The Best Way To Get Bitcoin To Cash
The best way to get bitcoin to cash is peer-to-peer of course, but it’s not always so easy. There are some great platforms out there that make trading BTC in a peer-to-peer way almost seamless. These exchange platforms include hodlhodl.com, robosats, and others which offer fiat on/off ramps that are much easier than meeting someone at an internet cafe to trade bitcoin for cash. These platforms offer customization, allowing you to request payment through various fintech apps like Venmo, PayPal, Zelle, and others, as well as different currencies. While these platforms charge a small fee for their services, they still enable true peer-to-peer trading. Sellers are often advantaged on these platforms as the liquidity pools are smaller, and non-KYC (Know Your Customer) bitcoin typically demands a premium.
Fiat Exchanges
Another convenient way to convert bitcoin to cash is through cryptocurrency exchanges. However, these platforms require KYC verification and charge various fees for buying and selling bitcoin. It’s important to do your own research about the various offerings from different platforms. One of the upsides of these platforms is they offer much deeper liquidity, which typically favors buyers, as bitcoin does not usually demand a premium over the average spot price. It’s important to note that there is no “true price” of bitcoin, and every exchange has a slightly different spot price. For example, on BitMEX, someone was able to briefly crash the BTC spot price to under $9,000 on BitMEX’s platform in an effort to liquidate someone else’s holdings.
Unless you were fortunate enough to have a limit order placed at $10,000 on BitMEX, you would not have been able to take advantage of those prices.
Bitcoin Meetups
Attending local bitcoin meetups can also be an excellent way to convert bitcoin into cash. By engaging with other enthusiasts, you may find opportunities to buy and sell bitcoin for cash through your peers. This method offers greater flexibility for fiat on and off ramps. However, it may be challenging to offload a large amount of bitcoin, like an entire coin, unless you find someone with a substantial amount of cash on hand. Which if you think about it might be plausible as some Bitcoin enthusiasts distrust banks to such an extent that they may keep tens of thousands of dollars in cash. Never say never.
Considering Tradeoffs
When it comes to converting bitcoin to cash, there is no one-size-fits-all solution. Each option has its own set of tradeoffs, and the ideal choice depends on an individual’s specific circumstances and priorities.
Peer-to-peer platforms offer true decentralization and privacy, but may come with higher premiums and limited liquidity. Centralized exchanges provide convenience and deep liquidity, but require KYC and charge fees. In-person cash trades at meetups allow for greater flexibility, but can be logistically challenging for larger amounts. Ultimately, the best approach is the one that aligns with your need for convenience, commitment to privacy, liquidity requirements, and appetite for fees or premiums. By carefully evaluating your unique situation and weighing the pros and cons of each option, you can make an informed decision that meets your needs while staying true to the ethos that brought you to Bitcoin.
4/15/24
Conor Jay Chepenik
