A trader working with any cryptocurrency sooner or later will face an important and quite logical question: how to withdraw Bitcoin from my wallet? There are several options for withdrawing BTC and other crypto which we will cover in this text.
There are many ways to cash out virtual currency on a card:
- Cryptocurrency exchanges – exchanges specialize in buying and selling cryptocurrencies. Money is transferred to bank cards and accounts of electronic payment systems.
- ATMs – not every city has them. Commissions of about 5%. The advantage is that money can be obtained "on the spot."
- P2P exchanges – platforms for exchanging different pairs of currencies, where the exchange rate may differ from that of the market, but the advantage is that the money immediately goes to the specified wallet, without additional fees for withdrawal.
- Cryptocurrency cards – work like fiat cards which are connected to cryptocurrency wallets. Let’s you cash out crypto at regular ATMs.
- Direct sale by personal agreement – it is better to use only in the case of a truly trusted seller / buyer.
Withdrawing through Exchange
What are the advantages of cashing out your cryptocurrency with an exchange? The advantages of withdrawing Bitcoin through an exchange are favorable rates, a wide range of fiat currencies and a lot of ways of depositing and withdrawing money.
1. Register on the exchange.
2. Transfer Bitcoins from a personal account to the exchange.
3. Exchange coins for your currency of interest.
4. Transfer money to your banking card.
5. Go to the ATM and get your money.
Here are a few nuances you should consider when you cash out BTC via exchanges:
- You should transfer money to the same bank account that you deposited with, otherwise you may get caught up in anti money laundering laws.
- Exchanges charge commissions for their services. Their size can vary from 1% to 10%, and, in rare cases, significantly exceed this value. The amount of fees depends on the cryptocurrency that the user displays, its reserves at the service, withdrawal methods and other factors.
- The withdrawal period may take from 1 to 5 working days. It can vary from country to country and according to bank, but generally you receive your money within this timeframe.
Withdrawing through P2P platform
There are thousands of services where you can convert cryptocurrencies into real money.
Peer-to-peer (p2p) exchanges allow you to carry out transactions with other people, serving as a platform to connect sellers and buyers.
The most popular p2p exchanges are LocalBitcoins and Paxful. They have a rating system which helps you to find a reliable seller or buyer. Additionally, some p2p exchanges provide an escrow service. Your BTC will be locked on an account until you confirm that you have received money from the buyer. You have a variety of payment options including bank transfers, Payoneer, Western Union, PayPal, etc.
Here’s what you should do when you want to cash out BTC through P2P:
1. Create an account on the platform and verify your identity;
2. Find a buyer and make sure that he / she accepts the required method of payment;
3. Contact the buyer and put BTC into escrow;
4. Wait for the transaction and unlock BTC from escrow as soon as you receive the funds.
Withdrawing through cryptocurrency ATMs
Cryptocurrency can also be withdrawn with the help of cryptomats – this is an analogue of ATMs. Each of them has its own digital address. The user can transfer funds to one and thereby cash out their Bitcoin as well as several other popular coins to USD, EUR and other fiat currencies.
Cryptocurrency ATMs let you stay anonymous – you don’t need to create an account and pass KYC to cash out your cryptocurrencies. But crypto ATMs have several drawbacks. Firstly, they charge large commissions, often above 8%. Secondly, they can be rare in your country.
Use the Bitcoin ATM Map to find a cryptocurrency ATM near you. With this service you can find the location, fees and available crypto and fiat currencies of the crypto ATMs near you. To cash out cryptocurrency via ATM follow these steps:
1. Choose the crypto you want to withdraw on the ATM’s screen.
2. Enter the amount to cash out.
3. Send cryptocurrency to the address displayed on the screen.
4. Receive your cash.
Withdrawing through cryptocurrency cards
If you use cryptocurrencies, then you’ve probably had the thought: “It would be great if I could pay with cryptocurrency when I am shopping.”
You actually can. There are plastic cards that are tied to cryptocurrency wallets. With their help, you can pay with cryptocurrency at any terminal accepting Visa or MasterCard cards. There are several popular cards that you can use:
- Bitwa.la – This option is suitable for European Bitcoin users. The Euro is used as the main currency for making payments. This cryptocurrency card is provided by Wavecrest Holdings Ltd and Mychoice. The service takes a commission of 0.5% for each transaction. If you decide to cash out at an ATM, you will need to pay an additional fee of 2.25 euros.
- BitPay Visa – This cryptocurrency card is perfect for those who live in the United States of America and Europe. US residents can purchase this cryptocurrency card at Metropolitan Commercial Bank. For residents of Europe, you can contact Wavecrest Holdings. A fee of $2 is charged for withdrawing funds from an ATM, but no commissions are charged on POS transactions.
- CryptoPay – This service works with USD, EUR and GBP. The service doesn’t charge a fee for payment in POS-terminals. However, you do need to pay the service 1% of the amount for withdrawing funds.
The cost of a monthly service is: USD 1 / EUR 1 / GBP 1. Currency exchange within the system will cost you 3% of the amount exchanged.
- Xapo – one of the most popular services providing cryptocurrency cards that support BTC, EUR, GBP and USD. It is worth noting that this card is not available in the United States.
The plastic version of the cryptocurrency card costs EUR 18. The commission for cashing out funds at an ATM is EUR 2.25. Payment through the POS-terminal is free of charge.
Before you start using a cryptocurrency card, you need to take into account that companies that provide such services have nuances in converting currencies within the system. We strongly recommend you carefully read the terms of the user agreement so as not to face unpleasant surprises.
Other ways to cash out cryptocurrency
- Telegram bots – Another uncommon way of exchanging cryptocurrency for fiat is through Telegram bots. The messenger app has channels where you can buy and sell bitcoin and other coins, as well as store them in a wallet tied to a Telegram account. However, this is very risky. A trader entrusts his money to a complete stranger, with whom he is unlikely to be able to get in touch with if something goes wrong.
- Transaction made in person – you can meet with a buyer in a cafe and make an exchange. However, there is a drawback - no one guarantees you your safety. Everything can happen in life. You may come across a robber who by force will try to take your funds from you.