How to cash out bitcoin: The ultimate guide for 2025
Withdrawing your bitcoin investments into fiat currency secures your profits. Click through to learn how to convert bitcoin to cash and what the best way to do it is. If you’re a bitcoin investor, you’re probably wondering how to cash out your investment profits.
Can you convert bitcoin to cash? If so, how? Read on to learn the best ways to turn bitcoin back into fiat currency.
Table of Contents
Why convert Bitcoin to cash?
What you need to convert bitcoin to cash
How to convert bitcoin to cash
Things to consider when converting crypto into cash
Conclusion
FAQs
Why convert Bitcoin to cash?
You usually convert bitcoin to cash when you want to secure your investment gains. Bitcoin’s value tends to fluctuate, so converting your gains into cash secures its value because fiat currencies tend to be more stable. Securing your profits is especially important if you’re risk-averse and don’t want to deal with price uncertainties.
Another reason to convert bitcoin to cash is to use it to buy things. While bitcoin was originally meant to replace fiat currencies, not many businesses accept bitcoin as payment despite rising interest. Fortunately, bitcoin is liquid enough to convert into cash almost instantly.
What you need to convert bitcoin to cash
Here’s what you need if you want to convert bitcoin to cash:
How to convert bitcoin to cash
You have many options to exchange bitcoin for cash. Here, we cover the most common methods and provide step-by-step guides to do so:
Cryptocurrency exchanges
Selling bitcoin on crypto exchanges is often the easiest way to cash out your crypto earnings. However, the withdrawal process to your bank may take a couple of days.
Peer-to-peer exchanges
You can sometimes get better rates from a peer-to-peer exchange, but you must also watch for fraudsters. Choose a peer-to-peer exchange that keeps your bitcoin secure until you receive payment, and always review the buyer’s rating before initiating a sale.
Bitcoin ATMs
Bitcoin ATMs let you receive instant cash and are best for converting small amounts. However, they have higher withdrawal fees and there may not be a Bitcoin ATM near you.
Bitcoin debit cards
While bitcoin debit cards are highly convenient, they’re usually only available in regions like the United States or Europe. People in other regions need to wait until crypto exchanges expand their support.
Bank-account transfers
While these platforms are super convenient and often offer quick bank transfers, like instant or same-day options, they may come with higher fees. You may also face regional restrictions on access, and withdrawal limits could vary depending on both your account and location.
Lightning Network wallets with fiat plugins
While the Lightning Network is a convenient way to cash out bitcoin, it does have some downsides, like limited merchant support, dependence on certain services for conversion, and possible liquidity problems.
Stablecoin swapping via L2s
To convert the stablecoin into fiat currency, use an exchange that supports stablecoin-to-fiat conversion, such as Binance or Coinbase.
DEX-to-fiat bridges
Then, you connect your wallet to a fiat bridge service, such as Ramp, MoonPay, or Transak, to convert the stablecoin into fiat and send it to your bank account or card.
Things to consider when converting crypto into cash
Exchange fees
Withdrawal limits
Withdrawal times
Taxes
Rules and regulations
Conclusion
Generally, people convert digital coins into cash to secure their value and buy things. There are many ways to do so, like Bitcoin ATMs, crypto marketplaces, and peer-to-peer exchanges. You must consider withdrawal speed, transaction fees, and local regulations to choose the right crypto withdrawal method.