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Bitcoin was considered an anonymous currency in the past. However, it is not as anonymous as it should be in today’s time. As you have to go through KYC processes and the nature of storing every transaction in the blockchain, it is possible to track down your funds. So the question is, how to cash out Bitcoin anonymously in cash or in USD?
Well, there are a couple of ways to sell your Bitcoins anonymously and get cash in return. And in this article, I am going to talk about those methods briefly.
So here we go:
How to Cash Out Bitcoin Anonymously in Cash or in USD?
1. Peer To Peer Exchanges
Peer To Peer or P2P is one of the popular ways to exchange Bitcoins or any other cryptocurrency. P2P exchanges work like an online marketplace that connects sellers and buyers from all around the globe.
The network works as an intermediary between you and the buyer. You can advertise about selling your Bitcoins in the network, and the interested buyers will place an order.
In this method, the buyer directly deposits cash to your bank account using wire transfer or other payment methods like PayPal.
Also, the buyers don’t really ask for your identity, which makes this thing pretty anonymous. However, you will need to pay some exchange fees for using P2P services.
There are a lot of different P2P crypto exchanges such as LocalBitcoin, Binance, and many more.
Also, using these services is pretty easy. In case if you are using Binance, you can go to the P2P trading section, and there you will find a long list of interested buyers. Or you can place an advertisement.
Just enter your bank account details or preferred payment methods, and you are good to go.
2. Bitcoin ATM (BATM)
You can also use a Bitcoin ATM to cash out Bitcoin anonymously. Using a Bitcoin ATM is fast, safe, and the easiest method you can try out.
Bitcoin ATMs are similar to cash ATMs. But these ATMs are designed to accept Bitcoin or any other cryptocurrency in exchange for Cash.
All you have to do is find the nearest Bitcoin ATM in your location. Then send the amount of Bitcoin you would like to sell, and you will get Cash in your hands.
However, to help you out, here are the steps that you will need to follow:
- Go to a Bitcoin ATM and select the Withdraw cash option.
- Then choose Bitcoin to sell.
- Enter the number of funds you would like to sell.
- Then the Bitcoin ATM will display a QR code which you have to scan and send your Bitcoins to the address.
- Finally, you will be able to cash out Bitcoins into your fiat currency.
While using a Bitcoin ATM is fairly easy, there are certain things that you have to keep in mind. Bitcoin ATMs may require you to show your identity card for completing a transaction. So do proper research about the Bitcoin ATM you are going to use.
Also, Bitcoin ATMs have a limit for withdrawals. As a result, you can only exchange a small amount of Bitcoin every day.
Moreover, Bitcoin ATMs will charge you an extra fee for selling your coins. Also, you will not get the same exchange price as the online crypto exchanges. But as you want to keep your privacy intact, this is something you have to deal with.
3. Gift Cards
Gift cards are another method that you can use to cash out your crypto assets. In this case, there is no need to convert your Bitcoins into cash. Instead, you can use the gift cards to directly spend your Bitcoins.
There are many websites and services available worldwide that accept Bitcoin payment. Some of the popular names are Amazon, Newegg, Starbucks, and many more including Playstation gift cards.
Even if you don’t want to do that, you can purchase highly demanded goods from these popular online stores and sell them through eBay to get cash in your hands.
However, this is surely a lengthy yet complicated method to cash out your Bitcoins. So I would advise you to do proper research before trying this method out.
4. In-Person BTC Sales
You can also try selling Bitcoin in person. All you have to do is find a buyer who lives close to you, and you can sell them Bitcoin in person.
There are a lot of people who like to deal this way and don’t really like using a crypto exchange. Plus, this helps you to bypass all the extra fees and security concerns.
But finding such buyers can be a challenging task. If you want to profitably trade BTC, all you need is an BTC bot. But not to worry, as there are many Facebook groups and Telegram groups are available. So you can post your queries in such groups, talk to different buyers, and arrange a meet.
However, meeting with strangers and dealing with them can be risky. Because you don’t really know what the other person’s intentions are.
To minimize the risk, do prefer to meet at a public place. Also, make sure to ask one of your friends to accompany you.
5. Use An Anonymous Crypto Wallet
You can also try using an anonymous crypto wallet or a private crypto wallet. Private wallets were created to protect your privacy and provide you anonymity.
The USP of these crypto wallets is that it helps you to transact Bitcoin without letting any other person know.
Each private crypto wallet uses different methods to obscure your transactions. And there are many private crypto wallets available in the market.
Most private crypto wallets offer you an easy option to buy and sell Bitcoins anonymously. They use smart contracts and trustless custodians. So the wallet can turn your funds into private versions of your coins which you can trade anonymously.
For example, a private crypto wallet can turn your Bitcoin (BTC) to privacy Bitcoin (pBTC) at the rate of 1:1.
So you can sell your private Bitcoins to anyone easily or hold them anonymously. Also, when you get back your cash, you can release your coins from the smart contract, and it will get returned to the wallet.
6. Bitcoin Mixing
Lastly, you can consider using Bitcoin mixing services. Bitcoin mixing is a service that allows you to mix your Bitcoins with other users to improve the anonymity of the transactions.
As a Bitcoin owner, you will have to transfer your funds to a mixing service, then the mixer will mix it with coins from other users and transfer the mixed currency to your desired address.
As a result, there will not be a direct connection between the original transaction and the address. Also, the transaction amounts can be chosen at random. So the complete transaction will be a mix of many small payments spread over a longer time period.
There are many Bitcoin mixing services available out there, and they are pretty affordable. Usually, Bitcoin mixers charge about 0.25% to 3% of the mixed amount.
Final Words:
So that wall about how to cash out Bitcoin anonymously in cash or in USD. I hope this has answered your question. In case if anything seems confusing to you or you have any other questions, let me know using the comments.
