What if you own a Bitcoin and you want to turn it into cash? The below article explains how you can transfer your Bitcoin to cash. On a presumption, we will be able to use Bitcoin for nearly buying anything. Bitcoin will be replaced for fiat currencies, like USD, which will not be necessary for the long run. Moreover, the reason why so many people are investing in Bitcoin is the idea being Bitcoin will replace the fiat currencies eventually.
Why do you need to transfer Bitcoin to your bank account?
- At one point of time, cryptocurrency users might want to convert their Bitcoin into some form of cash where they can spend these on buying, rather than on a digital token, even though the variety of business accepts Bitcoin transfer as a means of payment nowadays. If you are cashing out on an ICO or maybe selling few tokens as a standard transaction, depositing the money back into your bank account will require minimal work compared to spending it.
- If you possess Bitcoins, it is understood that you already have a primary cryptocurrency wallet which is linked with the exchange, used to procure those coins initially. Regardless, the first step is to select an exchange where you are planning to sell your tokens. Whatever price the coins are sold at, the value will be placed in the fiat wallet.
- The cryptocurrency wallet, which is linked with the exchange, can be connected with the bank account to transfer funds directly. However, most exchanges are allowing users to deposit using a debit card and may hamper them from withdrawing funds in the same manner. Instead, we will have to use a bank account transfer for withdrawal of funds. In most of the sites, the required process will be to enter bank information into the fiat wallet, which allows the website to proceed with the transaction.
Methods to cash out Bitcoin
There are quite a few factors to consider when cashing out Bitcoin. Some are:
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Third Party Broker Exchange
Another name for exchange is a third party broker. Some cryptocurrency exchanges will not allow the users to deposit funds by using fiat money, while some exchanges allow.
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Peer-to-peer selling platform
If you do not like the idea of waiting three days to turn Bitcoin to cash, try to consider using peer-to-peer selling platforms such as LocalBitcoins. In LocalBitcoins, When you are selling Bitcoin to other people, it is you who can decide the payment method you want the buyers to use, which includes, cash deposit, bank transfer, meeting the person for cash, etc.
How to use Bitcoins to withdraw cash using broker exchanges
Coinbase – Coinbase is a well-known broker exchange for purchasing and selling Bitcoin. They have a vast customer base of 13 million, and they process large Bitcoin transactions compared to any other broker exchange.
Kraken – Kraken is another desired exchange which allows fiat currency withdrawals and deposits. Since its inception in 2011, it processes most of the Bitcoin to Euro transactions. Moreover, they support other major currencies like CAD, JPY, and USD.
Wrap up
Currently, very few business or individuals accept payment in Bitcoin, which is one of the reasons we want to convert Bitcoin to cash, where we can use the value of Bitcoin to purchase the things we want. Another reason for transferring Bitcoin to bank account is to cash out Bitcoin when the market starts to decline. If you envisage that the price of Bitcoin is going to sink, and if you don’t want losses, it would be logical to convert Bitcoin into fiat currency while waiting for Bitcoin to recover.