How To Cash Out Bitcoin - How To Do It Easily

So, you’ve made your millions, and now you want to know how to cash out Bitcoin? Well, this guide will tell you everything you need to know!

This guide will include methods of how to turn Bitcoin into cash such as bank transfer, PayPal and even through cash deposit! I will show you how to withdraw Bitcoins to cash using a broker (namely, Coinbase) and through a peer-to-peer exchange. And to make it easier for you, I will also include some helpful images.

By the end of this guide, you will be able to decide which method is best for you.

Table of Contents

  • 1. Different Cash Out Methods
  • 1.1. Third-Party Broker Exchanges
  • 1.2. Peer-to-Peer
  • 2. How to Cash out Bitcoin Using a Broker Exchange
  • 3. Turn Bitcoin into Cash Using Coinbase
  • 4. Turn Bitcoin into Cash Using a Peer-to-Peer Exchange
  • 5. How to Cash out Bitcoin Using LocalBitcoins

Third-Party Broker Exchanges

A third-party broker is just another name for an exchange. Most cryptocurrency exchanges do not allow you to deposit funds using fiat money - however, some do.

This is how it works: you deposit your Bitcoin into the exchange, then, once the exchange has received your Bitcoin, you can request a fiat currency withdrawal. The most common way to do this via a bank (wire) transfer.

To make sure brokers do not break money laundering laws, you will need to withdraw to the same bank account that you deposited with. If you have never deposited fiat on to a broker exchange, then you will more than likely need to make (at least) one deposit first.

If you decide to cash out your Bitcoin using a broker exchange (such as Coinbase), then it will normally take about 1-5 days for the money to reach your account. For EU customers, payments are made via SEPA (withdrawals paid in Euros). However, if you want to sell Bitcoin for USD, brokers normally use the SWIFT payment method.

And that’s how to cash out Bitcoin using a broker exchange — skip the next section to follow instructions on how to do this.

However, if you’d prefer the more anonymous & less time-consuming approach, let’s look at how to sell Bitcoin for cash using a peer-to-peer platform!

Peer-to-Peer

If you don’t like the thought of having to wait three days for cashing out Bitcoin, you should consider using a peer-to-peer selling platform like LocalBitcoins.

When selling Bitcoins to other people on LocalBitcoins, you can decide which payment method you want the buyers to use. These include:
  1. Cash deposit: You can ask the buyer to deposit cash into your bank account. However, you should always ask them for proof of ID and proof of payment before releasing your Bitcoins to them.
  2. Bank Transfer: You can ask the buyer to send you a bank transfer payment. Before trying this method on how to cash out Bitcoin, be sure to always request proof of ID from the buyer before going ahead. Once you have received the money, you can release the Bitcoins to them.
  3. Meet in person for cash: You can arrange to meet up with a buyer who is local to you, and they will pay you in cash for your Bitcoins.
  4. P2P selling is safe if you know what you’re doing. However, it’s important to be aware of fraudsters. LocalBitcoins offer a good level of safety because of their escrow service. This keeps your Bitcoins locked until you confirm the payment has been received from the buyer.
I bet you’re still a little confused as to what an escrow is, so let’s use an example:
  • John wants to buy 1 Bitcoin. As he is from the UK, he searches for sellers in his country.
  • John sees that Mike is selling 1 Bitcoin at a good price, and he also accepts bank transfer as a payment option.
  • John sends his request for 1 Bitcoin to Mike, and Mike accepts.
  • Mike puts his 1 Bitcoin into the escrow. This holds the Bitcoin until John transfers the money to Mike.
  • John transfers the agreed amount into Mike’s bank account.
  • When Mike has received the payment, he releases the Bitcoins from the escrow, which is then sent to John’s account.

How to Cash out Bitcoin Using a Broker Exchange

So, now that you know the difference between the two favored methods, I will now show you how to withdraw Bitcoins to cash using broker exchanges!

Coinbase

Coinbase is the most popular broker exchange for buying and selling Bitcoin. They process more Bitcoin transactions than any other broker and have a massive customer base of 13 million.

Withdrawal Methods: Coinbase lets you sell Bitcoins for cash, which you can then withdraw into your bank account. You can only cash out your Bitcoin into a bank account that you have already used to buy cryptocurrency on Coinbase. So, if you haven’t done this yet, I recommend purchasing a small amount of cryptocurrency first.

Turn Bitcoin into Cash Using a Peer-to-Peer Exchange

Now that you know how to cash out Bitcoin using a broker, let me show you how to do it using a peer-to-peer exchange. There are a few to choose from, however, the one I most recommend is Local crypto.

LocalBitcoins was created in 2012 and now supports almost every country in the world. So, no matter where you are from, you should be able to find buyers to sell your Bitcoin to.

The great thing about P2P is that you can request any payment method you want. Here are some examples of the different payment methods available on LocalBitcoins:
  • Local Bank Transfer
  • International Bank Wire
  • PayPal
  • Skrill
  • Payoneer
  • Western Union
  • Gift Vouchers
  • Web Money
  • Bank Cash Deposit
  • Neteller
Sellers who know how to cash out Bitcoin can also choose the price they would like to sell their Bitcoin for. You can do this by creating an advertisement, which will charge you a fee of 1% of the total sale.

However, if you sell to a buyer that has listed the price they want to pay, there are no fees.

There is also a rating system like eBay, where you can leave feedback for the buyer or seller. This helps you to remain safe when choosing a buyer. If you are a beginner, I only recommend selling to buyers who have 100% positive feedback.

Conclusions

If you have read this guide from start to finish, you should now know how to cash out Bitcoin! We have shown you two different methods — the broker exchange way (Coinbase), and also the peer-to-peer way.

They both have their advantages and disadvantages. Coinbase can be more convenient and safe for beginners, whilst LocalBitcoins allows you to remain anonymous and sell at a higher price.

So, which did you prefer? Are you going to use a broker for cashing out Bitcoin, or a P2P exchange?

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