Have you been thinking about how to cash out Bitcoin and what are the best ways to do so?
That’s exactly what you will find in this article:
- First off, you will learn when is the right time for cashing out BTC
- Which are the fastest ways to withdraw your Bitcoin
- And finally, explore other options for cashing out
At the end of the day, the big decision is often accompanied by many questions and doubts.
Therefore, after reading this post, you will be able to make an informed decision on how to cash out BTC.
Topics we'll cover
- Benefits of cashing out Bitcoin
- Fastest ways to cash out Bitcoins
- Cash out Bitcoin in 5 minutes (to digital wallets)
- Cash out Bitcoin to Credit Card or Debit Card (BTC to FIAT)
- Withdrawing Bitcoin from an ATM
- Cash out Bitcoin Directly to Your Bank Account
- Withdraw Bitcoin Through Peer-to-Peer Exchange
- Taxes to pay after cashing out BTC
- Wrapping up
- 1. When I cash out my Bitcoin, do I receive FIAT instantly?
- 2. Can I cash out Bitcoin in my location?
- 3. Are there any fees when exchanging Bitcoin?
- 4. How easy is it to cash out Bitcoin?
- 5. Where can I cash out Bitcoin online?
- 6. Is it possible to cash out Bitcoin in Nigeria?
- 7. What’s the best way to cash out Bitcoin in Canada?
- 8. How to cash out Bitcoin in India?
Benefits of cashing out Bitcoin
Deciding if this is the right time to cash out Bitcoin is not an easy decision to make. Some see it as the ultimatum of their crypto journey, the end game.
Others see it as a way to “lock” their profits and free their minds from price speculation.
Whatever your reason for selling may be, there are several benefits that come with it.
- After withdrawing your Bitcoin, the FIAT value of your capital will remain the same, whether Bitcoin increases or decreases in value.
- You will spend less time checking the surges and plunges of the charts, saving time and reducing your stress levels.
- You will be able to use your capital in any way you like.
For more information feel free to watch this video:
When is the right time to cash out Bitcoin?
Experienced cryptocurrency traders will tell you that the best time to sell is during the peak of a bull market, a term that here means a long term value uptrend for Bitcoin.
But obviously that is not easy!
The latest peak of the bull market cycle was reached on the 17th of December 2017, with Bitcoin’s value topping at $19,783.06 per coin.
Imagine how it would feel to cash out BTC at these price levels.
Of course, if you missed the opportunity to sell during this time, you can also convert Bitcoin to cash once a target profit is achieved by trying to benefit from price fluctuations.
This practice is often used when Bitcoin’s price is in a downtrend, also known as bear market.
So, whether you invest in Bitcoin as a trader or a long term investor, the right time to turn your Bitcoin into cash is very hard to predict and one needs a really good gut feel before making an informed decision.
Fastest ways to cash out Bitcoins
Once you have made up your mind – selling fast might be really important.
When looking at all the possible ways to cash out Bitcoin, it is always useful to know which methods and websites are the quickest and most reliable.
So, start by looking at the Trustpilot reviews.
Check the platform’s reviews and if they are good enough – in most cases you have nothing to worry about. The site you choose will most probably do a good job of selling your BTC.
In the case of Paybis reviews, they are near perfect.
To start, you need to select where you want to cash out your Bitcoins. Here are three options to choose from:
- Digital wallets (e-money services)
- Bank cards
- And Bitcoin ATMs
Cash out Bitcoin in 5 minutes (to digital wallets)
The fastest way to withdraw Bitcoin is by exchanging it for online digital money such as:
The transaction process from beginning to completion takes approximately 5 minutes.
So, it’s rocket fast.
But, if you are looking for the fastest way to go from Bitcoin to FIAT – the following option is what you need!
Cash out Bitcoin to Credit Card or Debit Card (BTC to FIAT)
To some people, this is a no-brainer.
For obvious reasons, you will want to cash out BTC directly to your Credit or Debit Card.
It’s simple – you will be able to spend your money as soon as it lands in your card.
Unfortunately, there aren’t that many exchanges that offer this option.
Luckily enough – Paybis offers this feature. You can Sell Bitcoin instantly to your credit card or debit card.
Now you can exchange Bitcoin to Euros, Dollars, Pounds, or basically any other currency thanks to the direct card withdrawals.
So, to get started, here are the steps to follow for cashing out Bitcoin directly in your Credit Card or Debit Card:
STEP 1: Start the Transaction
To proceed with cashing out Bitcoin, on the left side select Bitcoin (1) and on the right side click Credit/Debit Card (2). Once you enter the amount of Bitcoin you want to sell (3) – press Sell Bitcoin(4).
Note: While Paybis supports more than 180 countries, this particular payment method is limited to banks of certain countries.
STEP 2: Verify Your Identity
Next, you will need to verify your identity. That’s important for two reasons:
- This information is important to check if you are the owner of your bank card.
- And verification of your identity is important because it helps Paybis ensure that you are compliant with EU KYC/AML regulations.
Here are the sections where you will need to upload your documents:
In the first section of the verification process, you will be asked to enter your name, surname, and date of birth. Then, press on continue.
Next, indicate your location and residential address. Click on “Continue” to proceed.
Finally, upload a copy of your ID document to continue the transaction. As soon as the file is uploaded, click on “Submit” and our system will review your submissions.
STEP 3: Verify the ownership of your bank card
Now, you will need to verify that you are the owner of your credit card or debit card.
Simply follow the on-screen instructions and enter your debit card or credit card details. Once that is done, Paybis will do the rest.
Usually, it takes less than a minute and you will be ready to proceed with the transaction.
