How to cash out bitcoin – an overview and comparison of methods

Every day, cryptocurrencies actively take their place under the sun in the life of society, and are rapidly coming into use. There are practically no people left who have not heard about this payment method, and did not talk about the cost of bitcoin, except perhaps the lazy one. There is a list of countries where you can pay for any purchase with cryptocurrency, and in some countries you can pay with bitcoin not only for goods, but also pay for the services of public utilities. But, unfortunately, in the rest of the world, cryptocurrency remains taboo, and in order to use it, you must first cash them in the countries where they are prohibited.

How can I cash out bitcoin?

Formally, it is impossible to cash out the currency that does not have a physical medium, but nevertheless, cryptocurrencies represent a certain value, which consists of a certain equivalent of other currencies that have a physical medium.

Today, bitcoin is one of the most popular and well-known cryptocurrencies. This currency is traded on all services where it is possible to exchange cryptocurrency or receive financial services by exchanging bitcoin for their physical equivalent denominated in another currency. All you need is to find a service where you can choose a convenient and profitable way and sell bitcoin.

Any of the ways to sell bitcoin has both advantages and disadvantages, as well as its own characteristics. There are many opinions about which method is the most beneficial or correct. Someone appreciates the speed of the exchange, even if taking into account the higher commission for the exchange. For others, exactly in proportion to the opposite - it is not the speed of the transaction that matters, but the favourable exchange rate and commission rates of the system.

When focusing on the sale of bitcoin, as well as in general any other cryptocurrency, it is important to pay attention to a number of criteria that can be called the main ones:

1. Benefit - the bitcoin rate is very dynamic, and it is important to pay attention to the rate of the service, as well as the commission, whether it is a purchase or sale.
2. Safety - there should be no risks in the sale. Methods should not provide for the slightest hint of an unsafe transaction. There are a lot of scammers in the cryptocurrency arena, and it is quite easy to lose funds.
3. Convenience - this item combines the previous two. This is a certain ratio of the speed of the transaction and the benefits of the exchange rate and the cost of the commission.

You can sell bitcoin on specialised services by exchanging it for any other fiat currency or for any other currency that has a physical cashout, be it a dollar, euro or hryvnia. There is also the option of a direct agreement with the buyer, but only on the condition that there is such a buyer at the right time and the risks are minimal.

We suggest considering 4 ways to sell bitcoin:

• Cryptocurrency exchanges are a platform where you can sell or buy any amount of bitcoins or any other available or relevant cryptocurrency. These trading platforms specialise in the sale and purchase of digital money. Most services do not have a commission for the exchange, but there is a fee for withdrawing funds from the platform.
• Online exchangers are special online resources on which the rate is determined by the administration of the resource itself, and can differ significantly from the rate of exchanges in a more favourable direction, and the funds from the sale will go immediately to one of the selected payment systems, without a fee for additional withdrawal of funds. Some exchange resources do not charge an exchange fee, since it is already included in the set rate, while for the rest it is a separate payment item.
• Cryptocurrency ATMs are special self-service terminals where you can sell bitcoins for cash. The commission in such terminals averages about 5%, and the rate is formed on the basis of cryptocurrency exchanges in real time. The main advantage of this terminal is the fact that the money after the sale can be received at the same moment. The main disadvantage is the fact that there are no such terminals on the territory of Ukraine at all, and in countries where operations with cryptocurrencies are allowed, there are very few of them.
• Direct sale is a method of direct shipment and exchange for other currencies by prior agreement of the parties. The main problem of this method is only the fact that you need to find a buyer when selling and a seller when buying. Arrangements may have special conditions. This method does not provide for the payment of a commission, since it excludes intermediaries.

What are exchangers for?

These services allow you to easily and quickly exchange cryptocurrencies, according to the chosen direction, to make an exchange. All the client needs is to select the amount and currency of the exchange, and send the transaction. The funds will be credited to the client's account after the sale, according to the specified terms, taking into account the payment of the system commission. The lion's share of such services do not require registration, however, services that provide for registration have a bonus system, more favourable exchange conditions and much less risk of not falling for scammers.

What are fiat exchanges for?

Cryptocurrency exchanges have long expanded their profile and began to work not only with cryptocurrencies, but have transformed into multifunctional platforms that allow the exchange of funds in any direction. However, for any operations on the exchange, you must register on this service. An additional condition on such a service may be personality variation. To complete the transaction, you will have to confirm your identity by providing scanned copies of documents.

There are two ways to sell on such exchanges:

• The seller can exchange his coins at the current exchange rate and receive the desired currency to the account instantly.
• He can place an order for sale, indicating in it the rate at which he is  ready to sell his assets.

In the second method, there are two conditions - the sale will take place only when a buyer is found or when the exchange rate equals the mark that the seller marked for sale. Then a deal is concluded, and upon its completion, it will be necessary to withdraw funds from the exchange using the method that will be most convenient. At the same time, while the money is on the exchange, and you replenish the internal account on the exchange, you will not be charged a commission, however, if you want to withdraw fiat funds from the exchange, be prepared to pay about 10%

What are ATMs and terminals for?

In fact, these terminals are no different from the usual self-service terminals already familiar to everyone. As a rule, this is one and the same device, and the only difference is the presence or absence of the necessary item in the menu of the terminal itself. Even the payment method is very similar to the usual one, only simplified to a minimum. To sell bitcoin, you need to transfer the cryptocurrency to the specified address in the menu of the terminal itself, and then immediately receive the equivalent of the value of your coins in cash.

Accordingly, the commission in the terminal will be much higher than with the help of exchanging cryptocurrencies on online resources. The reason for this is the expensive maintenance of the terminal, since it includes not only network services, but also rent and normal wear and tear (depreciation) and all this should pay off. This method is relevant for owners of bitcoins and other cryptocurrencies, only if you need to quickly cash out your crypto savings. How quickly such a network of terminals will be developed in the domestic market depends only on the legislative framework and the government. At the moment, cryptocurrency transactions in Ukraine are still prohibited.

Direct sale

This type of sale is the most profitable, but also the most risky, since such transactions do not guarantee that you are dealing with a decent person. If you make a deal not for the first time with this person, then definitely, such sales are the most profitable, but if not, you risk losing your funds. Fraudsters are very fond of those who want to sell the crypt directly. It should be understood that this method is convenient only for those who, on the one hand, want to make a sale, and on the other, a purchase, and at the same time the parties are familiar with each other. Not infrequently, bitcoin sellers practice the most ancient way to find a buyer, and place ads on special bulletin boards, where they choose a buyer who offers a convenient method, payment system and a favorable rate. To the disadvantages of this direction, one should add a very large time spent looking for a buyer.

Outcome

Even with many ways to cash out bitcoin you should not always choose the one that is optimal at the moment. If we are talking about a large amount, then you should not even consider other options, except for trusted and proven services that guarantee the integrity of the transaction. These services include most of the online resources for the exchange of cryptocurrencies. As a rule, scammers will not invest in the creation of expensive web sites for the sake of a few small deals, because information about whether the resource works legally or not quickly spreads among regular users and customers of such sites.