After making millions, it is only natural that one will want to cash out Bitcoin. How? That is exactly why you are here now. We will try to explain in this short guide that we have made for the purpose.
Cash-Out Methods
Here are some questions you should ask yourself before cashing out Bitcoin:
- Do you want money in your bank account or your PayPal?
- Which currency do you need to cash out Bitcoin to?
- How long can you wait for the cash to arrive?
- Which method suits you best, the cheapest method or the easiest method?
Third-Party Exchanges
A third-party broker is an exchange. While most exchanges don’t allow funds to be deposited, some do accept fiat money as funds. So first, you need to make a fiat deposit. Then you can request a fiat withdrawal from the broker or exchange. Usually, this is done via SWIFT wire transfer that uses the MT103/202 protocol, a SWIFT protocol instilled in banking processes.
Also, to ensure that money laundering isn’t taking place, you will need to withdraw into the same bank account from which you had made your deposit. Good exchanges, like Coinbase, take up to 5 days to ensure that the amount hits your bank account. While SWIFT is normally used for cashing out in USD, SEPA is the method used for cashing out in EURO.
Peer-to-Peer Platform
If you wish to remain more anonymous and ensure a quick cash-out process, then a peer-to-peer (P2P) platform is what you should opt for. The different methods used to get payments from buyers on this P2P method are:
- Cash in Person. You and the buyer meet, and the deal is done face-to-face (F2F). While you transfer your Bitcoins to his cryptocurrency wallet, he pays you then and there in cash.
- Bank Transfer. This is a pretty secure way of cashing out more legitimately. Always ask for proof of ID from the buyer before entering any transaction. Once the cash has been transferred into your bank account, you can release the Bitcoins to his wallet.
- Cash Deposit. A buyer can deposit cash into your account. However, make sure that you get proof of ID and proof that he has paid into your bank account before releasing the Bitcoins.
To ensure security for yourself and the buyer, you may opt for a secure platform, like LocalBitcoins. They use an escrow service to keep your Bitcoins locked until you confirm that you have received payment from the buyer. Then they release the Bitcoins to the buyer.
Cashing Out Through Broker Exchange (Coinbase)
Let’s see how a broker exchange helps cash out Bitcoin. We will use Coinbase as our platform for study.
With a base of more than 13 million clients, Coinbase is the largest and most preferred broker exchange for selling and purchasing Bitcoins.
Coinbase allows the sale of Bitcoins for cash. You can withdraw this cash into your bank account. In addition, it allows you to cash out into only a bank account that you have used previously for buying cryptocurrency on Coinbase.
Transaction fees vary based on the currency, mode, and country where your bank is. For example, a SWIFT wire transfer in USD may entail a fee of $25, whereas the same on SEPA in EURO may need a fee of just $0.15.
While withdrawal times may take up to 6 working days in the US, the same may take up to a maximum of 3 days in the EU.
Steps
- Register for an account with Coinbase. Connect your bank account. Deposit your bank account to your Coinbase account.
- In your Bitcoin wallet, under the accounts tab, click on the Receive link. Select your Bitcoin Coinbase address to transfer your Bitcoins there.
- Click on But/Seel, which you can find at the top of the Coinbase page.
- Click on Sell.
- You can see your Bitcoin wallet and the default fiat currency. Depending on your account, it will prompt that country’s currency to show as the default fiat currency. You will also be able to see what your withdrawal limit is. Make sure you verify your account to get higher withdrawal limits.
- Enter the amount of Bitcoin that you wish to sell. The equivalent of the Bitcoin amount in your local fiat currency will show automatically.
- Click the Sell Bitcoin Instantly. You will see that your Bitcoin holding has reduced, and your fiat currency wallet has increased in value.
- Click on your fiat currency wallet. Since your banking details are already updated and saved from when you deposited Coinbase, clicking on the withdraw button in Coinbase will automatically transfer the amount from your Coinbase fiat currency wallet to your bank account.
Cashing Out Through Peer-to-Peer Exchange (LocalBitcoins)
Let’s use LocalBitcoins as our platform to understand how a P2P exchange helps to cash out Bitcoin.
LocalBitcoins supports almost every country now.
In P2P exchange (like LocalBitcoins), you can request almost any payment method like:
- Neteller
- Gift Vouchers
- Local bank transfers
- Skrill
- Bank Cash Deposit
- PayPal
- International Bank wire
- Western Union
- Web Money
Usually, there is a charge of 1% on the price that you advertise to sell your Bitcoin for. However, if you sell at the price any buyer has advertised to buy at, no fees are charged.
Since there is a rating system, it is recommended that you sell to buyers who have been given a 100% rating and feedback.
You stay anonymous in the whole process. You can also opt for safetradebinaryoptions to stay completely safe when cashing out bitcoins.
Steps
- Open an account with LocalBitcoins.
- Create a username and password, and also confirm your email address.
- Login to your account and click on Sell Bitcoins, which you can find at the top of the page.
- Choose the country where the buyer is.
- Enter the value of Bitcoin you want to sell.
- There are multiple ways to cash out. Let’s see how to cash out via PayPal.
- Confirm the amount of Bitcoin to sell.
- Enter your PayPal email address.
- Click on Send Trade Request.
- Your buyer will be notified about your proposal to sell.
- When the buyer accepts to buy, you will transfer your bitcoins to the LocalBitcoins Escrow.
- The buyer will contact you to confirm payment to your account. In our case, since it is Paypal, check the payment Received link.
- Once you have confirmed receipt of funds, the Bitcoins will be released to the buyer.
Conclusion
Both methods of exchange and cashing out have their pros and cons. While the broker exchange way may be more convenient and safe, the p2p lets you remain anonymous and sell at a higher price. Happy cashing out your Bitcoin earnings.
