How To Cash Out Bitcoin
When it comes to cashing out your bitcoins, youll need to consider how you want to receive your fiat money.
You can either use third-party exchanges and deposit your money into a bank account or sell bitcoins in person for physical cash.
Interestingly, if youre looking to spend your Bitcoin, cashing out is one of the many options.
Even better, you can get maximum discounts as well as earn some bitcoins while you spend. Check out this article to help you spend Bitcoin smarter.
Lets get back to the topic, if you prefer to have fiat money in your bank account or wallet, here are some of the best ways to sell your Bitcoin for fiat currency.
Turn Bitcoin Into Cash Using A Peer
Now that you know how to cash out Bitcoin using a broker, let me show you how to do it using a peer-to-peer exchange. There are a few to choose from, however, the one I most recommend is Local Bitcoins.
LocalBitcoins was created in 2012 and now supports almost every country in the world. So, no matter where you are from, you should be able to find buyers to sell your Bitcoin to.
The great thing about P2P is that you can request any payment method you want. Here are some examples of the different payment methods available on LocalBitcoins:
- Local Bank Transfer
- Bank Cash Deposit
Sellers who know how to cash out Bitcoin can also choose the price they would like to sell their Bitcoin for. You can do this by , which will charge you a fee of 1% of the total sale.
However, if you sell to a buyer that has listed the price they want to pay, there are no fees.
There is also a rating system like eBay, where you can leave feedback for the buyer or seller. This helps you to remain safe when choosing a buyer. If you are a beginner, I only recommend selling to buyers who have 100% positive feedback.
Local Bitcoins allows you to stay anonymous, too , especially if you also use a reliable and safe VPN to secure your connection. However, some sellers decide to ask new buyers to supply identification.
Heres a step-by-step guide on how to turn Bitcoin into cash using a peer-to-peer exchange:
Are There Any Fees For Buying Bitcoin
Cash App does not apply a supplementary percentage or fixed fee. The price of BTC is calculated by averaging the market prices featured on major exchanges, inclusive of a margin or speed.
The margin may be different to buy Bitcoin on Cash App and to sell it to the app. The price and margin may also vary from the values featured on other exchanges, trading platforms, or marketplaces.
Cash App Fees for deposits and transfers
Regarding Cash app fees, there are no fees applied to debit accounts transactions, but it applies a 3% fee to credit card transfers for the sender. Personal use accounts do not incur any fees for sending, requesting or receiving money personal payments from a debit card or a bank account or for a standard deposit.
Using the instant deposit option will add a fee of 1.5% of the amount deposited to your bank account.
If you receive a payment on a business account, the business has to pay a fee of 2.75% of the sum that is being transferred to you.
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How To Buy And Send Bitcoin On Cash App
From its humble origins as a peer-to-peer lending platform, Squares Cash App has been leading fintech innovation in recent years. From their digital wallet, app-linked Cash App Card, direct depositing feature to their in-app investments, theyre continually paving the way to becoming a more inclusive financial service company. This article will discuss how to buy, withdraw, and send Bitcoin through Cash App.
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Why Would You Want To Withdraw
If you are purchasing Bitcoin from Cash App, you are essentially purchasing it from an exchange. Crypto exchanges holding large sums of money have been repeatedly hacked. Just this year, 40 million was stolen from Binance.
Sending your Bitcoin to a wallet that supports cold storage makes theft less likely. The wallet will provide you an address to deposit at, and create a private link that you will write on paper, and is used to transact.
Another reason you may want to withdraw is to purchase an alt-coin by sending the Bitcoin to another exchange. This is something that you can already do on Coinbase.
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How Do I Convert Bitcoins To Cash
You now know how to purchase BTC using Cash App. However, youll want to sell your cryptocurrency down the line. Fortunately, the process of doing so is quite easy:
- Head to the Investing part of Cash App.
- Select Bitcoin.
- Enter your amount or choose from one of the presets.
- Confirm the sell.
Thats it! Now you have cash in place of your Bitcoin. That cash can be placed in your bank account or held in the application. Cash App allows you to automatically cash out whenever you receive cash. Otherwise, you can choose to do a standard withdrawal, which is free and takes 1-3 business days. Theres also the Instant withdrawal option, which costs a 1% fee.
Share Your Bitcoin Address
You will see a popup with the Bitcoin address QR code and the option to copy the address or share the address. You can send the Bitcoin address or the QR code to the contact that is trying to send you Bitcoin. To send BTC between your own wallets, copy the address and initiate the send-in chosen wallets or exchanges. Always make sure you copy the address and double-check the accuracy, as sending BTC to a false address will result in a loss of funds.
