There are several ways to withdraw Bitcoin (BTC) cryptocurrency to fiat currencies. Each of them has its pros and cons, differs from others in terms of cost and speed. The methods that the Btcnewsweb.com editors have collected in this article today are generally safe and convenient – the main thing is to choose the right services for their application. You only need to pay attention to services with a good reputation and high ratings on specialized platforms. Do not trust reviews on forums and social networks, they can be customized.
- 1 How to choose a bitcoin withdrawal method
- 2 How you can withdraw Bitcoin in 2022
- 3 Payment systems for the withdrawal of bitcoin and other cryptocurrencies
- 4 ATM for cryptocurrencies (cryptomats)
- 5 How to transfer Bitcoin from one wallet to another
- 6 What else you need to know about Bitcoin withdrawal
- 7 Conclusion
How to choose a bitcoin withdrawal method
Before dwelling on one of the methods of cashing out a cryptocurrency, several factors should be taken into account:
- How much do you want to withdraw.
- What transaction costs will this or that path require.
- How long will the withdrawal take.
- Where exactly is it planned to transfer funds (bank card or account, Payeer, Advcash, QIWI, Yumani, etc.).
- Local laws and bans related to cryptocurrency earnings.
The combination of these factors leads to the fact that some methods will be much more convenient than others. For example, if you want to withdraw to Payeer, then you need to look for such exchanges or exchangers that support this direction. And before cashing out a large amount, it is best to call the bank and notify about it in advance, otherwise the account may be frozen.
How you can withdraw Bitcoin in 2022
Withdrawal via bitcoin exchanges
There are a lot of cryptocurrency exchanges, but for the withdrawal of bitcoin into real money, we are only interested in those that support fiat money (that is, rubles, dollars or other real assets). As a rule, you will be asked to go through identity verification, since all major exchanges are subject to the requirements of financial regulators and are forced to help fight money laundering (be sure to check the exchanges without verification). Before using the exchange, make sure that it supports the currencies and withdrawal methods you need, and also has an acceptable level of commissions.
✅ Wide trading functionality.
✅ Support for multiple assets.
✅ High liquidity.
✅ Additional options such as deposit accounts for passive income or a referral program.
❌ Regulation; verification requirements.
❌ More difficult for newbies than exchangers.
There are hundreds of exchangers that make it possible to withdraw bitcoins in any convenient direction. To find them, you can use the specialized aggregator BestChange, which allows you to quickly find an exchange service that supports a specific payment method and has an optimal rate. During the exchange process, you will need to provide your details and email address. Identity verification is not required, but in some cases, bank card verification is requested.
✅ Ease of operation.
✅ High speed.
✅ Large selection of exchangers.
✅ Verification is not required.
❌ There may be failures on the side of the payment provider / bank.
❌ Not all exchangers work around the clock.
❌ Payment systems for the withdrawal of bitcoin and other cryptocurrencies
Payment systems for the withdrawal of bitcoin and other cryptocurrencies
If you are looking for such a service for withdrawing bitcoins, which will also make it possible to perform other operations, pay for goods, convert your existing currencies, issue debit cards, etc. – then consider the possibility of working with payment systems. As a rule, they support few currencies, but they make it possible to fully manage them in a reliable and secure way. The range of functions differs depending on the EPS you choose, so you will need to study each one to find the one that works best for you.
✅ Convenience and ease of use.
✅ Fast exchange, replenishment and withdrawal of currencies.
❌ Verification is often needed.
❌ Small range of supported assets.
How to withdraw Bitcoin using p2p platforms
p2p exchanges are so called because they provide an exchange without intermediaries from one person to another (peer2peer). To keep the transaction safe, the escrow mechanism is used. In this case, the third party (and not the buyer or seller) keeps the funds in a separate account until the promised obligation is fulfilled. Thus, the buyer sees that the seller really has funds, and the seller does not risk losing them until the moment of payment.
See also: how to work with p2p services.
✅ Reliability and safety of transactions.
✅ Low or no fees.
✅ Verification is usually not needed.
✅ A wide range of payment and withdrawal methods.
✅ The market is formed by users themselves, creating ads.
❌ Liquidity is noticeably lower than on conventional exchanges.
❌ Transactions take longer.
ATM for cryptocurrencies (cryptomats)
A non-standard way to withdraw bitcoin directly into cash is to withdraw it through a cryptomat. The device looks like an ordinary ATM in appearance and control, but it works exclusively with cryptocurrencies. Since the authorities are not very happy with the placement of such ATMs in public places, only a few copies can be found in Russia. They are located in large cities, usually in shopping centers.
How to transfer Bitcoin from one wallet to another
- P2PKH (looks like 125o7STtwEbefC9FZAcCn8fR1QMKGtwd2U)
- P2SH (looks like 3GUHMnx46raxdKGyAvgQGHUYH8h1xhFA1P)
- Bech32 (looks like bc1qar0srrr7xfkvy5l644lydnw9re59gtzzwf5mdq)
The addresses are arranged in ascending order from oldest to newest format. In the updated formats, the transfer commission is much lower. But not all wallets immediately update the functionality and connect new options, so a number of wallets do not yet support Bech32.
In addition to the address, you will need to enter the amount and (in some wallets) determine the commission. More about commissions below. It is best not to touch it and leave the recommended one, as a last resort, you can increase it if you want to speed up the payment.
What else you need to know about Bitcoin withdrawal
Each payment on the blockchain can only be made by the efforts of miners, and for this they receive financial rewards. For this reason, the more “expensive” transactions are selected by miners for processing in the first place. Most cryptocurrency exchanges automatically set optimal fees, but some wallets allow manual adjustments. For example, increase, and thereby put your transaction at the head of the queue, if you want the payment to go through as quickly as possible.
The optimal commission size is influenced by two main factors:
- transaction volume;
- blockchain congestion.
Each block can contain a limited amount of information. Large transactions take up more space, take more time to verify, and are therefore more expensive. Also, with a high network load, commissions can grow dramatically if many users make payments at the same time.
One of the services for viewing the current optimal commission:
To make sure that the transaction does not hang, but is progressing, you can track it through a specialized bitcoin browser. These services receive all the public information that the network provides, and anyone can view it.
To track a transaction, you need its hash. It looks like this: c03a265377105eb5422b53b669c4e716563318c893fd828f88f0c9b339083876
The hash is displayed in the wallet, in the information about the payment you need.
Anonymization of transactions
It may happen that you do not want this or that transaction to be tracked. After all, it has already been proven many times that it is not difficult to track down on payments who owns the address and what transactions are sent to it.
For the purpose of anonymization, so-called bitcoin mixers are used. These are the sites that split the payment and mix it with other payments so that nothing is left of the original transaction. It is impossible to track such a transfer. Part of the amount is withheld by the mixer as a commission.
BTC cryptocurrency withdrawal methods have become more and more sophisticated over time. Users strive for anonymity and speed, and services in one way or another try to meet these requirements. Among all the variety of options, everyone can choose the one that is most convenient for themselves. Do not forget that the laws of most countries require the payment of taxes for cryptocurrency transactions, this factor must also be taken into account so that problems do not arise.