How to Cash Out Bitcoin & Crypto: Best Methods in 2025

How to Cash Out Your Crypto or Bitcoin

Wondering how to cash out crypto quickly, easily and safely? Learning how to sell crypto – or essentially exchange it for money you can use every day is important – particularly if you have profits you need to lock in or expenses to cover in the real world. 

But there’s more to it than looking for the cheapest way to convert crypto to cash. There are actually various ways to “cash out.” The right method all depends on factors like how fast you need to access your funds, how large your transaction is, and your tolerance for fees. 

Here, we’ll explore some of the most popular ways to turn crypto into cash, from using centralized exchanges to P2P platforms and specialized over-the-counter services. 

How to Cash Out Crypto: Popular Methods

Look for “how to turn crypto into cash” online and you’re bound to see a lot of results. But some methods and strategies are safer, and cheaper than others. Ideally, you want your conversion method to be secure, simple, and free from excess fees. 

Here are some top options. 

1. Using Cryptocurrency Exchanges

Probably the most common way to convert crypto into cash is to use an exchange. A centralized exchange like Binance, Coinbase, or Kraken will usually allow you to “sell” your crypto holdings to traders in exchange for fiat currency you can pull into your bank account. 

The process is straightforward:

• Create your account: Sign up for an account on an exchange, and follow the verification process and KYC checks. 

• Deposit crypto: Transfer the coins from your personal wallet into your exchange wallet. Usually, you’ll be given a different deposit address for each cryptocurrency. 

• Sell or convert your coins: Visit the trading section of the platform, and choose the asset you want to sell or trade (such as BTC or ETH). Pick the fiat currency you want in return (EUR or USD), and confirm how many coins you want to sell. 

• Withdraw: Once the sale or transaction is done, go to your withdrawal page, enter your banking details, and confirm the transaction. 

Notably, while this method is straightforward, remember that some exchanges only operate in certain locations, thanks to crypto regulations. 

Pros

• High liquidity and fast sales execution.

• Customer support for troubleshooting.

• Often considered secure if you follow best practices and use strong authentication.

Cons

• Transaction and withdrawal fees can add up. 

• You must comply with KYC requirements.

• Centralized custody means you’re temporarily trusting the platform with your funds.

2. Peer-to-Peer (P2P) Platforms

Peer-to-peer marketplaces like LocalBitcoins, Paxful, and Binance P2P are another option if you’re wondering how to sell crypto for cash. These exchanges allow users to quickly convert crypto without a direct intermediary. Buyers and sellers on the platform agree on terms and work with escrow services to finish up trades. 

Here’s how it works: 

• Account registration: Sign up on a P2P platform and verify your identity if required. Some platforms are more lenient with KYC checks, but official documentation might be necessary for higher limits.

• Browse or create trade offers: Look through active buy orders, filtering by payment method, location, and price. Alternatively, create your own listing if you want to specify exact terms.

• Initiate the Trade: When a buyer or seller matches your offer, the platform holds the crypto in escrow. Communicate with the other party to confirm payment details.

• Payment and Release: Once you receive payment (bank transfer, PayPal, gift cards, etc.), confirm the deposit in your account. Then, release the crypto from escrow to finalize the trade.

P2P platforms are useful if you’re looking for good rates and lots of cash out options. But there are risks – scams can happen on these sites. 

Pros

• Many payment methods, such as bank transfers, mobile wallets, or cash deposits.

• Possible to find better rates than on standard exchanges.

• Additional privacy compared to large, centralized platforms.

Cons

• Risk of fraud if the platform’s escrow system is weak or if you don’t do proper checks on the buyer/seller.

• Trades can take longer, depending on how quickly payment is confirmed.

• You need to stay vigilant about potential scams and thoroughly review each user’s reputation on the platform.

3. Crypto Debit Cards

Crypto debit cards might sound unusual, but they’re becoming more common. Even Mastercard has its own crypto debit card now. Other vendors like Crypto.com and Wirex offer them too. These cards allow you to spend your digital assets directly – without having to convert them into fiat currency.

The cards are very similar to traditional debit cards, which also means they can incur fees – but they can work with various ATMs and transaction points. 