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How To Move Bitcoin To A Bank Account
Moving bitcoin to a bank account is the same kind of process as converting currencies at the airport when you arrive in a new county. You are essentially selling your bitcoin and buying the equal value in dollars .
The exchange rate for this currency exchange is not determined by the economic actions of a government or a countrys central bank. Instead, the bitcoin exchange rate is determined by demand. How many people want to buy bitcoin right now and what they are willing to offer will determine how much money you will get for your bitcoin.
Moving bitcoin to a bank account is like exchanging currency. But because bitcoin is devoid of government control, the exchange process occurs privately. It is not mediated by world economic structures.
Selling Bitcoin On Cash App
To sell Bitcoin on Cash App, you need to follow a similar process.
To do this, youll need to follow these simple steps:
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Who Can Buy Bitcoin On Cash App
In order to purchase Bitcoin on Cash App, users must meet certain requirements. First of all, they need to be at least 18 years of age. On top of that, they must be the age of majority in their residence state, or older in order to use the service.
The person should also be a resident of the U.S. and use these services in the U.S. Lastly, those who want to buy Bitcoin with Cash App must be individual persons and not entities, meaning that the service should be used for personal use only.
All 50 states can use Cash App for purchasing Bitcoin. However, you may not be able to stay anonymous all the time. There are certain transfers of government-issued currency or virtual currency that require providing some personal information.
This might include your name, phone number, address, email, taxpayer identification number, birth date, government identification number, and data regarding your bank account. You may also have to state your money source and your employment.
Reasons Why You Might Want To Convert Bitcoin To Cash
While cryptocurrencies adoption rates are soaring and they are becoming more popular by the day, a lot of mainstream stores still dont accept them. The first reason as to why you might like to make the conversion might be to use your BTC to buy something at a merchant that doesnt accept Bitcoin. Another might be to make use of the returns youve made from trading or hodling Bitcoin. Following the recent supercharged bull run, its understandable that many people are looking into cashing out their returns.
Lastly, you might be looking to protect yourself from a bear market. When the price declines, traders often look to move their funds into other more stable assets, like fiat or stablecoins for instance. Whatever your reason, were here to help and will run through various methods available to you as a trader.
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Get Cash With A Bitcoin Atm
If you dont like the thought of going through a lengthy sign-up and ID verification process on major exchanges, then getting physical cash with a Bitcoin ATM is a good alternative for you.
Bitcoin ATM is a hassle-free way to convert Bitcoin into cash.
Unlike the traditional ATMs where you can withdraw your countrys currency like USD, AUD, EUR etc with your debit card.
Bitcoin ATM is rather a physical centre, allowing you to buy Bitcoins with fiat money. And the good news is some ATM machines let you sell your Bitcoins for local currency too.
As of writing, there are over 4990+ crypto ATMs across 76 countries. Its getting easier to find a Bitcoin ATM nearby you, around the globe.
First of all, use Coin Radar to find a Bitcoin ATM nearest to you. It will show you a live worldwide Bitcoin ATM map.
Then search for a Bitcoin ATM that offers the option to sell bitcoins for cash.
Keep in mind that not all machines are the same, each offers different buy/sell limits, fees and supported cryptocurrencies.
However, this method is only suitable for small transactions. This is because most ATM machines have deposit and withdrawal limits between $1000-$10,000, and Its cumbersome to carry large stacks of cash around.
Still, the biggest drawback of using Bitcoin ATM is its high transaction fee. Compared to online exchanges which charge an average 0.1%-1% fee, Bitcoin ATMs typically charge 7-12% for selling bitcoins!
Clearly, convenience comes at a higher cost.
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Cryptocurrency Taxation In The Us
If you sell cryptocurrency in the U.S., the transactions may or may not be reported to the IRS. However, if you submitted tax information when creating your account, assume your profits will be reported to the IRS.
Even if your earnings are not reported, it’s your responsibility to track and report your profits on your tax return. There are plenty of apps, mostly paid, that help you track every crypto transaction to generate accurate tax information.
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How To Increase Limits On Binanceus
The first level of verification requires your name, address, and date of birth. This is fairly easy to accomplish, and you will get a transaction lifetime limit of just 300.
The second verification stage will increase your transaction limit to 5,000 per day. In order to achieve this level, you will have to prove your identity and face. You will present a copy of a valid photo ID and a selfie to prove identity.
