Bitcoin (BTC) is the world’s largest cryptocurrency, with a market value of over $500 billion. Yet, its adoption hasn’t reached a point where you can use it to directly pay for stuff everywhere. So, you will likely need to convert it into cash at some point, and this article will describe how to do that using a crypto wallet debit card and other methods.
The ways to convert your BTC into fiat include:
Use a Cryptocurrency Debit Card
A crypto debit card works like any other card issued by a financial institution. You can use it to spend the BTC held in your wallet. Whenever you pay for something denominated in fiat, the equivalent in BTC will be automatically deducted from your wallet. The conversion is instant and automatic, so you don’t have to do that yourself.
Many exchanges or wallet apps offer debit cards to their users. They have different transaction fees and rewards, such as cashback, loyalty points, etc. You can shop around for a suitable and affordable one.
Sell Bitcoin on a Cryptocurrency Exchange
There is no shortage of crypto exchanges where you can sell your BTC for fiat and transfer the proceeds to your bank account. Binance and Coinbase are two popular such exchanges that make it easy to sell your tokens for different fiat currencies. It is as easy as opening the Buy/Sell section, selecting the amount of BTC you want to sell, and executing the trade.
Different exchanges have different transaction and withdrawal fees, so beware of that.
Your exchange can be centralized or decentralized. A centralized one acts as a custodian for your funds, while a decentralized one lacks an intermediary, meaning users trade directly with each other.
Use a P2P Exchange
A peer-to-peer (P2P) exchange refers to the decentralized type of exchange that we mentioned above. Users trade directly with each other without third-party involvement. But, there are some layers of protection offered through escrow services, dispute resolution, and feedback/rating systems for users. You can use this type of exchange to sell your BTC for fiat.
P2P exchanges usually charge little or zero fees. It is also more secure because you don’t deposit your tokens with a third party. However, the trading speed is often slower than centralized platforms.
Sell from Your Wallet
Some crypto wallet providers let you sell tokens for fiat directly from your wallet. This is usually done from a mobile app that accompanies the wallet. You can use this method to easily sell your Bitcoin for cash. Transaction fees vary because different wallets use different payment processing partners to enable this conversion.
Using a Bitcoin ATM
The first automated teller machine (ATM) to accept Bitcoin was launched in 2013, and since then, thousands more have been installed around the globe. According to Coin ATM Radar, there are currently over 38,000 such ATMs where you can sell Bitcoin and withdraw fiat. All you need to do is scan your wallet’s QR code and enter the amount of Bitcoin you want to sell. Then, you can withdraw the equivalent in cash.
Note that these ATMs often have steep fees of between 5% and 20%. Some may also require you to verify your identity or create an account with the ATM operator before usage.
Money Transfer Applications
These days, money transfer applications are getting into the crypto action by letting users exchange their tokens for cash or vice versa. For instance, Cash App lets users sell their Bitcoin for cash, and PayPal does the same for four tokens:
- Bitcoin,
- Bitcoin Cash,
- Litecoin,
- Ethereum.
You can use these apps to sell your BTC for fiat in a few steps. Expect to pay a small percentage of the transaction as a fee.
Conclusion
We have listed the ways you can convert Bitcoin or any other token into cash to spend. Using a crypto debit card is the most convenient of these ways because conversion is automatic and instant; you don’t have to do anything on your end. If you are shopping around for such a card, consider CryptoWallet’s upcoming card which will support BTC and 800+ other tokens and have high transaction limits to cover your needs.
Leave a Reply