All you need to do is:

• Sign Up for a Card: Choose a provider that serves your region and complete any KYC steps required for issuance.

• Load Your Card with Crypto: Transfer Bitcoin, Ethereum, or other accepted coins into your card account. Some carriers do support multiple cryptocurrencies for greater flexibility.

• Spend or Withdraw Funds: When you make a purchase, the card automatically deducts the crypto from your account and settles the transaction in fiat. You can often withdraw cash from compatible ATMs, much like a standard debit card.

If you don’t want to struggle with the headache of learning how to cash out crypto, debit cards are convenient and straightforward. Remember, though, they’re not available or accessible everywhere. 

Pros

• Convenient for everyday spending.

• Quick and easy conversion.

• Some cards offer perks or loyalty rewards. 

Cons

• Conversion fees may apply, and these vary by provider.

• Not universally accepted in all regions, so you should verify acceptance in your location.

• Each purchase might count as a taxable event, depending on your country’s regulations.

4. Bitcoin ATMs

Bitcoin ATMs or crypto ATMs are physical kiosks that allow users to sell cryptocurrencies for immediate cash. You insert your coins into the machine digitally, usually by scanning a QR code, and the machine deposits money. That means you get your funds fast. 

Here’s how it works:

• Find a Nearby ATM: Use directories such as Coin ATM Radar to locate machines in your city or region. Check each ATM’s fees, supported cryptocurrencies, and withdrawal limits.

• Verify Your Identity: Some machines only require a phone number for smaller transactions. Others may request photo ID or additional KYC measures for larger amounts.

• Send Bitcoin: The ATM will usually display a QR code. Use your crypto wallet to send the specified amount of BTC to that address. Wait for network confirmation, which can take a few minutes.

• Receive Cash: Once confirmed, the ATM dispenses the requested fiat amount. You may receive a receipt by SMS or email, depending on the machine.

Like debit cards, crypto ATMs are convenient, but they’re not the cheapest way to convert crypto into cash. Plus, they’re frequently targeted by scammers, so you’ll need to be extra cautious when using them. 

Pros

• Quick way to convert Bitcoin into local currency without a bank.

• Suitable for those who lack traditional financial services.

• Straightforward process, often with minimal setup.

Cons

• High transaction fees, sometimes surpassing 10% or 15%.

• Lower maximum withdrawal limits.

• Not as prevalent in rural areas, so access might be limited.

5. OTC (Over-the-Counter) Trading

OTC (Over-the-Counter) trading options are usually popular among people trying to figure out how to sell crypto for cash in large volumes. This strategy is best for larger transactions where privacy, minimal market impact, and personalized assistance are all important. 

Instead of placing a massive sell order on an exchange that could drive down the asset price, OTC desks match high-volume buyers and sellers privately. Here’s how you can use OTC trading:

• Locate a Trusted OTC Desk: Reputable crypto exchanges (e.g., Binance, Kraken, Coinbase) often have dedicated OTC services. There are also specialized firms like Cumberland or Genesis that cater to institutional investors.

• Negotiate the Deal: Work with a broker who provides a fixed quote for your crypto. Agree on terms such as price, time frame, and settlement method.

• Settle the Transaction: Next, both parties transfer funds - crypto for fiat - in a private arrangement, often via wire transfer.

You’ll likely need to pay extra for support here, and you will need to provide extra documentation in some transactions, so this method isn’t great for smaller conversions. 

Pros

• Minimal market slippage, even for substantial sales.

• Personalized service, including private negotiations.

• Discreet transactions, ideal for large holders or institutions.

Cons

• Not suitable for small, one-off transactions.

• Extra due diligence and documentation required.

• Higher trust needed when dealing with brokers.

How to Sell Crypto for Cash: Taxes and Legal Considerations

When you’re learning how to cash out crypto – remember that profits and convenience aren’t the only considerations that count. In many countries, disposing of cryptocurrency - by selling or spending - qualifies as a taxable event. 

Depending on how long you’ve held the asset, you may owe short- or long-term capital gains tax. Conversely, any losses can sometimes offset your gains or reduce taxable income.

