While some people did not take Bitcoin seriously when it was incepted over a decade ago, many people have come to appreciate that BTC and other cryptocurrencies could very well be the future modes of payment and investment vehicles. If you are venturing into crypto, you may be wondering how to exchange bitcoin to real money.
You may wish to convert Bitcoin into cash for various reasons, for example, the price of the digital currency may have appreciated, and you want to cash it to realize your profits or avoid losses if the price drops. Also, you may wish to change bitcoin to cash to manage to buy goods or services from companies that do not accept BTC.
Different ways how to convert bitcoin to cash
So, how do you cash in your bitcoins? Well, you can convert your BTC to your preferred fiat currency such as the US dollar, euro, pound, or any other through various methods which include using third-party broker exchanges, using peer-to-peer exchanges, using Bitcoin ATMs, selling to people you know, and others. However, in this article, we will focus on how to change Bitcoin to cash using a third-party exchange.
Considerations when choosing how to convert bitcoin to cash
When selecting the method to liquidate your BTC or even which exchange to use, you need to consider a few things:
- Speed of conversion: different methods take different times to allow you to access your funds after initiating the conversion of Bitcoins to cash. Some third-party exchanges take several days before you get your money in your bank or through other means. However, you can check out the guide on how to convert Bitcoin to cash on Nakitcoins exchange fast and get your cash instantly.
- Fees – different exchanges and conversion methods have different fees for the services, so check the charges before starting to use any method.
- Taxes-If you are making a profit on the sale of your coins, you may have to pay taxes when you use most of the third-party exchanges. This is because the exchanges report their transactions to tax authorities. Therefore, you need to keep this in mind as you plan for your tax returns.
Steps on how to convert bitcoin to cash using an exchange
Typically, when we talk about exchanges in relation to cryptocurrency, we refer to third-party broker exchanges (also known as cryptocurrency exchanges). Converting Bitcoins using these exchanges is similar to the one in the currency exchanges in the airports. To change your BTC to real money, you deposit your digital coins into an exchange of your choice. Once the cryptocurrency exchange has received your Bitcoin, you can request to withdraw the funds in your preferred fiat currency.
Using exchanges is simple, safe, and secure, but it is certainly not the fastest way. It could take up to 6 days to receive your cash depending on several factors such as the payment method, country, and others. Fortunately, you can cash out your BTC on Nakitcoins, one of the best exchanges based in Turkey, very quickly by opening an account with just an email (if you do not already) have an account. You then go ahead to sell your BTC from your account and go to their agencies or their office and request to withdraw cash from your account. The cashier withdraws from your account the amount you specified less 1%. Besides the 1%, the exchange charges 2% for BTC sales, depending on the prevailing market price. Therefore, you incur 3% for the sale of Bitcoin to the withdrawal step. Moreover, when you use Nakitcoins, you can exchange Bitcoin held in your account at any time, so you can wait until the price is as high as you want.
Now you know how to convert bitcoin to cash using an exchange. You still need to consider a few things like the platform's security, conversion speed, taxes, and the transaction fees. The crucial thing is for you to choose the method that works for you.