Top Five Methods to Convert Bitcoin to Cash
The number of retailers that accept bitcoin continues to grow. Yet, sometimes cash can come in handy for a variety of reasons. Luckily, there are tons to do this than ever before. As part of Nitrogen Sports Blog’s commitment to help you learn more about bitcoin and how to make better use of the cryptocurrency, we ranked the most effective bitcoin to cash conversion methods.
Cash out Bitcoin in 5 ways
The proliferation of digital currency encouraged many larger players to enter the game. This allowed traditional features to appear, including ATMs and debit cards. The following is a list of the top five conversion methods as rated by complexity, price, and speed.
Coinbase is the simplest means to convert bitcoin to cash and back. They’ve made a strong effort to provide a user-friendly interface. But, they do charge a fee on top of the usual transaction cost for transferring bitcoin. This can be as low as 1.49% if buying with a bank account, or as high as 3.99% if buying with a credit card.
While this is higher than some other options on this list, it’s often worth the price for Coinbase’s convenience. Coinbase also offers instant deposits and instant PayPal withdrawals. This makes Coinbase one of the fastest means of conversion.
The Paxos Standard token offers a means of converting to cash for the more involved owner. Anyone with a registered account can convert PAX tokens directly to US Dollars.
The process is more complex than that of Coinbase. It requires the trade of bitcoin for PAX tokens on a cryptocurrency exchange. It’s also slower – conversions occur in regular batches throughout the day. There is no fee for converting PAX to USD.
Bitcoin ATMs are often used as a statistic for bitcoin’s reach into the physical world. Their complexity can vary, depending on the service provider. Potential customers will have to open an account with the service provider.
After opening an account, customers will have access to a wallet address. They can then retrieve their cash from any participating ATM. While easy, this is one of the most expensive bitcoin to cash conversion methods. Fees range up to 10% per transaction.
Bitcoin Debit Cards
For the ultimate in convenience, bitcoin debit cards provide a point-of-purchase conversion. A brief hiccup in debit card issuance appears over, and availability is increasing. Europe and North America currently have the widest variety of offerings. As with any debit card, the holder possesses a linked account that they can fund ahead of time.
During a purchase, the service converts bitcoin directly to cash. The conversion rate depends on the debit card issuer. Although usually fair, sudden volatility can cause strange rates. As such, a debit card holder should always keep an eye on the price of bitcoin when making a purchase. Fees are variable and dependent on the card issuer.
Peer-to-peer trading is the original means of converting bitcoin to cash. Although technology allows many other methods, peer-to-peer trading still offers some advantages.
The only fees associated are the validation fees charged by the blockchain itself. The price is negotiable between individuals.
Further, the conversion is as instantaneous as the blockchain will allow. There are many sites that help arrange these transactions. This includes Localbitcoin, a staple of the bitcoin community. As part of their service, they will even hold the bitcoin in trust until receipt of payment.
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