Getting cash for bitcoins
You can convert your Bitcoins for cash irrespective of the volume of Bitcoins you hold. There are numerous ways through which you can exchange your Bitcoin and get cash in return. These ways include cashing out Bitcoins through digital wallets or online money transfer systems like PayPal, bank transfer through exchanges, and even through a cash deposit. You can do these by using brokerage services and via peer-to-peer exchange. Let us understand the exact conversion process using each of these methods.
Through Digital Wallets and Online Money Transfer Services
There are several electronic payment services that allow you to cash out your Bitcoins. Some of the major services include PayPal, MoneyGram, Neteller, Skrill, Paxum, etc. To cash out your Bitcoins from these electronic payment services, you will need to create an account in their websites or mobile applications. Most of these applications or websites work in a similar way. So let’s understand how to exchange your Bitcoins for cash in PayPal as it is one of the most popular services people use in order to cash out their Bitcoins.
To cash out Bitcoins using PayPal, there a lot of online services. The most reliable one is BitPanda. All you need to do is follow these simple steps. Sign up to BitPanda > Choose ‘Sell’ > Select PayPal as your Payout Method > Transfer your Bitcoins to BitPanda > Once they receive your Bitcoins, you will receive the USD or the respective fiat currency to your PayPal account. This doesn’t take much time and is a pretty seamless process.
Through Third Party Broker Exchange
A third-party broker is nothing but a cryptocurrency exchange. Most of these exchanges do not allow fiat currency deposits, but some do. Some of these major crypto exchanges include Coinbase, Binance, Poloniex, BitMex, Bittrex, etc. Cashing out your Bitcoins through these exchanges works like this. First, you are supposed to deposit your Bitcoins into the exchange, once the exchange has received your Bitcoin, you can request for a fiat currency withdrawal. The most usual and safest way to do this is via a bank transfer. To make sure these exchanges do not break the money-laundering laws, you will have to withdraw the cash to the same bank account that you deposited your fiat currencies with. In case if you have never deposited cash on to a broker exchange, you will have to make at least one deposit first.
One of the most popular crypto exchanges is Coinbase, and they will usually take around five days to deposit the cash in your account. For EU customers, these exchanges make the payment through SEPA, and the withdrawals are paid in Euros. But, if you want to sell Bitcoin for USD alone, exchanges typically use the payment method called SWIFT. This is how you can cash out your Bitcoins trough crypto exchanges. It is a time-consuming procedure but a very secured one.
However, if you prefer to cash out your Bitcoins in a more anonymous approach, you can use a peer-to-peer exchange.
Through Peer-to-Peer Exchange
If you want to stay anonymous and don’t want to create an account by giving out your personal information, you should consider using a peer-to-peer selling platform. When selling Bitcoins to other people on the Peer-to-peer network, you get to decide which payment method you want the buyers to use. Some of the safer payment methods include:
Cash deposit: You can ask the interested Bitcoin buyer to deposit cash into your bank account by giving your account details to them. It is very important to not transfer your Bitcoins to them unless and until they provide ID proof and proof of payment. This is essential because Bitcoin payments are irreversible and nothing can be done if at all you want to rethink about selling or get cheated by the buyer.
Bank Transfer: You can also request the buyer to transfer the money through a simple wire transfer. This process is rather quick, and confirmations can be done much earlier than the cash deposits. It is still important to request for their ID proof before going ahead. Once you have the payment confirmation, you can release the Bitcoins to them.
Cash: You can arrange a meet up with the local buyer who is interested in buying your Bitcoins, and receive cash from them. You can finish transferring your Bitcoins to their address once you get the cash. This obviously sounds dangerous. So there are different precautionary measures you will have to take in order to do cash out your Bitcoins safely. One of them includes Satoshi Square.
Satoshi Squares are made for the people who are uncomfortable in meeting with strangers one-on-one. Major cities, like Toronto, San Francisco, New York, Vancouver, and Boston, have regular live meetups where a lot of people meet in public spaces to buy and sell Bitcoins. These meetups are also known as buttonwood exchanges. It is named after the buttonwood tree where the original Wall Street traders apparently traded in the 17th Century.
P2P selling is safe if you are sure about what you are doing. It is essential to be aware of fraudsters. There are platforms through which you can do these P2P transactions. A very credible and reliable one includes LocalBitcoins. They offer a strong level of safety and security by offering an escrow service. This helps in keeping your Bitcoins locked until you confirm that you have received the payments from the buyer. They also let the sellers rate their buyers on how convenient and safe it was to transact with them, just like Amazon does for their products.
More about the specific usage of the LocalBitcoins platform in the upcoming article!