There have been so many questions about Bitcoin and how the cryptocurrency world works. For those who are yet to invest in Bitcoin the question of how to turn Bitcoin into real cash keeps coming up. Recently, the demand for Bitcoin has grown and those who had some coins have been able to sell them for a profit. You have the option of having the equivalent value of Bitcoin transferred to your bank account. This means that you can convert the virtual currency to physical cash and use it to pay for goods and services.
If you are wondering how you can change your Bitcoin into cash, we are going to look at some of the best options out there for you. It is important to note that Bitcoin is digital and there is no physical form of the coin. In essence, this is just digital data that is stored in computers. This is why it cannot be controlled by the government and other financial institutions. In order to keep the coin valuable, there is a cap of 21 million Bitcoin coins that are to be produced.
How to Transfer Bitcoin to Your Banks Account
Have you ever been to the airport and needed to convert money to a different currency? If so, transferring Bitcoin to your bank account follows a similar process. This is a form of exchange in which you will be selling Bitcoin in exchange for USD or the type of currency you prefer. The difference is that the exchange rate is not influenced by the government’s economic actions or regulations.
The exchange rate for Bitcoin is fully influenced by the demand for the coin. The number of people who are willing to buy the coin and the offer they are making will determine the Bitcoin price. The process is very easy and offers great privacy as the process is not regulated by governments or central banks in a country.
Bitcoin Cash Out Methods
Once you have traded on Bitcoin Digital, you may want to cash out your Bitcoin and get real cash. There are two main ways of doing this before moving your cash into a bank account. The first option is trading through P2P transactions where you will sell the coins to a person. This is a faster method and comes with a high level of anonymity. The other option is through 3rd party exchange brokers, which we will look at in detail.
Bitcoin Third-Party Broker Exchanges
The 3rd party brokerage is what is commonly referred to as cryptocurrency exchange. This is the process we had discussed earlier, which works like the regular cash exchange. You will have to deposit the Bitcoin into the preferred exchange and request the money to be paid into your account. You have the liberty of choosing the currency you would want to be deposited into your bank account. It is important to note that the brokers are restricted by various regulations so as to curb money laundering. You will, therefore, be expected to use the same bank account that you deposited with for withdrawals.
This is a simple and secure method to convert Bitcoin to cash. However, this is not the fastest option as the money may take 4 to 6 business days to get to your account. Your country of residence is one of the determining factors on how long it would take. You can also choose to use Bitcoin Debit cards and ATMs, which function in the same way. However, the transaction fees are higher. Kraken and Coinbase are some of the renowned brokers for selling and buying Bitcoin.
You now have an idea how to turn Bitcoin into real cash and use it to pay for your daily bills. You can now invest in Bitcoin without too much of a worry about how to cash out the coins.