Bitcoin is stored in an account that you can liken to a Bank account. The difference is that unlike a Bank account, your Bitcoin account is a virtual Bitcoin wallet. There is a unique address for each Bitcoin wallet that is created, and you can use it globally. One of the world’s largest Bitcoin trading platforms is Coinbase, and it allows you to withdraw your Bitcoin to your bank account. However, their service is restricted to those who have bank accounts in the United States or Europe. For those in the US, you can withdraw your Bitcoins using an ACH transfer, which takes five days. Do you think it’s easy to buy and sell Ethereum or Bitcoin without a bank account? You might suppose that there is a significant amount of options because the cryptocurrency symbolizes borderless. Although you would automatically have a wallet when you open a cryptocurrency exchange account (exchange-hosted wallet), you do not have control of the private and public keys. Having control of your keys means having control of your coins. Exchanges work like a bank; it is a third-party service provider that you trust to keep your coins safe. Choose which wallet you want to receive Bitcoin to. Make sure you select a BCH wallet if you are receiving Bitcoin Cash or a BTC wallet if you are receiving Bitcoin. Your chosen wallet will generate an address that lets you receive coins. Copy this by tapping the QR code if you’re on mobile, or by clicking it if you’re on desktop.
- Overview - Table of Contents
Bitcoin mining is difficult to do profitably but if you try then this Bitcoin miner is probably a good shot.
How Bitcoin Mining Works
Before you start mining Bitcoin, it's useful to understand what Bitcoin mining really means. Bitcoin mining is legal and is accomplished by running SHA256 double round hash verification processes in order to validate Bitcoin transactions and provide the requisite security for the public ledger of the Bitcoin network. The speed at which you mine Bitcoins is measured in hashes per second.
The Bitcoin network compensates Bitcoin miners for their effort by releasing bitcoin to those who contribute the needed computational power. This comes in the form of both newly issued bitcoins and from the transaction fees included in the transactions validated when mining bitcoins. The more computing power you contribute then the greater your share of the reward.
Sometimes you may want to mine a more volatile altcoin like MWC which is superior for scalability, privacy, anonymity and fungibility by utilizing MimbleWimble in the base layer.
With mainnet launching in November 2019 it has risen from $0.22 to over $8.00 in its first two months.
Do You Need A Bank Account For Bitcoin Account
Step 1 - Get The Best Bitcoin Mining Hardware
Purchasing Bitcoins - In some cases, you may need to purchase mining hardware with bitcoins. Today, you can purchase most hardware on Amazon. You also may want to check the bitcoin charts.
How To Start Bitcoin Mining
To begin mining bitcoins, you'll need to acquire bitcoin mining hardware. In the early days of bitcoin, it was possible to mine with your computer CPU or high speed video processor card. Today that's no longer possible. Custom Bitcoin ASIC chips offer performance up to 100x the capability of older systems have come to dominate the Bitcoin mining industry.
Bitcoin mining with anything less will consume more in electricity than you are likely to earn. It's essential to mine bitcoins with the best bitcoin mining hardware built specifically for that purpose. Several companies such as Avalon offer excellent systems built specifically for bitcoin mining.
Best Bitcoin Cloud Mining Services
Another option is to purchase in Bitcoin cloud mining contracts. This greatly simplifies the process but increases risk because you do not control the actual physical hardware.
Being listed in this section is NOT an endorsement of these services. There have been a tremendous amount of Bitcoin cloud mining scams.
Hashflare Review: Hashflare offers SHA-256 mining contracts and more profitable SHA-256 coins can be mined while automatic payouts are still in BTC. Customers must purchase at least 10 GH/s.
Genesis Mining Review: Genesis Mining is the largest Bitcoin and scrypt cloud mining provider. Genesis Mining offers three Bitcoin cloud mining plans that are reasonably priced. Zcash mining contracts are also available.
Hashing 24 Review: Hashing24 has been involved with Bitcoin mining since 2012. They have facilities in Iceland and Georgia. They use modern ASIC chips from BitFury deliver the maximum performance and efficiency possible.
Minex Review: Minex is an innovative aggregator of blockchain projects presented in an economic simulation game format. Users purchase Cloudpacks which can then be used to build an index from pre-picked sets of cloud mining farms, lotteries, casinos, real-world markets and much more.
