3 Best Option how to sell Bitcoin – AKA Cash out Bitcoin
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It’s great to see that with all the added interest in Bitcoin from new investors that the services and products to buy Bitcoin are getting better and better.
In the same spirit, we want the services and products to be equally as good when we want to sell Bitcoin for cash again.
So in this article, we will explore how to convert Bitcoin to USD, or other Fiat currencies. – as in ‘cash-out’.
We will take you through the current best available options for converting BTC into Fiat money so that you can easily pick the one that suits you best.
So keep reading to find out more about the best options for how to sell Bitcoin for cash – aka cash out Bitcoin!
Now, why would you want to sell your Bitcoin for cash?
- Either you want to sell your BTC for cash because you need the money. And hopefully, you made a good profit!
- Or you plan to cash-out temporarily. For example during the height of a bull run. And then you want to buy in again. When hopefully Bitcoin’s price is much lower. So that you can get more BTC for your money!
Either way. This guide will give you the three best options for cashing out your Bitcoins.
- The 3 best options to convert Bitcoin to cash
- Tax guidance after converting Bitcoin to cash
- Conclusion about converting your Bitcoins to cash
Three best options to sell your Bitcoin for cash at
When you are looking to convert Bitcoin to cash again you will have a few different options available. And depending on what your needs are some might suit you better.
But these are your three best options for converting Bitcoin to USD, GBP, EUR or other Fiat currencies:
- Method #1 – Sell Bitcoin for cash at a p2p marketplace (LocalBitcoins or LocalCryptos)
- Method #2 – Sell your Bitcoin to cash via a Fiat-accepting exchange
- Method #3 – Convert Bitcoin to stablecoins like USDT, USDC, etc
So these are three different options that allow you to sell your Bitcoins for cash in different ways. And some might suit you better than others. Don’t worry we will provide you with recommendations for each method.
Method #1 Sell Bitcoin for cash via p2p marketplace
A very popular option for cashing out your BTC would be via a p2p marketplace. This is basically a site that connects buyers and sellers and where they can sell and buy Bitcoin using their preferred payment methods.
- Cash in person
- Cash deposit (bank transfer)
- PayPal, Skrill, Neteller
Option 1 – LocalBitcoins
One of the most commonly used methods of how to easily convert Bitcoin to USD, EUR, GBP or pretty much any other Fiat currency in the world has been LocalBitcoins.
Localbitcoins was founded back in 2012, so it is one of the early adopters in the Bitcoin space. Most of us who’s been in the space for some time now has some kind of relation to LocalBitcoins.
Step by step guide on how to sell Bitcoins to USD or other fiat currencies via LocalBitcoins
- Go to www.localbitcoins.com and log in or first create an account and then log in
- Click on ‘Sell Bitcoins’ on the menu.
- You can now either put up your sale offer by yourself or click on one of the potentially available bids in the menu below
- If you want to accept a bid just click on the ‘sell‘ button next to the bid. And then you enter the amount of BTC, the price you want for it and a phone number, for example, to connect you with the buyer (see screenshots below for guidance)
- If you want to create your own sale – then you go through the options for it
- Select the number of Bitcoins you want to sell for cash, the Fiat currency (USD, GBP, EUR, etc), the country you want to sell in and then what types of offers you want to accept. Meaning bank account transfer, cash deposit, PayPal, etc (see screenshots below for guidance)
Option 2 – LocalCryptos
Another site that works in a similar way to LocalBitcoins is LocalCryptos.
The main difference between the two is that the latter (LocalCryptos) also have Ether available on their site, and they also have it possible for people to trade on their site without providing them with full KYC.
That and plus the fact that there are more traders on both sites than just using one of them are the reasons why we recommend both here.
Step by step guide on how to sell Bitcoins to USD or other fiat currencies via LocalCryptos:
- First head over to www.localcryptos.com and sign up (you can sign up using email or connect via your wallet address)
- Sort the list from buyers using the payment method that you prefer
- If you found a buyer that matches go ahead with them, otherwise put up a sell offer
- Either way you proceed by depositing your BTC after agreed with the terms with the buyer
- And then the buyer makes the payment and you can finally the sale (if not cash in person then you’d obviously meet in person to finalise the deal)
- Complete the deal and LocalCryptos will release the funds from escrow to both of you
Why we recommend using a p2p marketplace
Using either LocalBitcoins or LocalCryptos would let you sell Bitcoin to other people at ease.
These sites are full of traders over the world looking to buy Bitcoin.
And you can use almost any payment method in the world at these sites. Which makes it more attractive for people that would prefer a specific payment method, for example, cash, PayPal, Skrill, etc.
- Super handy exchange to sell Bitcoin easily. Here you can sell Bitcoin for Fiat money easily (USD, but also almost any other Fiat currency). As it connects you with private people directly.