STEP 4: Send Bitcoin to Paybis’s BTC address
Last but not least, you will need to actually cash out your Bitcoins and send them to Paybis BTC address.
Once Paybis receives your Bitcoins, the funds will be sent to your credit card or debit card.
STEP 5: Money will be sent to your Account
At this point, Paybis will send money directly to your bank account.
And you are done – you just sold your Bitcoins.
To receive your money it can take anywhere from 1 to 5 working days.
Note: The value of the cash you are supposed to receive is locked from the moment you start your order.
If you are ready to start the transaction, head over to Paybis, and follow the steps shown above.
Withdrawing Bitcoin from an ATM
You can also cash out Bitcoin using cryptocurrency ATM machines.
You will need to find an ATM in your local area and visit the actual location.
Next, follow the instructions shown on the device. Within a couple of minutes, you will have the money in your pocket.
It’s really that simple!
So, here’s where you can find the Bitcoin ATMs in your city – CoinATMradar.
While there, you can also take a look at the fees and limits for buying and selling your cryptocurrency.
So, now you know the fastest ways to go from Bitcoin to USD, EUR, or any other currency.
Moving on, we’ll show the process for cashing out Bitcoin directly to your bank account.
Cash out Bitcoin Directly to Your Bank Account
Depending on the bank and the currency, bank transfers take a little longer to complete.
Nonetheless, in some locations, a wire bank transfer might be your only option.
So, it may be useful to know that the value of the Bitcoin you exchange is “locked” from the moment you start a transaction.
Withdraw Bitcoin Through Peer-to-Peer Exchange
There is also an option to trade Bitcoin directly to someone who’s interested in buying it.
All of this happens online and takes a little longer than other transactions.
To do this, you will need a peer-to-peer Bitcoin exchange, which will act as the intermediate (escrow) between you and the buyer.
And because you are dealing with individuals directly, you will also be able to acquire your funds through many different methods, ranging from digital wallets, all the way to cash exchanges.
In case this is something you are looking for, these are the most popular peer-to-peer exchanges – LocalBitcoins, BitBargain, and Bitsquare.
So, that’s all on how to cash out Bitcoin.
The next important topic we need to cover is taxes.
That’s the (not so) fun thing about actually selling your BTC.
Taxes to pay after cashing out BTC
When the tax season comes around and you have decided to cash out your Bitcoin, you will most likely have to pay taxes on your profits.
Therefore, it is important to get a clear understanding of your legal obligations before you decide to sell.
But doing so is not always easy.
Since cryptocurrencies are still relatively “new” and seen as either an asset class or digital currency, depending on the country you are in, paying taxes can quickly become a vague and complicated process.
For example, if you live in the United States, you are taxed every time you exchange, divest or sell cryptocurrency. As far as the IRS is concerned, every time your Bitcoin exchanges hands, it is a taxable event.
On the other hand, if you reside in Latvia and decide to exchange your Bitcoin, you will have to pay 20% taxes from your capital gains.
There are also countries that take a more relaxed stance towards cryptocurrencies. In Germany, Bitcoin profits are completely tax-exempt after a holding period of at least one year.
If you decide to sell your Bitcoin, it is best to consult an accountant in your country/state. This will help you get a better understanding of your country’s tax laws and prepare accordingly.
Before heading over to cash out your BTC, we understand that some of you may be left with unanswered questions.
So, we gathered all the frequently asked questions about converting Bitcoin to cash and here are the answers:
1. When I cash out my Bitcoin, do I receive FIAT instantly?
When you exchange your Bitcoin for online currencies supported by digital wallets, such as Skrill and Neteller, you will get your funds in around 5 minutes.
If, on the other hand, you choose to withdraw BTC using a WIRE or SEPA bank transfer, you will have to wait at least 1 working day before you receive the money.
2. Can I cash out Bitcoin in my location?
Paybis accepts customers from all countries except the ones specified here.
3. Are there any fees when exchanging Bitcoin?
When you cash out Bitcoin for any other currency, there are 3 types of fees:
- Bitcoin network fees (a fee that is rewarded to miners to confirm the transaction on the blockchain)
- Paybis fee (our fee that is taken for providing the service)
- A fee that Paybis pays for sending funds to you (usually charged by digital wallets such as Skrill, Perfect Money, and similar.
4. How easy is it to cash out Bitcoin?
Bitcoin withdrawals are very fast:
- Bank transfers take from 1 to 5 days to complete
- Credit or debit card withdrawals can take anywhere from 1 to 5 days as well
You can practically transfer the value of your Bitcoin into any possible payout method, thanks to the current state of the exchange market.
It is best to choose a platform that has the ability to offer many different payout options when it comes to the type of currency you receive.
For that reason, we recommend using Paybis, as you can transfer your funds to your card, bank or a wide variety of digital wallets.
5. Where can I cash out Bitcoin online?
The best way to cash out Bitcoin online is by using a cryptocurrency exchange. We recommend using Paybis as you can choose many different payout methods.
6. Is it possible to cash out Bitcoin in Nigeria?
The best way to sell cryptocurrency (including Bitcoin) if you are a resident of Nigeria is by using Paybis, a platform that supports more than 180 countries and allows for fast and reliable transactions.
7. What’s the best way to cash out Bitcoin in Canada?
The best way to withdraw Bitcoin if you are a resident of Canada is by using Paybis. The platform supports CAD currency for all transactions that involve selling you Bitcoin. You can buy or sell your cryptos in just a few clicks in a very simple way.
8. How to cash out Bitcoin in India?
That’s all from us – we hope this guide was helpful.
And just in case you have any more questions – feel free to message us.