurry of converting your BTC into the fiat currency of your country and also want to avoid your tax liabilities for some time, you can convert Bitcoin into USDT (Tether).
Using USDT has its benefits when compared to dealing in USD or EUR if you plan to buy Bitcoins later. Moving cash in and out of your bank account regularly makes you accountable and may add into your taxes.
Also, you need not worry about the volatility of cryptocurrencies when you switch to USDT because USDT always maintains parity with actual US dollars, hence maintaining its value of $1 per USDT always.
This will also reduce your headache of always transferring in fiat currencies to exchanges to buy Bitcoins because USDT can be used to buy Bitcoins later if you want.
And the good thing about USDT is that unlike many fiat exchanges, USDT is supported by many exchanges across the world. Some of these exchanges are listed below. I have used this feature of intermediate conversion to USDT myself.
USDT (Tether) Supported Exchanges:
Conclusion: Converting Bitcoin Into Cash
These are some popular ways of converting your Bitcoins into USD or respective fiat cash of your country.
We will, very soon, be coming up with a list of country-wise options for selling and buying Bitcoins which will make your life easier when exchanging Bitcoins into cash. When you encash your Bitcoins to cash, keep in mind the taxes. If it’s a large sum, you need to pay taxes. You can use a tool like Cointracking to calculate tax on your Bitcoin selling profits.
Another way to turn you Bitcoin into cash is by selling Bitcoins to your friends and family. If your reason is to take some profit and not because you don’t feel confident about the future of Bitcoin, selling Bitcoins directly to your friends and family is an ideal choice. This will also help them to get started with Bitcoin and both of you will save on the transaction (middleman) fees. However, this route is taken only by a few as we have recommended earlier that you should not disclose your Bitcoin investment and Holding to anyone.
We intend to start with the following countries first and also include some third world countries like Somalia, Syria, Iraq etc.
- The USA
If you want to suggest other names that we should cover, do let us know in the comments section below.
If you found this article informative, please share it with your friends and family who want to know about converting Bitcoins into cash.
Here are a few other hand-picked articles for you to read next:
- CEX.io Review: Is This Platform Safe To Buy Bitcoin & Ether?
- How To Start Investing in Bitcoins – The Beginners Guide
- Is LocalBitcoins Safe – A Comprehensive Beginner’s Guide
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