Yes, it’s possible to move your bitcoin or other cryptocurrencies to your bank account by selling it. Cryptocurrency ATMs are becoming more and more available, and many — but not all — of them will allow you to sell your bitcoin and withdraw cash after following several security steps. This option is best saved for situations when you need cash fast, as the fees can be high — think up to 20%. Depending on how large or small your transaction is may determine which method you use.
From there, you can transfer the money to your bank account if you wish. Similarly, Bitcoin debit cards are connected to a wallet service that holds the users’ Bitcoin. So instead of cashing out Bitcoin, users can directly spend their cryptocurrency at point-of-sale. If you have to meet for a face-to-face transaction, you should meet sellers at a public location. You should also avoid using bank accounts or online wallets to transfer funds and never reveal personal information until secure transactions are complete.
Whether you use centralized exchanges, crypto debit cards, peer-to-peer exchanges, Bitcoin ATMs, or gift cards, you have different options. Crypto debit cards are becoming more popular, with many crypto exchanges offering them as a way to spend your crypto balance. Crypto debit are public limited companies in the public sector cards are typically connected to a centralized crypto exchange account and allow you to swipe the card for regular purchases.
How to Transfer Bitcoin Into a Bank Account?
Bitcoin ATMs are a way to get immediate access to cash using your bitcoins. In order to make a cash withdrawal and sell your Bitcoin from the ATM, the machine provides a QR code to which you send your Bitcoin. You’ll quickly exchange cryptocurrency into cash, which you can access from your cash balance in Coinbase.
And it’s crucial to double-check, or else you might have a delay in the future. You can read our guide to the cheapest crypto exchange platforms to easily decide which one to use. As we discussed, you can cash out Bitcoin for real money through exchanges, P2P platforms, ATMs, and OTC trading. This form of payment is a practical way to deal with one’s expenses on a day-to-day basis, but fees are involved. Additionally, changes in the currency rate should be taken into consideration while using the cards. These machines allow consumers to buy and sell bitcoin and store the coins and money in their wallets.
Understanding Risk Tolerance and Its Impact on Investment Decisions
Using a peer-to-peer exchange requires sending Bitcoin (or other crypto) directly from your digital wallet to another user’s digital wallet. In turn, you will receive payment through Zelle, PayPal, or another method of deposit to your bank account. Centralized crypto exchanges are one of the best ways to turn your Bitcoin (or other cryptocurrencies) into cash. With access to hundreds of coins, multiple supported fiat currencies, and low trading fees, exchanges offer the most flexibility when cashing out your crypto.
Many travelers convert their foreign currency at a bank or exchange company and receive cash immediately. With bitcoin, you deposit your coins into an exchange, and then you can request a withdrawal in the currency of your choice. When converting Bitcoin to cash through P2P exchanges, you may need to pay taxes, similar to other methods. In many countries, the sale of Bitcoin is subject to capital gains tax.
Meanwhile, upon the deal is finalized, sellers can ask buyers to deposit cash directly into their bank accounts. In the meanwhile, since Bitcoin transactions are irreversible, it is always recommended to ask for the buyers’ identity proof before transferring the cryptocurrency to his wallet. LocalBitcoins is one of the top peer-to-peer exchanges that allow bitcoin buyers and sellers to meet up locally or use an online escrow service. Local Bitcoins also enables users to purchase bitcoins using PayPal for a small fee.
- Some exchanges do not allow the conversion or selling of some cryptos to dollars, so you’ll need to take an indirect route to get your cash.
- You can also buy bitcoins with a credit or debit card on their website.
- Think about the market and what you want to achieve with your investment.
- The buyer and the seller are interacting directly without an intermediary (like a bank or company).
- With access to hundreds of coins, multiple supported fiat currencies, and low trading fees, exchanges offer the most flexibility when cashing out your crypto.
The article was reviewed, fact-checked and edited by our editorial staff prior to publication. That is why investors need to convert Bitcoin to cash time after time, to realize their actual profits and buy things with the proceeds. Even if investors have turned into millionaires by investing in Bitcoin, all of their profits remain unrealized. They get to turn their paper gains into real ones only when they get to sell their Bitcoin holdings for real money, be it the US dollar, euro, pound, or yuan. Bitcoin rose from $3,858 to $65,000 against the Fed’s loose monetary policies. But, of course, those who purchased the cryptocurrency near its 2020 lows — or even before that — now sit atop massive gains.
What are the different ways to instantly convert Bitcoin into cash?
This process only works when dealing with local traders in your area and can be risky if you don’t know who you’re meeting. For example, if you purchased Bitcoin (BTC) with USD, then sell BTC for USD. If you want to cash-out in another currency like Ethereum (ETH), find a cryptocurrency exchange that trades ETH and trade it there for whatever currency looks good on that day. Whatever method you choose, there are some basic concepts about bitcoin trading and selling that you should know first before making any decisions. GOBankingRates‘ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers.
These brands compensate us to advertise their products in ads across our site. This compensation may impact how and where products appear on this site. We are not a comparison-tool and these offers do not represent all available deposit, investment, loan or credit products. The best way to sell Bitcoin for beginners is through a centralized exchange.
Turn Bitcoin into Cash Using a Peer-to-Peer Exchange
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy. If you bought your bitcoin through an online investment house like Robinhood or eToro, you can sell through that firm for the corresponding broker’s fee.
And that’s how to cash out Bitcoin using a broker exchange — skip the next section to follow instructions on how to do this. Offline exchanges might buy Bitcoin from you at a negative premium. Please disable your adblocker to enjoy the optimal web experience and access the quality content you appreciate from GOBankingRates.