Minergate Review: Offers both pool and merged mining and cloud mining services for Bitcoin.
Hashnest Review: Hashnest is operated by Bitmain, the producer of the Antminer line of Bitcoin miners. HashNest currently has over 600 Antminer S7s for rent. You can view the most up-to-date pricing and availability on Hashnest's website. At the time of writing one Antminer S7's hash rate can be rented for $1,200.
Bitcoin Cloud Mining Review: Currently all Bitcoin Cloud Mining contracts are sold out.
NiceHash Review: NiceHash is unique in that it uses an orderbook to match mining contract buyers and sellers. Check its website for up-to-date prices.
Eobot Review: Start cloud mining Bitcoin with as little as $10. Eobot claims customers can break even in 14 months.
MineOnCloud Review: MineOnCloud currently has about 35 TH/s of mining equipment for rent in the cloud. Some miners available for rent include AntMiner S4s and S5s.
Bitcoin Mining Hardware Comparison
Currently, based on (1) price per hash and (2) electrical efficiency the best Bitcoin miner options are:
AntMiner S7
- 4.73 Th/s
- 0.25 W/Gh
- 8.8 pounds
- N/A
- 0.1645
AntMiner S9
- 13.5 Th/s
- 0.098 W/Gh
- 8.1 pounds
- N/A
- 0.3603
Step 2 - Download Free Bitcoin Mining Software
Once you've received your bitcoin mining hardware, you'll need to download a special program used for Bitcoin mining. There are many programs out there that can be used for Bitcoin mining, but the two most popular are CGminer and BFGminer which are command line programs.
If you prefer the ease of use that comes with a GUI, you might want to try EasyMiner which is a click and go windows/Linux/Android program.
You may want to learn more detailed information on the best bitcoin mining software.
Step 3 - Join a Bitcoin Mining Pool
Once you're ready to mine bitcoins then we recommend joining a Bitcoin mining pool. Bitcoin mining pools are groups of Bitcoin miners working together to solve a block and share in its rewards. Without a Bitcoin mining pool, you might mine bitcoins for over a year and never earn any bitcoins. It's far more convenient to share the work and split the reward with a much larger group of Bitcoin miners. Here are some options:
For a fully decentralized pool, we highly recommend p2pool.
The following pools are believed to be currently fully validating blocks with Bitcoin Core 0.9.5 or later (0.10.2 or later recommended due to DoS vulnerabilities):
Step 4 - Set Up A Bitcoin Wallet
The next step to mining bitcoins is to set up a Bitcoin wallet or use your existing Bitcoin wallet to receive the Bitcoins you mine. Copay is a great Bitcoin wallet and functions on many different operating systems. Bitcoin hardware wallets are also available.
Bitcoins are sent to your Bitcoin wallet by using a unique address that only belongs to you. The most important step in setting up your Bitcoin wallet is securing it from potential threats by enabling two-factor authentication or keeping it on an offline computer that doesn't have access to the Internet. Wallets can be obtained by downloading a software client to your computer.
For help in choosing a Bitcoin wallet then you can get started here.
You will also need to be able to buy and sell your Bitcoins. For this we recommend:
- SpectroCoin - European exchange with same-day SEPA and can buy with credit cards
- Kraken - The largest European exchange with same-day SEPA
- Buying Bitcoin Guide - Get help finding a Bitcoin exchange in your country.
- Local Bitcoins - This fantastic service allows you to search for people in your community willing to sell bitcoins to you directly. But be careful!
- Coinbase is a good place to start when buying bitcoins. We strongly recommend you do not keep any bitcoins in their service.
Step 5 - Stay Up To Date With Bitcoin News
Staying up to date with Bitcoin news is important for your bitcoin mining profits. If you want general Bitcoin news then we recommend the WeUseCoins news section.
There is the Bitcoin Mining News Section and these are the 5 most recent articles:
On 1 August 2017 BIP 148 occurred. To better understand how that works we recommend reading this UASF Guide.
