Go online and ask about cashing out your Bitcoin, and you’ll probably be met with calls of “HODL!” (which means “hold”) by fans of the token. While this might end up being sound advice (if Bitcoin’s value increases even higher), sometimes that’s just not possible. You might need to cash out your Bitcoin for one reason or another, especially if you’re a merchant who needs to pay for supplies in fiat – cash.
Today, let’s break down how you can cash out your Bitcoin and other cryptocurrencies in detail.
Why Cash Out Bitcoin or Other Crypto?
Put simply, although the future of Bitcoin and other cryptocurrencies is bright, there’s no guarantee that their prices will remain at their current high rates. If you have a single BTC, you have over $50,000 just waiting to be cashed out.
For many people, the temptation is too great. Or maybe they simply need the money of their digital tokens now and can’t afford to hold them while hoping for further increases in value. Alternatively, maybe you were paid in Bitcoin, and you want to transfer that cryptocurrency into fiat so you can pay for business expenses and supplies.
Ultimately, you might want to cash out your Bitcoin or other crypto tokens for the same reasons you might need to cash out stocks, ETFs, or other market vehicles.
However, you can’t cash out Bitcoin or other digital tokens on the stock market using a regular broker. Instead, you have two broad options available to you: cash out your crypto tokens using a dedicated crypto exchange or sell your tokens to another person for a direct transfer of funds.
Cash Out Method One: Crypto Exchange
A crypto exchange is exactly what it sounds like: an exchange that connects crypto buyers and sellers to facilitate easy transactions. Using a crypto exchange, you can typically sell your Bitcoin or other digital coins in exchange for other cryptocurrencies.
In other cases, a crypto exchange may allow you to cash out your Bitcoin or other cryptocurrencies for cash like the US dollar, euro, and so on.
However, keep in mind that selling your Bitcoin on a crypto exchange usually comes with a short holding period while the exchange verifies the transaction. You won’t be able to withdraw your funds for a few business days. Still, the crypto exchange cash-out method is excellent if you want to reliably cash out your Bitcoin without having to worry about security.
The exchange operates as a middleman to ensure that both parties in a transaction are fairly rewarded. It also makes finding a buyer for your Bitcoin can be harder than finding a buyer in your social network.
Step-by-Step Process
To cash out your Bitcoin using a crypto exchange:
- First, sign up for a crypto exchange by making an account with your chosen platform.
- Next, connect a bank account to the crypto exchange, so they know where they should send your money once they convert your Bitcoin into fiat currency. Note that this may take a couple of business days to verify the connection to your bank account.
- Next, connect your crypto wallet to your crypto exchange. Your wallet holds your Bitcoin and other digital currencies securely.
- You should then be able to place an order on the crypto exchange to sell your BTC or another digital currency for the current market price.
- The crypto exchange will facilitate the transaction and take your coins in exchange for real-world currency. You’ll also likely have the option to trade your coins for other crypto tokens.
- After the transaction goes through, you’ll need to wait a few business days while the exchange verifies your information and gets the funds.
- But after that period, your Bitcoin’s worth in dollars or any other currency should show up in your bank account.
Cash Out Method Two: Direct Transfer/Sale
Alternatively, you can use a peer-to-peer platform to sell Bitcoin for cash directly. Using this method, you sell your coins to another person and have a lot more freedom. You can decide what payment method you want to use when you want the transaction to go down and even negotiate a different exchange rate or price (though this is unlikely since everyone knows what Bitcoin is worth these days).
However, there’s also a downside: much less security than usual. If you don’t use the right payment platform, you could get scammed if you are not careful. For this reason, you should always ask for proof of payment and ID before releasing your Bitcoin or other cryptocurrencies to a buyer.
Step-by-Step Process
To sell your Bitcoin or another crypto to a person using a peer-to-peer platform:
- Sign up for a peer-to-peer platform and connect your bank account or crypto wallet.
- Connect with a willing buyer on the same platform. A good peer-to-peer platform should validate ID and proof of payment before the transaction goes through.
- Negotiate the price and sale date using your peer-to-peer platform.
- Go through the sale. The peer-to-peer platform acts as an intermediary and holds both your cryptocurrency and your funds to make sure everything is in order before releasing both sides of the transaction to both parties.
How to Cash Out Bitcoin on CoinPayments
CoinPayments isn’t a crypto exchange. Instead, we are the world’s largest and most versatile crypto payment processor, helping merchants accept Bitcoin and other cryptocurrencies for their e-commerce stores. You can’t cash out your Bitcoin on CoinPayments directly. However, you may sometimes need to convert your BTC into fiat currencies to pay for business expenses.
In that case, you can use the free wallet that comes with your CoinPayments account and sign up for a crypto exchange.
Simply use CoinPayments to accept Bitcoin or another cryptocurrency. Those tokens will show up in your CoinPayments digital wallet. Next, sign up for a crypto exchange account and connect your wallet to the account, as noted above.
Once you’ve done this, you’ll be able to sell your coins to the exchange or trade them for other currencies.
Do You Need to Cash Out Your Bitcoin to Spend It?
Lots of online stores now accept digital currencies, especially if they have a payment processor like CoinPayments. You can see a list of stores accepting Bitcoin on our online business directory and shop there. Alternatively, you can buy gift cards to hundreds of different stores with your crypto. The world is moving towards digital payments, so it’s a good idea to start getting used to paying with crypto for your everyday shopping needs.
Summary
Paying with Bitcoin and other cryptocurrencies has become super easy, and more and more stores are now accepting crypto payments. So unless you need to cash out your Bitcoin, it’s a good idea to pay for goods and services using crypto and be a part of the digital ecosystem.
Want to know more about how CoinPayments works or how you can accept Bitcoin using our payment processor? Open your Business account today!
Sources:
Bitcoin USD (BTC-USD) Price, News, Quote & History | Yahoo Finance
