Bitcoin has become a more popular form of currency over recent years. You can use it in many mainstream retailers online. But there are times when you might want to convert the bitcoin that you’ve mined, purchased, or gained through investment into cash. It’s not a difficult process, but you need a little bit of knowledge to get started. You can get your bitcoin through an IPO like the one you can buy on SoFi, which lets you “select the IPOs you’d like to participate in and submit an indication of interest,”
How To Transfer Bitcoin To Your Bank Account
When you move bitcoin to your bank account, you’re doing essentially the same thing that you would be if you were transferring a currency from another country into your bank account. When you make that transfer, you’ll also change over the type of currency to the American dollar. If you’re wondering, “How much is Bitcoin,” you can check around with places like SoFi or go to an exchange broker. When you transfer this money over, you’ll get the equivalent amount in the new type of currency to what you’re putting in for the transfer.
Methods for Cashing Out Your Bitcoin
You have to cash out your bitcoin first. To do this, you could start with an exchange broker. The broker will already have the set exchange rate, and the process is simple and secure. One of the drawbacks is that you have to wait about four to six days to get your money in your bank account. Coinbase and Kraken are two popular brokers. If you’ve never done this before, there are a few steps that you’ll need to take:
- Choose your broker and complete the verification process with the company.
- Deposit bitcoin into your account with the exchange broker.
- Send the money to your bank account.
You should also keep in mind that your money might be subject to service fees.
Another option is to do a peer exchange. If you choose this option, you’ll be able to exchange your bitcoin with an outside party who wants to buy bitcoin for themselves even though they’re not a broker. Some people like this option because it’s more anonymous. One of the advantages of selling to a peer is that you can often get a better exchange rate. Using a peer-to-peer transfer site is one way to avoid fraudsters because sites will hold your Bitcoin in your account until you confirm that the cash from the other party has hit your account. As a note, you should always ask for an ID and proof of payment before your release your bitcoins to them to avoid fraudsters. You can start by signing up for a peer-to-peer exchange site like LocalBitcoins. This site will let you choose a buyer based on location. You can send a trade request, too.
Other Considerations
When you’re going to convert your Bitcoins, there are a few considerations, including paying taxes on any earnings that you make on your bitcoin exchange. You should also remember that there will likely be applicable fees, and you should think about how long you’re willing to wait for the transfer to complete.
When you’re not sure about how to transfer your Bitcoins to regular currency, know that there are plenty of options.