How to turn Bitcoin into USD is an uphill task that often requires the use of multiple platforms. Because Bitcoin is not recognized as a legal tender in most countries, and the definition of digital currencies is also unclear, many entities handling them opt to stay away from acting as a bridge with fiat currencies.

To help people who have Bitcoins or that want to join cryptocurrencies but harbor fears about conversions, this post digs into the best method to turn Bitcoin into USD.

Cashing Out Bitcoins Online

This method uses a platform that lets Bitcoin owners interact directly with buyers through an intermediary site. The platform charges a fee for facilitating the transactions.

First, you create a seller’s account with a financial service provider, usually a bank, and complete ID verification. Then, you post the Bitcoins for sale so the platform can find a buyer and start the transaction.

To protect your coins, they may be frozen once deposited on the platform. When a buyer is found, they send the fiat payment before the Bitcoins are released to their wallet.

Finally, the fiat amount, minus the platform’s fee, is deposited into your bank account, and the Bitcoins are transferred to the buyer.

One of the companies that use this method is Coinbase exchange. Coinbase has indeed simplified the process so much that you can turn Bitcoin to USD with just a few clicks. They even allow Bitcoin owners to cash them out promptly using mobile phones.

The transaction fee at Coinbase varies depending on the amount under consideration. For example, the Coinbase website indicates that if you state that $100 as the amount of Bitcoin to sell, the fee is 1.49%.

This video is a demonstration of how to turn Bitcoin into USD:

Cash Out Your Bitcoins Offline

If you feel that the transaction fee charged by most exchanges is too high, one of the alternatives of how to turn Bitcoin into cash is selling directly to clients. One of these methods is using financial services that allow the seller and buyer to interact on a peer2peer basis.

The services are designed to help automate the detect geolocation and outline actual offers in your area. One of the services using this model is LocalBitcoins.

LocalBitcoins.com is probably the simplest answer to the question “How do you turn Bitcoin into cash?” The method requires the Bitcoin holder to register for an account with LocalBitcoins.com website to receive a secure offline Bitcoin wallet.The second step is sending the Bitcoin you intend to sell to the wallet you have just created. Then, you select the amount you want to sell Bitcoin for and select the preferred method of payment. To complete the process faster, you can even opt for the QUICK SELL option. See the caption below of the interface snippet from LocalBitcoins.com.

For a step-by-step guide in video format on how to sell Bitcoins for cash, follow the link below:

It is also possible to find buyers on cryptocurrency forums such as Reddit and BitcoinTalk and agree on the terms of payments. However, such methods are highly risky and should only be used with great caution because they lack advanced operational guarantees such as those available on other platforms such as Kraken.  

Use Trading Platforms to Turn BTC into Cash

Some people prefer using trading platforms that combine crypto and forex exchanges to convert Bitcoins into cash. First, users register and verify their accounts with government-issued info like phone number and date of birth. Then, they deposit Bitcoins into their exchange account and place a sell order with their preferred currency and price. When a matching buy order is found, the transaction completes.

Notably, these exchanges are centralized and are considered an easy target for attackers. If you pick any big loss in the crypto industry, the chances are that it happened in the exchanges. One of the latest attacks on the crypto exchanges happened at YouBit in December 2017 and resulted in the platform filing for bankruptcy.

Kraken: Easy Bitcoin to Cash

One of the top exchanges that allow users to cash their Bitcoins for cash is Kraken. This is one of the leading exchanges, which was started in 2011, that has won the tag of the gateway to the cryptocurrency industry for supporting crypto to fiat transactions and vice versa.

To use Kraken, digital coin holders are required to start by registering accounts and confirming them with additional information like proof of location, phone number, and date of birth.

After creating a Kraken account, you are required to deposit the Bitcoins to be converted to cash. The platform requires the account holder to place an order based on the amount he wants to sell the Bitcoin. You will also be required to provide the bank account for the fiat deposit after the transaction is completed.

The transaction takes between one to five days to complete. Afterward, the funds will be deposited into your account. If you sell Bitcoin for USD and withdraw to a local US bank, a $5.00 fee applies.

For a video on how to turn Bitcoin into USD using Kraken, please follow the link below.

Turn Bitcoin into Cash Using Currency Converters

Though less profound compared to the cryptocurrency exchanges, the currency converters provide an instant method of converting currencies, including digital coins, from one form to another. These services require users to join the platform and specify the amount to convert and at how much.

One of the prominent cryptocurrency converters in the market today is WealthPay. This currency converter uses an automated model to collect the latest exchange information so that users are assured of converting BTC to cash using the top rates.

The converter is also highly flexible and can deposit your Bitcoin funds either to your bank account or credit card. Besides, they also indicate that transactions are cleared with 24 hours. In some cases, the transactions can be completed in less than one hour.

The biggest challenge of using the converters is the fast-rising number of companies offering the same services. This makes it very difficult to differentiate between genuine converters and scammers.

Though people who want to convert Bitcoin for cash are advised to used sites such as BestChange.com and OkChanger to narrow down to reliable converters, it still looks like trusting converters is difficult. For example, some of the converters listed on the platforms have resulted in complaints from communities such as BitcoinTalk.

Use a Direct Electronic Payment System

To make it easier to convert digital coins to fiat and vice-versa, advanced multi-functional electronic payment systems have started entering the market. These systems allow users to open Bitcoin accounts and make transfers effortlessly to their credit cards or bank accounts.

The multi-functional electronic payment systems are considered to be among the next most important developments that the blockchain needs for faster adoption. As more countries, such as Singapore and Switzerland, continue appreciating the importance of digital currencies, the integrated electronic payment systems are likely to become more important and even get adopted in the retail markets.

One of the top examples of the multi-functional electronic payment system is Worldcore.eu. The service requires users to open accounts and fund them using either fiat or digital currencies. The system is connected to BitPay to allow it to accept and process Bitcoin. If you fund the account with Bitcoin, converting into USD is simple, fast, and direct.

Like other conversion services, Worldcore.eu charges a fee of 3-7% when transferring digital assets. 

For those using debit cards and ATM withdrawals, Worldcore.eu caps the daily limit at 4,000  Euros.

The Final Take

Though the issue of how to turn Bitcoin into USD or other currencies has persisted, there is now some hope. More players are entering the industry to make converting crypto to fiat faster, more direct, and reliable.

New methods like advanced multi-functional electronic payment systems and cryptocurrency converters show that integrating digital coins into standard payments is possible. However, risks still exist.

All these methods are centralized. This means the Bitcoins you convert remain vulnerable to attacks. To stay safe, only transfer the amount you need to convert. Keep the rest locked in cold storage wallets like the Ledger Nano S.