How to Convert Bitcoin to Cash?

Posted by jenny on April 9th, 2021

It’s your birthday, and one of your friends decides to give you an electronic present, they open you a bitcoin wallet and send you your first Satoshi. A few months go by, and you let someone pay you in bitcoin for the old record collection you advertised on Local Bitcoin Now. Now you have some bitcoin in your wallet, but no cash in your bank account. That BTC could sure come in handy if it were in U.S Dollars right now.

So, how do you convert bitcoin into cash?

Convert to Cash Using an Exchange

The first option you have is to open an account with a U.S-facing bitcoin exchange, like Coinbase or California. You’ll have to complete the KYC requirements for opening an account that lets you withdraw from the platform in USD. The KYC and AML requirements might include a copy of your driver’s license and your cellphone number. You then send your bitcoin to your wallet on the platform and sell it to a bidder. You send the BTC, and you receive the money in your Coinbase account. From there, you request a withdrawal with the platform, and they wire the funds to your bank account.

Use a Bitcoin ATM

The second option for converting your bitcoin to cash is to find a bitcoin ATM. Bitcoin ATMs are popping up all over the United States. California, New York, Newark, and Las Vegas all have more than 100-bitcoin ATMs throughout the state.

However, you’ll need to check that your local bitcoin ATM dispenses cash. Only specific models of ATMs can dispense cash, and they might ask you to input KYC information, like your phone number or Social Security number.

The Pros and Cons of Using a Bitcoin ATM

There are some pros and cons of using bitcoin ATMs.

Pros

• It’s one of the fastest ways to sell your bitcoins.
• Some ATM models, like the Lamassu Bitcoin ATM, supports 15-second operations, from scanning the QR code to clicking “sell.”
• Selling bitcoin doesn’t require the use of a bank account like with exchanges.
• Some machines allow for anonymous withdrawals.

Cons

• Bitcoin ATMs have high transaction fees, typically between 7 to 12%.
• Some machines may require up to 30-minutes to process your transaction.
• Bitcoin ATMs are not suitable for large withdrawals.
• Most Bitcoin ATMs only offers a ,000 withdrawal limit.
• There are far fewer bitcoin ATMs than fiat ATMs.

Finding a Bitcoin ATM Near Me

There are plenty of websites and mobile apps that can help you find a bitcoin ATM near me. As of the beginning of 2019, there were more than 3940-bitcoin ATMs scattered around the globe, with more than half of them being in the United States.

• Selling Bitcoin for Cash with a Bitcoin ATM
• Here is the typical process to withdraw cash from bitcoin ATMs.
• Enter the quantity of bitcoin you wish to sell.
• The ATM displays a wallet address on the screen.
• Send your bitcoin to the address.
• The machine has your cash ready in anywhere from 5 to 30-minutes.