Welcome to our guide about how to convert Bitcoin, or BTC, to cash. If you’ve ever wondered, “how do you convert bitcoin to cash?” you’re in the right place.
Below you’ll find answers to questions including:
- Can you convert Bitcoin to cash?
- How do I convert Bitcoin to cash?
- Can I convert Bitcoin to PayPal?
Can You Turn Bitcoin Into Cash?
In short, yes!
It is possible to convert BTC into hard money, or fiat, money. But before we get into our guide for exchanging BTC for fiat money or converting BTC into PayPal, let’s establish some background knowledge first.
What is Bitcoin?
It is the most prevalent and oldest type of cryptocurrency. Cryptocurrency is a digital currency meant to replace traditional currency in performing online transactions with a measure of anonymity and security.
Created in 2009 by a group of programmers under the alias “Satoshi Nakamoto,” BTC was billed as the first “peer-to-peer electronic money system.”
Unlike traditional currency systems, BTC is completely decentralized: there is no authorizing Bank that controls supply.
When you purchase the coin, you buy from a private individual who wants to sell their coins. This means you have more options for exchanging BTC for fiat money than with traditional money systems, but also take on more risk.
The transactions are recorded in a Blockchain; basically, a ledger for all transactions ever completed using BTC.
Just like fiat monetary systems, its value depends on users collectively accepting that BTC has value in the real world.
You can find a comprehensive cryptocurrency primer here.
How is Bitcoin Different from Cash?
It might be valued against traditional currencies like the US dollar, but there are several significant differences BTC users must account for when investing.
First, this cryptocurrency is not sovereign, which means it’s not backed by a country, bank, or payment processor like Visa. While this might make BTC seem a bit scary, the flip side is BTC, in theory, exists independent of any country or company’s financial situation.
It’s also important to remember that each and every BTC transaction is recorded in the Blockchain, which is publicly accessible and immutable.
Take care to only engage in legal transactions with reputable parties.
How To Exchange Bitcoin to Cash
OK, so you have all this BTC. But how to turn it into cash?
There are a few considerations before you select whether the best way to convert bitcoin to USD:
- Where you want your money deposited (bank account of PayPal)
- The currency in which you want to receive your money
- Fastest method vs. cheapest method
- How long you can wait before receiving real money
Here are the best ways to convert BTC to perfect money.
Where to Convert Bitcoin To USD
Can you turn it into USD?
Yes you can.
But where to turn it into USD?
Because anyone who owns digital assets can sell it, you have a range of options for exchanging BTC for cash. Check out how and where to turn cryptocurrencies to USD.
A third-party broker is the same as an exchange. There are myriad cryptocurrency exchanges so we recommend Coinbase. It’s one of the oldest and arguably the most prominent, which is important because you want your broker to be as transparent and accountable as possible.
A (mild) inconvenience of using a broker is users must withdraw funds to the same account that they used to initially deposit.
This means that, before you can convert digital assets to cash, you must deposit fiat money into the brokerage site. Make sure you use the account you want to be used for BTC transactions.
Cashing out on brokerage sites takes between 1-5 days before the money is deposited in your account. For folks dealing in euros, payments are made with SEPA.
The best way to exchange BTC for USD is via the SWIFT method.
You can find a detailed guide for using Coinbase here.
Peer to Peer
If you prefer a little more anonymity and/or don’t want to wait 1-5 days to exchange your BTC for money, consider transacting with a Bitcoin-owning peer. We recommend peer to peer trading for people with a few months of experience under their belt on sites like Coinbase.
A huge risk with peer to peer trading is the chance the other party might be looking to defraud you.
That’s why we like LocalBitcoin’s escrow feature. With an escrow, neither party receives anything (money or BTC) until their interlocutor chooses to release it.
So let’s say I want to buy 1 coin from you because you accept bank transfers as a payment method.
You agree and put the digital assets in the escrow until I pay you the agreed-upon amount. As soon as you’ve received my payment, you release the coin to me, and the transaction is complete.
How to Convert Bitcoin to PayPal
Converting BTC to PayPal is relatively simple if you think about PayPal as simply another payment option like a bank transfer.
Again, Coinbase and LocalBitcoins are our picks for converting digital assets to dollars for their transparency and anti-fraud safeguards.
You can also use Paxful to try your hand at being the seller in a peer to peer trading arrangement.
However, if you choose to convert cryptocurrency to PayPal, exchange services often impose transaction limits.
For example, Coinbase limits a single transaction to USD 10,000 and 25,000 per day; for EU customers, transaction limits are EUR 7,500 and 20,000.
These are the best options for how to exchange BTC for cash.
You need to find a cryptocurrency exchange that lets you connect your bankaccount.
We recommend using Coinbase since it’s one of the most reputable crypto exchange platforms.
Yes they can. If you sign up for an account with Coinbase, you can connect your bank account and have your coins converted into real money with a bank transfer.
First you need create an account on Coinbase and connect with your Bank Account. Then you can sell your BTC for real cash and withdraw them.