How to Withdraw Bitcoin

Have you ever wondered how to withdraw Bitcoin for cash? This guide covers the three routes people actually use — selling through an exchange, trading peer-to-peer, and Bitcoin ATMs — along with the fees, timing and security checks worth making before you move any of it.

Before we begin though, let us give you a brief overview of Bitcoin.

Bitcoin is the most popular decentralised cryptocurrencies in the world, and it was launched in 2009. Bitcoin has stayed at the top for over a decade, and no other cryptocurrency has been able to dethrone it. Today, people tend to buy, sell, and trade Bitcoin on various cryptocurrency exchanges. 

One of the main benefits of decentralisation is that anyone can buy or sell up to any amount of Bitcoin, unlike traditional currency. The only limitation you may face is the one set by the exchanges. You can withdraw Bitcoin from various crypto exchanges or an external wallet. But these crypto exchanges do charge a fee for it. Some charge a minimal fee, whereas others charge quite a hefty one.

People also store Bitcoin on digital wallets and sell it for a profit when the price rises (also known as HODL). If you have been trading for some time you might have some Bitcoin stored in your wallet, and you are wondering how to withdraw Bitcoin. 

Methods for Withdrawing Bitcoin

You may have already purchased a decent amount of Bitcoin from crypto exchanges, but you need to withdraw bitcoin for cash. Let’s have a look at three different ways to withdraw bitcoin for fiat currency.

Withdraw Bitcoin From An Exchange

One of the easiest ways to sell bitcoin is via an exchange. People can buy and sell cryptocurrencies on the same platform. You can deposit Bitcoin in the exchange, and once it is deposited, you can withdraw to your bank account when the price rises. To withdraw Bitcoin in cash, you need to make at least one deposit using a bank account.

You can buy Bitcoin from an exchange using another cryptocurrency or via fiat currency itself. You can either deposit it into your digital wallet or let it store on the exchange wallet itself. The fiat currency withdrawal occurs via bank transfer, and depending on your bank it may take up to 1 to 5 days to reflect in your bank account. As you can see, this is quite a time-consuming process. However, it is quite safe and secure to withdraw Bitcoin (BTC) from an exchange.

There may be a withdrawal limit per day as discussed here. So if you have a large amount of Bitcoin in your wallet, it may take up to a couple of days to withdraw everything.

Withdraw Via Peer-to-Peer Transfer

If you prefer a more anonymous and less time-consuming approach, you can sell Bitcoin for cash via peer-to-peer transfer. When you opt for this, you can request the buyer to transfer the money via your preferred payment method.

However, there are some risks associated with P2P transfer. There may be fraudsters who may get away with your Bitcoins and not pay for it. To avoid such instances, you can make use of P2P exchanges. You need to set up an account at popular P2P exchanges. Verify your identity and then find a buyer to make a transaction with. There are no intermediaries involved, thus making it anonymous.

Here are some of the ways you can request a P2P payment

• You can request the buyer to deposit the cash directly into your bank account. 
• You can request the buyer to send you the cash via bank transfer.
• You may also arrange a meet up with the person to hand over the cash for your Bitcoins.

The benefit of P2P exchanges is that the Bitcoin transfer is completed only when the seller has acknowledged that they have received the payment (also known as escrow service). You also have no withdrawal restrictions.

Bitcoin ATMs

Bitcoin ATMs (BTMs) are just like regular ATMs that help us transact in Bitcoin. Bitcoin, being the leading cryptocurrency, has its own ATM system. With increasing Bitcoin users, Bitcoin ATMs will be more useful.

The Bitcoin ATM is connected to the internet and allows users to connect to various exchanges and wallets to buy and sell Bitcoin using cash or card. You can do a google search to find your local BTM.

BTM was first launched in October 2019, and there are only about 7000 machines worldwide. But this number will increase as more people realise their benefits.

Here’s how you can sell Bitcoin on a Bitcoin ATM

• On the BTM interface, select ‘Withdraw Cash’.
• Provide the amount of Bitcoin you want to withdraw.
• Use the QR code displayed to transfer Bitcoin from your wallet or exchange.
• Once the transaction is processed, you can withdraw your cash.

How to Cash Out Bitcoin From a Wallet?

You may have Bitcoin sitting in your own wallet and need to turn it into cash. The usual route is to send it to a platform that supports fiat withdrawals in your country, sell it there, and withdraw the proceeds to your bank. Check that the platform is licensed for fiat where you live before you send anything — that licence, not the interface, is what protects the cash leg of the trade.

Important Things to Consider When Withdrawing Bitcoin for Cash

Before you withdraw Bitcoin for cash, there are various factors to look out for. These include:

Be Aware of Price Volatility

The Bitcoin market is quite volatile. Thus, if you are looking to sell for a profit, you need to be quick. There can be instances where you may be initiating a withdrawal, but the price drops all of a sudden, reducing your profits. But in some cases, the price may also witness a sudden rise; you never know. The Bitcoin price is quite volatile due to a decentralised market. Investors and trading volumes highly influence the volatility so ensure you research the market before withdrawing.

Ramp Up Your Security

There are real security risks when it comes to Bitcoin. Only send coins to a platform you have checked properly — a public track record, clear published terms, and a support channel that actually answers. Never hand a large balance to an exchange you have not used before; if it disappears, recovering it is usually impossible. The safest position is the one where you never give up the keys in the first place.

Even if the exchange is legit, they may lack the necessary security protocols to prevent your Bitcoin from being stolen. Also make sure you turn on and use 2FA (Two Factor Authentication) so no one else can access your account.

Cryptocurrency Exchange Fees

Any platform that converts crypto into fiat charges for the privilege, and the spread usually costs more than the headline fee does. Compare the total before you commit — trading fee, withdrawal fee, and the exchange rate you are actually given — because on a large cash-out the difference between two providers can dwarf the fee either of them advertises.

Consider Timing

When you withdraw Bitcoin for cash, you need to consider the time taken for the money to reach your bank account. Withdrawal to your bank account may take a few business days. So, if you require the cash quickly, then approaching a cryptocurrency exchange may not be suitable.

Final Thoughts

Withdrawing Bitcoin for cash from a reputed exchange is quite common. However, ensure you calculate any transaction fees before deciding on an exchange. Those who prefer anonymity can opt for P2P transfers, but there are various security risks associated with it. Even if you have Bitcoin stored on your digital wallet, you can transfer it to an exchange via a wallet address and then withdraw it for cash. This way, your Bitcoin is secured, and you receive the appropriate amount. 

And if what you actually want is to trade Bitcoin rather than cash it out, you do not have to hand it to anyone. On Zipmex you connect your own wallet and trade on-chain — no account, no deposit, no withdrawal queue to wait in.