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The most popular cryptocurrency, Bitcoin, is now widely accepted as a digital asset and as a means of investment. But eventually, someone might need to exchange their Bitcoin for real money to use it for their necessities. The process of converting Bitcoin to cash can be simple if someone knows the appropriate steps. There are ways for everyone, whether they want to cash out a piece of their investment or require liquid funds for a specific purpose. This article discusses several ways to turn Bitcoin into cash, along with some of their benefits and possible drawbacks.
1. Use an Exchange to Sell Cryptos
To convert Bitcoin or cryptocurrency into real money, using a centralized exchange like Coinbase is one of the simplest methods. With Coinbase's user-friendly "buy/sell" button, someone may select the cryptocurrency and quantity they wish to sell.
Someone may easily convert cryptocurrencies into cash by using their Coinbase cash balance. They can then move the funds to their bank account.
Furthermore, if someone doesn’t have custody of your coins, it's probably best to sell them through the exchange. The top exchanges are Kraken and Binance, among others.
2. Use Your Broker to Sell Your Crypto
The simplest option is to work with the broker who currently owns your cryptocurrency. You will have the money in your account and be able to trade once more after the trade is finished.
Investors got a straightforward method to purchase and sell Bitcoin by using a recognizable structure when spot Bitcoin ETFs were introduced in 2024. The majority of brokers provide ETFs, which are traded on an exchange with expense ratios on various funds that are less than what you might spend to trade cryptocurrency.
3. Go with a Peer-to-Peer Trade
The most popular way to sell your cryptocurrencies is through peer-to-peer trade platforms. It enables sellers to find the best deals through exchanges. Peer-to-peer online trading allows you to sell cryptocurrencies for US dollars.
Binance operates the well-known peer-to-peer Binance P2P online platform. Your cryptocurrency is escrowed by the platform once you accept a trade. Binance will release the cryptocurrency to the buyer on the platform as soon as you verify the transaction record in the payment account and confirm that you have received the money from the buyer.
4. Cash out at a Bitcoin ATM
Bitcoin ATMs can help someone to get immediate access to cash by using their bitcoins. Bitcoin ATMs function differently from conventional ATMs. The ATM offers an individual with a QR code to send their Bitcoin to sell it and take out cash. It's suggested to wait for a few minutes to get their money.
5. Trade One Crypto for Another & Cash Out
You may have to take a deceptive method to obtain your money because certain exchanges do not permit the conversion or sale of certain cryptocurrencies to dollars. You might have to move or convert your cryptocurrency to another well-known currency, like the stablecoin Tether, before converting to dollars, depending on which exchange you use.
There are various to convert Bitcoin into cash, each suited to a unique set of requirements and preferences. Besides, there are many ways to cash out your cryptocurrency holdings, including using centralized exchanges like Coinbase, dealing with a broker, using peer-to-peer trading platforms like Binance P2P, or using Bitcoin ATMs for quick cash.
Every method has advantages and disadvantages of its own, ranging from costs and transaction speed to convenience and security. Additionally, converting one cryptocurrency into another, like stablecoins, can offer an efficient workaround for users who are encountering restrictions on specific exchanges. Users can easily convert their Bitcoin investments into real money by understanding and selecting the appropriate option.
