How to Turn Bitcoin Into Cash Easily

Still, many beginner miners and starting-out crypto enthusiasts ask the question — if you can mine and potentially make all these profits, can you cash out Bitcoin for real money as easily?

Yes, but it depends on which method you actually use, how you handle commissions, and how cautious you are in general. For that, you will need a little bit of know-how. This article will help figure out how to cash out Bitcoin safely, profitably, and in the most convenient way for you. 

But first

Why Convert Bitcoin to Cash?

This is a relevant question for long-term holders and those looking to capitalize on BTC as a highly valued, community-driven asset. However, there are also people who are looking to make quicker, more tangible profits, rather than fish for price accumulation. 

All in all, you may want to cash out BTC for many reasons, like:

• To lock in profits — the number one reason to withdraw BTC is getting exactly the profits you made at a certain BTC cost, without losing percentages over time; 
• To pay living expenses — BTC serves as a great backup for emergency payments, like mortgage or rent, which cannot be delayed;
• To fund investments outside crypto — cashing a Bitcoin at a profitable rate, at the right time in the market, can be used for an overhead-less investment;
• To move money into a bank account — depending on your BTC profits, it may be more beneficial and cost-efficient to hold them in the bank account (e.g., for cashback);
• To send remittances — due to diverse but mostly very light regulations, sometimes it’s easier to use crypto to send money abroad or in bulk.  

At the same time, you may not want to make BTC withdrawals, if you are looking to earn on price appreciation and make more profits long-term, keep your profits non-taxable, or avoid inflation of fiat currencies. 

The final choice should ultimately fit your priorities — is it speed or the lowest fees, or the ultimate privacy? But if your goal is to seize the moment and ride the wave of historically highest BTC price, you get the following options on how to withdraw bitcoins to cash.

Main Conversion Options

To figure out how to convert Bitcoin to cash in the best-fitting way for you, we’ll be looking at the top four ways you can cash out today:

1. Centralized crypto exchanges
2. Peer-to-peer platforms
3. Bitcoin ATMs
4. Crypto debit cards and payment apps
   

Crypto exchanges

Today’s public exchange platforms for cryptocurrencies have matured into reputable services that can offer high liquidity, relatively low trading and withdrawal fees, and pretty straightforward fiat bank withdrawals. This makes CEXs a good, proven option for when you need to cash medium-to-large amounts, with tax reporting and faster settlements.

How to convert BTC via a crypto exchange step-by-step:

1. Pick a reputable exchange that supports your fiat currency — your common options include Binance, Coinbase, Kraken, Bitstamp, etc. Make sure the exchange’s fees and withdrawal options fit you.
2. Create an account and complete identity verification through a KYC procedure. 
3. Deposit BTC from your wallet to your exchange BTC deposit address (pro tip — send a small test sum to confirm the exchange works if converting a large sum).
4. On the exchange, place a sell order: market (instant sale) or limit (delayed sale at better price).
5. Withdraw fiat to your linked bank account or payment method (ACH, SEPA, SWIFT, etc.). 

Peer-to-peer platforms

P2P marketplaces enable the exchange and conversion of financial assets directly between the two parties in interest. Such platforms offer a wide choice of payment rails, including cash deposits, local bank transfers, mobile money, and gift cards). Depending on the specifics, going peer-to-peer may also offer better rates, while the built-in escrow protects you if used correctly.

How to make Bitcoin cash via P2P step-by-step:

1. Pick a known P2P marketplace — consider Binance P2P, Paxful, LocalCryptos, etc., and register/verify if required.
2. Search available buy orders that fit your price margin and limits, or create a sell offer and set all details manually.
3. Once the buyer is found and they accept the order, initiate the trade — as a seller, you will need to deposit your BTC into the platform’s escrow.
4. Wait for the buyer to pay and see a bank statement screenshot for confirmation.
5. Now, release BTC to the buyer, and withdraw your fiat from the P2P platform.

Bitcoin ATMS

The most novel method on the list thus far, there are public ATMs for cashing out BTC, or BTMs if you will. These are already available in the US, Canada, Australia, Spain, Poland, Italy, Hong Kong, and New Zealand. The benefits here are clear — you get cash instantly in hand and don’t even need a bank account. BTMs are near perfect for urgent needs and small amounts, but they are also fairly expensive to use. 

How to turn Bitcoin into cash via BTMs step-by-step:

1. Find a nearby BTM (Coin ATM Radar or another directory will help);
2. Select a Sell Bitcoin option on the ATM screen, enter the amount in fiat, and follow instructions;
3. The ATM will show a QR code — scan it from your wallet and send the BTC;
4. Wait for the final confirmation and collect cash;
5. Save the receipt.

Debit cards and payment apps

You can also use physical and in-app debit cards that support cryptos to withdraw your BTC. This is a convenient way to instantly convert-and-spend with just a card in hand. It comes in most handy for everyday purchases, allowing you to avoid any banking procedures.

How do you turn Bitcoin into cash via cards and apps step-by-step:

1. Sign up for a crypto debit card provider — the most usual choices are Binance Card, Coinbase Card, or Crypto.com.
2. Top up the card wallet with BTC, or swap BTC to the card’s supported currency.
3. Use the card at merchants or ATM withdrawals — a card provider will convert crypto to fiat at the time of the transaction.

How to Ensure Safe Transactions

“We can’t but stress the importance of taking things cautiously and double checking everything”

Having figured out the withdrawal options, the immediately following question is how can you cash out Bitcoin safely? To protect your credentials, make sure to:

• Use escrow when available — crypto transactions are irreversible and the escrow will help make sure all parties hold up their part of the deal and it can be closed.
• Use only big regulated exchanges and established P2P platforms.
• Keep records — save receipts, txIDs, bank confirmations, and correspondence (you may need it for taxes or resolving a dispute).

Fees and Tax Considerations

The amount of fees you will have to cover depend on exact cashout methods you prefer:

• Exchanges usually set a trading fee plus withdrawal fee (e.g., a fixed network fee and a varying fiat withdrawal fee).
• P2Ps commonly charge fees for escrow, as well as for trading services.
• BTMs tend to have the highest fixed service fees that depend on conversion amounts and region.
  

As for taxes, it’s important to know how they vary by country:

• In many countries, selling crypto for fiat is seen as a taxable event (in case it generates income). E.g., in the US, the IRS requires you to report all capital gains from crypto transactions.
• If you’re a frequent seller or operate as a business, you may receive certain tax treatment privileges and assistance, especially in the US and EU.

Avoiding Scams During Conversion

Last but certainly not least, we can’t but stress the importance of taking things cautiously and double checking everything:

The most common scams:

• There are fake buyer and seller profiles on exchanges that phish for your confidential data.
• Some scammers impersonate support, government agencies, or tax collectors.
• There are also scams with “overpayments” and reversible payments.
  

Mind these red flags:

• Pressure to act now, urgent deadlines, or threats.
• Requests to move funds off platform, off-escrow, or to private wallets before payment is confirmed.
• Offers that look too good, i.e., significantly above market price.
  

Defenses you can employ:

• Always use escrow and release assets only after the settlement is fully confirmed.
• Check SSL and domain spelling.
• Use platforms with support for dispute resolution and positive independent feedback..

Can’t figure out how can you cash out cryptocurrency most profitably for you? Talk to EZ Blockchain for an expert consultation, guidance, and cost-efficient miner services.