It’s been a crazy year for Bitcoin. In December 2017, the crypto-currency hit a new all-time high of $20,000. In January 2018, it crashed by more than 50 percent of its value.
That said, Bitcoin is still insanely valuable, especially if you got in early years ago. If you’re sitting on a pile of Bitcoin and want to cash out while you still can, keep reading to find out how.
How to Sell and Convert Bitcoin to Dollars
To sell and convert your Bitcoins into American dollars, you will need:
- An account with a cryptocurrency exchange
- An account with a regular bank
When choosing an exchange, you’re ideally looking for one with low fees, a strong track record from a security standpoint, and the ability to withdraw fiat currency to bank accounts.
American residents might find that final point challenging since many exchanges no longer accept US residents due to the country’s stringent money laundering checks. You might also find you need to verify your account before you can make a withdrawal.
When you’re ready, you need to deposit your bitcoins into the exchange using your Bitcoin encryption key.
Next, monitor the markets for a favorable time to make the switch. Bitcoin is a highly volatile asset. Waiting just a couple of hours could see you get considerably more or considerably fewer dollars for your coins when you perform the exchange.
Finally, add your bank account details to your exchange account and make the withdrawal. Keep in mind that your country of residence might require you to pay capital gains taxes on the amount you withdraw.
Do you regularly withdraw Bitcoins, or are you holding your assets in the hope they will be worth more later in 2018? Let us know in the comments below.
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