Other Languages
Arabic - عربى
Burmese -
Chinese (Cantonese) - 广东话
Chinese (Mandarin) - 普通话
Dutch - Nederlands
French - Français
German - Deutsche
Georgian - ქართული
Greek - Ελληνικά
Hindi - हिंदी
Indonesian - Bahasa Indonesia
Italian - Italiano
Japanese - 日本語
Korean - 한국어
Lao - ລາວ
Norwegian - Norsk
Polish - Polskie
Portuguese - Português
Russian - Pусский
Spanish - Español
Swedish - Svenska
Tagalog - Tagalog
Thai - ไทย
Turkish - Türk
Vietnamese - Tiếng Việt
You want to know how to cash out bitcoin to your local currency and directly into your bank? This is arguably the only guide you will need to read to start cashing out or spending your cryptocurrencies like fiat starting from today.
In this guide we will be looking at seven (7) ways to cash out bitcoins and other cryptocurrencies you might have accumulated:
- One-on-One Transactions
- Cryptocurrency Exchanges
- Peer-to-Peer (P2P) Exchanges
- Crypto Loaded Prepaid Cards
- Crypto-Backed Loans on DeFi platforms
- Your Local Private Bank
- Over the Counter (OTC) Markets
These are practically the safest, fastest, and least expensive ways of converting your bitcoin and other cryptocurrencies to fiat.
Fiat refers to your government-issued physical currency.
How to Cash Out Bitcoin – Factors to Consider:
Your choice of which method to use in cashing out your cryptocurrencies may be influenced by:
- The ease and cost of cashing out your crypto.
- How you want the money – physical cash, bank deposit, or other forms of electronic money like PayPal.
- How soon or urgent you need the cash.
- The local currency and your government’s regulations regarding bitcoin transactions.
- The amount of bitcoin you want to cash out.
So, without much ado let’s examine in detail how to cash out your bitcoin and other cryptocurrencies to cash and directly into your bank account.
1. How to Cash Out Bitcoin in One-on-One Transactions
This is probably the fastest and least expensive way to cash out your cryptocurrency – cash out your bitcoin by selling it directly to another individual looking to buy the coins and get them to pay you in your local currency either by physical cash or bank deposit.
What do you need for successful one-on-one bitcoin cash-out transactions?
- Someone else who wants to buy bitcoin and willing to deal directly with you.
- Your ability to transfer bitcoin from your wallet to their wallet.
- The person’s ability to pay you the physical cash equivalent of your bitcoin.
This transaction can happen face-to-face in your living room, at a bar or restaurant in your neighborhood; and it can also be executed via text, chat, mail or other means of communication if the other person is not within the same geographical location as you.
However, you can’t do a long-distance transaction with a stranger –will you? NO. So this method is only workable when dealing with someone you know so well like your parents, siblings, spouse, colleague, and other close acquaintances.
2. How to Cash Out Bitcoin through Cryptocurrency Exchanges
Cash Out Bitcoin Directly to Bank from Exchanges
Several major cryptocurrency exchanges such asBinance, Kraken, Bitstamp, and Coinbaseto name a few have integrated fiat gateways that make it possible for their customers to transact between fiat and cryptocurrencies.
Binance, for example, has partnered with Advcash (Advanced Cash LTD) to make deposits and withdrawals of fiat currencies such as EUR, RUB, UAH, and KZT possible on their platform.
Coinbase also, –one of the most regulated and trusted cryptocurrency exchanges in the world offer a safe and convenient way to cash out your bitcoin to fiat on their platform; but first, you have to link your bank account or Credit and Debit Cards to the exchange and complete the compulsory KYC verification process –this is standard practice and requirement among all cryptocurrency exchanges that deal with fiat.
More so, in compliance with KYC and international Anti-Money Laundering (AML) regulations; most cryptocurrency exchanges will require you to verify your bank account by making a small “test deposit” before you can cash out bitcoin through their services and you may only withdraw to the same account that you deposited with.
It’s something you should take note of when trying to initiate crypto cash-out transactions.
How long does it take to get my money from Exchanges?
Let’s take Coinbase for an example.
- For US customers on Coinbase, withdrawals to the bank take between 1-5 business days (depending on the method used)
- For European customers withdrawals to your bank account via SEPA transfer generally takes 1-2 business days and 1 business day for withdrawals via wire transfer.
- UK customers can expect to get the money into their bank account within 1 business day.
- PayPal withdrawals are instant for US, Europe, UK, and CA, customers –check theCoinBase FAQfor daily payout limits
Please note that there are usually transfer fees and other charges you might incur for the withdrawals.
