Turning Bitcoin into cash may seem simple, but there are a few things you’ll want to consider before cashing out your crypto wallet.
Taxes
Converting crypto into fiat is a taxable event whether you are selling on an exchange, P2P, using a Bitcoin ATM or loading onto a crypto debit card. You will want to talk to a tax professional to understand how crypto transactions are taxed in your area.
Transaction fees
You will pay fees to convert your cryptocurrency into cash. Depending on how large or small your transaction is may determine which method you use.
Speed
Each method takes its own amount of effort and time. For example, using the BitPay Card or selling on a centralized exchange takes far less time and effort than selling on a P2P exchange or seeking out a Bitcoin ATM.
Market health and long term goals
Some crypto enthusiasts are in it for the long haul while others may choose to cash out as soon as they make a profit. Figure out which camp you live in and decide whether converting your crypto into cash is the right finance decision for you at this moment.