The main point of converting cryptocurrency into advance cash and transferring it into your bank account is the freedom to then use it as regular money. While more vendors and service providers than ever before are now accepting bitcoin, there’s still a lot more that you can do with conventional cash in your account.
In addition, transferring bitcoin to your bank account means preserving its value at the time. Any major shifts that occur in the value of cryptocurrency following your transfer will have no influence whatsoever on the cash are you have in your account.
Of course, this can be positive or negative - the value of bitcoin could plummet or skyrocket, after you cash out your coin collection.
Still, if trading bitcoin is technically about making money in the conventional sense, cashing out is something you will have to do from time to time. And when the time comes to convert bitcoin to cash, there are several ways of (literally) getting your hands on your virtual funds.
This is perhaps the simplest and most popular method to convert bitcoin to cash of all, which involves transferring some or all of your bitcoin balance directly into a bank account. To do this, you’ll need to have an account with an online trading platform, signing up is a fairly straightforward process, similar to opening a PayPal account (as this is another great tool you could use to transfer money from your bitcoin to Paypal)
Getting bitcoins in your online accounts means either transferring them from your digital wallet or purchasing them directly via the platform. You can then sell (i.e., convert) the bitcoins into your preferred currency, in pretty much the same way as actioning any other currency conversion. When the cash version has taken place, your currency can be transferred directly into your bank account - either at a flat-rate fee, or with a percentage commission payable.
Always shop around when selecting an online trading platform, as fees and commissions vary significantly from one provider to the next.
These are pretty fantastic creations, which have begun popping up all over the place in major urban centers worldwide. Along with providing the opportunity to quickly convert bitcoin to cash by withdrawing cash from your bitcoin wallet, you can also buy and sell bitcoins with conventional currency in an instance.
There are somewhere in the region of 5,000 cryptocurrency ATMs currently distributed over more than 75 countries - all of which are listed online. They’re operational 24/7 and are easy to use, but are only designed to process relatively modest transactions - particularly cash withdrawals.
In addition, the processing fees attached to ATM transactions are among the highest in the game. Depending on the type of transaction being processed and the location of the machine, you could be looking at fees of anything from 7% to 12% of the total transaction value.
Prepaid cryptocurrency debit cards can be fantastic for using bitcoins in exactly the same way as a regular money. All of these debit and credit cards from specialist exchanges are powered by MasterCard or Visa, which means they can be used anywhere in the world where major debit cards are accepted.
Along with card transactions, these cards can also be used to withdraw cash directly from almost any ATM worldwide. Though again, fees and commissions vary significantly (particularly with cash advances from ATMs), so be sure to shop around for a good deal.
Last up, it is also possible to sell bitcoins (and other forms of cryptocurrency) via a peer-to-peer platform, with no intermediary involvement. When doing so, you will have the opportunity to specify which payment method you are willing to accept, such as a direct transfer of the funds into your bank account.
This can be a great way of keeping fees and commissions to absolute minimums, but P2P transfers bring additional risks into the mix. It is essential to request formal proof of ID and proof of payment before finalizing the transfer of cryptocurrency to a buyer, as there is no way of tracing or recouping crypto capital once it has been transferred.
