Nowadays there are many options for converting bitcoin to cash. Let’s see four ways we can exchange bitcoin to fiat currencies, such as the US Dollar (USD):
There are different centralized crypto exchanges such as Binance, or Kucoin, that are used for trading cryptocurrencies and even converting them into fiat currencies. The funds from such exchanges can be withdrawn and deposited directly into users’ bank accounts. But users should be aware that such services may not be available for their country of residence banks. The exchange usually charges a fee for their service that can be from 1% to 3%. To implement transactions on centralized exchanges you need to create an account there and pass the identity verification (KYC).
Another commonly used option for converting bitcoin to USD is with the help of physical fiat/crypto exchanges. These exchanges work on the basis of any fiat currency exchanges that you use at the airport or in your local area to exchange your local currency to USD. Yet physical exchanges may not exist in every country. With the grow of BTC popularity and worldwide acceptance, the fiat/crypto exchanges are becoming more widely available.
Peer-to-peer crypto exchanges took their name from the process itself: the transactions happen online directly between the buyer and seller. The platform itself here acts as a third party to secure the transaction by keeping bitcoin safely until the seller receives the payment. Then the funds are deposited to the buyer’s wallet address. For example, one of the most popular peer-to-peer crypto exchanges is Localbitcoins.
Physical peer-to-peer works as a personal meeting with someone, that can be your friend, relative, or a stranger who wills to buy your bitcoin for cash. You can find some groups on Facebook to connect with buyers or sellers to exchange bitcoin in person. However, it is not safe to deal with strangers. The level of risk depends on the area where you live. Still it’s better if you meet with the buyer/seller in public and have someone with you no matter how safe your community is.