You will either need to have the Binance app installed on your smartphone or you will need to use a computer with a webcam to prove your identity.
Last but not least, you can have a 50,000 daily transaction limit if you verify your address. To prove this, you must submit a statement with a matching name, a matching address, and a date of issue within the past ninety days. Valid forms to prove your address include:
- Bank statements
- Mortgage statements
- Property tax statements
You can increase your daily limit beyond 50,000 but you will need to contact their customer service department for more details.
Using Cash App For Bitcoin
Squares Cash app lets you instantly buy, sell, store, withdraw, and deposit Bitcoin. Thus, Squares Cash app doubles as a Bitcoin exchange and custodial wallet.
- To buy or sell Bitcoin using Cash App, go to the investing portion of the app, click on Bitcoin, and then hit the buy or sell button. Easy.
- To send Bitcoin to a Cash App user, click send and send to a friends $Cashtag.
- To withdraw or deposit Bitcoin from an outside wallet, enable withdrawals and deposits in your settings, and then under banking use the send button to send/withdraw and the deposit button to get a receiving address that Bitcoin can be sent to.
Get $5 free when you Sign up for Cash App and Send: The following link will get you $5 free that you can spend on Bitcoin after you send your first $5 .
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Alternatives To Cash App For Buying Bitcoin
Even though Cash App is amazing and it allows you to buy Bitcoin, it still has its drawbacks that you may not like. So, you may want to look into some alternatives.
Gemini is one of your other options. This app helps build crypto products in order to sell, buy and store your Bitcoin or other currency. It lets you instantly buy cryptocurrencies and access everything you need in order to understand the market and start investing. Besides, its easy to use and has a great interface.
Other options include CoinBase, Webull, and BlockFi.
What About The Third Option
The final option for cashing out your bitcoins is to use a decentralized peer-to-peer exchange. At the moment, the most functional of these exchanges is Hodl Hodl. These exchanges operate in a similar way to p2p and Localbitcoins, with two key differences. First of all, instead of the exchange itself holding your tokens in escrow, a multi-sig smart contract will be created, and the escrow will be held there. Second, you can choose whether to provide personal information or not. In other words, on these platforms trading can be completely anonymous. The learning curve is a bit steeper than on p2p markets, and these exchanges don’t have many users yet. But some experts say the future of crypto trading will be on this kind of exchange services.
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Convert Bitcoin Via Cryptocurrency Exchange
The easiest way to cash out Bitcoin is through an online cryptocurrency exchange.
These third-party exchanges allow you to easily sell your Bitcoin for USD, EUR, GBP, MYR and other local fiat currency via their websites or user-friendly apps.
To start, youll need to find an exchange that supports your country.
Heres how it works:
- Sign up and complete the verification process.
- Deposit BTC into your account
- Cash out your BTC to fiat via bank transfer or Paypal
Its simple, easy and secure.
But its not the fastest way, as it can take 1-5 days to receive your fiat money depends on the platform youre using and your country.
Also, for cryptocurrency newcomers who dont already have an account with the crypto exchange, it can take weeks, if not months to get your account approved.
At the moment, some restricted countries dont have cryptocurrency exchanges.
If you have limited exchange option and prefer more anonymous, theres another option to sell Bitcoin for cash using a peer-to-peer platform via LocalBitcoins.
Cash App Is Arguably The Simplest And Most User
Still, with all of that said, Squares Cash App is a useful and simple solution for Bitcoin newcomers and mainstays alike due to its ease of use.
It used to be, before Cash App, the simplest way to buy Bitcoin was Coinbase. Coinbase is still an excellent choice for all-in-one crypto service, especially when paired with Coinbase Pro , and especially for those who want more choice and more features.
However, it is likely that Square is today the simplest platform for buying Bitcoin .
The Cash App is an app that lets you buy and sell Bitcoin instantly in most states, transfer dollars and Bitcoin between peers and businesses who use Squares Cash App and who have withdrawal and deposit features enabled, store dollars and Bitcoin, pairs with its own debit/credit card, and more.
This means it is easier than ever to invest in Bitcoin , and there is yet another way for businesses and individuals to accept Bitcoin as payment without taking all the risks that come with traditional crypto platforms and wallets.
Does that mean you dont need Coinbase anymore? No, not at all. Coinbase is geared toward being an all-in-one custodial wallet, broker, and exchange. If anything, Squares Cash app is simply a nice compliment to Coinbase, just like Bittrex or Kraken is a nice compliment to those services as well, and just like Robinhood will be a nice compliment when it rolls its crypto services out.
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