Bitcoin ATMs enable users to buy or sell Bitcoin directly using cash or cards, offering a seamless on-ramp or off-ramp to the cryptocurrency ecosystem. These machines are typically equipped with a touchscreen interface, a QR code scanner, and a cash dispenser. Users can initiate transactions by selecting the “Sell Bitcoin” option on the ATM’s interface and following the on-screen instructions to complete the sale.

They tend to process more Bitcoin transactions than any other exchange and have a massive customer base of over 28 million. BitPay’s crypto marketplace aggregates offers from multiple off-ramp partners, ensuring you always get the best rate with no hidden fees. If you sell your cryptocurrency, however, it’s important to understand that you could be creating a tax liability, so you’ll want to be sure you account for taxes in your decision to sell. You will likely encounter withdrawal and transaction fees when cashing out your crypto. This will vary depending on which method you opt for and which provider you choose.

The amount of tax you have to pay and the process to do so will vary depending on which country you’re located in. It’s important to do adequate research and ensure you complete all necessary steps so that you don’t incur fines or other repercussions. You can refer to your country’s tax revenue service for more information about paying taxes for your crypto holdings. Furthermore, using a crypto broker is an excellent option for anyone who wants to cash out Bitcoin and other cryptocurrencies in a safe environment. If you’re new to the crypto world, this may be the most suitable method for you since brokers are experienced in offering assistance. Additionally, make sure you do your due diligence and only go through trusted crypto exchanges.

For nearly 20 years, we’ve been on a mission to help our readers acheive their financial goals with no judgement, no jargon, and no get-rich-quick BS. 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. Binance can be more convenient and safe for beginners, whilst LocalBitcoins allows you to remain anonymous and sell at a higher price.

Cryptocurrencies rebounded sharply in 2023, leaving some traders with solid gains. It’s also crucial to make sure you’re aware of the tax implications and other consequences of converting your crypto assets into cash before doing so. Remember, if you do thorough research on each platform before providing sensitive information, then you’re much less likely to fall victim to a scam.

You may want to cash out Bitcoin and other crypto for numerous reasons. For a start, cashing out your crypto allows you to enjoy any gains you’ve made. In fact, the best time to cash out your crypto is when you have made optimal gains in your trading portfolio. This is typically the main reason traders convert their cryptocurrency assets into fiat currency or another digital currency. Stablecoins have emerged as a popular tool for traders looking to cash out their cryptocurrency holdings while mitigating the volatility inherent in the crypto market. Tether (USDT), a USD-backed stablecoin, is one of the most widely used stablecoins and serves as a reliable intermediary for converting cryptocurrencies into fiat currency.

Peer-to-Peer (P2P) exchanges

The buyer and the seller are interacting directly without an intermediary (like a bank or company). P2P transactions can be a lucrative way to cash your cryptocurrency out since you set your price and there are less fees. However, the process is much more involved than loading a debit card or selling on a centralized exchange.

For example, you can swap your Bitcoin for cash with another buyer, or exchange your Bitcoin for Cardano if you find a buyer. Choosing how to cash out your crypto largely depends on where you’re currently holding it. Purchasing with Bitcoin requires sending Bitcoin to the retailer’s digital wallet.

What’s the best way of cashing out Bitcoin?

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. Our partners cannot pay us to guarantee favorable reviews of their products or services. While some of the top cryptocurrency exchanges are, indeed, based in the United States (i.e. KuCoin or Kraken), there are other very well-known industry leaders that are located all over the world. For example, Binance is based in Tokyo, Japan, while Bittrex is located in Liechtenstein. When I say “safely”, naturally, I’m talking about utilizing a highly-rated crypto exchange, i.e.

Peer-To-Peer Crypto Exchange

From there, you can transfer the money to your bank account if you wish. Additionally, other factors can affect how high your withdrawal and transaction fees will be. For instance, the type of bank account you own, the crypto coins you’re holding, and how much you want to withdraw at once will influence the fees you’ll need to pay. One way to reduce these fees is to make as few withdrawals as possible. This is cheapest way to buy bitcoin because many providers calculate fees as a percentage of the transaction’s total value.

Once you check the transaction record in the payment account and make sure you have received the money from the buyer, Binance will release the crypto to the buyer on the platform. Stablecoins like Tether are digital assets pegged to a stable value, often tied to a fiat currency such as the US dollar (USD). By converting cryptocurrencies into stablecoins, traders can preserve the value of their assets while navigating the volatile cryptocurrency market. Tether, in particular, allows users to maintain a one-to-one exchange ratio with USD, providing stability and liquidity for cashing out. These platforms often prioritize user experience and provide intuitive interfaces suitable for both novice and experienced traders. 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.

1. Similarly, many crypto wallets like Ledger let you sell crypto for cash right from its wallet.
2. You’ll quickly exchange cryptocurrency into cash, which you can access from your cash balance in Coinbase.
3. Granted, most hardware wallets don’t support many cryptocurrency transactions, and options like Ledger just support selling bitcoin for cash at this time.
4. Robinhood does not disclose its crypto trading fees, but averages around 0.50% for crypto trades.
5. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site.
6. If you want to spend your balance easily, you’ll need to open an account with a firm that offers cryptocurrency debit cards and uses the kind of digital currency you own.

Before these debit cards were available, you could spend your cryptocurrency only at retailers that chose to accept it directly or sell it in exchange looking ahead in 2021 after a year of investment volatility for dollars. This means that your digital funds are accepted wherever many regular debit cards are. Next, our guide on how to cash out crypto is brokerage platforms. Brokerage platforms have expanded their offerings to include cryptocurrency trading, providing users with additional avenues for buying, selling, and holding digital assets.

Step-by-Step Guide to Selling Cryptocurrency on These Platforms

But this option is most suited to those who already have experience with P2P platforms, as others may feel overwhelmed. Making a P2P trade can also be quite time-consuming, which may not be optimal for you if you’re looking for a quick cash-out option. This is because you have to report any capital gains on your sale.

You can also do a direct trade, selling your cryptocurrency directly to another person through another entity. The most popular way is through a peer-to-peer online platform that allows sellers to find the best offers through an exchange, though one could even do it in person if needed. And while Coinbase is a popular option to sell cryptocurrency, it’s likely most useful to go with whatever exchange currently holds your coins, if you don’t have custody of the coins yourself. However, if you want a wide range of options for cashing out your crypto, then this is your best bet.

As long as you stick to legitimate crypto exchanges and money-transfer apps, you shouldn’t have any problems in selling off your bitcoin or any other crypto. Bitcoin ATMs are specialized banking machines from which you can buy and sell crypto. To turn your crypto into cash, the machine will create an invoice from which you sell your crypto at an agreed upon rate. They provide a quick and easy way to receive cash for cryptocurrency without a bank account. However, fees can be quite expensive compared to other methods and if you are in a rural area, you may have trouble finding a machine to use. In layman’s terms, a cryptocurrency exchange is a place where you meet and exchange cryptocurrencies this is how the bitcoin bubble will burst with another person.

Popular brokerage platforms that offer crypto trading include Robinhood and Webull. Granted, most hardware wallets don’t support many cryptocurrency transactions, and options like Ledger just support selling bitcoin for cash at this time. But if you aren’t dealing with many altcoins, this option could suffice.