As the popularity of cryptocurrencies grows, many users seek guidance on how to withdraw Bitcoin and convert it to cash. Read this helpful guide to understand the aspects of this topic completely. Additionally, we’ll discuss important considerations to ensure your transaction is smooth and secure.
In April 2024, Bybit predicted that exchange reserves could run out in nine months if the withdrawal rate stays at 7,000 Bitcoin daily. This prediction was based on the previous Bitcoin halving event in 2024.
According to Ycharts, Bitcoin withdrawals and trades have dropped by 33.08% since December 2024. The network processes about 412,747 transactions daily.
Reuters reported in November 2024 that an average daily Bitcoin trading volume of $493 million on major exchanges like Binance from November 6 to November 13, 2024, nearly double the $252 million average of the first year.
Coinbase also tripled its average daily trading volume during the same period, averaging over $108 million daily. We lack the actual number of Bitcoin traders and withdrawers, but these figures show high activity in the Bitcoin market.
How to Withdraw Bitcoin?
Knowing your options is crucial when selling your Bitcoin for a new purchase, investing more broadly, or accessing cash. If you’re wondering how to withdraw Bitcoin, this guide, aimed at beginners, will cover the most common and efficient methods.
1. Cryptocurrency Exchanges
Of course, Bitcoin cannot be exchanged for fiat currency without a platform. Among the most popular are cryptocurrency exchanges. Some platforms permit buying and selling cryptos and allow direct withdrawal to bank accounts.
Steps to Withdraw via an Exchange:
Choose a Reliable Exchange: Choose a trusted exchange where you can withdraw cash. Some well-known exchanges include Coinbase, Kraken, and Binance.
Create and Verify Your Account: Create an account and complete the account verification (KYC Know your customer), such as submitting identity documents.
Deposit Bitcoin: Transfer your Bitcoins from your wallet into your exchange wallet. Register a deposit address on the exchange and send your Bitcoin to that address.
Sell Bitcoin for Fiat: After placing a sell order on your exchange wallet, you can convert Bitcoin into your desired currency (USD or EUR). If you choose a market order, it will execute immediately at the current market price, and if you select a limit order, it will take place if the price reaches a specified level.
Withdraw to Bank Account: If you are selling, request a withdrawal and transfer your fiat to your linked bank account. The processing time depends entirely on where you’re sending the money, anywhere from a few hours to several days.
Considerations:
Fees: Each step has a fee, including for trading and withdrawal. For example, cashing out via SEPA costs €0.09, which is quite low.
Processing Times: Often, withdrawal times vary; some exchanges offer faster withdrawal for an additional fee.
Security: As always, the most important thing is to protect your account using 2FA and strong, unique passwords.
2. Peer-to-Peer (P2P) Platforms
If you want to sell Bitcoin to another person, you need P2P platforms that connect the two of you directly without needing an intermediary. If you’re wondering how to withdraw Bitcoin, this method is ideal as it offers more payment options and better exchange rates.
Steps to Withdraw via P2P:
Select a P2P Platform: Pick a trusted P2P exchange, such as Localbitcoins or Paxful.
Create and Verify Your Account: Register and complete any required verification processes.
List Your Offer: After that, you create a sell offer, setting the price and amount you want to sell and possible payment methods if the exchange supports bank transfer or PayPal.
Find a Buyer: Instead, browse the existing buy offers and choose a buyer who fits your criteria.
Execute the Trade: The platform will keep your Bitcoin in escrow until you confirm receipt of payment and when a buyer is found.
Release Currency: You can release it to the buyer as soon as you confirm that the buyer has sent you the payment in the bank or payment method you selected to receive it.
Considerations:
Security: Protect yourself against fraud using platforms with escrow services.
Verification: Don’t deal if you don’t know who he is or have bad reviews about his reputation.
Payment Methods: Each payment method is associated with a different associated risk. For example, bank transfers are much more secure than methods such as PayPal, which are more likely to be charged back.
3. Bitcoin ATMs
With Bitcoin ATMs, you can physically exchange Bitcoin in exchange for cash. Unfortunately, these machines can be found worldwide at the click of a button on online directories such as CoinATMRadar.
Steps to Withdraw via Bitcoin ATM:
Locate a Bitcoin ATM: You can utilize online tools to choose Bitcoin ATM places near you that accept Bitcoin for cash.
Verify Identity: Depending on the ATM, you usually have to verify your identity using SMS.
Initiate Withdrawal: Choose your option to trade Bitcoin and specify the amount you’d like to withdraw.
Send Bitcoin: The ATM will have a QR code; scan it using your mobile wallet and send the specified amount.
Receive Cash: When the transaction is completed, the ATM will release that amount of cash.
Considerations:
Fees: Increasingly, Bitcoin ATMs charge higher fees than other methods, often between 7% and 20%.
Availability: Not all Bitcoin ATMs allow purchasing and selling, though, so make sure it also lets you withdraw cash when you choose one.
Limits: ATMs may have low and high transaction limits; check these before you start.
4. Crypto Debit Cards
Crypto debit cards let you spend your Bitcoin directly or withdraw cash from ATMs like a traditional debit card, but they’re linked to your cryptocurrency holdings. If you want to learn how to withdraw Bitcoin, these cards provide a convenient solution.
Steps to Use a Crypto Debit Card:
Obtain a Crypto Debit Card: Choose a provider that supports your region and with which you can apply for a crypto debit card.
Load Bitcoin onto the Card: Bitcoin is transferred to your card account, which can then be held as crypto or fiat, depending on the provider’s offer.
Withdraw Cash: Use the card at ATMs.
Final Thoughts
Traders have several ways to sell their cryptocurrency. Users can comfortably leverage popular cryptocurrency exchanges for their processes. P2P online platforms offer flexible payment options. More people are willing to use them. These strategies can be a great choice if you’re looking at how to withdraw Bitcoin. If you don’t want to wait for hours and can’t find any Bitcoin ATMs nearby, Bitcoin ATMs provide a decent way to get quick and convenient access to cash. However, they also charge far higher transaction fees than PayPal. There is a tax when you sell cryptocurrencies. So, consider this when deciding to sell.
