For every investment you make, knowing how to cash out the proceeds when you want or need to do so is as equally important as knowing how to make the initial investment. It is especially important to know how to do so quickly when you are dealing with digital currencies such as Bitcoin which are very volatile.
2022, especially, has been a difficult year for Bitcoin investors with the digital currency experiencing a severe price slump. However, if the history performance history is any indication, the price can be expected to recover sooner or later and even reach heights it has never hit before. This is why you need to know how you can do a Bitcoin exchange for cash either because of a price slump or value gain.
Converting Bitcoin to cash is not as difficult as many people perceive it to be, although you need to exercise caution lest you risk losing your entire investment. There are various options you can use — each having its advantages and downsides. Let’s look at how to do a Bitcoin exchange for cash and tips that can guide you.
Use a crypto exchange
Crypto exchanges are not only the best platforms when doing a Bitcoin exchange for cash but the easiest as well. You also need not be worried about the safety of your assets if you are using reputable exchanges such as Nakitcoins. A crypto exchange allows you to select the crypto you want to convert to cash and the quantity. Once you are done, the amount will be deposited into your account.
When looking to do a Bitcoin exchange for cash, there are certain things you need to consider first. Trading fees, for instance, are a major factor as they differ between various platforms. you can also consider the ease of use, speed of processing transactions, security, reputation, and transaction limit among other factors.
Bitcoin exchange for cash using peer-to-peer sites
Peer-to-peer platforms offer you an option where you directly deal with buyers or sellers of cryptocurrencies. On these platforms, you can post the number of Bitcoins you want to sell, choose the best offer you receive and make arrangements on how the transaction is going to be conducted. You can either meet in person or have the funds transferred to your account.
You can easily be scammed when using this option if you are not careful. To avoid playing directly into the hands of wannabe swindlers, use the escrow service if you opt for a funds transfer. If you are meeting in person, make sure it is in a safe public place.
There are several online brokers that allow you to do cryptocurrency trading. If you bought your bitcoins on any of these platforms, you can exchange them for cash on the same platforms. These platforms work in a similar manner to crypto exchanges with a few exceptions.
The main downside of using online brokers is that you cannot sell crypto from your wallet on these sites. Only bitcoins that were bought on the site can be exchanged for cash. Popular online brokers include eToro and RobinHood.
Bitcoin ATMs one of the safest ways you can exchange bitcoins for cash. They work like fiat currency ATMs only that you are selling your bitcoins for cash. In the past, there were not many bitcoin ATMs but now they are popping up globally allowing users to conveniently buy or sell bitcoins for cash.
While transactions made via a Bitcoin ATM are instant, you will often have to pay higher transaction fees. However, they are easy to use and the likelihood of losing your assets is low.