Whether you have bought your Bitcoins or mined them through individual mining rigs, mining pools, or cloud mining services, you should know how you can convert BTC into fiat currency or cash in a hassle-free, quick manner. Perhaps the biggest reason why people are still skeptical about buying cryptos is the difficulty or challenges of converting digital currency into fiat currency when you need to have cash in your hand. This is why you need to know ways to convert your Bitcoins into cash so that you are free to take advantage of the Bitcoin’s true potential:
- Third-party broker exchanges: While most crypto exchanges will not permit you to deposit fiat currency, some do. This means you get to deposit your BTC in an exchange, and when the latter receives it, you can request for a withdrawal in fiat currency. To ensure that brokers do not violate money-laundering laws, you must withdraw to the bank account that you had originally deposited with. When you wish to cash out through an exchange like Coinbase, you may have to wait for about 5 days for the funds to come to your account. Exchanges will vary according to exchange rates, fees, and security measures.
- Peer-to-peer platforms: If you want a less time-consuming and anonymous approach, a peer-to-peer platform may be the best option for you; for example, LocalBitcoins. If you wish to sell your Bitcoins to others through this platform, you must decide on the system your buyers should use. For instance, you can request your buyers to deposit cash into your account; but, be sure to get ID proofs and payment proof before you release your BTC. Alternately, you can request your buyers to make bank transfers. When you have received the funds from your buyer you can release your Bitcoins. Finally, you can even meet the buyers in person if they are local and get paid in cash for your Bitcoins. P2P selling is completely safe when you know what is needed and how to go about it, but you must beware of scammers.
- Debit cards: Crypto wallets offer special debit cards for instantly converting coins into fiat currency. These cards can be used almost anywhere without any problem, and this is why it is fast becoming the go-to method for people keen to shop using BTC. There is, however, a monthly fee attached to such debit cards; some providers may also demand initial startup fees. So, this is not an ideal option for people who are only interested in converting a small amount of crypto. Crypto wallets such as Bitcoin wallets are useful when you have to store your daily profit as automated trading apps like bitcoin system are capable of returning good profit.
- Bitcoin ATM: Many companies have recognized the importance of making Bitcoins more accessible to people. To this effect, these companies have established ATMs to help people withdraw cash against Bitcoins. Using Bitcoin ATMs is similar to using regular ATMs but you need a software wallet for withdrawing money. The only downside is that ATMs being a more recent phenomenon you may not find one in your locality. Some even complain about the challenges of using these machines.
- Gift cards: You can use Bitcoins to purchase gift cards for things that you wish to buy. For example, online stores like Gyft allow you to buy their gift cards using cryptos like BTC, Ethereum, and others. This is beneficial because you can now use your cryptos to buy stuff from stores that would have not accepted Bitcoins in the first place. But the drawback is in the things you can purchase.