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One of the things that keep potential investors away from Bitcoin is the perceived difficulty of easily converting digital currency into cash. Bitcoin is more popularly known as an investment tool, where transactions of buying and selling are done on an online platform rather than in a more conventional real-world setting.
While more and more merchants around the world are starting to accept Bitcoin as a legitimate mode of currency, it hasn't really been massive or fully mainstream just yet. Even after 10 years as a digital currency, Bitcoin is still relatively limited compared to fiat currencies in terms of usability.
Still, there are now more ways than ever to carry out the quick conversion of Bitcoin to cash. If you're wondering what these methods are, here are the four best ways to convert your bitcoins into fiat currency.
1. Bitcoin ATMs
Bitcoin ATMs are available in most major cities around the world. In fact, they can be found in around 76 countries as we speak. These ATMs provide users with a quick way to convert bitcoins into government-issued currency.
Bitcoin ATMs also allow you to buy coins in the same way you would deposit money through a regular ATM. By far, this is one of the most convenient ways to convert bitcoins into physical cash.
Pros
- Easy to do
- You can also buy Bitcoin through the machine
Cons
- Bitcoin ATMs, while available in most major cities, are still relatively scarce compared to conventional ATMs. You might have to travel a considerable distance to get to the nearest one in your area.
- Transaction fees are significantly higher, with conversion rates being not so favorable. Transaction rates in many online platforms are within 0.1% to 1% while Bitcoin ATMs have a 7% to 12% transaction fee.
2. BitPay
BitPay is an online payment service provider that lets you manage and spend your coins with the BitPay Wallet. Through the BitPay Prepaid Mastercard, you can withdraw money from any qualified ATM and pay for goods and services.
Here are the steps to convert bitcoins to cash through BitPay:
- Step 1: Get the BitPay App
- Step 2: Load your BitPay wallet with Bitcoin currency
- Step 3: Order your card
Once you receive your card, you can use it to withdraw cash and pay merchants. There's a limit to the ATM withdrawals, which is $2000 per withdrawal and you can only withdraw 3 times a day. There's also a loading and spending limit, which is at $10,000 per day. The maximum balance you can have at any given time is $25,000.
Pros
- The BitPay card works just like any other debit card that you can use anywhere as long as Mastercard is accepted.
- You can withdraw cash at any Mastercard ATM.
Cons
- You have to consciously load your BitPay wallet and wait for the conversion to cash.
- You can’t send funds directly to your bank account.
3. Coinbase
Coinbase is a digital currency exchange provider that allows you to convert your Bitcoin into fiat currency. It is among the most popular online crypto platforms in the world, used not only in the US but also in the UK and the rest of Europe. It is also one of the earliest online exchange services to offer Bitcoin conversion to cash.
Here are the steps you need to follow to convert your coins to cash with Coinbase:
- Step 1: Create an account with CoinBase.
- Step 2: Use it as a wallet for your digital currencies.
- Step 3: Wait to be verified.
- Step 4: Sell your bitcoins within the app.
- Step 5: Withdraw your money by sending it to your bank account.
Pros
- You can directly transfer your Bitcoin earnings to your bank account.
- The platform is intuitive and easy to use, which makes it great for Bitcoin beginners.
Cons
- The process of conversion takes a while and you'd have to wait a few business days for your money to appear in your bank account.
4. Lastbit
Now, you might be thinking, how do I transfer Bitcoin to my bank account fast? The three options above have different strengths. Bitcoin ATMs are great if you want to quickly convert bitcoins into hard cash, BitPay if you want to use your Bitcoin earnings to spend on purchases, and Coinbase if you want the money to go to your bank account (although it takes a few days).
Lastbit is one of the newest players in the game and is currently open for beta tester sign-ups. Its promising functionality gives it lots of potential to be the next big thing. Basically, Lastbit allows you to:
- Move between Bitcoin and Euros using the Lightning Network instantly
- Obtain a physical/virtual lightning powered debit card to pay for your purchases in fiat currency
- Send/Receive Bitcoin on-chain or on Lightning with zero setup
- Pay or get paid straight to your debit card or IBAN account over Lightning, Bitcoin, or Euros and vice versa!
Lastbit uses the Bitcoin Lightning Network, which provides users with the simplest and fastest way to convert Bitcoin into cash. You can also use their debit card to make purchases, pay for services, and use your Bitcoin as a payment instrument for absolutely anything.
Pros
- It allows you to make purchases using bitcoin, even from merchants that currently don’t accept cryptocurrencies.
- You can get paid straight to your bank account.
- The conversion or exchange is instantaneous.
- You earn rewards in Bitcoin on every single card swipe.
Cons
- Right now, only exchanges between Bitcoin and Euros are possible. Though Bitcoin-USD exchanges are slated to come soon.
Conclusion
While cryptocurrencies like Bitcoin still face usability-related limitations in the real world, the fact remains that more and more methods of conveniently converting bitcoins to cash are becoming available to the masses. These days, saying that Bitcoin is slated to become as mainstream as fiat currencies in the future doesn’t sound so far-fetched. Whether you need to convert your bitcoins to physical cash, send your bitcoin earnings to your bank account, or use it to make real-time purchases, platforms like Bitcoin ATMs, BitPay, Coinbase, and Lastbit have got you covered.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.