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As a Newbie venturing into Bitcoin, Cryptocurrency World. How Do I Cash Out?

by Innov8tiv.com

Photo by Kanchanara on Unsplash

You have probably heard of the windfall gains early investors in the cryptocurrency world have made over the years. Especially those who began riding the bitcoin wave in its early years. You may be thinking of now venturing into this decentralized world, but some fears are holding you back.

The common fear among most people is the fact that crypto coins are not as recognized as fiat currency. Sure, you may have tons of it, but can you buy anything with it? Instead, can you cash out your holding and get paper money for it?

This article is obviously not for seasoned crypto users since they already must know that:

  1. Cryptocurrency, bitcoin, for instance, is already widely accepted as a mode of payment. Major companies and stores like Home Depot, PayPal, and Whole Foods, among others.
  2. Governments worldwide are warming up or easing restrictions on bitcoin being used in place of fiat currency. With El Salvador, for one, giving bitcoin legal tender. Governments such as the US, Australia, Canada, and the EU countries have significantly made bitcoin more mainstream.

Be that as it may, as a newbie investor in bitcoin and other altcoins. Your interest may fall on speculative investment; buy when low, cash out when high. Buying into bitcoin is not a problem. It is perhaps a little too easy that some buy their way into fraudulent exchange platforms.

Cashing out, on the other hand, is not as simple and quick as buying in. This article will focus on how to cash out your bitcoins.

How do I cash out my Bitcoins holding

  • Sell at a Crypto Exchange Platform

The quickest way to cash out your bitcoin would be to sell your cryptocurrency on a centralized exchange platform like Bitcode Method. Using the platform’s “sell/buy” feature, you can easily sell your bitcoins to another investor looking to buy into the crypto.

The payment for your bitcoin holding can then be transferred from the exchange platform to your bank account.

  • ‘Withdraw’ from a Bitcoin ATM as Cash

There are ATMs where you can ‘withdraw’ your bitcoin as cash. Yes, the withdraw is in quotes because what essentially happens is you are selling your bitcoin for cash. It is also one of the quickest ways to cash out your bitcoin. Though not as quick as withdrawing money from our bank account over the ATM.

As it works out, the bitcoin ATM gives you a QR code to scan, which sends your bitcoin for sale. You wait for a couple of minutes for the sale to go through, and then you get your cash equivalent of the bitcoins. However, you should take note of the price at which you are selling your bitcoin for; it might not always be value for bitcoins sold. So you need to be selective of your choice of bitcoin ATM.

  • Peer-to-Peer Trade

Numerous online platforms match sellers and buyers of various coins. If you are looking to cash out your bitcoin holdings, simply search for such platforms. Put up a price for your bitcoins, and a buyer will come up to buy them.

You can exchange your bitcoins for other altcoins or cash out in the form of fiat currency. Some platforms leave the setting of the exchange price at the discretion of the buyers and sellers. That is to say, there is room for negotiating the price. The quicker you want to cash out your bitcoins, the more discount you will offer the potential buyer. The reverse is also true.

  • Use a Brokerage

There are numerous brokerage platforms dealing with crypto assets. The likes of Robinhood and Webull, to mention a few. If your bitcoin holdings are with a broker, you can instruct them to sell them off and give you their value in fiat currency. Of course, you will need to account for the brokerage fee and the exchange rate.

Wrapping up

Holding bitcoins can be a great investment vehicle, especially if you follow the market trend carefully. You can buy when the prices are low, then cash out when the market is about to take a dip. The key to success is to carefully analyze the trend. More on that on our earlier articles here and here.

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