5 Methods Of Selling Bitcoin Compared (Fees & Speed)
- Traditional cryptocurrency exchanges charge 0.1% to 1.5% in fees but require 1-3 business days for bank withdrawals after selling
- Exchange platforms like Paybis offer instant debit card payouts with transparent pricing, offering a perfect solution between traditional exchanges and Bitcoin ATMs
- Bitcoin ATMs provide instant cash but charge 8% to 20% in fees with typical $500 to $5,000 transaction limits
- Peer-to-peer platforms let you set your own price but involve meeting strangers or trusting escrow services
- PayPal and Cash App provide convenience for small amounts but charge 2.3% to 2.5% with limited withdrawal options
- Large sellers ($50,000+) get better rates through OTC desks with 0.1% to 0.5% fees but face stricter verification requirements
You read this article because you need to convert Bitcoin into cash. Maybe you’re taking profits after a rally, covering an unexpected expense, or just tired of watching the price swing. But the question right now isn’t whether to sell, it’s how.
Five methods exist, each with different tradeoffs.
This guide shows exactly how each method works, the fees you’ll actually pay, and how long it takes. Let’s get down to it.
Table of contents
Method 1: Cryptocurrency Exchanges & Platforms
Exchanges and platforms let you sell Bitcoin for fiat currency. Trading fees range from 0.1% to 1.5%. Speed varies: traditional exchanges take 1 to 3 business days, while direct platforms like Paybis offer instant payouts.
Traditional exchanges like Coinbase, Kraken, and Binance match your sell orders with buyers. You have Bitcoin in your wallet, place a market sell order, and wait for a bank transfer.
- Traditional exchange fees: Coinbase charges 1.49% basic, 0.5% on Pro. Kraken starts at 0.26%. Binance offers 0.1%. ACH withdrawals are free. Wires cost $10 to $25.
- Traditional exchange speed: 1 to 3 business days for ACH. Wire transfers arrive same-day but cost more. First withdrawals may take 5 to 7 days.
- Alternative: Direct selling platforms like Paybis solve the speed problem. Instead of waiting days for bank transfers, Paybis offers instant debit card payouts or same-day bank transfers. Transparent all-in pricing shows exactly what you’ll receive. Verification takes under 2 minutes for limits up to $20,000. This is the perfect balance between traditional exchanges (low fees, slow speed) and Bitcoin ATMs (fast speed, brutal fees).
- Limits: Traditional exchanges allow $25,000 to $100,000 daily. Paybis allows up to $20,000 per transaction.
This is the best method when you want competitive pricing. Traditional exchanges work if you can wait days, while Paybis works when you need money within hours.
Selling bitcoin for cash is as easy as buying bitcoin. There’s always a buyer. You sell it the same way you buy it: on an exchange like Coinbase. If you have Bitcoin you want to sell, sign up with an exchange and connect your bank account to the exchange. Transfer your Bitcoin to your account on the exchange and sell it. Then send the money to your bank account.
Orly5757 on Reddit
Method 2: Peer-to-Peer Platforms (LocalBitcoins, Paxful)
P2P platforms connect sellers directly with buyers. You set price and payment terms. Prices sit 2% to 10% above market. Platform fees run 1% to 2%.
With P2P platforms, you post sell offers on LocalBitcoins or Paxful, and buyers initiate trades. The platform locks Bitcoin in escrow, and the buyer pays. You can release Bitcoin only after confirming payment.
- Pricing: Set premiums above spot, typically 2% to 10%. Cash trades get higher premiums.
- Payment variety: Cash meetings, bank transfers, PayPal, Venmo, gift cards, and mobile money. Each involves different speeds and risks.
- Timeline: Cash meetings happen within hours, bank transfers take 1 to 3 days.
- Fees: LocalBitcoins and Paxful charge 1%.
- Safety: Meeting strangers carries obvious risks, so you need to choose public locations. Bank transfers, on the other hand, are safer but slower.
It works best when you need specific payment methods or cash quickly. Requires more effort than other options.
Find trusted Bitcoiners in your country. There must be a group.
TerriblePattern8933 on Reddit
Method 3: Bitcoin ATMs
Bitcoin ATMs sell Bitcoin for physical cash. Fees range from 8% to 20%. Limits sit between $500 and $5,000. Process takes 5 to 15 minutes.
Over 38,000 Bitcoin ATMs operate in the US. You just need to select “Sell Bitcoin,” scan the QR code with your Bitcoin wallet, send Bitcoin, wait for confirmation (10 to 30 minutes), and receive cash.
- Fees: 8% to 20%, median 12%. A $1,000 sale costs $120 at median rates.
- Limits: Most caps at $500 to $5,000 per transaction.
- Verification: Under $900 needs no ID. Above $900 requires ID scanning.