- No trading fees from the site itself
- Lots of different payment options available. From bank transfer, PayPal, cash, etc. Up to you and the buyer/seller.
Method #2 – Sell Bitcoin for cash via a Fiat-accepting exchange
Another very popular way how to sell Bitcoin for cash is via a Fiat accepting cryptocurrency exchange.
A crypto exchange is a digital exchange where you can buy and sell cryptocurrencies and especially Bitcoin. But not all of them accept fiat transfers in, or out.
Meaning you can buy and sell cryptocurrencies directly with a credit or debit card, or a wire transfer to and from your bank. So here we are guiding you to the one that gives you the opportunity to sell Bitcoins for cash.
Coinbase – the user-friendly exchange
One of the giants of crypto and they are experts in making it super easy to buy Bitcoin with cash but also to sell Bitcoins for cash later on.
The U.S exchange was also founded back in 2012 by Brian Armstrong. The American crypto giant was recently valued at around $8 billion dollars. And that’s not crazy considering the rise they’ve made to become what they are today.
And the way they went about it too. By creating a website and exchange that’s super easy to use, and gives us users the option to easily put money in from our bank accounts, debit or credit cards. And of course as easily with cashing out our Bitcoins to cash. It’s one of the easiest ways where you can quickly sell Bitcoin for USD, EUR, GBP.
How to sell your Bitcoins for cash on Coinbase
- Head over to www.coinbase.com to either sign in or first create an account with Coinbase
- And then click on the ‘Trade‘ button in the menu
- After that, a new dialogue box will appear – click on ‘Sell‘
- Here you can sell your BTCs for cash BUT if you haven’t linked a bank account to Coinbase you need to do this first – see guide for linking below
- Select the amount of Bitcoins you want to sell for cash – here you will sell your BTCs for your linked fiat currency. In my case, it will be my EUR wallet. It might be USD or another for you
- And then click on ‘sell Bitcoin‘
- After that you need to go to your EUR/USD/GBP, etc wallet – so click on ‘Portfolio’ and then the Fiat currency wallet
- After that, you will be able to withdraw your funds to your linked bank account
- Wait a few days for the money to appear in your bank account
Why we recommend you using Coinbase
Coinbase is a pioneer in the cryptocurrency world. By focusing on creating the most user-friendly exchange available. Try it out yourself at Coinbase (Get $10 free when signing up via that link). One of the easiest ways to sell your Bitcoins for cash with. For example, commonly USD, but also to GBP and EUR.
It is one of the more trusted exchanges in the world, more likely that they will be around for a long time. Learn more about the difference between Coinbase and Coinbase Pro.
- One of the easiest ways to sell Bitcoin and easily sell Bitcoin to USD, but also to GBP and EUR. It is one of the more trusted exchanges in the world, more likely that they will be around for a long time
- It has a great and intuitive UX, which makes it really easy to use and great for beginners
- Option for an easy version and more advanced version (Coinbase Pro)
Kraken – one of the oldest Bitcoin exchanges
Kraken might be one of the oldest Bitcoin exchanges in the world. But they today have trading available for most popular cryptocurrencies. And they also have fiat on and off-ramp available for its customers.
That means you can both send money from your bank account to Kraken and buy cryptos and save on fees.
And you can also withdraw funds from Kraken to your bank account.
Kraken is an established and very popular exchange. It is located in the U.S and also open for US customers. They are of course also open to international customers. Find out more if your country is available to use Kraken here.
To sell Bitcoin at Kraken for Fiat currencies follow this guide below:
- Head over to www.kraken.com and sign up – you need to complete KYC and add your bank account (you need to complete minimum level 1 tier first)
- Deposit Bitcoin to your Kraken account
- Sell Bitcoin for the Fiat currency you want to withdraw (USD, EUR, GBP)
- Navigate to the funding page and select the Fiat currency you want to withdraw (USD, EUR, GBP)
- Complete the withdrawals and that might take 1-2 days until the money arrives in your bank account
- Find out more about Fiat withdrawals at Kraken here
Binance – The full-service crypto exchange
Binance is one of our favourite cryptocurrency exchanges. Ours and millions of cryptocurrency traders around the world.
And we called Binance full-service cryptocurrency exchange. And with that, we mean that they provide a crypto investor with pretty much everything they need.
From buying crypto with a bank card, or their bank accounts. To a great selection of available cryptocurrencies, to one of the best trading volumes by all cryptocurency exchanges on the market.
So overall it is a great exchange to use. And did you know that they also have made it possible for us to sell our cryptocurrencies for fiat currencies (USD, GBP, EUR, etc) on their exchange?
How to sell your Bitcoins for cash on Binance
- To sell Bitcoin for cash on Binance – head over to their site www.binance.com and log in / create an account with Binance.
