With the growing popularity of cryptocurrencies, many options exist today for converting bitcoin to cash. There are four ways you can convert bitcoin to fiat currencies, commonly the US Dollar (USD):
Online centralized crypto exchanges
Users of Binance, Kucoin, and many other centralized crypto exchanges used for trading cryptocurrencies can convert their bitcoin to USD. They can withdraw their funds and deposit them directly in their bank account. However, users should be aware that this service may not be available for banks in their country of residence. Also, the exchange charges a fee for the service costing anywhere between 1 to 3% depending on the crypto exchange. You need to register an account with the exchange and go through the identity verification before you can trade and deposit funds or convert them to USD.
Physical fiat/crypto exchanges
Another option available for converting bitcoin to USD is through physical fiat/crypto exchanges. These exchanges act like fiat currency exchanges that you use at the airport or in your local area to convert your local currency to the US dollar. However, these types of crypto exchanges may not exist in every country and may require some to travel to convert their Bitcoin. As Bitcoin becomes more popular, regulated, and widely accepted, fiat/crypto exchanges will become more widely available.
Online peer-to-peer crypto exchanges
Peer-to-peer crypto exchanges transactions occur online directly between the buyer and selling, hence the name, peer to peer. But the platform acts as a middle man to secure the transaction by storing bitcoin safely in escrow until the seller receives the payment. Then the funds are deposited to the buyer’s wallet address. Localbitcoins is a popular peer-to-peer crypto exchange. Here is a quick tutorial on how to buy and sell bitcoin on LocalBitcoins:
Physical peer-to-peer exchange
Physical peer-to-peer involves meeting someone in person, a friend, relative, or a stranger willing to buy your bitcoin for cash. Some groups on Facebook exist to connect buyers with sellers to trade bitcoin in person. The problem with this approach is that it is not safe when dealing with strangers. The level of risk depends on where you live. You should meet in public and have someone with you regardless of how safe your community is.