How do you convert Bitcoin to cash?

It’s been anything but a dull year for cryptocurrency – from the recent shutdown of a major exchange to the collapse of three financial institutions with a significant hand in the cryptocurrency market: Silvergate Capital, Silicon Valley Bank and Signature Bank. The crypto market has seen a lot of volatility as a result, all during a period of increased economic pressure.

See: 3 Things You Must Do When Your Savings Hit $50,000

It’s no wonder investors are wondering: How do you convert bitcoin to cash?

How do I withdraw my Bitcoin?

You have several options for trading bitcoin and other forms of cryptocurrency. Which option is best for you will depend on where you bought and stored your coins, how quickly you need the value back from them and the nature of your approach to buying and liquidating investment assets.

Here are five proven tactics for converting bitcoin and other cryptocurrencies into cash.

1. Sell Bitcoin on a cryptocurrency exchange or trading platform

Unless you have locked up your bitcoin, which you can do with what is called staking, you can sell your bitcoin on an exchange at any time. You must have an account with the exchange and move your crypto to the platform before selling. Make sure you take into account the fees involved, as they may vary by exchange or platform.

If you bought your bitcoin through an online investment house like Robinhood or eToro, you can sell through that firm for the equivalent brokerage fee.

2. Find a Bitcoin ATM

Cryptocurrency ATMs are becoming more and more available, and many – but not all – of them will allow you to sell bitcoin and withdraw money after following several security steps. This option is best saved for situations when you need cash quickly, as the fees can be high – think up to 20%.

3. Use it

Debit cards that allow you to spend crypto on everyday purchases are becoming increasingly mainstream. Transaction fees can vary, so do your homework before getting a crypto debit card.

Some merchants will also take payment for their products or services directly from your digital wallet on a cryptocurrency exchange or platform.

4. Send it to another investor for cash

Most cryptocurrency exchanges offer peer-to-peer lending platforms, which can allow you to find a buyer for the bitcoin you want to sell.

The most important thing is that you have to trust your potential buyer. There’s always a chance that the cryptocurrency you’re transferring could reach your buyer before cash is deposited into your bank or PayPal account – so know as much as you can about who you’re thinking of doing business with.

5. Sell it right from your crypto wallet

If your crypto is safely stored in your cold wallet, you can sell it – for a fee – without moving it first. This will prevent you from having to transfer your cryptocurrency out of your wallet and into a cryptocurrency exchange to complete the sale.

Ledger and Trezor both offer bitcoin sales directly from your wallet.

How do I convert Bitcoin to cash instantly?

The process of liquidating your bitcoin quickly depends on how and where it is stored, but the best option to go from crypto to cash in a short time will most likely be via debit card, ATM card or spending at bitcoin-accepting merchants.

It is important to understand that transaction fees may apply to any method of converting crypto to cash, but the fees are likely to be higher the faster the conversation has to happen.

Can I withdraw Bitcoin to my bank account?

Yes, it is possible to move bitcoin or other cryptocurrencies to your bank account by selling it.

If you are not in a hurry, you can choose between two methods. Either choose a preset platform – such as a cryptocurrency ATM or debit card – or find a buyer online and complete the sale on the blockchain or exchange. The latter process requires trust and timely communication from both parties.

Mind your bottom line when cashing in cryptocurrency

Although you have several choices for liquidating bitcoin and other cryptocurrencies for cash, it is important to know what the associated fees and risks are.

If you use a crypto ATM or debit card, you’ll want to understand the fees associated with your transaction. If you decide to sell your coins to someone else, you may have to face the unknown – delays and fraud can be associated with online transactions like this. You can transfer your bitcoin to the buyer and discover that they never intended to pay.

Proceed with caution, being aware not only of the opportunity you are pursuing, but also of the potential downsides.