- And when logged in click on ‘Fiat‘ in the menu and then ‘Buy crypto‘.
- You will then come to this page and here you can sell your Bitcoins for cash.
- You will need to provide Binance with KYC details to get approved for selling BTC for cash
Note when selling Bitcoin for fiat at Binance you are then using their partner services (Simplex, etc), they might take a fee for this. Check their website for full fee information.
Sell Bitcoin for Fiat currency at Binance Jersey (for Europeans)
If you are European then you can also use Binance Jersey to sell your Bitcoins for EUR or GBP.
To convert BTC to EUR or GBP via Binance Jersey follow this overview guide below:
- Head over to www.binance.je and sign up
- Deposit Bitcoin to your Binance Jersey account (find Bitcoin address at Binance Jersey)
- Sell BTC for EUR or GBP
- Withdraw EUR or GBP to your bank account
- You need to complete KYC and add your bank account details to complete any withdrawal
Have a look at the different options that we provided and let us know which one is your favourite.
Method #3 – Convert Bitcoin to stablecoins like USDT, USDC and DAI
The third option that you can use when wanting to sell your Bitcoins for cash is actually to convert them into stablecoins instead.
Stablecoins are like Fiat currencies but digital versions of them. Today’s stablecoins are not created by banks or Governments, but in most cases by companies. And most of them are pegged to a specific Fiat currency. Like the USD (Dollar).
So one stablecoin pegged to the USD would stay stable in value to the Dollar. Or it could be pegged to the EUR, GBP or any other Fiat currency in the world.
These stablecoins can stay stable and pegged to a Fiat currency by being backed by a similar amount in USD, or other Fiat currencies. Some can even be backed by commodities like gold.
So stablecoins provides a very useful solution when you want to convert your Bitcoins to the USD for example but not completely sell them. This could be useful when you want to exit from Bitcoin’s volatile price movements and secure your funds.
These are some of the most commonly used stablecoins right now:
- USDT (Tether) is the most traded stablecoin in the world right now and it is pegged to the USD. It is created on the Omni blockchain. Visit Tether’s website to learn more about it. Find out more where you can convert Bitcoin to USDT here (learn more about the best Tether wallets here)
- USDC (USD Coin) is a stablecoin created by Coinbase. Built on the Ethereum blockchain and also pegged to the USD. Learn more about USDC here. And you can find out exchanges where you can convert Bitcoin to USDC here.
- DAI is a stablecoin created on Ethereum blockchain by the decentralised community team of Maker Dao. It is also pegged to the USD. Find out where you can convert BTC to DAI here
Why you should use a stablecoin to convert your Bitcoin to USD
- You can convert your BTCs quickly to a stablecoin are avoid any price volatility. This way you can make sure your money stays stable in value
- You can also easily trade your stablecoins back to Bitcoins or other cryptocurrencies. It is much quicker than if you would have sold your Bitcoins for cash and had the money in your bank account
In most countries, we all need to pay taxes on our Bitcoin or crypto trades, or when we have bought something using your crypto. So it’s important to check if your country is one of them, a majority of countries are.
So after converting Bitcoin to USD or other Fiat currencies via either LocalBitcoins, or a cryptocurrency exchange, or the stablecoins you might need to pay taxes for your trades.
To learn more about when taxes for your crypto trades might be necessary we have written down three of the most common scenarios for when you need to pay crypto taxes below.
Common scenarios when you might need to pay taxes on crypto
- You bought one cryptocurrency and traded it for another. In many countries this is considered a taxable event, for any capital gains or loss made on that trade.
- You bought something with your cryptocurrency, for example you paid for your morning coffee with some Bitcoin, or a car, or a pizza, etc.
- You have mined or staked cryptocurrencies, this might be taxed as a hobby or professionally.
But don’t worry use these great crypto tax tools to help you
Use one of these smart tax tools that collect all your trades made from all the different exchanges and automatically creates tax reports for you, they are amazing.
We’ve been there, we know. All of these crypto tax tools lets you easily track all your crypto transactions, track your portfolio earnings and losses. And also track when you have sold cryptos like Bitcoin for cash, which makes them very handy.
- Cointracking (www.cointracking.info)
- Cointracker (www.cointracker.io)
- Cryptotrader (www.cryptotrader.tax)
Conclusion – converting Bitcoin to cash – aka cashing out your BTC
We hope that this guide helped to answer how to easily convert Bitcoin to USD, or other Fiat currencies. Even how to convert your Bitcoins to stablecoins like USDT, USDC, and the DAI.
Now you know that there are different options available depending on your needs. So that you can easily pick the best option for you.
Let us know which option of these three is your favourite and why here below in the comments section.
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Per Englund – Founder of Go CryptoWise a cryptocurrency and tech fan that want to see better and smarter products and services that make our lives better and easier