You can withdraw bitcoins through a third-party exchange. But the next question will pop up in your mind. How? Before we proceed to answer your queries, let us cite a little background about Bitcoin.
Bitcoin is also known as cryptocurrency, was first created in 2008. It is a virtual currency or virtual cash that can be used to buy goods and services online. Many shops are accepting bitcoins in exchange for products and resources. This is one way of earning bitcoin. The other two are: buying it with real money and mining using powerful computers.
Now, how can you make bitcoin into cash?
Third-Party Broker Exchanges
This is also known as an exchange. Some exchanges ask customers to deposit funds with the use of fiat money, yet some don’t. To turn your bitcoin into cash, first, you have to deposit your money into the exchange. Then request for a fiat money withdrawal via the bank after they received your Bitcoin.
For a safer transaction, be sure to use your original bank account. The account you used earlier in that negotiation. You will likely make at least one deposit before completing a transaction if you haven’t deposited fiat onto the broker exchange yet.
Transactions with Third-party Brokers takes about 1-5 days. Enough time before money transfers to your account.
1. Coinbase is another good option for exchange. They sell and buy bitcoins. They are more popular than any other third party broker exchange. Coinbase already processed millions of transactions of bitcoins.
Withdrawal Method: Coinbase allows you to sell your bitcoins and receive the corresponding money for it. The funds are then deposited into your local bank account. You can only withdraw the funds from an account that you already have to buy cryptocurrency.
Fees: Depending on the currency, you want to sell your bitcoin. For USD, a wire transfer costs $25. While in the EU, it costs only $0.15 with SEPA.
Cash-out times: Withdrawal days depend on your bank location. In America, withdrawals go on for 4-6 days. You have to wait for 1 to 3 working days for Europe.
2. Kraken is a secure exchange that is based in the US. It started its transactions in 2011. Kraken close deals in fiat currency. This broker exchange is more prevalent among Euro transactions. They process the most Bitcoin to Euro transactions. They make deals in other major currencies too.
Withdrawal Methods: Turn your bitcoin into cash with Kraken and withdraw it from your local bank.
Fees: The withdrawal fees for SEPA cash out is only €0.09. While for USD, it’s $5.00 only!
Cash-out times: Banknotes take 3-5 days of work before it reaches your account.
Peer to Peer (P2P)
P2P is a better choice for traceless transacting and expediting days of waiting. With peer to peer platforms, you can sell your bitcoin and choose the payment method your buyer wants to use. They can use either bank transfer, cash deposit, or meet up.
You can request your customer to transfer or deposit money into your bank account for bank transfer and cash deposit. But, don’t forget to ask for their ID before engaging in transacting.
This is a helpful step in protecting yourself from fraudsters. Upon confirmation of the identity of your client and proof of payment, you can now release your bitcoin through LocalBitcoin.
LocalBitcoin is a mediator between the buyer and the seller. It is one of the best platforms that gives safety and avoids fraud. Offers escrow service keeping the Bitcoin locked until payment confirmation of both sides.
Reading the above article gives you information on how bitcoin can turn into cash. There are several methods you can choose from. Each method has its advantages and disadvantages. So, it is up to you what platform you are going to use. Coinbase may be a safe choice for beginners. But, LocalBitcoins can cut the days of waiting and allow you to sell at a higher price.