# How to Convert Crypto to Cash

<p><a href="https://www.simplilearn.com/crypto-predictions-article#:~:text=In%20Analytics%20Insight%2C%20Sanyal%20says,by%20the%20end%20of%202022." target="_blank" rel="noreferrer noopener">Market analysts</a> predict that Bitcoin could hit $100,000 by the end of 2023. If you are holding onto Bitcoin or other cryptocurrencies in hopes of making a profit, this is something you might be able to look forward to.</p>
<p>However, if you are skeptical about the future of Bitcoin, or if you have already made a profit, you can always sell.</p>
<p>Many traders sell their crypto when the price increases up to more than they originally bought it for. So, how do you convert crypto to cash?</p>
<p>Keep reading to find out the different ways to do it.</p>
<h2>Why Transfer Bitcoin to Your Bank Account?</h2>
<p>People invest in Bitcoin and other cryptocurrencies because they see them as a commodity that grows in value over time. The demand for Bitcoin continues to increase, but not all businesses accept crypto as payment.</p>
<p>If you have Bitcoin, you might want to hold onto it so that it grows in value. You can also make a profit by selling Bitcoin at the right time.</p>
<p>To buy material things from businesses that don't accept Bitcoin, you might want to convert crypto to cash.</p>
<p>There are some factors to consider when cashing out Bitcoin.</p>
<h3>Transactional Costs</h3>
<p>Peer-to-Peer (P2P) platforms allow crypto owners to trade hundreds and thousands of dollars worth of crypto. Yet, these platforms have low transactional limits and high fees.</p>
<p>These transactional costs can eat away at your profit if you trade a moderate amount of dollars in Bitcoin. On most P2P exchanges, you can't trade more than $1,000 per day.</p>
<p>Binance P2P doesn't have any transactional fees or limits for peer-to-peer trading.</p>
<h3>Trading Restrictions</h3>
<p>Cashing out a large amount of Bitcoin comes with many restrictions on various third-party crypto trading platforms. There are practical limits imposed on crypto trading for each payment method.</p>
<h3>Regulatory Scrutiny</h3>
<p>Cashing out Bitcoin can build a considerable amount of wealth. Large Bitcoin transactions attract the attention of banks.</p>
<p>It's possible that bank accounts get blocked out because they are suspicious of money laundering activities.</p>
<h3>Taxes</h3>
<p>Capital gains are taxable in some countries so cashing out or selling any amount of crypto might be counted for tax reporting.</p>
<p>Large investors and corporate giants face issues because they trade large amounts of cryptocurrencies. They might have to pay large sums in taxes if capital gains are taxable.</p>
<h3>Speed</h3>
<p>Exchanges can take up to two days to transfer money that you deposit into your bank account. Select an exchange where you can turn crypto into cash in a quick and reliable way.</p>
<h2>Use an Exchange</h2>
<p>One of the easiest ways to convert crypto to cash is through a centralized exchange. Centralized exchanges have buy/sell buttons that allow you to choose the crypto you want to sell and the amount.</p>
<p>This is a quick way to exchange cryptocurrency for cash. You can then access the cash from your balance in the exchange. From there, you have the option to transfer the money to your bank account.</p>
<p>Some of the most popular exchanges for selling crypto are:</p>
<ul><li>Coinbase</li>
<li>Kraken</li>
<li>FTX</li>
<li>Binance</li>
</ul><p>It's helpful to go with the exchange that currently holds your coins, if not one of these. Coinbase and Binance are probably the two most popular exchange options, so we'll discuss a little about each of them below.</p>
<h3>Coinbase</h3>
<p>If you don't already use a cryptocurrency exchange, Coinbase is a great option to consider. This exchange allows you to sell, transfer, purchase, and store digital currencies.</p>
<p>Coinbase has a variety of withdrawal methods, such as:</p>
<ul><li>Bank deposit</li>
<li>Credit/debit card</li>
<li>Visa and Mastercard</li>
<li>Peer-to-Peer trading</li>
</ul><p>Withdrawals in the United States typically take around 4-6 business days. You will have to pay a transaction fee, especially if you choose the instant card withdrawal option.</p>
<h3>Binance</h3>