Check with the respective exchanges you use for the latest information on applicable charges and withdrawal policies.
One of the major advantages of using this method is that you can withdraw a reasonable amount of money based on the level of your KYC you have completed without much stress and they’re relatively safer.
More so, you can cash out several other supported cryptocurrencies on the exchanges along with bitcoin.
However, if you prefer a more anonymous and faster method of cashing out your crypto, then you may want to consider using peer-to-peer exchanges like Paxful and LocalBitcoins.
3. How to Cash Out Bitcoin Using Peer-to-Peer Exchanges
The most popular peer-to-peer exchanges you can use to convert your bitcoin to fiat are LocalBitcoins and Paxful.
These two popular bitcoin market places operate in almost all countries of the world so anyone reading this guide right now can access them and use their platform to cash out bitcoin to fiat and directly to their bank.
As the name suggests, Peer-to-peer exchanges provide the platform for individuals to trade bitcoin among themselves without involving a third party.
Peer-to-peer exchanges are mostly escrow-based with a transparent and straightforward fee structure.
These exchanges offer certain advantages which make them appealing to many cryptocurrency enthusiasts looking to cash out bitcoin:
- Peer-to-Peer exchanges offer greater anonymity.
- Peer-to-Peer exchanges offer users the ability to negotiate exchange rates.
- Peer-to-Peer exchanges offer greater speed
However, there’s a high possibility of getting scammed if you’re not vigilant –that’s just the basic draw-down of this option to cash out bitcoin -security is not top-notch like the regular cryptocurrency exchanges.
How Does Peer-to-Peer Exchanges Operate?
First, you need to open an account on any of the exchanges –for example, LocalBitcoins; then complete your profile setup and place a trade request to sell bitcoin.
You can specify your preferred payment method. Some of the payment options include:
- Bank transfers
- Cash deposits
- Gift vouchers
- Skrill, Payoneer
- Western Union
- Neteller
- PayPal
- Mobile money
- Meet in person in your neighborhood and trade for cash settlement
Once you get a buyer, both of you can negotiate rates and then initiate the transaction. Your coins are locked in the escrow wallet until you confirm receipt of cash.
Neither you nor the buyer can access a coin that’s held up in escrow during a trade until the deal is successfully closed and if any problem arises along the line; the admins will step in to verify your claims and settle the dispute accordingly, based on evidence.
Make sure you’re trading on reputable peer-to-peer exchanges to avoid scams. The platform itself can scam users, so be vigilant and read exchange reviews before you move your funds there.
4. How to Cash Out Bitcoin Using Crypto Loaded Prepaid Cards
Crypto Loaded Debit Cards
The drive for crypto mass adoption has led to many projects introducing innovative products aimed at bridging the gap between crypto and fiat; thus making it super easy for ordinary people to be able to buy and sell cryptocurrencies easily.
One of such efforts to make the crypto to fiat conversion smooth and convenient for most users is Crypto Debit Cards.
The cards are preloaded with bitcoin and any other supported cryptocurrencies the issuing Company supports and can be used to withdraw your funds across millions of ATMs around the world or simply use for shopping on thousands of online merchant stores and in-store POS terminals that accept Visa or MasterCard worldwide.
Does this sound like a way to go in your search for how to cash out bitcoin to fiat?
Let’s examine the various Crypto Debit Card providers in the market, then you can decide which of them you will apply to get their card and start spending your crypto wealth easily.
Best Crypto Debit Cards:
Some of the best cryptocurrency debit card you can consider applying for include:
- Nexo Mastercard–access your money worldwide with zero foreign exchange fees. Monitor your transactions on Nexo Mobil App and enjoy 5% cash-back on all your purchases with the Nexo Mastercard.
- Coinbase Card–allows you to instantly spend the funds in your Coinbase account. Available to Coinbase customers in the UK, Spain, Germany, France, Italy, Ireland, and The Netherlands. The Card is useable anywhere that Visa payments are accepted.
- Wirex–One of the most established companies in the space with over 2 million customers and transaction volume of $2 billion.
- Revolut–Spend abroad with no fees.
- BitPay Visa Card– The BitPay prepaid Visa card is only available to US citizens and are globally useable everywhere Visa cards are accepted.
