One thing is knowing how to mine or to invest in Bitcoins, another is knowing how to convert them to cash. This task alone is a pet peeve to most investors as it can be very difficult to achieve.
I mean, after investing so much in digital currency, and when you want to convert it to money you can use, it seems to be a difficult task to accomplish. Although some organizations accept Bitcoins as a tender, it is highly risky as the volatility of the market cannot be mitigated.
How then would you convert your Bitcoins to cash since it’s not just a walk in a park? That is where this article comes in. However, there are multiple ways you can convert your Bitcoins to cash in a favorable pattern for you. All you need to do is to learn the process.
In a previous post, we higlighted 10 of the best websites to instantly swap or exchange your cryptos today and also we have featured A free Crypto UI kit for a much easier onboarding if you’re planning to launch your own Cypto app or web app.
1. Cryptocurrency exchange
Many people found this method the simplest way to convert their bitcoins to money. In this process, you go to an exchange platform and sell them in exchange for a tender.
If you had gotten your cryptocurrency through cryptocurrency exchange and not mining the coin, then you must have an idea of how you linked up to your bank to your crypto wallet before you bought those coins.
The same theory applies to those that mined their coins. You will have to load up your mined bitcoins to your crypto wallet. Wallets such as coinbase will make work easy than you think.
However, it is important to note that different cryptocurrency exchanges have different charging fees, exchange rates, and security measures. To enjoy your cryptocurrency portfolio to its maximum potential, you have to search for a highly secured exchange platform that can convert your Bitcoins to cash at a lower fee.
Perhaps you should shop around and compare rates to know the best to use if you are a first-timer.
2. Bitcoin debit card
The use of the debit card has shown how much the cryptocurrency market keeps evolving with time. Although most people still stick to the older method, there is still a much better and faster way of converting your bitcoins to cash.
A specialty debit card is a recent product by cryptocurrency wallets to convert bitcoins to spendable fiat money. These debit cards serve as the most convenient method of spending your bitcoins as they are used anywhere. It is more of used for shopping using your coins.
Although a debit card serves as the perfect method for your Bitcoins, it is also highly-priced. Along with the charged fee that comes with converting bitcoins, you would be charged monthly to obtain the card.
It may be advisable for someone that possesses a little Bitcoin to convert as it could charge an initial start-up part which is pretty bad for such a person.
3. Bitcoin ATM
With the recent production of debit cards, you don’t think that there will be no Bitcoin ATM, do you? Just like any other ATM operates, but this one, you don’t need a debit card. All you need is a regular software Bitcoin wallet to withdraw money from this machine.
It is quite intriguing, how multiple companies have seen the value of bitcoins, accepted them, and trade with it. They produced ATMs that are designed to let people withdraw money in exchange for their bitcoins.
As interesting as this ATM may be, there are reports that it is difficult to use. If you finally get to know how to use one, it might be hard to get used to it. Therefore, always have plan B when trying to convert your coins to cash.
Moreover, these ATMs are recently introduced into the market and are hardly seen in remote areas. They are mostly seen in the big cities, and quite difficult to reach a large population of people into the cryptocurrency market.
4. Accepting Fiat currency for Transactions
You may still want to choose a method that doesn’t require any payment of fees. This method could help you out on that part. But as interesting as it may seem, it is a long process that most people would not want to partake in.
But that is by the way. It is good to know that there are specific platforms that support buying goods using bitcoins. If you could buy those goods and resell them for fiat currency, you can get back your money with no problem.
Though you may escape paying for the money charged for converting Bitcoin to cash, you probably can’t escape the tax payment involved in the selling of goods.
5. Use of bitcoins to buy gift cards
Gift cards are used for retail purchases in a store. Gift cards are like debit cards but in its case, you use the money loaded in them. Imagine when you buy the gift card with your bitcoins.
You get to spend your bitcoins in retail stores that can also accept Bitcoins in place of cash. One interesting thing about using gift cards is that it charges a lower fee. Therefore, you can spend as much as you want at a lower fee.
However, many retail stores do not accept payment in bitcoins, especially those living in an inner-city neighborhoods. Gift cards are a good option for your bitcoins conversion but when the need for instant cash arises, a debit card is chosen to be the best.
6. Peer-to-Peer Exchange
One of the most reliable ways to convert Bitcoin to cash is through the use of Peer-to-Peer exchange marketplaces and platforms, we have quite a number of reliable Crypto platforms that are currently offering crypto exchange through P2P. This is how most of the platforms work:
Sign up for a peer-to -peer platform and find buyers in your area. Send them trade requests, but make sure that you have received payment before releasing bitcoins from escrow!
SOme examples of leading Peer-to-Peer Crypto exchange platforms are:
- BuyCoins Africa.
- Binance P2P.
Bitcoins and other cryptocurrencies can be converted into cash through the methods listed above. Although most of them have their downsides, they are still better options for you.
The cryptocurrency exchange is the oldest and the most popular method used to convert your bitcoins to cash. It may be hard for some people to accept other methods as there are limits to their resources. But once you find yourself in a sufficient resource environment, feel free to choose other methods.
Disclosure: This post may contain affiliate links, which help keep this content free.
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