<p>Binance is widely used because it offers trading of more than <a href="https://www.fool.com/investing/stock-market/market-sectors/financials/cryptocurrency-stocks/how-many-cryptocurrencies-are-there/" target="_blank" rel="noreferrer noopener">150 cryptocurrencies</a>. If you currently use a different trading application, Binance helps you integrate it.</p>
<p>Binance has the same withdrawal methods as Coinbase. Your withdrawal request might be processed as quickly as five minutes, but it can take up to 24 hours in rare cases.</p>
<p>The fee for instant card withdrawal transactions is 1%.</p>
<h2>Use a Broker</h2>
<p>For those that use a broker, you can sell crypto and turn it into cash directly through them. If you use brokerages like Webull or Robinhood, you can execute a trade on the platform quickly.</p>
<p>Once you complete the trade, you'll go through a similar process as selling through an exchange. You'll have the funds in your account and you'll need to transfer them into your bank account to receive the cash.</p>
<p>You can also use the crypto you just traded into cash to buy other forms of stocks of cryptocurrencies.</p>
<p>Third-party brokerage exchanges must follow strict <a href="https://www.findlaw.com/criminal/criminal-charges/money-laundering.html#:~:text=The%20Money%20Laundering%20Control%20Act,Violate%20tax%20laws" target="_blank" rel="noreferrer noopener">money laundering laws</a>. Because of this, you will only receive money in the same bank account that you used to deposit money into your brokerage account.</p>
<p>The process is simple and secure, but it is a slow process. It can take up to 4-6 days for the money to reach your bank account. The length of time it takes will vary depending on your country.</p>
<h2>Try Peer-to-Peer Trading</h2>
<p>If you want to cash out your Bitcoin, you can complete a direct trade by selling your crypto to another person through a different entity.</p>
<p>There are peer-to-peer online platforms that allow sellers to find the best offers. Some people prefer to do peer-to-peer trading in person if needed.</p>
<p>Online peer-to-peer trading allows you to sell crypto online for dollars. The transactions are generally facilitated by an exchange. For example, Binance has a popular online peer-to-peer platform named Binance P2P.</p>
<p>Once you agree to trade on this platform, it will escrow your crypto. After receiving money from the buyer, Binance will release your crypto to the purchaser through their platform.</p>
<p>Paxful is another popular online peer trading exchange. Through this platform, sellers can set their own rates and choose from hundreds of payment options.</p>
<p>Here are the steps to converting Bitcoin into real money using a P2P exchange:</p>
<ul><li>Choose a P2P platform</li>
<li>Create an account</li>
<li>Select the location of your ideal buyer</li>
<li>Find buyers with the marketplace</li>
<li>Send a trade request</li>
</ul><p>It's best to choose a P2P platform that offers an escrow option where coins aren't sent to the buyer until the payment has been confirmed and received in the account.</p>
<p>A few P2P platforms offer an advertising feature where you can place your coins up for sale. This helps your chances of finding a buyer, but you will have to pay a fee to advertise your coins.</p>
<p>You can stay anonymous when selling on peer-to-peer platforms. If you wish, you can still use a VPN to secure the connection.</p>
<h3>Face-to-Face Transactions</h3>
<p>Selling crypto through P2P at an in-person location is a possible method. There are online platforms that facilitate selling coins in person for cash so you don't have to set it up.</p>
<p>Selling Bitcoin in person requires you to understand how to send coins using a crypto wallet or platform.</p>
<p>Since cryptocurrency pricing always fluctuates, it's important to know the price of a certain coin at the time of an in-person sale. Traders can use rates from prominent exchanges.</p>
<p>In certain parts of the world, shops and physical locations exist to allow traders to exchange their coins for physical currency.</p>
<h2>Cash Out at a Bitcoin ATM</h2>
