If you have been holding Bitcoin for a long time may consider selling some of their stash. Generally we recommend buy and hold strategies, but if you like to cash out now, this article explains how you can cash out Bitcoin.
You may have plenty of reasons to cash out bitcoin, and therefore here are a few ways you can cash out Bitcoin. How to Cash out Bitcoin
Why Bitcoin is Gaining
In our previous article on Bitcoin, we explained its foundation, its climb and its fall. We also assessed some of the reasons why it might continue moving higher. The current rally is attributed to a number of reasons.
First, there is increasing mass acceptance of the digital assets. Earlier this year, Morgan Stanley, which transacts trillions of dollars every day announced that it was in the process of creating its own digital asset to facilitate international funds transfer. This was followed by the announcement that large companies like ETrade and Fidelity were creating their own custodial services.
Second, as the adoption of currencies emerged, Facebook announced that it was creating Libra, its own digital currency to be used in the international funds transfers. The project attracted large companies like Visa, Mastercard, and Uber, which invested more than $10 million. Further, AT&T became the first large company to start accepting payments using Bitcoins.
Third, Bitcoin is expected to go through halving in the coming year. This is a process through which the rewards that miners get are reduced by half. In the run up of all halving activities, the price tends to rise sharply. In fact, the price of Litecoin has gained by more than 300% this year as the halving period nears.
Fourth, after its large crash a year ago, many speculators moved to buy the currency on the cheap hoping that the price will rise. This is a common trading strategy known as statistical arbitrage, where people buy assets that underperformed in the previous year.
How to Cash Out Bitcoin
If you have been buying Bitcoin, there are chances that you might want to cash out at some point, after growing your income by more than 100% in 2019 you may have valid reasons why you consider doing this. For example, you might believe that the risk of a downside are more than that of an upside. Second, you might be thinking about the fact that most of the Bitcoin in circulation is owned by a small group of investors. As such, it is not used for transactions, which is the main reason why it was created. Or, who knows, you just need some quick cash at hand or would like to use your bitcoins to invest in something else.
You may have plenty of reasons, and here are a few ways you can cash out Bitcoin.
- Sell on a Cryptocurrency Exchange. This is the most common method of cashing out your bitcoins. In the method, you just go to one of the most popular exchanges like Kraken and Coinbase and sell your coins. Then, you can use their withdrawal methods to deposit funds to your bankaccount.
In order to do this, you open an account at Kraken.com or Coinbase.com, verify your account with your i.d. and have your bitcoins send over to your new account. After transfering your bitcoins you can then cash out and have the funds deposited to your bank account.
- Use a Bitcoin ATM. There are more than 4500 Bitcoin ATMs around the world. If you are close to one, you can easily go and withdraw your funds there. There are even Bitcoins ATM’s in Africa.
- A Bitcoin debit card: There are a number of companies that offer these cards. A good example is bitpay and Spectropay, but even Coinbase.com offers a crypto debit card you can use to pay or cash money.
- Sell bitcoin to friend: finally, you can sell the bitcoin to a friend and receive the dollars. If you like, you can also use a service such as LocalBitcoins.com in order to sell your bitcoins securely to strangers.
Bitcoin is the oldest and biggest cryptocurrency in the world with a market capitalization of more than $150 billion. The currency has performed relatively well this year and a number of analysts expect it to continue doing well. However, the reality is that no one knows how Bitcoin will perform in future because of its high volatility. Therefore, if you own some Bitcoins, it makes sense to cash out some of it so that you can be safe. This article has explained a few of the most common ways you can use to cash out Bitcoin.
Crispus is a finance professional with more than a decade experience in the industry. Over the years, Crispus has written in-depth articles on leading platforms like CCN, Marketwatch, and Seeking Alpha. He also runs a Forex education and managed account company called WestEndFx.