According to a verdict provided by cryptocurrency experts, it is assumed that Bitcoin will quite soon take the place of fiat currencies and traditional assets. There are several Bitcoin traders and investors around the globe who are actively seeking to make decent profits by buying and selling Bitcoin at cryptocurrency exchange forums. A simple way of encashing Bitcoin is to sell the assets to secure profits in cash.
There are several ways of converting Bitcoin to cash such as by the use of Bitcoin ATMs, trading at cryptocurrency brokerage platforms, and more. While it is easy and lucrative to convert BTC to cash, it is also to be noted that the conversion of Bitcoin to cash has certain disadvantages. These disadvantages generally include taxation liabilities and high transaction fees to be paid by the Bitcoin holders. The processes of transferring Bitcoin to cash have been dealt with in more detail.
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What are the ways in which one can convert Bitcoin to cash?
Converting BTC to cash is easy and hassle-free. The various modes of Bitcoin to cash transfer are described below:
1. Selling of Bitcoin
The most common mode of converting Bitcoin to cash is the sale of Bitcoin through brokers at cryptocurrency exchange forums. One can register with platforms like Kraken and Coinbase to start trading in Bitcoin. The platforms comply with the financial laws of the countries and enable the encashing of Bitcoin in less than a week. Sell the Bitcoin holdings through the brokerage platform to secure cash in exchange directly to your bank account.
2. Bitcoin ATMs
The Bitcoin ATM is a center for buying and selling in Bitcoin with fiat money. At present, there are more than 5000 Bitcoin ATMs spread across more than 76 countries. Use Coin ATM Radar to find Bitcoin ATMs near you.
3. Bank transfer
The seller of Bitcoin can directly tell the purchaser to transfer the required amount directly to the seller’s account. Use e-wallets like PayPal in order to make Bitcoin to cash transactions. Do not forget to ask for ID proof documents from the buyer and transfer the Bitcoin to the buyer’s account only after receiving the cash.
4. Peer-to-peer transfer
P2P transfer is an anonymous way of converting Bitcoin to cash. Register with an online peer-to-peer platform to sell Bitcoin and obtain cash directly in your bank account in return.
5. Use Bitcoin debit cards
There are several websites where users can engage in the trade of Bitcoin with the help of Bitcoin debit cards. Powered by either MasterCard or Visa, the prepaid Bitcoin debit cards can work both online and offline for the transfer of Bitcoin to cash. One can also use the Bitcoin debit cards to withdraw cash in exchange of Bitcoin at MasterCard or Visa ATMs.
The pitfalls of converting Bitcoin into cash
Be careful of the pitfalls of transferring Bitcoin to cash before encashing your cryptocurrency holdings. The disadvantages of converting Bitcoin to cash are listed below:
If one makes profits by the conversion of BTC to cash through the sale of Bitcoin then he has to pay taxes. Third-party brokers provide tax reports to help cryptocurrency traders and investors with tax estimation. It is important to pay taxes on time to avoid legal liabilities.
Speed of transaction
The transition of Bitcoin to fiat currency or hard cash does not take place in an instant. Trading platforms usually take 2-3 business days or more to deposit the cash in the bank account of the Bitcoin trader. The low speed of transactions often acts as an impediment in the conversion of Bitcoin to cash.
Several banks impose a heavy transaction fee for the conversion of Bitcoin to cash.
It is not only easy but also profitable to convert Bitcoin to cash. Opt for the easiest way of conversion that is by selling Bitcoin at brokerage or peer-to-peer platforms, like in cryptocurrencies. Do not forget to pay taxes and make sure of acquiring ID proofs from the buyers for extra security. Keep your Bitcoin holdings safe in encrypted wallets and secure your bank account as well for the safe storage of cash.