How to Cash Out Bitcoin: A Complete Guide to Converting Bitcoin to Cash

Congratulations on your digital asset gains! Now you're wondering how to cash out Bitcoin? This guide covers everything you need to know—from bank transfers and PayPal to cash deposits—using exchanges like Coinbase or peer-to-peer platforms. By the end, you'll confidently choose the best method for your needs.

Did you know? Over $2 billion in Bitcoin trades occur daily!

Table of Contents

1. Withdrawal Methods

   • Exchange Platforms
   • Peer-to-Peer (P2P)
2. Cashing Out via Exchanges
3. Using Coinbase
4. P2P Exchange Options
5. LocalBitcoins Tutorial
6. Conclusion

Withdrawal Methods

Key factors to consider when cashing out Bitcoin:

• Simplicity vs. cost
• Destination (bank account, PayPal, etc.)
• Processing time
• Currency conversion

Exchange Platforms

How it works:

1. Deposit Bitcoin to the exchange.
2. Request a fiat withdrawal (e.g., bank transfer).
3. Funds arrive in 1–5 business days.

Pros: Secure, regulated.
Cons: Longer processing times; identity verification required.

👉 Compare top crypto exchanges

Peer-to-Peer (P2P)

Platforms like LocalBitcoins offer:

• Cash deposits
• Bank transfers
• In-person cash meetings

Pros: Faster payouts, anonymity options.
Cons: Higher fraud risk; requires diligence.

Cashing Out via Exchanges

Step-by-Step Process:

1. Deposit Bitcoin to your exchange wallet.
2. Sell Bitcoin for fiat (USD, EUR, etc.).
3. Withdraw funds to your linked bank account.

Example platforms:

• Coinbase: 1–3 business days (SEPA) / 4–6 days (SWIFT).
• Kraken: Low fees (€0.09 SEPA; $5 USD wire).

Using Coinbase

1. Create an account and link your bank details.
2. Transfer Bitcoin to your Coinbase wallet.
3. Sell Bitcoin via the "Buy/Sell" tab.
4. Withdraw fiat to your bank.

Fees:

• $25 (SWIFT)
• €0.15 (SEPA)

P2P Exchange Options

LocalBitcoins steps:

1. Post an ad or browse buyer listings.
2. Agree on payment method (PayPal, cash deposit, etc.).
3. Use escrow to secure the transaction.
4. Release Bitcoin after payment confirmation.

Tip: Trade with users having 100% positive feedback.

👉 Explore P2P trading

LocalBitcoins Tutorial

1. Sign up and select "Sell Bitcoin."
2. Choose a buyer (e.g., PayPal payments).
3. Send Bitcoin to escrow.
4. Confirm buyer payment before releasing funds.

Best for: Sellers prioritizing flexibility and anonymity.

FAQ

Q: How long does a Bitcoin cash-out take?
A: Exchanges: 1–5 days. P2P: Minutes to hours (with verified buyers).

Q: Is P2P safe?
A: Yes, if you use escrow and trade with reputable buyers.

Q: What’s the cheapest way to cash out?
A: SEPA transfers (€0.09 on Kraken) or P2P with low/no fees.

Conclusion

Choose exchanges for security and ease (e.g., Coinbase) or P2P for speed and anonymity (e.g., LocalBitcoins). Always verify transaction details!

"BitDegree does not provide financial advice. Consult a financial expert before investing."