Converting Bitcoin to Cash: A Complete Tutorial

Today, few people can be surprised by investing in cryptocurrency. Traders actively buy and exchange assets to benefit from the difference in value. The most popular coin is Bitcoin. And it’s not because he appeared before everyone else. This virtual asset is valued for its relative stability, high exchange rate, and transaction security. Plus, BTC is used as a payment element. Of course, you cannot use coins to pay at a restaurant or for grocery store purchases. There are a few exceptions, but there are few such establishments today.

Many investors are interested in how to withdraw bitcoins to cash. It is usually done to withdraw profit from the exchange and reduce the risk of losing money. Also, Bitcoin to cash conversion is necessary for other operations. Sometimes, virtual assets are converted into fiat funds to pay bills, make money for a loan and provide for their life needs.

Understanding the Process

The easiest way to convert Bitcoin to cash is through an exchange. You just need to carry out the usual operation to receive fiat funds.

For cash out Bitcoin safely, you should choose a good platform. It guarantees that you will receive the amount you expected in the shortest possible time. When selecting a service, you should pay attention to:

• features of the transaction;
• commission amount;
• relevance of the course;
• security system.

Since Bitcoin is the most famous cryptocurrency, it can be exchanged on every exchange. But it would be best not to operate on the first site. Pay attention to the limits that are allowed for a transaction. Not all platforms are suitable for large functions. In this case, you must split the amount into several payments, increasing the commission.

It is also worth noting that the platform charges no fixed rate for the operation. Exchanges set their fees. It can be fixed or depend on the amount. Decide the option that will be the most profitable for Bitcoin to fiat currency conversion.

Safety is one of the main factors. The security of your savings and your peace of mind depends on the level of protection. Almost all exchanges use the KYC process for cashing out Bitcoin. It is an identity check, without which you cannot operate. 

Step1. Setting up a Bitcoin wallet

The first stage of the Bitcoin cash-out process is setting up a cryptocurrency wallet. It is a special vault that contains access keys to your assets. It is better to choose a software or hardware option for reliable storage. A software wallet is a unique extension for a computer or phone. A hardware option is a device where you can store your tokens. The first type of storage will provide quick access to virtual assets. A cold wallet is more often used for long-term storage of Bitcoins.

First, you need to install the software on the selected device. Select reliable suppliers with a proven track record to protect your investment. Then you must create an account, develop a strong password, and specify passphrases.

Step 2: Choosing a Reliable Cryptocurrency Exchange

You already know how important it is to choose a trusted exchange for converting cryptocurrency to cash. Pick a site with a good reputation and a reliable security system. Before proceeding with the sale of currencies, we advise you to study the reviews of other users carefully. Thus, you can understand how poorly the platform works and whether it fulfills its promises. Study the critiques on the exchange and thematic portals and forums to collect more detailed information.

Also, pay attention to the features of the support service. The operator is the person who will help you if you need help with crediting money. The specialist must respond quickly and be recognized in virtual currencies.

To save time looking for a good Bitcoin exchange platform, use the services of WhiteBIT. It is one of the largest European cryptocurrency exchanges. The platform guarantees the current exchange rate and fast transactions. The system also uses multi-level encryption and reliable security systems. You can be calm about saving investments and personal information.

Step 3: Completing the KYC (Know Your Customer) Process

KYC (Know Your Customer) is one of the security measures for cryptocurrency transactions. The operation must be completed after creating an account on the exchange for trading. For verification, you need to provide documents confirming the user’s identity. It could be:

• passport;
• driver’s license;
• insurance policy;
• receipts for paying bills.

To quickly pass KYC, you need to provide up-to-date data. They must match the information that the investor indicates when registering an account. If personal data changes, this must be shown, and the relevant documents must be provided.

With KYC, exchanges can track all user transactions and identify illegal activity. It allows you to avoid fraud when Bitcoin exchange for cash.

Step 4. Connecting Your Bank Account or Payment Method

The next part in step-by-step Bitcoin cash withdrawal is to specify an account for crediting money. You can use a bank account or an e-wallet. Be sure to consider whether the exchange supports the selected payment method.

Connecting the payment system is quite simple. For this, you need:

• go to your account;
• select payment tab;
• specify the desired method;
• enter details.

Before saving the operation, you need to check everything carefully. Even an accidental typo can lead to the cancellation of the transaction.

Step 5: Selling Your Bitcoins

Selling Bitcoins is a relatively simple part of the procedure. You must select a currency pair, specify the number of coins, and set the offer type. The exchange itself takes very little time. After processing the transaction, the funds will be credited to your account on the business. Usually, this operation takes an hour at maximum. The processing time of the process depends on the workload of the blockchain. Contact the support service if the money comes to the account quickly.

Step 6: Withdraw Cash to Your Bank Account

Once the fiat funds are in your account on the trading platform, you can transfer them to your account. You need:

• select the bank account where the money will be deposited;
• indicate the amount;
• confirm operation.

As soon as the funds arrive in your account, you will receive a notification from the bank. The procedure for crediting funds can take from one to five days. But, frequently, funds come faster. It all depends on the exchange features and your banking system’s operation.

Please note that some companies may charge a commission upon receipt of a transfer. Fees may vary depending on the bank. Also, the commission cost may increase if you use a debit card for secure Bitcoin to cash conversion.

Step 7: Understanding Tax Consequences and Legal Regulations

Cryptocurrency trading profits should be valued as capital gains. That is, the money you will receive after converting Bitcoin must be indicated in the tax return. The amount of taxes depends on the specifics of the legislation and the amount you receive.

Before exchanging virtual assets, studying the legal regulations and learning about the tax consequences is worthwhile. Please note that in some countries, you will have to pay tax not only on income from cryptocurrency but simply for having it.

We advise contacting specialists who will tell you all the consequences of exchanging Bitcoin for fiat money. A professional will tell you what type of property the virtual currency belongs to, how it should be included in the tax return, and how much you will have to pay. This approach allows you to operate virtual assets and avoid problems with the law safely.

Converting Bitcoin to cash is not a highly complex procedure. Choosing a good exchange portal and carefully checking all the details is essential. Also, before the exchange, studying all legal norms and dealing with the tax consequences is worthwhile.