Despite making inroads towards going mainstream, Bitcoin is still much less useful in the real world as a payment method.
So, if you need to spend your coins, more often than not, you must cash out. This guide will detail how to do just that if you reside in Germany.
Factors to Consider Before Cashing Out your Bitcoin
Before diving headfirst into the nitty-gritty of this guide, let’s consider a few factors that determine how you can cash out of your Bitcoin. Some of these factors include:
Location – where in the world you reside determines which options you have when it comes to cashing out your crypto. You can cash our with access to some of the leading cryptocurrency exchanges.
Learn more about mining pools in Germany.
Transaction fees – how much you are willing to pay to convert your Bitcoin into cash also affects which method you can use. Payment cards and Bitcoin ATMs are some of the most expensive options but if you do not mind the high transaction costs, these could be great options for you;
Time – different cash-out methods have varying settlement times. For instance, debit cards are near-instant while other methods such as using international wire transfers could take several days.
Payment method – your favorite cash-out method will determine which option you take to sell your BTC for cash. If you wish to use PayPal, for example, you will be limited to only the centralized options or P2P platforms that support that payment method. The same applies to other methods such as payment cards, in-person face-to-face exchanges, etc.
If you are a beginner to cryptocurrency, live in Germany, and would like to cash out some of your BTC assets, there are two main options:
- Using a centralized third party exchange; or
- Use a Bitcoin ATM machine.
Centralized third parties are more popular because they offer a variety of payment options, easily accessible and often cheaper than using an ATM.
Users can opt to use an exchange such as Coinbase or a peer-to-peer exchange such as LocalBitcoins. If you are looking to save on transaction fees, using the P2P option will be a better choice.
Below, we will go through the simple process of using the LocalBitcoins P2P platform to cash out your BTC holdings. There are several other options if you wish to research them, but this single choice will probably suffice for most individuals.
Also read: How to stake Eth on Coinbase
How to Use LocalBitcoins to Cash Out Bitcoin in Germany
Step 1 – Register for a free LocalBitcoins account.
The first step is to sign up for a LocalBitcoins account, which is free and only takes a few minutes to complete. The website asks for some basic information about its users as a way to comply with global financial KYC (know your customer) regulations.
To sign up, visit the LocalBitcoins homepage and click on the Sign-Up buttons as shown below.
Provide an email address and create a strong password.
Note: Remember to activate 2FA (second-factor authentication) once you have created your account to help increase its security.
Step 2 – Send your Bitcoins to LocalBitcoins.
Now that you have created your free LocalBitcoins account, retrieve your Bitcoin wallet address for receiving BTC deposits. To access the wallet address, visit your wallet page by clicking on the BTC balance button located to the right of the top navigation bar.
Next, click on the [Receive bitcoins] tab then copy the wallet address displayed.
Use the BTC wallet address to send over your Bitcoins from an external source to LocalBitcoins.
The process will probably take a few minutes to a few hours as the Bitcoin network is a little slow depending on the number of pending transactions and the network fee you have included with your transaction.
Step 3 – Search for advertisements.
Once you receive your BTC in your LocalBitcoins account, you have to look for a willing buyer. Typically these are the individuals running ads on the platform.
Head over to the home page while you are logged into your account. Within the search box, select the QUICK SELL option to show advertisements for people who are looking to buy BTC.
Fill in an equivalent amount of the BTC in fiat currency (EUR) then specify which payment method you wish to use to settle the trade.
Since you are reading this tutorial, we will assume you are looking to receive payment through the cash deposit method.
Click [Search] to filter through the available results.
To pick an appropriate trade partner, consider their rating (out of 100%, the higher the better) and the number of previous trades (also the higher the better).
By considering these two factors, you reduce the risk of getting scammed of your BTC. Avoid working with someone with little to no trade history, no verification, and no feedback reviews.
Choose a preferred trade partner by clicking on the [Sell] button to the right of each listing.
Step 4 – Open a trade.
On the buyer’s trade page, you will notice the buyer’s terms, the BTC purchase rate, the feedback score, their username, and payment method.
Most importantly, you will see a form where you will fill in the amount of BTC you want to sell and your payment receipt details.
Read through the terms set out by the buyer and if acceptable to you, fill in the trade form and send the trade request by clicking on the large green button below the form.
Step 5 – Conclude the trade.
Wait for the buyer to respond to your trade request by making the payment. Confirm that you have received payment then scroll down the trade page and click on the green [Release Bitcoins] button to release the BTC in escrow.
You have now completed the trade and have successfully cashed out your Bitcoin using LocalBitcoins.
That is the whole process involved in cashing out your BTC coins in Germany. The process is rather straightforward once you get your coins into the LocalBitcoins platforms.
With a few trades and experience on the platform, you can create your own BTC selling advertisements and set the price you sell your coins to your trade partners.