The buyer should contact you to let you know that the funds have been sent. Check that the funds have arrived in your PayPal, then click on Payment Received, and you’re finished. This article was subjected to a comprehensive fact-checking process. Our professional fact-checkers verify article information against primary sources, reputable publishers, and experts in the field.
That means that you have to pay the capital gains tax on your profits. As long as you don’t live in one of the excluded states (Vermont, New York, Connecticut, Nebraska, Hawaii, and Nevada) you can withdraw cash directly to a linked bank account. If you’re selling any asset, then you’ll want to understand the tax implications. You may owe a bundle if you’re booking a capital gain, and the tax rate how to buy a raven will depend on the holding period, among other things. Of course, you may be able to claim a write-off, if you’re selling at a loss. But if you think crypto may continue its recovery, it might be better to stick around and wait.
How to Create a Crypto Wallet: Your Key to the Digital Asset World
P2P trading is considered the cheapest way to convert crypto to cash, thanks to typically lower fees compared to crypto exchanges. However, because P2P trading is implemented without a centralized exchange acting as a middleman, you might encounter unreliable buyers or even scams. To help you avoid these unpleasantries, all merchants on Cryptomus go through a KYC verification system, so you will always find a reliable seller to trade with. When you cash out bitcoin, the exchanges generally charge a small fee to process the transaction.
There is also a rating system like eBay, where you can leave feedback for the buyer or seller. If you are a beginner, I only recommend selling to buyers who have 100% positive feedback. Most of the time, the most efficient way to cash out your Bitcoin is to use the same platform you’ve used to buy it. So, if you bought crypto on Robinhood, PayPal, or a similar platform, you should stick with them.
Many crypto wallets have built-in crypto exchanges, and some even allow you to exchange your crypto for cash directly. While crypto wallets are designed to store and secure your crypto, many of them partner with crypto exchanges to offer trading services. Using a peer-to-peer exchange requires sending Bitcoin (or other crypto) directly from your digital wallet to another user’s digital wallet. In turn, you will receive payment through Zelle, PayPal, or another method of deposit to your bank account.
Even when this is an option, finding a trading partner can be challenging due to buy bitcoin in person fraud concerns when dealing with an unverified account. Just like the stock and foreign currency markets, the prices of bitcoin and other crypto coins are constantly fluctuating. Exchanges like Coinbase and Kraken allow you to watch the prices rise and fall based on demand, news, regulations, and other factors. But despite the limitations, converting your crypto to cash has become much easier than it used to be.
The content that we create is free and independently-sourced, devoid of any paid-for promotion. Understanding the safest way to turn your bitcoin into cash can help you turn your trading profits into money you can spend in your everyday life. Be on the lookout for scams and only use well-known, trusted companies to exchange your bitcoin for cash. There is a $10 minimum withdrawal ($50 for wire transfer withdrawals). Coinbase is a company that makes it easy to buy and sell different cryptocurrencies, including bitcoin. There are many different bitcoin exchanges that you can use to turn your bitcoin into cash.
The good thing is, some payment methods allow you to sell your Bitcoins at a higher price — so it’s worth getting used to. Binance is the most popular exchange platform for buying and selling Bitcoin. They tend to process more Bitcoin transactions than any other exchange and have a massive customer base of over 28 million. To make sure brokers do not break money laundering laws, you will need to withdraw to the same bank account that you deposited with.
Things to consider before cashing out Bitcoin (or other crypto)
If you’re itching to exchange your crypto for some cold, hard cash, you’ll want to consider the implications of selling. 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. 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. If you’re unsure about how cryptocurrency is taxed where you live or feel like you could use help figuring out how much tax you owe, you should always contact a local tax professional. If you lost money from investments or trading bitcoin or other cryptocurrencies, you may subtract those losses from your gains when filing your taxes. In the United States, profits from the sale of cryptocurrencies like bitcoin are treated as capital gains.
- Similarly, if your account is not fully verified, you cannot withdraw money.
- The knowledge is easy to understand, I can trade right on coinbase.
- Additionally, changes in the currency rate should be taken into consideration while using the cards.
- The platform should have a withdrawal section where you will need to state all the details.
- As we discussed, you can cash out Bitcoin for real money through exchanges, P2P platforms, ATMs, and OTC trading.
Turn Bitcoin into Cash Using a Peer-to-Peer Exchange
The first step is to find a brokerage firm that will find a suitable buyer for your tokens. OTC trading is the best option for high-volume crypto holders. OTC decks support large transaction sizes and usually have customizable terms. However, they usually have high minimum amounts to withdraw, which won’t work for smaller investors. Besides, ATMs charge cash-out fees, so whether it’s worthwhile or not depends on the amount you plan to withdraw. We’ll uncover a range of methods to cash out your crypto, ensuring you choose the most fitting approach.
LocalBitcoins was created in 2012 and now supports almost every country in the world. So, no matter where you are from, you should be able to find buyers to sell your Bitcoin to. And that’s how to cash out Bitcoin using a broker exchange — skip the next section to follow instructions on how to do this. If you’d like to learn new strategies for investing in crypto, stocks, real estate, or other investments, read our in-depth guide on how to invest money.
When selling crypto for cash, always check the fees before executing the transaction. Most services will list the total fees separately, allowing you to see if it’s worth it or not to sell. On the whole, it is cheaper to sell crypto through a centralized exchange or online broker than through other services. If you want to cash out your crypto, using a centralized exchange, online broker, or money transfer app is a low-fee way to sell, but be aware of the limitations that each app has. You can save on fees, but lose flexibility with these methods. The catch with the best online brokers is that these platforms don’t allow you to transfer crypto into the brokerage.
We are an independent, advertising-supported comparison service. Some exchanges do identity verification for security reasons, especially if you’re planning to withdraw crypto in larger amounts. In order to achieve this, you will need to pass the KYC verification procedure and submit your ID or take a selfie. The platform should have a withdrawal section where you will need to state all the details. Choose the crypto you want to sell, enter the amount, and indicate how you plan to withdraw. OTC trading enables direct securities trade between parties, providing access to capital markets for smaller and large crypto-fiat trades.
You can use the money to pay bills, buy a car or home, or lock in your gains and diversify into other investments. We receive is binance safe cryptocurrency trading app explained compensation from the products and services mentioned in this story, but the opinions are the author’s own. Learn more about how we make money and our editorial policies.