For cryptocurrency newcomers, one of the most common things they want to understand is how to cash out Bitcoin or withdraw from Bitcoin to fiat currency (USD, EUR, Etc.).
Regardless of the reasons, a time may come where you want to turn your Bitcoin into government-issued currency.
So how exactly can you get fiat cash or dollars for your Bitcoin?
When it comes to selling your Bitcoin, you essentially have two options. And although they both have their advantages and disadvantages, both suffer from the same challenges, such as lack of mass user awareness and unclear remediation processes.
By far the most popular way of turning Bitcoin into fiat currency is through centralized exchanges such as Coinbase and Gemini.
With sleek user interfaces and KYC (Know Your Customer) processes required as part of account creation, these exchanges will let you link your funding bank account for withdrawal making the process easy and painless.
So, you have your Coinbase wallet with your Bitcoin sitting in it, and you are ready to send your funds back to your local bank account. Follow these steps:
Navigate to the Buy / Sell section of your wallet
After you are in the sell section of the wallet, you can select the wallet you wish to sell from and the bank account you wish to deposit to.
Decide how much you want to cash out
Enter the amount of USD that you are wanting to get from selling your BTC. When you enter this amount of USD, Coinbase will automatically calculate the amount of BTC it would cost to get that corresponding amount of USD.
If you don’t have the amount of Bitcoin in your wallet, Coinbase will notify you by telling you to enter a new amount.
What to Expect After Requesting Cash Out
Confirm the amount you wish to sell, take note of the fees (they will be shown before you sell), and then click “Sell Bitcoin”.
The ACH system used by Coinbase usually takes a few business days to complete after a sell or withdrawal is initiated.
Another popular option in which users can buy, sell and exchange their Bitcoin into USD is Gemini. With some of the sleekest trading features, Gemini will allow you, like Coinbase, to get cash for your Bitcoin in a quick easy manner.
Getting ready to sell your Bitcoin
Head over to the Sell section of Gemini to choose how you want to sell your Bitcoin and the price you are willing to sell your Bitcoin in fiat for. Unlike Coinbase, you first need to trade your Bitcoin for fiat currency, before being able to withdraw it to your bank account.
Get the USD value for your Bitcoin and prepare to withdraw it to your connected bank account
Now it’s time to send the USD that you just got to your connected bank account.
Choose a withdrawal destination that you are familiar with and the amount of USD you want to formally transfer funds into.
Like Coinbase, it will take Gemini a few business days to send you the funds.
That is all it takes. Once you have the Bitcoin on an exchange, such as Coinbase and Gemini, you can painlessly sell it.
For those of you looking to trade your Bitcoin directly for physical cash, LocalBitcoins.com may be a better solution.
LocalBitcoins is a person-to-person trading site where people can post their own bids for the buying and selling of Bitcoin to USD or other local fiat currencies.
Not only is there no identity verification, there are sometimes great arbitrative opportunities depending on how desperate a person is to buy Bitcoin and how many other sellers there are in the area. This can create the ability to sell your Bitcoin above market value.
So how does it work?
Find or Post your Deal
After determining the amount of BTC you want to sell, find a deal that suits your payment method (currency wise) or post your own listing.
LocalBitcoins gives each user a feedback score similar to eBay where users can get comfortable with the history and number of deals the buyer has completed through LocalBitcoins.
Initiate the Trade
Now that you know your buyer, send the details of exactly what you want from them and make sure you are complying with the terms of the trade. These will tell you where and how you will receive your USD payment.
Also, remember to fund your LocalBitcoins wallet address so you can initiate the transaction based on the minimum about of BTC referenced in the trading request.
If you don’t have enough BTC in your LocalBitcoins wallet, you will not be able to make a trade, as you will be required to send this BTC to an escrow account.
Finish the transaction
Now that all parties have agreed on the transaction and ironed out the specifics in the inbox section of LocalBitcoins, your Bitcoin will be moved from your wallet to the trade escrow.
At this point, the buyer will get your payment details (how do you want to get paid for your BTC) and release the USD equivalent in cash over to you via the agreed upon manner.
When you have received the payment, you will confirm to LocalBitcoins.com that the payment has been made and the BTC will be released to the buyer from trade escrow. That is it the trade is done!
Conclusion
As Bitcoin and cryptocurrency continue to explode in popularity, more and more services are coming online to help users get their hands-on Bitcoin or turn their Bitcoin into USD or other fiat currency in a quick and effective way.
Although much of the attention is how to acquire Bitcoin, it’s important to understand the options you have to withdraw your Bitcoin and what the best ways are to do it.
Reed Schlesinger
Reed is a cryptocurrency and emerging technologies writer from Atlanta, Ga who spends his time learning about Blockchain technology and the different types of ICO’s currently being developed. When not focused on crypto, Reed can be found passionately following the NFL.