- MCO Visa–available in Singapore and over 30 US states and counting
- Bitwala–a secure card designed for global spending
This list is by no means exhaustive but they’re the top existing products in the market for you to choose from.
So what factors should guide your choice of a card?
- Is the card supported in your region?
- Is it user-friendly or full of complicated processes?
- How secure are the card and the issuing platform?
- Is the card reliable? Visa and MasterCard linked cards are more reliable.
- What are the fees structure and is this transparent? You wouldn’t want to SHARE your money with some crypto card Companies in the name of transaction fees.
- Does the card support multiple cryptocurrencies and fiat? How many fiat currencies does it support? Is it globally useable?
You will need to take your time and evaluate the various options and choose cards that provide the features that are most important to you.
Now you can carry your crypto everywhere you go with a smart crypto card.
5. How to Cash Out Bitcoin Using Crypto-Backed Loans on DeFi platforms
What if you never really need to cash out bitcoin?
What if you can spend all the cash your bitcoin is worth without actually selling your bitcoin?
What if you go on this spending spree and still enjoy any future price appreciation of the same bitcoin?
All these are made possible by Crypto-Backed Loans on DeFi platforms.
We can simply call them “crypto banks” or “blockchain banks” providing financial services on the blockchain.
How does it Work?
- You deposit your crypto into the platform.
- You request a cash advance and the Company transfer the fiat into your bank account.
- Your deposited crypto is held as collateral for the cash advance.
- Once you pay back the money you collected, you get your coins back.
That’s just how simple it can get.
So what are the benefits of using this method?
- It’s a legit way of avoiding being taxed as you are not selling your bitcoin. You’re simply taking loans and loans are not taxable.
- You still enjoy any future appreciation in the price of bitcoin or whatever cryptocurrency you have deposited. If bitcoin was $10, 000 when you took the loan and when you come to pay it back the price had risen to $20, 000 your wealth just doubled even while you’re spending it –amazing.
Several companies providing this service including MakerDAO,Nexo,EthLend,Salt, and many others in the market.
As is always the case, review the platforms carefully before depositing your bitcoin.
6. How to Cash Out Bitcoin Using Your Local Private Bank
Cash Out Bitcoin Through your local bank
If you are trying to cash out bitcoin worth millions of dollars, you will find that going through a private bank may be the best choice for you.
The bank can help you facilitate both the sale as well as the movement of the fiat equivalent to your desired destinations.
More importantly, why you may want to consider using a private bank is that you will get more professional help with receiving your funds without getting your account frozen due to heavy and sudden cash flow.
7. How to Cash Out Bitcoin Using Over the Counter (OTC) Markets
A certain volume of crypto transactions is simply not possible with any of the aforementioned options and that brings us to the last item on the list of ways to cash out bitcoin –Over the Counter (OTC) Markets.
What are OTC Markets?
Over-the-counter markets are avenues for participants to trade directly between each other, without the use of a central exchange or other third parties.
In practice, traders in an OTC market really don’t trade directly with each other but goes through what we call OTC desks or exchanges.
OTC desks are maintained by some of the major exchanges such as Binance, Coinbase, and Circle to accommodate traders who are willing to sell large amounts of coins, like miners or early crypto investors who have accumulated millions ad even billions of dollar worth of coins.
More so, there are crypto millionaires and billionaires looking to buy crypto without using the public exchanges.
You can cash out bitcoin worth millions of dollars by approaching any of the popular OTC market providers and negotiate rates with them.
They have been known to facilitate the large volume of crypto transactions this few years and so far remains the top place to cash out a large amount of coins anonymously and securely.
If you think the OTC market is free of scammers –you’re wrong. The big scammers – like hackers operate here and the same caveat “beware of scammers” applies in this market too if you don’t want to lose huge.
On a Final Note
There we have it –seven (7) ways to cash out bitcoin. As the cryptocurrency industry matures, better and more advanced means of converting your crypto wealth to cash are being developed and released into the market.
Spending your cryptocurrency shouldn’t be a difficult process and we hope that with this guide you find at least one method that works just fine for you –balancing anonymity with security and speed.
Always speak with your lawyer, banker, and other relevant experts when large amounts are involved so you don’t fall on the wrong side of the law or worse –get scammed of your crypto money.
What other ways do you cash out bitcoin to fiat and bank? Share with us in the comments section below.