The 5 Best Ways to Convert Bitcoin to Cash
You mined your coins or bought them up. Now you want to cash in your bits. Here's a quick guide on how to convert Bitcoin to cash quickly and painlessly.
If there's one thing that keeps people from being willing to invest in cryptocurrency, it's the difficulty that comes with actually converting your digital currency into real currency once you decide it's time to cash out.
It's a pet peeve of many investors, to say the least. I mean, you wait and amass all these coins, they gain value, and it's so hard to actually convert them into money you can use!
Though a lot of big box retailers have experimented with accepting Bitcoin and other cryptocurrencies as tender, but it's not been easy for them to do so. Risks are involved, and it's difficult to mitigate all the volatility of the market.
Learning multiple ways to convert Bitcoin to cash is a good way to ensure that you will be able to enjoy your cryptocurrency portfolio to its maximum potential. Here's how to turn your coins into spending money.
If you haven't really gotten into Bitcoin mining, then it's a fair assumption to say that you probably received those coins through a cryptocurrency exchange (and have wondered if we are becoming a cashless society). If that is the case, then you remember the process it took in order to link your bank up to your crypto wallet, and then buy up those coins, right?
For most people, the simplest way to get money for your Bitcoin, Ethereum, or any other cryptocurrency is to go back on an exchange and sell them off for legal tender.
You will most often need to load up any Bitcoins you mined onto a wallet. Thankfully, that's pretty easy. It's a quick process, and if you use a wallet like Coinbase, it can take only minutes to do.
It's worth pointing out that the exchange you choose matters a lot.
Different cryptocurrency exchanges will have different fees, exchange rates, and security measures. You should look for a highly secure exchange that will convert those Bitcoins to dollars for a low fee.
If you haven't used an exchange in a while, it may be a wise idea to shop around and compare rates. Things change really quickly when it comes to the cryptocurrency world, you know!
Though most people will want to stick to the traditional route for their Bitcoin cash-outs, there are actually faster ways to convert Bitcoin to cash. A sign the cryptocurrency market is maturing is because of the features they offer, and one of the newest products being put out by cryptocurrency wallets are specialty debit cards that instantly convert coins into spendable fiat money.
You can use these debit cards just about anywhere without issue, making them one of the most convenient payment methods for people who want to shop using their coins.
Choosing this can be a bit pricey.
A lot of the Bitcoin debit cards on the market are known for being excellent for shoppers that want to convert their wares. However, they can also be somewhat pricey.
Along with typical fees that come with converting Bitcoins, you will also have to pay a monthly fee to get the card. Some also might have an initial start up fee that makes them pretty bad choices for people who just have a little bit of crypto to convert.
Use a Bitcoin ATM.
Believe it or not, many independent companies have started to see the value in giving people access to Bitcoin. In recent years, multiple companies have started to create ATMs that are designed to let people withdraw cash in exchange for Bitcoins.
Using a Bitcoin ATM is a lot like a traditional ATM in terms of fees, but you will need a regular software Bitcoin wallet to withdraw money from this program. Currently, there are thousands of Bitcoin ATMs throughout the world.
The problems with Bitcoin ATMs are many.
Yes, you do get to grab cash from your Bitcoin transactions using this type of ATM. Because this technology is really new though, it's very unlikely that you will be able to find a specialty ATM in your town unless you live in a major city.
Moreover, there have been some complaints about these machines being difficult to use. If you are able to use one, it could take a bit to get used to. Either way, you might want to have a backup method to get that cash, just in case.
Trying to convert Bitcoin to cash without spending money on fees is a bit difficult. However, there's still some roundabout ways you can do this—if you're willing to put in the work.
As you may know, there are certain online platforms that allow you to buy goods using Bitcoin. If you're okay with buying the goods then reselling them for fiat currency, you will probably be able to recoup your money without much issue.
The drawback here is pretty obvious.
While you might be able to make your money back this way, it's not necessarily the easiest way to get cash out of Bitcoin. You also may run into tax issues that could eat away the money you saved from not having to pay fees. Seriously, imagine living in one of the cities that let you buy real estate with Bitcoin and then trying to flip it. I'd be willing to bet you'd need to hire an accountant come around tax season for that one.
Use Bitcoins to buy gift cards for the stuff you really want.
Finally, there's one last way that people have been able to convert Bitcoin to cash. Online retailers like Gyft allow people to buy gift cards using Bitcoin, Ethereum, and other online currencies.
If you buy gift cards with Bitcoin, you get a nice little perk along with being able to spend your coinage at stores that normally would accept Bitcoin at all. Since the fees are lower to go this route, you will also be able to spend more!
The drawback is also limitations on what you can buy.
Though there are plenty of stores that are happy to carry gift cards, most don't. If you live in an inner city neighborhood, you also might be around stores that are cash-only in nature.
If you're looking to spend money, this is still a good option. However, if you need hard cash in your hand, you may be better suited with a Bitcoin debit card.