Can you transfer Bitcoin to USD?

After a lengthy and technical period of mining or consolidating Bitcoins, you need to know how to turn the coin into fiat. Though the pioneer coin has been in the market for about 10 years starting from 2009 when Satoshi Nakamoto founded it, the process of converting it to fiat is still lengthy and complex.

How to turn Bitcoin into USD is an uphill task that often requires the use of multiple platforms. Because Bitcoin is not recognized as a legal tender in most countries, and the definition of digital currencies is also unclear, many entities handling them opt to stay away from acting as a bridge with fiat currencies.

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To help people who have Bitcoins or that want to join cryptocurrencies but harbor fears about conversions, this post digs into the best method to turn Bitcoin into USD.

Cashing Out Bitcoins Online

This method involves using a platform that allows the Bitcoin owner to interact directly with the buyer using an intermediary site. The intermediary platform charges a fee for facilitating the transactions.

The process requires the Bitcoin owner – you – to select a financial service provider (preferably a bank) to create a seller’s account and complete it with ID verification. Then, you are required to post the Bitcoins to be sold so that the facilitating selling platform can identify a buyer and initiate the transaction.

To keep your coins safe, the Bitcoins may be frozen once they are deposited into the platform’s account. Once the potential buyer is identified, he is required to send the ordered amount in fiat for the Bitcoins on sale before they are deposited into his wallet.

The process ends with the amount your Bitcoin fetched being deposited into your bank account and the digital coins being transferred to the buyer. Note that the amount you will receive is less the transaction fee for the facilitating platform.

One of the companies that use this method is Coinbase exchange. Coinbase has indeed simplified the process so much that you can turn Bitcoin to USD with just a few clicks. They even allow Bitcoin owners to cash them out promptly using mobile phones.

The transaction fee at Coinbase varies depending on the amount under consideration. For example, the Coinbase website indicates that if you state that $100 as the amount of Bitcoin to sell, the fee is 1.49%.

Use Trading Platforms to Turn BTC into Cash

Rather than trading directly with another person, some people opt to convert Bitcoins into cash by using trading platforms that combine crypto and forex trading exchanges. These platforms require users to start by registering accounts and verifying them using government-recognized info such as a phone number and date of birth.

Then, the Bitcoin holder has to deposit the coins on the exchange account, place a sell order stating the preferred currency of payment and price. When a matching buy order is placed, the transaction is completed.

Notably, these exchanges are centralized and are considered an easy target for attackers. If you pick any big loss in the crypto industry, the chances are that it happened in the exchanges. One of the latest attacks on the crypto exchanges happened at YouBit in December 2017 and resulted in the platform filing for bankruptcy.

One of the top exchanges that allow users to cash their Bitcoins for cash is Kraken. This is one of the leading exchanges, which was started in 2011, that has won the tag of the gateway to the cryptocurrency industry for supporting crypto to fiat transactions and vice versa.

To use Kraken, digital coin holders are required to start by registering accounts and confirming them with additional information like proof of location, phone number, and date of birth.

After creating a Kraken account, you are required to deposit the Bitcoins to be converted to cash. The platform requires the account holder to place an order based on the amount he wants to sell the Bitcoin. You will also be required to provide the bank account for the fiat deposit after the transaction is completed.

It will take between one to five days for the transaction to be completed and the funds to be deposited into your account. Note that if you want to sell Bitcoin for USD and withdraw to a local US bank, a fee of $5.00 is levied.