It’s also worth learning as much as you can about Know Your Customer (KYC) and Anti-Money Laundering (AML) rules. These usually apply to various trades – particularly if you’re converting large sums of crypto. Centralized exchanges often need to gather personal data, including proof of identity and sometimes proof of address, to reduce risks of money laundering and criminal activity. 

Even P2P platforms might require some form of ID verification when trading above certain thresholds. Make sure you do your homework and avoid mistakes like: 

• Failure to report: This can trigger audits or penalties.

• Non-compliance: Attempting to bypass KYC checks could lead to account freezes.

• Scams: Some fraudulent platforms claim no ID is required but then vanish with user funds.

Fees and Exchange Rates

Another thing to keep in mind when learning how to turn crypto into cash, is that fees will always apply. While an exchange may claim low trading fees, it could impose higher withdrawal costs. Always consider the total expense, including both trading commissions and the currency conversion spread. Here’s a quick run-down of what to expect: 

Getting the Best Exchange Rate

• Choose Highly Liquid Markets: Major exchanges with numerous active traders can offer competitive prices.

• Use Limit Orders: Instead of opting for an immediate sale, place a limit order to secure a favorable rate.

• Compare Across Platforms: If time permits, check at least two or three exchanges to see which one offers the lowest fee and best conversion rate.

Security Tips When Cashing Out

No matter the platform, vigilance is crucial. Criminals frequently target individuals who want to cash out crypto. Taking sensible steps to secure your assets can protect you from scams and other threats.

Avoiding Scams and Fraud

• Check Reputations: Only trade on well-known exchanges or P2P platforms with good user feedback.

• Escrow Services: If selling crypto via P2P, ensure the transaction uses an official escrow system.

• Be Aware of Phishing: Be cautious with unsolicited emails claiming to be from support teams or asking for private details.

• Double-Check Payment: Never release crypto until you confirm the funds in your own bank account. Screenshots can be faked.

Best Practices for Secure Transactions

• Enable 2FA (Two-Factor Authentication): This adds a second layer of security to your login and withdrawals.

• Use Complex Passwords: Avoid reusing passwords across multiple sites.

• Whitelist Addresses: Some exchanges allow you to limit withdrawals to a specific set of wallet addresses.

Using Cold Wallets for Large Withdrawals

If you plan to transfer significant amounts of crypto before a cashout, consider a cold wallet like Ledger or Trezor. Storing your coins offline drastically reduces exposure to online hacks. From there, you can move assets in controlled increments when you’re ready to sell.

How to Cash Out Crypto: Alternative Options

There are a couple of alternative options you can consider, on top of those mentioned above. For instance, you can spend your crypto directly on a lot of platforms. 

Lots of merchants now accept crypto payments, allowing you to use digital assets like Bitcoin or Ethereum just like dollars. Retailers such as Newegg, Overstock, and even select Shopify stores support crypto payments. Platforms like BitPay and Crypto.com Pay act as intermediaries, enabling users to spend crypto for travel, gift cards, and everyday purchases.

Just remember, spending crypto can be also seen as “selling it” so know the tax implications.

The other option is to convert your crypto into stablecoins like USDT (Tether) or USDC (USD Coin). These tokens are pegged to traditional fiat currencies. Converting digital assets into these coins can be a good way to boost liquidity for future crypto investments and avoid short-term market volatility. 

Turn Crypto into Cash The Right Way

Figuring out how to cash out crypto the right way can be daunting. There are various options out there – the right strategy for you really depends on your needs. If you’re looking for simplicity and reliability, a centralized exchange could be a good bet. If you’re looking for more flexibility, peer-to-peer platforms are a good option, and OTC desks are great for high-volume sales.

Whatever method you choose, make sure you do your research. Review your tax obligations, be wary of scams and security risks, and always show caution.  

Disclaimer: This material is for information purposes only and does not constitute financial advice. Flipster makes no recommendations or guarantees in respect of any digital asset, product, or service. Trading digital assets and digital asset derivatives comes with a significant risk of loss due to its high price volatility, and is not suitable for all investors. Please refer to our Terms.