According to a 2022 Blockchain Intelligence report, global Bitcoin adoption could reach a 10% increase by 2030. This is aligned with how some experts see the future of crypto payments, considering that over 15,000 companies already accept Bitcoin fees.
However, despite crypto’s growing number of users, cash still plays a huge role in our daily lives. It is important to know how to cash out Bitcoin, so if you need your funds, you can easily buy something that only accepts cash. This may also be helpful in mitigating the risk of value deprecation during bear seasons.
Disclaimer: Not financial advice
5 Common Ways to Cash Out Bitcoin and How
Here are five common ways to cash out Bitcoin and their step-by-step guides:
1. Crypto Payment App
The rise of crypto payment platforms has made it easier for users to send crypto and Bitcoin transfers. They are designed to facilitate easy cross-border transactions and some of them also allow you to send crypto with QR code and swap crypto and Bitcoin easily.
How to Cash out Bitcoin
The process of swapping Bitcoin for cash may vary depending on the app you use, but with Ka.app, this is how it works:
- Log in to the app.
- Choose Bitcoin and tap the swap icon.
- Since you want to convert Bitcoin to cash, choose euros.
- Enter the amount of Bitcoin you want to convert to euros and confirm.
- Once you have euros in your wallet, withdraw your funds by connecting your international bank account number (IBAN) or any bank account to the app.
- Enter the number of cash you want to withdraw and proceed.
- Wait for the funds to arrive in your bank account.
2. Peer-to-Peer (P2P) Trading
P2P refers to directly buying and selling cryptocurrencies between individuals without intermediaries like banks or exchanges. They offer direct interaction among crypto users, flexibility in payment options, and a global market reach.
How to Cash out Bitcoin
The process of P2P trading may also be different for each platform, but to give you an overview, this is how it may look:
- Log in to your chosen P2P platform.
- Deposit or transfer Bitcoin to your wallet.
- Browse through individuals or traders interested in buying Bitcoin.
- Initiate a trade by selecting a buyer’s offer.
- Communicate with the buyer either through the platform’s chat feature or their mobile number, if provided.
- Provide your details for receiving cash.
- Follow the instructions provided by the platform to complete the transaction.
- Your funds shall arrive in your wallet shortly.
3. Bitcoin ATM
As its name suggests, a Bitcoin automated teller machine (ATM) is a self-service kiosk where you can buy or sell Bitcoin using cash or other supported payment methods.
How to Cash out Bitcoin
There are about 40,000 Bitcoin ATMs in the world. Processes may vary depending on the specific provider you choose.
- Find a Bitcoin ATM that allows users to cash out funds.
- Look for the sell Bitcoin or withdraw Bitcoin option on the ATM.
- Enter the amount of Bitcoin you want to withdraw.
- The ATM may generate a QR code or a wallet address where you can send Bitcoin to.
- Open your Bitcoin wallet from your mobile device and make the transfer.
- Wait for the transaction to complete.
- Once the transaction is complete, the ATM will dispense your cash.
4. Crypto Exchange
A crypto exchange enables users to buy, sell, and trade various cryptocurrencies. It serves as a marketplace where individuals can exchange one cryptocurrency for another or convert crypto to fiat.
How to Cash out Bitcoin
As usual, how to turn crypto into cash may vary depending on the specific exchange you use. But generally, this is how it goes:
- Log in to your account.
- Select Bitcoin as the crypto you want to withdraw.
- Enter the specific amount of Bitcoin you wish to withdraw.
- Transfer your Bitcoin to an external wallet or a crypto payment app that enables withdrawing cash through bank accounts or e-wallets
- Follow the steps required to withdraw cash from the external wallet.
- Wait for the funds to reflect in your bank account.
5. Over-the-Counter (OTC) Trading
OTC trading offers an alternative way to buy and sell crypto outside exchange platforms. Buyers and sellers connect directly to facilitate cryptocurrency trades with the support of an arbitrator or broker who will assume the role of an administrator.
How to Cash out Bitcoin
OTC trading is more common for large transactions. Some exchanges require at least $50,000 worth of trade, and some others are at least worth $250,000. Here’s how the process looks:
- Log in to the platform.
- Connect with OTC traders or brokers.
- Negotiate the terms of the trade, including the quantity, price, and any specific conditions that need to be met.
- Once the terms are agreed upon, the trade will be executed. The buyer will pay you in fiat currency, and you will transfer Bitcoin to their wallet.
Four Factors to Consider Before Cashing Out Bitcoin
Please consider these factors before cashing out Bitcoin or any other crypto:
1. The platform (their fees, speed, and security)
Different platforms may have varying fee structures, crypto-to-cash conversion rates, transaction speed, withdrawal limits, and security measures. Be sure to choose a reputable platform that’s most favorable to you, especially in terms of convenience.
2. Market conditions
Paying attention to price trends, volatility, and overall market sentiment may help you decide when exactly to cash out. Strategically timing your withdrawal may either maximize your returns or at least minimize losses.
3. Future price potential
Read about potential price movements of your crypto, whether it may lead to a bull run or not. Assess if your reason for cashing out now would outweigh potential long-term gains.
4. Taxes
Bitcoin transactions may have crypto tax implications, depending on your region. To ensure compliance and avoid any unexpected tax obligations, it's essential to understand the tax regulations in your jurisdiction, consult with a tax professional, or seek guidance from relevant authorities.
Final Thoughts
Turning crypto into cash provides a convenient way to use your digital funds for various purposes, such as buying items, paying bills, and more. Be sure to approach the process with caution and consider important factors when cashing out Bitcoin, including security measures and the reputation of the service or platform you will use.
Conduct thorough research and seek recommendations to ensure a smooth and secure withdrawal experience.
Scan to download the app
FAQ
How fast does it take to swap Bitcoin?
The time it takes to swap BTC to USDT or any other currency may vary depending on the speed of the platform you use. In Ka.app, you can swap Bitcoin for other digital currencies within seconds.
How much are Bitcoin conversion fees?
Again, it depends on what platform you use. In Ka.app, swap fees can go as low as 0.376% of the swapped amount if you’ve locked up KASTA tokens in the app.
What is an IBAN?
An IBAN is a unique identifier for an individual bank account, regardless of the country or financial institution. It’s a series of alphanumeric characters that represents specific information about the bank account, including the country code, bank code, branch code, and the actual account number.
