The Best Ways to Convert Bitcoin to Cash

More businesses now accept Bitcoin, Litecoin, and other cryptocurrencies but it can still be hard to use your coins everywhere. Here are the three best ways to convert your Bitcoin into cash to use when shopping online and in a store.

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Get Cash With a Bitcoin ATM

Bitcoin ATMs are available in most major cities around the world and provide a relatively fast way to convert Bitcoin and other cryptocurrencies into government-issued currency.

Many Bitcoin ATMs let you buy Bitcoin in much the same way that you deposit money at a regular ATM. Most now support additional cryptocoins such as Litecoin and Ethereum as well.

However, fees on these transactions are higher than you'd pay through an online service, and the conversion rates generally aren't as favorable.

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Convert Bitcoin Via an Online Service

Two mobile phones trading dollars for Bitcoin — DigitalVision Vectors / sorbetto

Several popular online services not only allow people to easily purchase Bitcoin and other cryptocurrencies through their websites and smartphone apps but also sell the cryptocoins they have for government-issued currency.

The most popular service is Coinbase and a good alternative is CoinJar. Both offer the buying and selling of Bitcoin, Litecoin, and Ethereum, while Coinbase also supports Bitcoin Cash (a separate cryptocurrency from Bitcoin) and CoinJar has Ripple.

Each service can connect to bank accounts to pay for cryptocoin purchases. This connectivity also enables the selling of cryptocurrencies, which can be converted and transferred to a bank account within a few days.

Many people use Coinbase and CoinJar to buy Bitcoin (and other coins) and cash out their profits through a bank transfer as their cryptocoins gain in value. Others use their accounts to receive cryptocurrency payments from friends, family members, or customers.

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Use a Bitcoin Debit Card

Cryptocurrency debit cards are a practical and affordable way to spend Bitcoin and other cryptocoins at almost any retailer. These cards allow their users to deposit their cryptocoins through an online website that converts them into a fiat currency such as the U.S. dollar or euro.

Popular cryptocurrency debit card issuers include Monaco, Bitpay, CoinJar, and BCCPay. Each card is powered by either VISA or Mastercard, which means that they work for both online and offline shopping at most businesses. Availability can vary by geographical region, as can the daily and monthly usage limits, so compare each card to find the right one for you.

Should You Convert Bitcoin to Cash?

Because many people view cryptocoins as an investment strategy rather than as a daily-use currency, conversions to and from Bitcoin influence the value of a portfolio. Frequent conversions to address volatility in the cryptocoin market may cost a great deal in fees and unfavorable rates.

Keep your cryptocurrency stored in a wallet or online service and only convert to money that which you'll need to spend over one of your budget cycles. If you incur an unexpected need for more money, withdraw more cryptocoins as cash from a Bitcoin ATM or transfer cryptocoins to a debit card or your bank account.

Transferring cryptocurrencies to a bank account through Coinbase or CoinJar can take between one and five days, however, so it's best not to rely on this method to get cash in emergencies.