<p>Bitcoin ATMs are becoming increasingly popular and showing up around the country. It's easy <a href="https://www.bytefederal.com/bitcoin-atm-near-me/alabama/birmingham/" target="_blank" rel="noreferrer noopener">to find an ATM</a> with a quick internet search. Cashing out at an ATM is the same as selling your Bitcoin.</p>
<p>These ATMs allow sellers immediate access to cash. However, they don't operate like traditional ATMs.</p>
<p>To make a cash withdrawal and sell your crypto through the ATM, you will send your Bitcoin to the machine with its provided QR code. In a couple of minutes, you will receive your cash from the transaction.</p>
<p>The downside to ATMs is that commissions can be very high. Because it is the fastest method to getting cash for crypto, some sellers find the commissions worth the cost.</p>
<p>Bitcoin ATMs can charge anywhere between 7-12% as a transaction fee.</p>
<p>It's important to mention that not all ATMs are the same. Each machine is different and might have its own deposit and withdrawal limits. Typically, you can only use these machines for smaller transactions.</p>
<h2>Trade Crypto</h2>
<p>Some cryptocurrency exchanges and brokers don't allow sellers to exchange their crypto for dollars. You can take an indirect route to gain cash.</p>
<p>Depending on the exchange you use, you might have to convert or transfer your crypto to another popular currency before converting to dollars.</p>
<p>For instance, if you currently have Bitcoin, you can convert your currency to Tether and then cash out.</p>
<h2>Use Bitcoin Debit Cards</h2>
<p>There are some websites that allow crypto holders to cash out their Bitcoin with a prepaid debit card. You can use this card like a normal debit card as it is powered by Visa or Mastercard.</p>
<p>Bitcoin debit cards work for online and offline shopping for a lot of businesses. You can also use them to withdraw cash from ATMs that accept cards of this type.</p>
<h2>Convert Crypto to Cash: FAQs</h2>
<p>Now that you know the different ways to convert crypto to cash, you might still have some questions. The crypto space is evolving each day and cashing out methods will too.</p>
<p>For now, we'll answer some Bitcoin conversion frequently asked questions:</p>
<h3>Can You Cash Out Bitcoin for Real Money?</h3>
<p>The simple answer is yes, you can cash out crypto for real money. Converting crypto into cash is similar to converting your money at the airport when you arrive in a different country.</p>
<p>In the conversion process, you are selling crypto to get an equal amount of fiat in dollars.</p>
<p>You can convert Bitcoin into cash using third-party exchange brokers like ATMs and debit cards. These are highly secure and simple methods.</p>
<p>You can also use peer-to-peer transactions to cash out your crypto for cash. This is another secure method, but it might be more complicated.</p>
<h3>Where Can I Convert Bitcoin to Cash?</h3>
<p>There are several ways to convert Bitcoin to cash. The two main methods include using third-party brokers and peer-to-peer transactions. These are all of the methods we've talked about in this guide:</p>
<ul><li>Third-party exchange</li>
<li>Third-party broker</li>
<li>Peer-to-peer trading</li>
<li>Bitcoin ATM</li>
<li>Bitcoin debit cards</li>
</ul><p>If your exchange doesn't allow you to straight up turn Bitcoin into cash, you can trade one cryptocurrency for another and then cash it out.</p>
<h3>Can I Transfer Bitcoin to My Bank Account?</h3>
<p>Bitcoin and other cryptocurrencies cannot be directly transferred into a bank account. You can use a crypto exchange to sell your coins and get the amount you sell coins for transferred into a bank account.</p>
<p>If you use a peer-to-peer exchange, you can ask them to transfer the amount into your bank account after you make a sale.</p>
<h2>The Bottom Line</h2>
<p>If you want to convert crypto to cash, you have a lot of options to do so. If you already own crypto through an exchange or broker, the easiest way to sell is through your current account.</p>
<p>You can also utilize peer-to-peer trading, Bitcoin ATMs, and Bitcoin debit cards. Keep in mind that to convert crypto to cash, you need to sell a certain amount of your coins.</p>
<p>Learning how to sell Bitcoin is the same as selling other types of cryptocurrencies.</p>
<p>For more informative articles on crypto and other hot topics, check out the posts on our blog.</p>