Ben Todd | Jun 2, 2017 | 1
How to Convert Bitcoin to Cash
Now that you have your bitcoin nestled in your online wallet, you may be wondering how to convert your bitcoin into cash. There are a few ways you may try. You may be better off turning your bitcoin cryptocurrency into dollars that you place in your bank account without turning it into cash, but the choice is yours. Here is how you may convert bitcoin to cash in your hand.
How to Convert Bitcoin to Cash
[o] You may sell your bitcoin to somebody who lives near you
[o] Sell your bitcoin to a local broker or exchange company
[o] You may exchange your bitcoin at an exchange and withdraw to your bank
[o] Trade your bitcoin at an exchange and withdraw to PayPal or Skrill
[o] Sell your bitcoin at a peer-to-peer exchange
If we are talking about turning your bitcoin into cash money with the fewest possible steps, then you need to find a local bitcoin trader or exchange company that is willing to deal in cash. It is weird, but they are popping up in strange places. I have visited states where it is hard to find any trader establishments, and there have been cities I have found where the vertical distance to a trader establishment is further away than the horizontal distance. On a recent visit to Britain (the US’s only ally), I found that bitcoin brokers/traders were around 100 miles apart, which is rather good when you compare it to most US states. If you are lucky, you may have an established trader with a shop or even a stall somewhere in your town.
If you are looking for the best possible deal for your bitcoin, then it is going to involve putting your bitcoin for sale on a peer-to-peer exchange or marketplace such as Localbitcoins and then waiting for somebody who is willing to buy your bitcoin from you at your price and for cash.
You may sell your bitcoin to somebody who lives near you
There are people living near you who may be looking for bitcoin. They may be willing to pay hard cash for your bitcoin, but they are probably going to want to meet you in your home. You can join local groups on Facebook or Google+ and post about how you have bitcoin for sale. You may even put your adverts on local online adverts too.
The sad fact is that sometimes it takes a while (even days) for a bitcoin transaction to go through. In my experience, it is pretty unpredictable, although I am sure that experts will disagree with me. The person paying cash has to be able to trust that you will send the bitcoin over.
There are ways to get around this. For example, the person handing over cash can have you sign a contract that says he or she is able to get a full refund if the bitcoin doesn’t arrive, and the buyer may also receive a receipt from you for the money paid. In addition, if the person knows where you live, then that person may feel a little more secure handing over cash to you. It is up to you to do as much as possible to protect your client and yourself.
Sell your bitcoin to a local broker or exchange company
As I mentioned earlier, the method with the least number of steps is to sell to a local bitcoin trader, broker, or exchange company. There are these types of traders sprouting up all around the country and in other countries. They are very similar to MoneyGram and Western Union establishments where they may be independent shops, they may be part of another shop, or they may even be a booth or stall somewhere.
You walk in with your ID and proof of address, and you create the bitcoin transaction. You allow the clerk to watch as you send the bitcoin money over from your wallet. The clerk then pays cash once it is clear that the transaction has been conducted and confirmed by you.
You may exchange your bitcoin at an exchange and withdraw to your bank
You probably bought your bitcoin at an online exchange, so you probably have no issue with returning to the exchange. Turn your bitcoin back into US dollars and have the US dollars sent to your bank account. Once the money is sent to your account, you are able to go to an ATM and draw it out in cash.
The biggest issue with this method is the exchange rate you get and the fees you pay. Different exchanges have different rates and fees, so it is up to you to try to find the best value for your money.
Trade your bitcoin at an exchange and withdraw to PayPal or Skrill
Do the same thing as the section above. You go to an online exchange company and you convert your bitcoin into dollars. You then withdraw your dollars to your PayPal or Skrill account. Oddly enough, there are exchange companies that will not allow you to buy bitcoin with your PayPal or Skrill account, but they will allow you to withdraw your US dollars into a Skrill or PayPal account.
One of the downsides with this method is that there are too few exchange companies that accept PayPal or Skrill, which means you usually suffer with regards to the type of exchange rate you get or the amount of fee you have to pay.
Sell your bitcoin at a peer-to-peer exchange
There are peer-to-peer marketplaces such as Localbitcoins and Paxful. They feature a bunch of different people who are looking to buy and sell bitcoin. The people who trade on these types of website are often allowed to define the way they are paid.
If you are selling on Localbitcoins, then you need to place an advert that shows how much you are looking to sell and how much you are willing to accept for your bitcoin. If you are looking to sell a lot at once, then you may say so. You may specify that you want to pay cash. If you happen to be selling for a very good rate, then people may be willing to travel to hand over cash. However, you must do your best to protect yourself and your client. This should involve a contract, a receipt you give to the other person to confirm that person paid, and SMS messages between you both. Watch a few episodes of Judge Judy and you will see the sort of thing you need. It is imperative that you protect your buyer as well as yourself because it is very easy for small claims courts to turn against you if it looks as if you only have your own interests at heart.
If you only want to sell a small amount for cash, then you may prefer Paxful. You can use the website to become a regular buyer or seller, or you may set up a single advert that expresses what you want. You can say that you have X amount to sell and that you are looking for X amount of dollars in cash. Other sellers will often look over the newest adverts to see if they can get a good deal on bitcoin trades.
Conclusion – Luck Favors The Patient
The bigger your rush is to sell your bitcoin for hard cash, then the less you will receive. If you are willing to sit back and get a good price, then you will be able to convert bitcoin to cash without losing too much. If you have had your bitcoin for a while and it has gone up in value, then you may still be able to make a tidy profit if you take your time to find the best possible deal with the best exchange rate and the lowest fees.