Just be aware that sending crypto over the blockchain requires paying network fees, which can be high during times of crypto market volatility. First of all, remember that the amount of Bitcoin you have will make a big difference in how you can cash out. For small amounts of Bitcoin, you can simply sell it on an exchange or to a person you know who is also interested in cryptocurrency.
- This can be a tedious process that may require hiring a bookkeeper or accountant, but it’s cheaper than getting in trouble with the IRS.
- You should decide how much Bitcoin you wish to withdraw in advance and confirm that the exchange platforms you intend to use permit withdrawals of such sums in a single or several phases.
- Binance is the most popular exchange platform for buying and selling Bitcoin.
Tips on How to Sell Bitcoin and Other Cryptocurrencies
Bitcoin kiosks and tellers, powered by Coinme, are a great example, as they’re mostly located in the entrances of major supermarket chain locations. Most crypto-to-cash fees are reasonable, plus they let you conduct transactions worth thousands of dollars. One of the advantages of peer-to-peer exchanges is that they help utilize one of the core benefits of crypto.
Currently, only Bitcoin selling is supported through Ledger Live. As a decentralized currency, Bitcoin was originally designed as a peer-to-peer payment system. Sticking with those roots, using a peer-to-peer (P2P) crypto exchange allows you to sell your Bitcoin directly to another individual in exchange for cash. For example, Coinbase offers a VISA debit card that allows you to spend your Coinbase crypto balance, automatically selling your selected crypto and using the cash for any purchases you make. You can also earn crypto rewards that deposit into your Coinbase account (reward rates vary).
Selling Bitcoin Through Peer-to-Peer, Direct Trading and DEXs
To cash out on your coins, you might want to think about the other options listed above. You can exchange digital currency valued at hundreds of dollars or even thousands of dollars using a peer-to-peer marketplace. However, peer-to-peer platforms also have extremely low transactional restrictions.
In order to achieve this, you will need to pass the KYC verification procedure and submit your ID or take a selfie. The platform should have a withdrawal section where you will need to state all the details. Choose the crypto you want to sell, enter the amount, and indicate how you plan to withdraw.
Step 3: Initiating the Withdrawal Process
The closest comparison to using a third-party broker exchange is exchanging foreign currency for U.S. dollars (USD). 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. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site.
Cash out at a Bitcoin ATM
After selecting the best exchange for yourself, complete the registration on the preferred platform and go through the verification process. An important part of this is usually connecting with your bank account. And it’s crucial to double-check, or else you might have a delay in the future. If a broker holds your crypto how to reconcile accounts payable accountingtools coins, then the easiest route is simply to go with that broker. For example, if you’re a client of Robinhood or Webull, both of which allow extensive crypto trading, then it will be easiest for you to just execute a trade on their platform and be done with it.
They have been around for a while and have made a name for themselves as a safe and dependable option for investors and traders. After you’ve sold your bitcoin, you can transfer the money to your bank account or reinvest it somewhere else. Transfers to your bank account may take several business days based on which payment method you chose. You are required to pay taxes on the gains, just like any other investment. The timeframe for receiving your money depends on which exchange you’re using and the chosen withdrawal method. Wire payments are faster than EFT or ACH transactions, but there is a higher fee for wires.
Be aware that P2P platforms require more effort to find a reliable buyer and may involve some risk. As always, it is also a good idea to consult with a tax professional when buying and selling assets. Taxes can get complicated, especially when it comes to crypto assets. Some of the most popular hardware wallets offer the ability to sell Bitcoin for cash. Ledger has a built-in exchange service, “Ledger Live,” and partners with Coinify to sell crypto for cash.
The downside to P2P exchanges is the risk of losing your funds (Bitcoin sent, but no cash received), and the time it takes to sell, as you need to find a prospective buyer and negotiate the sale. Some exchanges limit the amount of information about your trading history that financial watchdogs can see. You may incur fines and penalties because it will be nearly impossible to demonstrate the source of your money. Some cash-out methods may also ask for your identity documents.
Cex.io and Gemini are some of the other popular crypto exchanges you may consider. When it comes to cashing out Bitcoin, there is no one-size-fits-all approach. Your personal best method for selling BTC will depend on the amount you want to withdraw, your preferred payout method, country of residence and even risk tolerance. In this article, I will overview the best ways to sell small and large amounts of Bitcoin across the globe. Invest in over 30 cryptocurrencies from your checking account with no trading fees with the Current mobile app crypto feature. Luckily, now that bitcoin (BTC) has been around for over 10 years, the industry has caught up, providing several great options for converting bitcoins into cash, which we’ll discuss in this article.
Cryptocurrencies are often traded on decentralized exchanges, which are exchanges that allow direct peer-to-peer exchanges of crypto assets. Decentralized exchanges are different from traditional crypto exchanges in that they usually do not require KYC or AML compliance. This makes them a popular choice for crypto traders who value privacy and security. This means that you will need to provide some personal information, such as your name and address. While this may not be ideal for everyone, it does offer a higher degree of security than selling Bitcoin directly to another person.