One of the most exciting parts about Bitcoin is when you cash it out and enjoy what you've been working on for some time. However, it's also one of the tricky parts for many platforms. Thus, you may ask:
How to cash out Bitcoin? In general, you can cash out Bitcoin through a variety of methods. However, the two most popular ways would be through third-party broker exchanges and peer-to-peer. While it may sound simple, it includes a lot of steps to consider.
In this article, we'll cover everything you need to know about how to cash out Bitcoin. Further, we'll also give you different cash-out methods and the amounts you can take, and the fees to pay.
By the end of this read, you can better grasp how it works and do it without problems.
Without further ado, let's get into it!
Cash-Out Methods
The first thing would be the cash-out methods. In general, we can sum it up into two. These are:
- Through third-party broker exchanges
- Through peer-to-peer
Now, before we dive into both these methods, you may need to consider the following questions when choosing which method you prefer:
- What method do you want? The easiest, or the cheapest?
- Where do you want to get your money? In your bank or your PayPal?
- How long can you wait to receive your cash?
- Which currency would you want your cash?
With such questions in mind, let's take a look at both methods.
Third-Party Broker Exchanges
A third-party broker simply means another exchange. Most cryptocurrency exchanges do not allow you to deposit funds using fiat money. However, some of them do.
Here is a summary of how it works:
- You deposit your Bitcoin into the exchange of your choice.
- Once they received your deposit, you get to request a fiat currency withdrawal.
- The usual transfer would be a wire transfer to your bank account.
Usually, it will take about 1-5 days for the money to reach your account.
Now, let's take a look at how you can cash out Bitcoin through peer-to-peer platforms.
Peer-to-Peer
If you can't wait three days to process the cash-out, you may want peer-to-peer selling platforms. One popular platform of such would be LocalBitcoins.
In such a platform, you get to decide the payment method. Such methods may be:
- Cash deposit
- Bank Transfer
- Meet in person for cash
This method is safe, especially if you know what you're doing. Still, it's important to note that you can encounter fraudsters on this platform.
Regarding this matter, LocalBitcoins keep your coin locked until you confirm the buyer’s receipt of payment.
Cash Out Fees
Cash-out fees also vary depending on the method you're choosing.
For instance, withdrawal fees for Bitcoin tend to be $1.00-$5.00 using Coinbase. Further, fees for other cryptocurrencies tend to be under $1.00.
In general, such fees will increase when you receive higher payments.
If you decide to go with LocalBitcoins, they will charge you a 1% fee for every trade you complete. Still, it's worth noting that registering, buying, and selling Bitcoin is completely free.
How to Cash Out Bitcoin on Coinbase?
If you're using Coinbase, you can cash out bitcoin through these steps:
- Select 'Buy or Sell; on a web browser or tap the button on the platform's mobile app.
- Afterward, select sell.
- Then, click the crypto you want to sell
- Enter the amount you want to withdraw. Select Preview sell, then click sell now to complete the action.
How Much Bitcoin Can You Cash Out?
The limit on Bitcoin Cashout can also vary depending on the platform you'll use.
For instance, if you cash out through Coinbase, you have a limit of $50,000/day, and that's if you're using Coinbase Pro.
Another would be CashApp. Here, you can withdraw up to $2,000 worth of Bitcoin every 24 hours and up to $5,000 within seven days.
At LocalBitcoins, there's no limit in selling. However, they recommend having only 4-5 Bitcoin per transaction. This way, it will have more liquidity, and your transaction would get smoother.
How to Cash Out a Big Amount of Bitcoins?
If you want to cash out a significant amount of bitcoins, you can do so through the same methods. These are:
Through an Exchange
Exchange is the most common way of buying and selling cryptocurrency for fiat.
However, one thing to note is that not all exchanges have the amounts of fiat enough for large cash-outs. Thus, you may want to pick an exchange that can do so.
On top of that, placing large orders on an exchange may crash the bitcoin price and lead to massive losses.
If you want to cash out through an exchange, you simply need to transact the way you do with an exchange.
Through trading with the bitcoin OTC Broker
The second standard method is the over-the-counter (OTC) crypto trading service. This platform connects buyers and sellers of cryptocurrency directly. They do so by matching the desired conditions specified by clients.
This method is a go-to service for major cash-outs for several reasons. The bitcoin OTC will not publicize a sale’s details so that the deal will not affect the market. Next, the deal occurs directly between the parties, so withdrawal limits are not an issue.
Finally, it offers the level of anonymity not available on exchanges. Such a thing is critical for corporate and institutional dealers.
Through Peer-to-Peer
Peer-to-peer is simply an OTC bitcoin transaction without an OTC bitcoin broker. In general, it's as simple as selling your bitcoin to someone whom you know and trust. It can also be someone recommended by a tax lawyer or a business partner with the right connections.
One downside of this method is that the size of Bitcoin cash out is up to chance. Thus, it's not a reliable way to sell crypto in large amounts.
Summary
In general, you can cash out your Bitcoin through either of these two methods. These are the broker exchange way and also the peer-to-peer way.
They both have their benefits and downsides. The former can be more convenient and safe for beginners. On the other hand, the latter allows you to remain anonymous and sell at a higher price.
The methods above serve as your options should you ever wish to cash out your Bitcoins. Such a process may take some time and effort on your side.
Still, it's one of the crucial processes you need to endure, as it's almost the end process of all your trading.
Published: 04/20/2021