How To Turn Bitcoin Into Cash

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So, you’ve got some Bitcoin and now you want to turn it into cash, but how do you do it?

Turning Bitcoin and crypto into cash varies from platform to platform, but the principle is broadly the same.

And the best thing… it’s very easy to turn Bitcoin into cash whether you’re in the UK, the US, Australia or anywhere else in the world!

However, it’s important that you have a bank account that is either crypto-friendly or accepts cash – also known as fiat – deposits from cryptocurrency exchanges.

To turn Bitcoin and crypto into cash all you’ll need to do is sell it on an exchange and transfer the cash to your bank. If your coins sit on a cold storage hardware wallet, the process is slightly more complicated, but can still be done quite quickly.

Here I’ll guide you through the process of turning Bitcoin into cash quickly and easily.

How to turn my Bitcoin into cash on an exchange

If your Bitcoin or other cryptos are held on a central exchange such as Coinbase, eToro, Crypto.com or Binance then the process is very straightforward.

It’s likely that you’ll already have linked a bank account to the exchange during the sign-up and verification process and to fund your purchases so selling your Bitcoin for cash is a breeze.

Most exchanges offer two ways of doing this – a quick buy/sell/convert option or a spot trade.

The main differences between the two are fees and complexity.

While the quick sell option is the easiest for most people, the fees are higher.

Using an advanced trading screen to sell your Bitcoin via a limit or market order is more complicated for some, but you’ll pay less.

Which option you choose will depend on your level of technical expertise.

How to turn Bitcoin into cash on Coinbase

Coinbase makes it incredibly easy to turn your Bitcoin and other crypto holdings into cash.

As I’ve detailed above, there’s a quick option with higher fees, or a cheaper more complex option via a professional trading screen.

If you choose the quick option a pop up will appear asking you how much crypto you’d like to sell.

Simply enter the amount and preview the transaction to see how much cash you’ll receive and the fee that’ll be deducted

If you’re happy, you can proceed with the sale and your cash will appear in your account shortly afterwards.

Once it’s there, you’ll need to choose the withdrawal option (usually to a bank account or a debit card).

Again, you’ll need to choose how much you wish to withdraw and confirm the transaction, which should be free if it’s going to a bank account.

Once confirmed, the money should appear in your bank account within minutes.

If you choose the more advanced option, you’ll have to first select the correct currency pair before trading and select the type of order you wish to sell.

The currency pair will appear as BTC/GBP (for UK residents) and BTC/USD (for residents of the United States of America), or BTC/AUD if you live in Australia.

How to turn Bitcoin into cash on eToro

eToro differs from other platforms in that it is not purely a cryptocurrency exchange.

In order to turn your Bitcoin (or other supported crypto) into cash you’ll need to use the ‘trade’ button and select ‘sell’ in the pop-up dialogue box.

You’ll be shown the current market price of Bitcoin and a settlement value, depending on how much you wish to sell.

Once you accept the trade it’ll be added to the order book and executed as soon as possible.

Your fiat funds will then appear in your account, and these can be transferred to your linked bank account using the ‘Withdraw Funds’ option.

Depending on the option you choose, fees may be added to the transaction, so you’ll need to accept these before confirming the withdrawal.

Cash withdrawals from eToro are virtually instantaneous so your cash should be in your bank account shortly after selling your crypto.

How to turn Bitcoin into cash on Binance

The Binance platform can seem slightly overwhelming if you’re new to crypto due to its more complex design and plethora of advanced trading options.

However, simple transactions like selling Bitcoin or other cryptos such as Ethereum or Bitcoin Cash, are easy and follow a very similar pattern to Coinbase.

Again, there’s the quick exchange way and the more advanced spot trade method to choose from.

Like Coinbase, you need to select the correct trading pair on the spot trading screen before making the transaction if you choose this method.

Whichever way you choose to sell your Bitcoin for cash, you’ll need to accept the fees and confirm the transaction before the currency will appear in your account.

The one big issue with Binance is that many banks have limited their cooperation with the platform due to various regulatory issues, although this may change in the future if these are resolved.

This can be a problem as some banks won’t accept a cash transfer from Binance after you’ve sold your Bitcoin or other cryptocurrencies.

If you encounter this problem, you might have to set up an account with an exchange that is supported by your bank and transfer your crypto here to make the trade.

How to turn Bitcoin into cash on Cash App

Cash App is a peer-to-peer mobile payments service similar to PayPal, although the latter offers a broader range of financial services, available in the US and UK.

The UK version doesn’t support crypto trading, but in the US, you can buy and sell Bitcoin directly through your account.

If you’ve built up a pot of BTC in Cash App and want to turn it into cash, selling is simplicity itself.

