These apps support a very limited selection of crypto, with Cash App only supporting Bitcoin, and PayPal supporting Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. You can also select the “sell” feature to only look for ATMs that allow you to sell your crypto. To sell Bitcoin, you’ll need to pick an exchange that you are comfortable with and supports the currencies that you need. Our writers and editors used an in-house natural language generation platform to assist with portions of this article, allowing them to focus on adding information that is uniquely helpful.
Finally, depending on how long you’ve kept your BTC and your income status, you may also have to pay some income tax come tax season. For large BTC cash outs, you can be subject to capital gains taxes. Another thing to consider when cashing out your BTC is that some exchanges and P2P platforms will have withdrawal limits. However, these limits usually only apply if you are cashing out a massive amount of BTC. Withdrawing Bitcoin isn’t always instant, because all platforms have different processing speeds. Most withdrawals are completed in a few hours, but some may take longer.
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Some cryptocurrency exchanges don’t automatically provide a Form 1099, which you’ll need since you’re required to report income from cryptocurrency on your tax returns. If the exchange doesn’t provide a Form 1099, you’ll have to fill one out by adding up your bitcoin purchase and sell orders to determine your profits or losses. This can be a tedious process that may require hiring a bookkeeper or accountant, but it’s cheaper than getting in trouble with the IRS. The timeframe for receiving your money depends on which exchange you’re using and the chosen withdrawal method. Wire payments are faster than EFT or ACH transactions, but there is a higher fee for wires. Some banks offer real-time payments (RTP), which enables customers to receive instant payouts from the exchanges without the expense of a wire.
Use your broker to sell crypto
You are required to pay taxes on the gains, just like any other investment. Although bitcoin debit cards don’t exactly convert bitcoin to cash, they come close enough to land on this list. Selling crypto for cash typically comes with fees, but sometimes it is more than you think. While most exchanges and money apps allow you to sell your crypto at a reasonable rate, places like crypto ATMs charge extremely high fees, which may eat into your profits.
Is it worth it to learn how to cash out Bitcoin?
Some exchanges do not allow the conversion or selling of some cryptos to dollars, so you’ll need to take an indirect route to get your cash. Depending on which exchange you use, you may need to transfer or convert your cryptocurrency to another popular currency such as the stablecoin Tether, before finally converting to dollars. Sellers have the ability to set their own rates and can choose from more than 350 payment options, such as cash, gift cards or other digital currencies. Clients can sell directly to over 12 million users worldwide, according to the platform’s website.
But if you think crypto may continue its recovery, it might be better to stick around and wait. Coinme is in the business of making it easier for more people to buy and sell bitcoin and cryptocurrencies, whenever they want, and increasingly, wherever they want. Reading through various best crypto exchange reviews online, you’re bound to notice that one of the things that most of these exchanges have in common is that they are very simple to use.
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- LocalBitcoin used to offer an option for in-person cash trades, but removed it in June 2019 as a concession to the current crypto regulatory climate.
- You can read our guide to the cheapest crypto exchange platforms to easily decide which one to use.
- This process can be trickier than you might expect, with several methods available.
- Some crypto enthusiasts are in it for the long haul while others may choose to cash out as soon as they make a profit.
So, yes, there are several ways to turn your Bitcoin holdings into cold, hard cash — but there are several things to consider before you do. Bitcoin is a legitimate asset that has value and can be cashed out legally. You can convert bitcoin to cash just as if you sold a stock, piece of art, or vehicle.
Bitcoin kiosks and tellers, powered by Coinme, are a great example, as they’re mostly located in the entrances of major supermarket chain locations. Most crypto-to-cash fees are reasonable, plus they let you conduct transactions worth thousands of dollars. It’s one thing to know you want to convert your bitcoin to cash, but it’s another to know how to cash out bitcoin. Sure, there are several cashout methods, but depending on your situation, each one’s structure, fees, and cashout timeframes might be either a burden or a boon.
Depending on the exchange, you may have different limits based on the type of account you have, the currency of the withdrawal, and other criteria. The closest comparison to using a third-party broker exchange is exchanging foreign currency for U.S. dollars (USD). Many travelers convert their foreign currency at a bank or exchange company and receive cash immediately.
Here are the top ways how to calculate asset to debt ratio: 12 steps to convert Bitcoin to cash fast, cheaply, easy and securely. If you’re itching to exchange your crypto for some cold, hard cash, you’ll want to consider the implications of selling. If you are simply looking to access cash, the Coinbase card can be used at an ATM to withdraw up to $1,000 per day. There are no additional fees to use the card at an ATM, though local ATMs may charge fees for use. While not quite as easy as swiping your debit card at an ATM, cashing out Bitcoin (or other cryptos) has gotten much easier over the past few years.
If you sold your bitcoin for a profit, you must report the income on your tax returns. This is true even if the exchange you sold it on does not provide you with a Form 1099. Some of the most popular P2P exchanges include LocalBitcoins, Paxful, LocalCoinSwap, and LocalCryptos. When comparing P2P exchanges, consider how much activity is on that platform. If the trading volume is too low, it may take too long to find the right offer, if you find one at all.
Alternate methods
When selling Bitcoin, BitPay facilitates the process through its app, providing a user-friendly platform for either profit-taking or liquidity needs. Users can enjoy transparent transaction fees and flexible selling limits, ensuring they can sell amounts that suit their financial strategies. The app offers various payout options, enabling efficient transfers to bank accounts or linked cards, all while maintaining high security and competitive rates for Bitcoin transactions.
Many crypto exchanges charge high fees if you use their simple “sell my crypto” option. Coinbase, for example, charges $0.99 when selling under $10 worth of crypto (which makes it nearly a 10% fee), and around 1.50% for larger transactions when selling through their platform. The only way around this is to use the “Advanced Trade” platform on Coinbase to sell your crypto, with fees as low as 0.60%. Centralized crypto exchanges are one of the best ways to turn your Bitcoin (or other cryptocurrencies) into cash.
Processing time depends on several factors we’ve covered earlier in this article. You might be unable to withdraw Bitcoin if there are not enough coins in your wallet for a cash-out with the fee. Opening orders to either buy or sell BTC will prevent you from withdrawing funds until they are settled, too.
Before you can make the withdrawal, you need to exchange your Bitcoin for your local currency. Enter the amount of Bitcoin that you wish to sell, and the fiat currency equivalent will update. While technically not cash, converting crypto into gift cards usable practically anywhere is a close compromise. BitPay allows you to purchase gift cards with Bitcoin along with 15+ other top cryptocurrencies.
