How to Cash Out Your Bitcoin Holdings

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Once you realize that the current Bitcoin’s value is higher than when you bought it, you may want to cash out your holdings. But how do you cash out your Bitcoin holdings to get the most from this digital asset? Purchasing and selling cryptocurrencies is not the same as exchanging fiat currencies like the dollar, Euro, or Yen. However, the process is not that difficult.

Platforms like immediate profit allow users to trade the Chinese government-approved cryptocurrency. That means you might not sell your Bitcoins on this platform. However, some crypto exchanges enable users to purchase and sell several virtual currencies. This article highlights several ways to trade Bitcoin when ready to do away with your crypto holdings.

Face-to-Face Transactions

You can trade Bitcoins with another person by meeting them physically. Currently, the internet has platforms that facilitate face-to-face Bitcoin transactions. That means you can use one of these platforms to find a person that wants to buy your Bitcoins. Also, you can have a relative or a friend willing to give you cash for Bitcoin.

But this approach requires a detailed understanding of how this virtual currency works. Also, keep Bitcoins in a mobile crypto wallet to simplify the transaction. Since Bitcoin’s value is highly volatile, make sure that you know the price of this digital asset during the in-person sale. Additionally, select a safe location to meet with the buyer. Whether you meet the buyer and organize the in-person sale via an online platform or otherwise, exercise caution when meeting them.

Crypto Exchanges

Using a crypto exchange is the most common way to cash out Bitcoin holdings. A Bitcoin exchange is like an intermediary that brings the seller and the buyer together. This platform can also hold the funds for both parties.

But using a crypto exchange to sell Bitcoin requires the user to set up an account first. In some cases, the platform will need you to verify your identification. Once you’ve done that, connect a bank account via which you want to withdraw the cash. However, note that some crypto exchanges have restrictions. For instance, a cryptocurrency exchange might not allow you to use it from some regions.

After creating an account, transfer Bitcoins from your digital wallet to the platform and place your sell order. Also, state the amount you want to sell and the asking price. The crypto exchange will complete the sale automatically if a buyer matches the offer.

Bitcoin ATM

Bitcoin ATMs look like conventional cash machines. However, they connect to the internet rather than the user’s bank account. And by doing so, they facilitate a Bitcoin sale. A Bitcoin ATM allows you to scan a QR code of a digital wallet and sell your tokens for cash.

You can find Bitcoin ATMs across the world. What’s more, you can use the internet to locate a Bitcoin ATM near you. Nevertheless, you will pay a higher transaction fee when selling Bitcoin via an ATM than using another method. Additionally, Bitcoin ATMs have both purchase and sale functionalities.

Peer-to-Peer Selling

Online peer-to-peer Bitcoin sales take place on specialized platforms. These platforms enable users to sell Bitcoin and receive cash or buy Bitcoin from another party online. With this option, you find listings by people that want to buy Bitcoin, including their desired price. If a buyer sets a value for selling your Bitcoin, you can proceed with the transaction. Such platforms use escrow to enhance security for the buyer and the seller.

The Bottom Line

There are many ways to cash out your Bitcoin holdings. Therefore, explore all of them to determine the most appropriate way to sell your Bitcoins for cash.

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