Simply tap the Bitcoin tab on the home screen and you’ll be given the option to ‘buy’ or ‘sell’ the crypto.

Select sell, enter the amount and confirm the transaction and that’s it, you’re done.

Your cash will be added to your Cash App balance, and you can then transfer it to your linked bank account instantly.

It’s important to note that Cash App is very limited when it comes to Bitcoin trading as it only supports the one coin.

How to turn Bitcoin into cash on PayPal

PayPal makes it incredibly easy to buy and sell a small selection of cryptos, and the service is offered in many different countries.

It’s an ideal option for beginners who already have a PayPal account for cash transactions and now want to dabble in crypto.

You can use your existing PayPal balance to buy Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) or Bitcoin Cash (BCH) or add funds to your account from your bank to make your crypto purchase.

There are no advanced trading options to worry about – you simply select the coin you wish to purchase, then the amount and tap ‘buy’.

Selling is just as simple and is also instantaneous, with the proceeds being added to the cash balance of your PayPal account.

Bear in mind that depending how much you use PayPal, restrictions may be placed on how much cash you can withdraw to your bank at any given time.

But, overall, PayPal is an incredibly easy way to buy Bitcoin then sell it and turn it into cash instantly.

How to turn Bitcoin into cash on Crypto.com

Crypto.com is a predominately app-based crypto exchange and trading platform which offers a wide range of cryptos, together with staking options and more sophisticated products.

Selling your crypto for cash is very easy on Crypto.com, with advanced trading tools available if you prefer this method.

However, if you want to turn your Bitcoin into cash quickly on Crypto.com then use the buttons on the homepage of the mobile app.

The selling procedure is pretty standard and once completed your fiat currency will show up in your main balance.

You’ll then be able to choose an amount to withdraw to your linked bank account.

How to turn my crypto into cash from a cold storage hardware wallet

Turning your Bitcoin into cash from a cold storage solution like a hardware wallet involves an extra step but is still quite straight forward.

In most cases you’ll need to move your coins onto an exchange before selling them, which means initiating an on-chain transfer.

First, you need to head to the exchange you’ll be using, choose the crypto you’re transferring by selecting ‘receive’ or a similar option and copying the wallet address.

You then need to paste this into your hardware wallet app, ensuring you’re using the correct address for the coin you’re sending, then initiate the transfer.

Network congestion and the transfer fee set on the wallet app will determine how quickly your coins arrive in your exchange account, but it can take a little while.

Once they appear as confirmed and cleared in your exchange account you can then follow the steps for turning your crypto into cash.

Using a software wallet to turn Bitcoin into cash

Many software wallets feature built-in exchanges which allow you to buy or sell coins, or convert them for cash, often using a third-party payment processor such as MoonPay or a peer-to-peer exchange.

You may be limited as to which currencies you can sell or swap your coins for, and the fees can be higher than on mainstream exchanges.

You’ll need to work out whether it’s cheaper to pay the mining or gas fee to first send your crypto to an exchange before turning it into cash.

The procedure for this is the same as if you’re using a hardware wallet, including fees and the processing time.

Other points to consider when selling your crypto for cash

• Not all currency pairs are supported by all exchanges. Make sure your exchange supports your currency before trading.
• Some sites will require 2FA authentication before you can withdraw your cash. This may be via a text or an app such as Authy or Google Authenticator.
• How much Bitcoin you’ll be able to sell for cash will depend on the limits imposed by the exchange/platform you’re using. These often vary depending on your trading activity.
• Most major exchanges follow a similar pattern in the options available to investors when it comes to turning your Bitcoin into cash.
• When buying and selling crypto you’ll need to take into account what’s known as the ‘spread’ (sometimes referred to as the bid-ask spread). This is the difference between the market price of the coin and buy/sell price. Each time you buy, sell or exchange crypto for cash the spread is included in the price enabling exchanges to lock a price that the coins can be traded at.
• You’ll also need to consider ‘slippage’ when selling your Bitcoin. This is when the price of an asset changes significantly during periods of market volatility and can impact the final settlement value. Slippage is worse when there’s a lack of liquidity or trading activity in a market.
• Exchanges often have safeguards in place to avoid excessive loss in value if there is a high slippage rate during a transaction. In most cases this involves automatically cancelling the order.

Final word

Turning Bitcoin into cash should be extremely easy on pretty much any exchange you use.

The only setback is likely to be your bank’s willingness to accept cash from a crypto exchange.

But as long as you choose the right bank to link to the exchange you should have no problems.

Start by using the simple convert function available on all major exchanges then move on to the more advanced trading screens to save some cash on fees.

You’ll also be able to learn about the different selling options, such as market orders and limit orders by selling your crypto this way.