Bitcoin has become pervasive among investors across the world. On the other hand, there lies the obstacle of cashing BTC out before investors can actually get their hands on fiat money. However, the process of cashing out Bitcoins is not as hard as people make it out to be. It’s just that they get confused about where and how to perform the exchange.

Although there are various ways to convert Bitcoins into fiat currency, traders need to find out their own ways of how they want to receive the fiat before choosing one. There are multiple ways to transform Bitcoins into fiat, such as selling Bitcoins to another person for cash, selling them on cryptocurrency exchanges that take crypto in exchange for money that’s directly deposited into a bank account.

Bitcoin investors also have the option of spending Bitcoins to buy stuff from various online shopping sites using connecting services like Purse.io. But, if you want to cash out your Bitcoins and get money directly in your bank account through an exchange, the process might take three to five days. So, to reduce time, you can sell your Bitcoins to an individual trader (or peer).

More businesses than ever now accept Bitcoins as payment, but the number isn’t as high as it should be. That could be the primary reason why traders want to convert their Bitcoins into cash. They want to utilize the value of those Bitcoins to buy actual stuff. Another reason could be the market volatility of the Bitcoin price. It makes sense when traders convert their Bitcoins to fiat currencies in order to protect themselves from losses. At that time, the trader can only wait for the price of Bitcoin to recover.

Bitcoin traders in the world should first understand the topic of exchanging Bitcoins to fiat currencies before they actually perform the exchange. The detailed process of exchange differs according to the country of the trader and the respective currency he wants his Bitcoins to be converted into. He should consider every single detail before opting for the exchange; otherwise, he could lose a sizable part of his hard-earned asset in the form of various taxes.

• • Via Fiat-Accepting Exchanges

    Cryptocurrency exchanges are the most common and traditional way to cash out Bitcoins. Every cryptocurrency exchange has its own fee structure that is completely reasonable according to them. All of the exchanges possess efficient security measures in place to help you convert your Bitcoins into fiat currencies without risking the safety of your coins.

    You don’t have to do much, just create an account, send the required KYC documents, and buy/sell BTC. After receiving your Bitcoin, the exchange will deposit fiat currency into your account which you can withdraw via a bank transfer.

    You should also note that different cryptocurrency exchange holds specific rules for withdrawing the holdings of a user. So, you need to make sure that you go through their policies before depositing your Bitcoins.

    Most of these cryptocurrency exchange platforms only allow users to cash out with a bank account or their specific eWallets which can also be used to deposit funds. Soon after creating an account in an exchange, you should deposit a small number of fiat currencies that will let you make a withdrawal. The process is time-consuming and can even slow down transactions, but every user needs to do that as it’s meant to prevent money laundering and comply with international AML regulations.

  • Via P2P Exchanges

    People think crypto exchanges are the most reliable and secure way of transforming Bitcoins into cash, but these exchanges have a disadvantage, i.e. the user’s lack of anonymity. Moreover, users don’t have control over the price movements, and they can’t negotiate with transactions. Only the exchange has total control of the coins and private keys.

    However, there exists another way to cash out your Bitcoins through an anonymous approach which is called Peer-to-Peer exchange (or simply P2P). P2P exchanges give you more control over your funds, and transactions are faster than the cryptocurrency exchanges.

    Most of these P2P exchange platforms are secure without operating with a central governing authority in the network. Such exchanges are the most popular option amongst those investors who are looking to safeguard their identity. Here, transactions take place between two individual users privately, with no involvement of third parties, and thereby adding more anonymity to all transactions.

    Traders have a variety of options to choose payment methods, such as bank transfers, cash deposits, eWallets, etc. Traders need to open an account with any of the P2P platforms, verify the identity, find another trader to purchase his coins, and make the transaction. They can also choose buyers depending on the rating system online.

    Using P2P, you’ll have your Bitcoin sold instantly and you can utilize the fiat currencies as soon as the buyer makes payment.

Before transforming all your BTCs to fiat currencies, you need to keep in mind the following consequences associated with converting Bitcoin to cash:

• • Taxes: Investors are bound to pay some amount of their profits while selling Bitcoins for cash. Some exchanges leak the details of a transaction along with profits gained from that transaction to the tax department.

  • Fees: We have discussed the transaction fees earlier, about how different cryptocurrency exchange has different transaction fees. But, if you are using a P2P exchange, you will not need to pay such transaction fees.

  • Payment Gateway: You need to decide whether you want to deposit your money into your bank account or other payment gateways prior to doing the exchange.

  • Time: The consuming time for exchanging Bitcoins and getting the money into your bank account depends on through which method you are converting your BTCs. P2P takes less time to exchange BTCs for fiat.

  • The Market Condition: Bitcoin price in the market matters the most while you convert them into fiat. Make sure the price is not too low; otherwise, you will end up losing everything you hold.

Finally, you need to be sure to take all the precautionary measures in place, before you opt for cashing out your Bitcoins; else, you could end up losing profits. Depending on which method you choose to convert Bitcoins to fiat currencies, the process will accordingly take the required time. But, be sure the market condition is not hot during the time of converting.