How to Withdraw Bitcoin
October 22, 2020
Have you ever wondered how to withdraw bitcoin for cash? This guide will talk about various methods of withdrawing Bitcoin, plus we will take a closer look at withdrawing Bitcoin for cash with Zipmex and a digital wallet. We will also talk about different things to consider while withdrawing Bitcoin for cash.
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 (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. BTMs are located in many stores and airports across the east coast of Australia so ensure to 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 With Zipmex?
Zipmex is one of the most popular cryptocurrency exchanges in Australia where you can buy, sell or trade Bitcoin. To cash out Bitcoin with Zipmex, you need to open a Zipmex account. Registering an account takes about a minute for approval and then a further 24 hours for a manual KYC check. After this time you will be eligible for crypto and fiat deposits and withdrawals.
After KYC verification, head over to this link or select the ‘Sell’ tab under the ‘Buy or Sell’ option in the exchange. Ensure that you have selected ‘Bitcoin/Australian Dollar’ under the ‘Choose an asset to sell‘ field. It will display the value of 1 BTC in AUD. Now enter the amount of Bitcoin you want to sell, and then click on the ‘Sell’ button. The amount will reflect in your bank account in 1 to 5 days.
Note that Zipmex charges a small fee of 0.2% on such withdrawals. Also, you can only cash out to the bank account you have linked to your Zipmex account. You also need to make a small deposit before you can withdraw.
How to Cash Out Bitcoin From a Wallet?
You may have Bitcoin stored on your digital wallet, and you need to cash it out. You can cash out the Bitcoin by depositing it by sending it to your wallet address on an exchange such as Zipmex. Once you have the amount on the exchange you can then withdraw it for fiat currency at an appropriate time.
Zipmex comes with an in-built digital Bitcoin wallet. Using the public address of your Zipmex Bitcoin wallet, you can transfer the Bitcoin from your digital wallet to Zipmex. Once the Bitcoin has been successfully transferred, you need to click on the Withdraw button under the Bitcoin. You can withdraw this Bitcoin to fiat currency via bank transfer to a withdrawal address and the amount will reflect in the bank account linked with your Zipmex account.
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 many security risks when it comes to Bitcoin. You have to ensure to approach legit crypto exchanges to trust them with your Bitcoin and withdraw for fiat. Zipmex is a great choice as we offer insurance at no extra fee (insured by BitGo) so if something were to go wrong you would be covered. Never go to a random exchange and give them all your Bitcoin; it may be a scam.
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 cryptocurrency exchange charges a fee for withdrawal to fiat currency. Some exchanges may have a hefty fee while others may not. Ensure that large transaction fees do not eat up your profits. At Zipmex, we charge a low trading fee of 0.2% per withdrawal or deposit. This is relatively low compared to other exchanges.
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.
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.
You can approach Zipmex for withdrawal to fiat currency as we charge a low trading fee and provide a secure platform. You can also transfer Bitcoin from your wallet address and withdraw it for cash.
So what are you waiting for? Head over to Zipmex exchange and sell your Bitcoin for cash!