If you once decided to buy some Bitcoins, while others doubted whether it is worth investing in or not, then today you can already reap the benefits from that wisely made decision. To be able to spend your crypto assets, you should learn the methods of cashing out BTC. In this guide, we’ll review how to withdraw Bitcoin.
There are some challenges that users can face when withdrawing BTC:
Almost all crypto transactions are subject to commission fees as well as BTC withdrawal.
Unlike instant crypto-to-crypto exchanges (like the ones provided by Changelly), withdrawing Bitcoin straight away might be impossible as it usually takes some time. If you need money immediately, you might do it by peer-to-peer platforms, or a Bitcoin ATM.
The preference in choosing a method to withdraw Bitcoin to cash may also depend on the amount of BTC. In case the transaction amount is large, you might need to personally notify the bank about this operation to avoid the funds on your bank account being frozen.
So, let’s overview different ways of BTC withdrawal.
How to Withdraw Bitcoin to Bank Account or Credit Card
Withdraw Bitcoin on an Exchange
There are few exchanges or, in other words, third-party brokers that allow their users to cash out BTC. There are a few popular crypto exchange platforms, such as Kraken, Coinbase, or Bitstamp, that offer this service.
The process of BTC withdrawal on an exchange generally includes the following stages:
Step 1. Create an account and pass a verification procedure.
Step 2. Enter the account and make a fiat deposit. It will help you to ensure that the process of linking your bank account to an exchange account was successful.
Step 3. Top up your exchange account with Bitcoins.
Step 4. Cash out Bitcoins to the specified bank account. Then, withdraw the desired amount to your bank account and wait for the funds to show up. Keep in mind that it can take from one to five days for the funds to be available.
Withdraw funds to the same Bank account that you deposited. Otherwise, brokers violate money-laundering laws.
Now let’s overview the transaction details such as timing and charges using the example of Coinbase crypto exchange.
Withdrawal periods. Withdrawing BTC to a bank account usually takes 1-5 working days. However, it depends on the country. For EU citizens, it might take 1-3 days, while US residents can wait up to 6 days.
Transaction fees. Fees that you’ll pay for cashing out BTC can also vary in a country and exchange platform. Coinbase offers low withdrawal fees if you have a SEPA bank account (for EU residents only). It will cost you only 15 cents per withdrawal. In the case of using a US bank account, the fee will be $25. Other exchanges may charge users $1-$25. Nevertheless, the fee amount is generally fixed and publicly available, so it will not be an unpleasant surprise.
Crypto withdrawal limits. After creating a Coinbase PRO account, the daily limit is $10,000/day.
Withdraw Bitcoin on Peer-to-Peer Platforms
Peer-to-peer is a type of trading that happens directly between two individuals. This type of exchange is also known as off-exchange trading. If you wish to withdraw Bitcoin anonymously, then this option is for you. But be careful, since the other party also stays anonymous, make sure they’re not a scammer.
To protect yourself, use the right p2p platforms and take your time to research a person on the opposite side of the deal.
Among the most trusted and popular peer-to-peer platforms, there are Localbitcoins and Paxful. They have pretty similar operation methods and are available in almost every country in the world.
Another significant benefit of using p2p platforms is a variety of payment methods, whether it is a bank transfer, or a cash deposit, or a personal meeting for cash. Make sure to protect yourself by requiring proof of identity and proof of payment from the buyer. After all, the P2P method of selling Bitcoin is quite safe if you are aware of every stage of this process.
For example, you want to withdraw 1 BTC through Localbitcoins. To do that, follow these steps:
Create an account on the platform and start looking for a person to sell your Bitcoin.
Make sure the buyer accepts a transfer to a bank account as a payment method.
Send your request to this person.
Once the buyer approves your selling request, you can put BTC into the escrow, and they can send the agreed amount of fiat to your bank account.
Wait for the arrival of funds and unlock BTC from the escrow.
Withdraw Bitcoin in Online Bank
You can withdraw Bitcoin using a Bitwala online bank. The Berlin-based company was the first to offer an all-in-one platform that combines a Bank account, a built-in Bitcoin wallet, a debit card, and tools for trading Bitcoins.
The Bank account in Bitwala is managed by SolarisBank, a technology platform with a German banking license based in Berlin and controlled by the federal financial supervisory authority (BaFin).
Withdraw BTC following just a few steps:
Create a free login.
Open the BTC wallet from your Bitwala account.
Check how many Bitcoins you have and set the amount you would like to withdraw.
Confirm the transaction.
For further convenience, there is a Bitwala mobile app that is available for both iOS and Android.
One of the most instant ways to cash out BTC is by using a Bitcoin ATM. BTC ATMs are similar to traditional machines: as with regular ATMs, you need to own a bank card to withdraw fiat currencies (i.e., USD, EUR, GBP, etc.) in exchange for BTC you hodl.
A significant advantage of Bitcoin ATMs lies in anonymity. The fact that you do not need to create an account and pass verification, withdrawing BTC via ATM is the best way to secure your identity.
However, if willing to stay completely anonymous, be ready to pay extra. In the case of ATMs, the withdrawal commission can reach 10% of the withdrawal amount.
The number of crypto ATMs keeps growing. However, there’s still not much presented on a global scale. The easiest way to locate a Bitcoin ATM near you is to use a crypto ATM radar application. Such applications usually provide the ATM location along with other details such as fees, limits, availability of Buy/Sell options.
Once the ATM is found, all you have to do is execute the withdrawal itself. Here’s how you do that:
Pick the option of cashing out BTC on the ATM’s screen
Set the withdrawal amount
Send BTC to the crypto address provided on the screen. Make sure you have a QR-code reader on your mobile phone
Receive your cash
Other Ways to Withdraw Bitcoin
You can also cash out Bitcoin by using instant crypto exchange services such as Changelly. The option of BTC withdrawal is available for the owners of a SEPA bank account which allows them to convert Bitcoin into Euro. To get more details on this option, feel free to read this guide on selling crypto.
There are four main options to withdraw BTC to date. Each one is appropriate to a particular use case and depends on what you need the most at that moment: to stay anonymous, pay fewer fees, or make the withdrawal instantly. Before getting started, don’t forget to inform your bank and examine the tax and legal aspects of BTC cash out operations in your country.
Before withdrawing, check the best rates on Changelly.