People have bought, sold, and used Bitcoin for over a decade now. The number of people accepting Bitcoin or investing in it is also increasing. When ready to convert your Bitcoins into cash, you might want to send them into your bank account. But because Bitcoin is a form of electronic or virtual money, you have to convert it to local currency. Many people invest in Bitcoin because it might eventually replace traditional currencies. Theoretically, people will use Bitcoin for purchases at some point, the same way they use the U.S dollars.
However, only a few individuals and businesses accept Bitcoin payments at the moment. That’s why some people might want to cash their Bitcoins. Also, somebody might want to convert Bitcoins to cash if they think its price will drop. Thus, they may convert Bitcoins to fiat money to avoid losses.
Moving bitcoins to your bank account
To move Bitcoins to your bank account, you will follow these steps.
- Use a crypto exchange like Bitcoin Revolution to sell your Bitcoin. Such a platform enables you to sell your Bitcoins to another user. After that, you can withdraw your resulting cash to your bank account. Such a platform requires you to use the bank account you used to deposit money into your account to prevent money laundering. Nevertheless, this platform is easy, secure, and simple to use. It’s also a faster method for cashing your Bitcoin, with an average time of 4-6 days. Perhaps, you try Pattern Trader today if interested in cashing out this cryptocurrency.
- Register and complete a verification process.
- Purchase Bitcoin via the crypto exchange
- Cash out your Bitcoin to local currency via PayPal or bank transfer.
- Use Bitcoin ATMs to sell your coins and get payment in fiat money. You can find Bitcoin ATMs in over 76 countries.
- Get a cash deposit in your bank account from a Bitcoin buyer. However, ask the buyer to provide a payment and ID proof before releasing Bitcoins.
- Receive payment via bank transfer from a Bitcoin buyer. Again, ask the buyer for proof of ID before releasing your cryptocurrency.
Things to keep in mind when moving Bitcoins to a bank account
As hinted, you must convert Bitcoins to fiat money before moving them to your bank account. Also, have the following in mind before converting Bitcoins to the cash you will transfer to your bank account.
- Fees: You will pay some fees when using the above methods to convert and move Bitcoins to your bank account. However, selling Bitcoins to a friend or relatives may help you avoid the fees. That is assuming the buyer won’t ask you to cater to the transaction fees.
- Taxes: Taxes are almost inevitable. Some jurisdictions might be yet to decide and clarify their stance on Bitcoin taxation. However, most authorities require Bitcoin users to pay taxes on their profits. Thinking about ignoring this rule might not be wise because your crypto exchange might report the profits you make when cashing on Bitcoin to the taxman.
When ready to move Bitcoins to your bank account, think about the method to use and the involved costs. Also, check with the bank you want to deposit the money you get from converting Bitcoin to local currency.
Other factors to consider may include the duration you will wait to get your cash and the currency that the method you use allows. Nevertheless, you will most likely find a way that suits your needs when converting Bitcoin to money and moving it to your bank account. That’s because Bitcoin acceptance, adoption, and usage continue to expand globally.