Cryptocurrencies have seen a broad rise in prices throughout 2024 and into 2025, leaving some traders with solid gains. Some crypto holders may be looking for ways to cash in on current market enthusiasm by selling their digital assets.
If you’re going to be selling any crypto, you’ll want to know your options and how to do so. You’ll also want to understand the tax implications. You may owe a bundle if you’re booking a capital gain, and the tax rate will depend on the holding period, among other things. Of course, you may be able to claim a write-off if you’re selling at a loss. But if you think crypto may continue climbing higher, it might be better to stick around and wait.
Here are five ways you can cash out your crypto or Bitcoin.
1. Use an exchange to sell crypto
One of the easiest ways to cash out your cryptocurrency or Bitcoin is to use a centralized exchange such as Coinbase. Coinbase has an easy-to-use “buy/sell” button, and you can choose which cryptocurrency you want to sell and the amount.
You’ll quickly exchange cryptocurrency into cash, which you can access from your cash balance in Coinbase. From there, you can transfer the money to your bank account if you wish.
And while Coinbase is a popular option to sell cryptocurrency, it’s probably easiest to go with whatever exchange currently holds your coins, if you don’t have custody of the coins yourself. Some of the top exchanges include Binance and Kraken. Ultimately, the exchange you choose depends on several factors, including your goals and what else you’ll be doing on the platform. For example, if you want to trade stocks, it may be better to use a brokerage account where you can hold several types of assets at one time.
Also, keep in mind that some crypto exchanges only operate in certain states due to strict rules and regulations.
2. Use your brokerage account to sell crypto
If you already have a brokerage account, the best route is to stick with the broker you’re already using, or open a new account, which usually only takes a matter of minutes. If you’re a client of Robinhood or Webull, for example, both of which allow extensive crypto trading, then it will be easiest for you to just execute a trade on their platform and be done with it.
After you complete the trade, you’ll have the cash in your account and be ready to trade again.
With the introduction of spot Bitcoin ETFs in 2024, investors have a simple way to buy and sell Bitcoin using a familiar structure. ETFs trade on an exchange and are available through most brokers, and the expense ratios on several funds are below what you might pay to trade on a crypto exchange.
While spot Bitcoin and Ethereum ETFs make trading crypto easier and more accessible, it doesn’t necessarily make it less risky. Crypto prices can skyrocket or plummet within a matter of minutes, so the prices of the ETFs themselves can, too.
3. Go with a peer-to-peer trade
You can also do a direct trade, selling your cryptocurrency directly to another person. The most popular way is through a peer-to-peer online platform that allows sellers to find the best offers through an exchange, though one could even do it in person if needed.
These types of transactions are often facilitated by an exchange, and Binance runs a well-known online peer-to-peer platform called Binance P2P. After agreeing to a trade, the platform escrows your crypto. Once you check the transaction record in the payment account and make sure you have received the money from the buyer, Binance will release the crypto to the buyer on the platform.
Another popular option is the online platform Paxful. Sellers have the ability to set their own rates and can choose from more than 350 payment options, such as cash, gift cards or other digital currencies. Clients can sell directly to over 14 million users worldwide, according to the platform’s website.
Cash App also offers users the ability to buy, sell and send Bitcoin. On Cash App, you can buy Bitcoin for as little as $1 and send it to friends or family through the app.
4. Cash out at a Bitcoin ATM
The fourth option is to cash out your Bitcoin at a Bitcoin ATM, which is the equivalent of selling your Bitcoin, says California Bitcoin ATM company Hermes Bitcoin. Bitcoin ATMs are a way to get immediate access to cash using your bitcoins. Bitcoin ATMs do not operate like traditional ATMs. In order to make a cash withdrawal and sell your Bitcoin from the ATM, the machine provides a QR code to which you send your Bitcoin. You simply wait a couple of minutes and receive your cash.
Bitcoin ATMs have faced some scrutiny regarding regulation. A consensus was reached that Bitcoin ATMs had to adhere to the same laws as traditional ATMs, eliminating the anonymity they formerly offered because users are now required to verify their identity before transacting.
The commissions on Bitcoin ATM trades can also be tremendously high, however, so it’s important to note how much you’re paying and whether it’s worthwhile to go another route.
If using a Bitcoin ATM fits your needs, a simple Google search should be able to tell you where the closest one is. Just look up Bitcoin ATMs near you.
5. Trade one crypto for another and then cash out
Some exchanges do not allow the conversion or selling of some cryptos to dollars, so you’ll need to take an indirect route to get your cash. Depending on which exchange you use, you may need to transfer or convert your cryptocurrency to another popular currency such as the stablecoin Tether, before finally converting to dollars.
Bottom line
If you’re looking to cash out some crypto, know that there are plenty of options. You can use a crypto exchange, a brokerage account, a peer-to-peer app or even a Bitcoin ATM. In some cases, you’ll have to transfer or convert the digital asset into a different crypto before converting it to dollars. Keep in mind the potential tax implications of selling crypto, especially if you sell it for more than you originally bought it for. Remember that gains on crypto are treated like regular capital gains, so be sure to prepare for tax season accordingly.
— Bankrate’s Logan Jacoby contributed to an update of this article.
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