As you consider investing in Bitcoin or other cryptos, you may want to know how to exchange Bitcoin for cash. There are many reasons for cashing out Bitcoin and other digital currencies. Some of the reasons include making payments to businesses where cryptocurrencies are not accepted, investing in other more lucrative ventures, or avoiding losses when Bitcoin’s price falls, etc.
The good news is that you have several options available to you to exchange Bitcoin for cash. It’s up to you to pick the one that works best for you. Below are just some of the ways you can choose from to cash out your BTC:
Use Peer-to-Peer (P2P) Exchanges
There are many online platforms that facilitate the direct selling of digital currencies to other people. These are called P2P exchanges. Some good examples of P2P exchanges include LocalBitcoin and Paxful.
Here are some simple steps on how you can use P2P platforms to exchange your Bitcoin for cash:
- Choose the P2P platform you want to use by considering factors such as its user-friendliness, availability in your country, and so on.
- Register on the platform, and pick the location where you want to find a buyer
- Use the platform to choose potential buyers and reach out to them with trade requests.
- Transact with the buyer after agreeing on the price and payment methods, etc.
The beauty of P2P exchanges is that most have escrow services that ensure security for both buyers and sellers because the coins are not released to the buyer until the payment receipt is confirmed. Thus, both parties must keep up their part of the deal.
Use crypto exchanges
Another popular and possibly the most reliable way to exchange Bitcoin for cash is to use crypto exchanges. There are centralized exchanges such as Coinbase, allowing sellers to easily use the “buy/sell” button to pick the coin they want to cash and the amount.
On the other hand, there are decentralized exchanges that do not keep custody of traders’ coins. To sell through them, you must transfer your coins to them and get your cash equivalent per the rates. In addition, some exchanges such as NakitCoins have physical offices that allow sellers to walk into and sell their coins securely and in a few minutes.
Use Bitcoin ATMs
While they may be mistaken for conventional cash dispensing machines, Bitcoin ATMs are not your ordinary bank ATMs that link to bank accounts. Instead, these ATMs are connected to the internet to enable the execution of Bitcoin transactions.
To use Bitcoin ATMs to exchange Bitcoin for cash, you first need to use an online tool to locate the nearest machine. You must scan your wallet QR code to transfer your BTC and get cash at the ATM. The machines offer convenience because you can trade anytime, but they charge higher transaction fees than other BTC cash-out options. Also, Bitcoin ATMs are not available in many locations, and not all machines support both buying and selling.
Conclusion
If you have been looking for ways to exchange Bitcoin for cash, you have learned about several of them. You can use P2P exchanges, crypto exchanges, and Bitcoin ATMs. Whichever option you choose, ensure it is right for you, is fast as you want, charges reasonable fees, and meets any other criteria you consider vital.