Since its inception, Bitcoin has emerged as the most popular cryptocurrency across the globe. In terms of market capitalization, it remains the largest cryptocurrency in the industry. With this in mind, it is safe to affirm that the demand for the digital asset keeps increasing over the years.
You can rake in some profits if you have owned Bitcoin for a while. Now that Bitcoin has been around for over a decade, you will find various options that can help you convert your digital asset to cash. You can sell your Bitcoin and transfer the funds into cash.
Regardless of what you need the cash for, knowing how to convert your Bitcoin to cash is very important. Luckily for you, this guide will focus on explaining to you exactly that. So, keep on reading to learn more.
Demand and Supply of Bitcoin
Bitcoin has gained wild recognition and acceptance all over the world, with tens and hundreds of thousands of investors trading the cryptocurrency daily. There is no physical bitcoin and the government has no control over the digital asset.
The supply of Bitcoin is fixed at 21 million. This stipulated supply is part of what gives the cryptocurrency its value. As the supply reaches this limit, demand keeps increasing, making the value of Bitcoin rise in the process. This gives rise to wild volatility in the price of the digital currency and investors can make the most of this to rake in significant profit. Just like TeslaCoin and other cryptocurrencies, trading Bitcoin often comes with some fees. However, the huge profit you can potentially make will be far greater than any fee associated with the crypto trading. This makes Bitcoin a commodity that can store value, like gold.
Transferring Your Bitcoin To A Bank Account
You can convert Bitcoin to cash and move it into your bank account through different methods. Some of these are introduced below:
Sell Your Bitcoin on a reputable crypto exchange
There are a plethora of cryptocurrency exchanges available, as demand for Bitcoin grows. This represents the easiest method for anyone who wishes to sell their Bitcoin and withdraw the cash from the transaction to their bank account.
You must withdraw from the bank account you deposited with. This ensures that brokers are in line with the anti-money laundering statutes. Going through a crypto exchange is safe and fast. The fees associated with the transactions depend on the country the bank is located in. Some important steps you should take include:
- Set up an account and complete the verification process.
- Make a BTC deposit into your account
- Cash out your BTC to fiat currency through bank transfer or PayPal
Bitcoin Debit Cards
You will find several platforms online that will allow you to sell your Bitcoin and acquire a prepaid debit card in the process. This can be used like traditional debit cards. These cards can work for online and offline shopping anywhere across the globe. Besides this, you can use these debit cards to withdraw cash at ATM points that allow MasterCard or Visa cards.
Bitcoin ATMs are physical centers that allow users to purchase or sell Bitcoin with fiat currency. There are over 4990 crypto ATMs scattered across 76 countries. You can find a reliable Bitcoin ATM close to you. It must be stressed that most Bitcoin ATMs have deposit and withdrawal limits. This makes them unsuitable for large amounts of cryptocurrencies. The high transaction fee of 7% to 12% represents a major drawback of Bitcoin ATMs.
So many traders have invested in Bitcoin over the years. It has been predicted that Bitcoin will threaten the existence of fiat currencies. For now, you may need to convert your Bitcoin to cash to ensure that you can transact with businesses that accept payment in Bitcoin.