This method makes sense only when you need cash immediately and can absorb brutal fees.
Method 4: PayPal and Cash App
PayPal and Cash App allow Bitcoin sales within platforms. Fees run 2.3% to 2.5%. Sales complete instantly but bank withdrawals take 1 to 3 days.
- PayPal: You can sell for USD in your PayPal balance, with 2.3% fee. But you can not transfer Bitcoin to external wallets. Bank withdrawals take 1 to 3 days.
- Cash App: 2.5% fee, and allows external Bitcoin transfers. Free bank withdrawals take 1 to 3 days. Instant withdrawals cost 1.75%.
- Convenience: No new account needed if you already use these apps.
- Limitation: You are locked in their ecosystem. Bitcoin’s value includes sending money anywhere; PayPal removes this.
- Fee reality: For $5,000, PayPal charges $115 to $125 versus $5 to $75 on exchanges.
It works for small, occasional sales, but is poor for regular sellers.
Method 5: OTC Desks for Large Transactions
OTC desks handle large Bitcoin sales ($50,000+) without market impact. Fees range from 0.1% to 0.5%. Settlement takes 1 to 3 days.
This method is simple. Contact an OTC desk, specify the amount, and get a price quote. Agree, transfer Bitcoin, and receive fiat.
- Fees: $500,000+ transactions get 0.1% to 0.3%. $50,000 to $500,000 run 0.3% to 0.5%.
- Minimums: Most require a $50,000 minimum.
- Verification: Full KYC, source of funds documentation. Takes days for new clients.
It’s irrelevant for typical holders and exists for volumes exceeding public market capacity.
5 Methods to Sell Bitcoin Compared
| Method | Fees | Speed to Cash | Transaction Limits | Best For |
|---|---|---|---|---|
| Exchanges & Platforms (Traditional) | 0.1–1.5% trade fee + withdrawal fees | 1–3 business days | $25,000–$100,000+ daily | Low fees, can wait days |
| Exchanges & Platforms (Paybis) | Transparent all-in pricing | Instant (card) to hours | Up to $20,000 per transaction | Speed + reasonable fees |
| Peer-to-Peer Platforms | 1–2% platform fee + 2–10% price premium | Hours to days | Varies by buyer | Cash sales, specific payment methods |
| Bitcoin ATMs | 8–20% total fees | Instant (after confirmation) | $500–$5,000 per transaction | Emergency cash needs only |
| PayPal/Cash App | 2.3–2.5% per sale | Instant to app, 1–3 days to bank | Varies by account | Small occasional sales |
| OTC Desks | 0.1–0.5% | 1–3 business days | $50,000+ minimum | Large institutional sales |
Bottom Line
Five methods convert Bitcoin to cash, but none is universally superior. Traditional exchanges offer the lowest fees, but the slowest access. Platforms like Paybis solve this with instant payouts and transparent pricing. Bitcoin ATMs provide instant cash but charge brutal fees, while P2P platforms work for specific payment needs. PayPal and Cash App serve casual small-amount users, and OTC desks handle institutional volumes.
You need to choose based on your needs: speed, amount, fees, and destination. To do this, calculate the actual cost, including time value.
For most sellers, platforms offering instant debit card payouts or fast bank transfers provide the best balance. Paybis combines exchange-like pricing with instant card payouts, transparent fees, and regulatory oversight, so you can avoid both extreme ATM fees and multi-day traditional exchange delays.
FAQ
How do I sell my Bitcoin for cash?
The quickest way is through a crypto exchange or a platform like Paybis. You connect your wallet or send your BTC to the platform, choose how you want to receive the funds (bank transfer, card, etc.), and confirm the transaction. Most platforms complete the payout within minutes to a few hours, depending on your bank. You’ll need to verify your identity before your first withdrawal, so it’s worth setting that up before you’re ready to sell.
Can you make $100 a day with Bitcoin?
Technically yes, but it depends entirely on how much Bitcoin you hold and what the market is doing. If Bitcoin’s price moves 1% on a given day and you hold $10,000 worth, that’s a $100 swing. The problem is that Bitcoin moves in both directions. Day trading BTC consistently for profit is difficult even for experienced traders, and most people who try it lose money over time. A more realistic approach for most holders is to sell at target prices rather than trying to time daily moves.
How much will I get if I sell $1 Bitcoin?
If you mean $1 worth of Bitcoin, you’ll receive close to $1 minus any platform fees, which typically range from 0.5% to 2% depending on the service. If you mean 1 whole Bitcoin, the answer depends on the current market price; you can check it in real time on the Paybis Bitcoin price page. Keep in mind that exchange rates and fees vary between platforms, so it’s worth comparing before you sell.
Disclaimer: Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more at: https://go.payb.is/FCA-Info
