So you have a few dozen bitcoins in your bitcoin wallet. Now your wondering how to cash in bitcoins fast and easy. Sure you can spend your bitcoins on pizza as well as loads of electronic gadgets via an online retailer that accepts cash in bitcoins but perhaps you looking to cash your bitcoins into US Dollars so that you can spend that cash at McDonald’s or Starbucks or the grocery store or any brick and motor store that does not accept cash bitcoins just yet.
Lets face it, bitcoins are great and you can flip those BTC into most any alternative coin at your favorite btc exchange like mt gox or btc-e but the simple facts are bitcoin is not a widely accepted currency outside of the internet. You can’t pay your car loan or house mortgage with btc just yet. You can’t pay your cell phone bill or your credit card bill today with bitcoin. Perhaps someday you will be able to but right now you can’t so you need to cash in your bitcoins.
So you need to find a place to cash in bitcoins. The most obvious place in one the many alternative coin market exchanges. The process of converting bitcoins to cash at an exchange can be terribly slow but if your not in a huge rush, its probably a safe method and you will get a good price for your btc.
BTC-E.com is one of the larger and more respected bitcoin exchanges. You can easily deposit your btc after opening an account using a simple sign up form with limited information. There is a .2% transaction fee on any buy or sell on the exchange. There are limited options for a US citizen to withdraw USD from BTC-E. Sure you will see several options to withdraw USD but most of those options require a foreign country payment processor which will take heavy fees and you will simply have to move the money once more which takes more fees. A headache that most US Citizens will bypass on. The easiest method is to wire transfer your cash to your bank but the minimum amount to transfer is $1,000.00 with a 1.5% fee.
MtGox.com is another large and popular bitcoin exchange. Mtgox has a much more complicated sign-up process than does btc-e.com so if your in a hurry, forget it. In order to deposit USD or withdraw USD you have to submit some personal information like a scan of your drivers license and a home billing receipt as well as a social security number. The entire sign-up process can take a few weeks but once your in, your in. Similar to Btc-e, mtgox charges a fee for each transaction and a fee for withdrawals. Once again, a bank wire transfer is the easiest method to get USD in and out of mtgox.
Campbx.com is probably 3rd on my list of favorite bitcoin exchanges. Considering the number of bitcoin exchanges online today, that’s not a knock on campbx. Campbx requires similar hurdles to jump as does mtgox. In order to withdraw US funds, several personal verifications must be met and of course there are small fees involved with any transaction on the exchange and any cash withdrawal. The easiest method to withdraw your cash is via a bank wire transfer. The other methods require moving your money around a few more payment processors before you have access to your funds.
Bitstamp.com is a rather new bitcoin exchange but it has gained lots of users. Deposits and Withdrawals can be done via a bank wire transfer and usually take 3-5 business days.
These are just 4 of the largest and more popular bitcoin exchanges but one theme remains constant with each exchange, getting your cash withdrawn from the exchange can be slow and painful. Due to these limitations, if you do not already have an account setup on an exchange another alternative to cash in your bitcoins may be in order.
Localbitcoins.com is a site dedicated to finding local buyers and sellers of bitcoin. From this web site you should be able to locate an individual willing to purchase your bitcoin for cash, check, money order or Paypal. The transaction is not without risks but the opportunity to get cash in hand could out weigh the risks involved.
Tradebitcoin.com is another site similar to Localbitcoins where you can easily find a person local to you that is willing to buy or sell bitcoin coin.
ebay. Most coiners don’t think of eBay when it comes to buying and selling bitcoin but the fact of the matter is, bitcoin is becoming widely popular on eBay. You could easily post a 1 day auction for your bitcoin on eBay and have funds in your Paypal account soon after. Keep in mind that Paypal reversals are possible so make sure you limit who can bid on your auction and keep the amount of bitcoins per auction small (no more than 1 BTC per auction and preferably less!).
These are just a few methods I have used to cash in bitcoins. There are others like visiting online forums and finding perspective buyers or putting ads in online classifieds. The main point is, the original sell can take some time but once you find your preferred method, selling your bitcoin will be less of a chore and more of a reward!