Did you decide to withdraw some part of your Bitcoin and turn it into cash? Then, you are probably confused by the vast variety of methods available. Which of them will suit you the best? Read our guide and find the answer to that question.
All-in-all, there 5 major options for those who want to sell their coins:
1. Centralized crypto exchange (for example, Coinbase). It is the most obvious solution. You can utilize such a service for buying coins, selling them, and exchanging them for dollars or other fiat currency. It is easier to use compared to other methods, like peer-to-peer platforms, even a beginner would easily cope with exchanging fiat money for crypto and vice versa. Also, such sources provide a decent level of security, although hacking attacks are not so rare. On the other hand, in the case of large volumes, fees can be rather high.
2. Decentralized peer-to-peer service (LocalBitcoins). How to cash out Bitcoin without involving any middlemen? Turn to a P2P platform. As for their benefits, such exchanges do not typically charge any transaction commissions and provide extended functionality (compared to the previous option) along with access to the global market and an extensive selection of payment methods. The biggest disadvantage of such sources is lower liquidity and possible delays.
3. Instant exchange service (Changelly). Such sources collect prices and crypto liquidity information from traditional centralized exchanges and allow selling and buying coins without complicated registration and verification procedures. In practice, you can log in and perform deals via your account on a social network or email address. Besides, such services offer additional control over your funds and, consequently, improved security compared to standard exchanges. At the same time, their fees are higher, and they may seem a bit complicated to newbies.
4. PayPal. This option is secure and friendly to beginners, but your control over your coins is limited as the system reserves the right to hold a private key to your wallet. However, if your profile is hacked, the company will compensate for your losses. Another crucial feature to mention — local commissions are pretty high.
5. ATMs. As of today, they are already available in more than 60 countries. Yet, their network is not so well-developed so far. Besides, due to low competition, as of now, the fees are bloated a bit, and there can be certain problems with the quality of service.
6. Wallets. These can be either online wallets, like those offered by Coinbase, or hardware versions. To be objective, for a novice trader, this approach may seem a bit challenging, but, at the same time, it provides enhanced security, high transaction speed, and affordable fees. However, when there is a Bluetooth connection involved, that may be an extra safety risk.
In sum, we can say that every method has both pros and cons, hence, we recommend you make a decision based on your experience, withdrawal volumes, and time in reserve.