Demand for Bitcoin has increased dramatically. If you’ve owned Bitcoin for a while now you may be able to make a profit if you ‘sell’ your Bitcoin and transfer the equal value to your bank account. Or you may need to convert your Bitcoin to cash to be able to buy actual things. Whatever you need it for, you’re probably wondering how to turn Bitcoin into cash.
Here we look at the different options for how to turn Bitcoin into cash in a few simple steps.
Table of Contents
Why Transfer Bitcoin To Your Bank Account?
The ultimate idea is that bitcoin will replace traditional currencies. People are currently investing in bitcoin because they view it as a commodity that will grow in value over time. If you have bitcoin, you may want to hold on to it for that reason. But, since demand has increased recently, you may be able to make a profit if you ‘sell’ your bitcoin now and transfer the equal value to your bank account.
In theory, you will one day be able to use bitcoin for any type of sale. For now, there are still few businesses or individuals that accept payment in bitcoin. That is one reason you may want to convert your bitcoin to cash — to use the value of your bitcoin to buy actual things.
How to Move Bitcoin To A Bank Account?
Moving bitcoin to a bank account is the same kind of process as converting currencies at the airport when you arrive in a new county. You are essentially ‘selling’ your bitcoin and ‘buying’ the equal value in dollars (or the currency of your choice).
The ‘exchange rate’ for this currency exchange is not determined by the economic actions of a government or a country’s central bank. Instead, the bitcoin exchange rate is determined by demand. How many people want to buy bitcoin right now and what they are willing to offer will determine how much money you will get for your bitcoin.
Moving bitcoin to a bank account is like exchanging currency. But because bitcoin is devoid of government control, the exchange process occurs privately. It is not mediated by world economic structures.
Cash-Out Methods
There are two main avenues to convert bitcoin to cash and ultimately move it to a bank account. Firstly, you can use a third-party exchange broker. These third parties (which include bitcoin ATMs and debit cards) will exchange your bitcoins for cash at a given rate. It is simple and secure. Or, you use a peer-to-peer transaction to sell your bitcoin. This is a faster and more anonymous method, as you sell your bitcoin directly to another person.
Third-Party Broker Exchanges
A third-party broker is another name for a cryptocurrency exchange. The process is the same as currency exchanges in the airport of a foreign country. You deposit your bitcoin into the exchange. Once the exchange has received your bitcoin, you can request a withdrawal in the currency of your choice. The withdrawal will be paid into your bank account.
Brokers are restricted by money laundering laws, so you will need to withdraw to the same bank account that you deposited with.
It’s simple, easy, and secure, but it’s not the fastest method. The average time for money to reach your account is about 4-6 days but it varies by country. Any associated fees also depend on the country that your bank is located in.
Bitcoin ATMs and Bitcoin Debit Cards function in the same way as third-party brokers. In both cases, you create an account that allows you to sell bitcoins and withdraw physical cash. The biggest drawbacks are the high transaction fees.
Coinbase and Kraken are the most popular broker exchanges for buying and selling bitcoin.
Here we look at the different options for how to turn Bitcoin into cash in a few simple steps.
Table of Contents
- What is Bitcoin?
- Why Transfer Bitcoin To Your Bank Account?
- How to Move Bitcoin To A Bank Account?
- Cash-Out Methods
- Considerations When Cashing Out Bitcoin
Why Transfer Bitcoin To Your Bank Account?
The ultimate idea is that bitcoin will replace traditional currencies. People are currently investing in bitcoin because they view it as a commodity that will grow in value over time. If you have bitcoin, you may want to hold on to it for that reason. But, since demand has increased recently, you may be able to make a profit if you ‘sell’ your bitcoin now and transfer the equal value to your bank account.
In theory, you will one day be able to use bitcoin for any type of sale. For now, there are still few businesses or individuals that accept payment in bitcoin. That is one reason you may want to convert your bitcoin to cash — to use the value of your bitcoin to buy actual things.
How to Move Bitcoin To A Bank Account?
Moving bitcoin to a bank account is the same kind of process as converting currencies at the airport when you arrive in a new county. You are essentially ‘selling’ your bitcoin and ‘buying’ the equal value in dollars (or the currency of your choice).
The ‘exchange rate’ for this currency exchange is not determined by the economic actions of a government or a country’s central bank. Instead, the bitcoin exchange rate is determined by demand. How many people want to buy bitcoin right now and what they are willing to offer will determine how much money you will get for your bitcoin.
Moving bitcoin to a bank account is like exchanging currency. But because bitcoin is devoid of government control, the exchange process occurs privately. It is not mediated by world economic structures.
Cash-Out Methods
There are two main avenues to convert bitcoin to cash and ultimately move it to a bank account. Firstly, you can use a third-party exchange broker. These third parties (which include bitcoin ATMs and debit cards) will exchange your bitcoins for cash at a given rate. It is simple and secure. Or, you use a peer-to-peer transaction to sell your bitcoin. This is a faster and more anonymous method, as you sell your bitcoin directly to another person.
Third-Party Broker Exchanges
A third-party broker is another name for a cryptocurrency exchange. The process is the same as currency exchanges in the airport of a foreign country. You deposit your bitcoin into the exchange. Once the exchange has received your bitcoin, you can request a withdrawal in the currency of your choice. The withdrawal will be paid into your bank account.
Brokers are restricted by money laundering laws, so you will need to withdraw to the same bank account that you deposited with.
It’s simple, easy, and secure, but it’s not the fastest method. The average time for money to reach your account is about 4-6 days but it varies by country. Any associated fees also depend on the country that your bank is located in.
Bitcoin ATMs and Bitcoin Debit Cards function in the same way as third-party brokers. In both cases, you create an account that allows you to sell bitcoins and withdraw physical cash. The biggest drawbacks are the high transaction fees.
Coinbase and Kraken are the most popular broker exchanges for buying and selling bitcoin.