Bitcoin remains the largest and most popular cryptocurrency since it made its debut as the first crypto in 2009.
The limited supply (21 billion BTC to be produced) of Bitcoin gives it value. As the demand for BTC increases, you can exchange a single Bitcoin for money or other services.
In this article, we’ll focus on what to consider before turning your Bitcoin into cash.
Considerations When Cashing Out Bitcoin
As a crypto investor or trader, there are things to consider when you decide to convert all your Bitcoin to cash. They are listed below;
1. Taxes- You have to keep in mind that you’ll pay taxes on your profit income when you’re selling your Bitcoin. You also have to keep in this mind when you are planning for your crypto deals next year.
2. Fees- Exchange fees will be entailed for most Bitcoin to bank accounts. You have to keep in this mind whenever you want to cash out your Bitcoins.
3. Speed- You have to know that third party broker exchanges may take a couple of days to transfer the money into your bank account.
Methods of Cashing Out Bitcoin
There are two methods of converting Bitcoin to cash and then to a bank account. The two methods are listed below;
1. Cryptocurrency Exchange– This is also known as a Third-party broker exchange. In this method, you deposit your BTC into the exchange. Once the exchange has received your coins, you can request a withdrawal in the currency of your choice. The withdrawal will then be paid into your bank account. Some of the world’s top cryptocurrency exchanges are Binance, Counbase, Kraken, etc.
2. Peer-to-peer platforms- This is a quicker method of cashing out Bitcoin. When selling Bitcoins to other people, you can decide which payment method you want the buyers to use. This often allows for faster transactions with lower fees. You can also get a better exchange rate with an individual buyer here than a third-party broker exchange. Buyers can deposit cash into your bank account or send you a bank transfer payment.
Also Read: Why Prestmit is the Best Digital Platform
Prestmit is one of the best peer-to-peer platforms in Nigeria and Ghana. Whenever you decide to start trading, Prestmit can provide everything you need to have a wonderful trading experience.