Whether we’re in the middle of a crypto bear market and you want to cut your losses, or we’re in a bull market and you want to sell high, it’s always good to know how to cash out Bitcoin in Canada.
But how do you go about doing that?
The good news is that there are plenty of options when you’re ready to move your Bitcoin to your personal account.
We’re going to show you a few good options on how to cash out Bitcoin in Canada.
Let’s get started.
How to Cash Out Bitcoin in Canada
There are a variety of ways you can cash out your Bitcoin. However, not all methods are the same. For example, some are faster while others require fewer fees.
The good news is there are plenty of choices, so you can determine which one works best for your needs.
These options include:
- Cryptocurrency markets
- AMTs for Bitcoin
- Peer-to-peer networks
1) Use a Crypto Exchange
First up on our list of ways to cash out your Bitcoin is through the crypto exchange Bitbuy. The platform launched in 2013 and resides in Toronto. If you live in Canada, Bitbuy is an excellent choice as it offers smooth transfers between the exchange and your bank.
Bitbuy supports eTransfers through Interac, which makes withdrawing your Bitcoin quick and painless. However, you’ll have to pay a 1.5% fee to do so.
With Bitbuy, you can directly withdraw your Bitcoin, which is then converted into Canadian dollars. No muss, no fuss. It’s as easy as that.
Plus, if you own other cryptocurrencies, Bitbuy will allow you to withdraw those as well. Of course, you’re limited to the ones the exchange supports, but these include Ethereum (ETH), EOS (EOS), Litecoin (LTC), Bitcoin Cash (BCH), and a few others.
- Quick and easy way to sell your Bitcoin or other cryptocurrencies
- Trusted platform
- Easy to use
- High withdrawal limits
- Supports eTransactions
- Only supports a limited number of cryptocurrencies
- Other withdrawal types have high fees (3-5%)
Read the full Bitbuy review here.
2) Bitcoin ATMs
Another option for withdrawing Bitcoin is through a machine known as a Bitcoin ATM or Bitcoin Teller.
You might find these labelled as ‘BTMs.’ These machines behave just like a typical ATM, so you can quickly and easily convert your BTC to fiat currency.
However, these machines usually only support Bitcoin, so if you have your funds in another cryptocurrency, you’ll likely need to exchange it for Bitcoin first.
The great thing about Bitcoin ATMs is that the exchange happens immediately, so you don’t have to wait for a platform to confirm your transaction.
Of course, for convenience, you may have to pay a higher fee than you would with some of the other options on our list. If you’re cashing out a lot of Bitcoin, it might make more sense to use a different method.
- Secure
- Private
- Instantly withdraw fiat
- Only supports Bitcoin
- Higher fees than other methods
- A limited number of Bitcoin ATMs are available
3) LocalBitcoins
Third on our list of how to cash out Bitcoin in Canada is LocalBitcoins. This peer-to-peer (P2P) market is excellent for purchasing and selling digital assets.
LocalBitcoins has been around for a while now, celebrating its ten-year anniversary in 2022. One of the advantages of using a platform like LocalBitcoins is localization.
For example, when you’re ready to cash out your Bitcoin, a platform like LocalBitcoins will connect you with local buyers from your same region.
As a result, you’re not absorbing the exchange rate fluctuations that occur when performing a trade. Plus, you’ll have the option to cash out locally.
There are several methods you can use to sell your Bitcoin since LocalBitcoins supports nearly any payment type through which you can receive funds.
Keep in mind that if you use LocalBitcoins regularly, you may have to complete Know-Your-Customer (KYC) verification. However, doing so will likely increase your buying and selling limits.
With LocalBitcoins, you’ll also get better privacy. Unless you frequent the platform, you’ll never have to complete the KYC process, which allows you to remain anonymous.
Unfortunately, your privacy comes at a price, as you’re likely to encounter higher fees than with other options on our list.
- Supports nearly any payment option available
- Private platform allows for anonymity
- Easy to sign up and start buying and selling
- Higher fees
- Lack of customer support
- Scams have been reported
- You will have to complete KYC if you’re a regular visitor
FAQs
There are plenty of questions about how to cash out Bitcoin in Canada. Here are a few of the more commonly asked ones:
Do I need to convert my Bitcoin to cash before withdrawing from an ATM?
Most Bitcoin ATMs only support Bitcoin, so you will likely have to convert your other cryptocurrencies into BTC before using the machine. However, there are a few that support Ethereum (ETH) and Litecoin (LTC).
Can I cash out Bitcoin at a bank?
Yes, you can. However, not all banks support Bitcoin, so you’ll have to check with your bank first. Even if your bank does support Bitcoin, they may require you to convert it to fiat currency before withdrawing.
Is LocalBitcoins safe to use?
LocalBitcoins is a P2P marketplace, so it doesn’t hold your funds. As such, you’ll have to trust the buyer or seller to make a trade. However, LocalBitcoins does offer an escrow service that can help protect you from fraud.
How do I avoid scams when cashing out Bitcoin?
When selling Bitcoin, only deal with people you know and trust, or use a reputable platform that has built-in protections against fraud, like LocalBitcoins. You should also be aware of common scams, like fake exchanges and sale offers, Ponzi schemes, and phishing attacks.
Conclusion
Cashing out your Bitcoin isn’t as complicated as it may seem at first. With a little research, you should be able to find a method that suits your needs.
Just remember to always practise caution when selling Bitcoin online.
Make sure you always use a secure connection and never share your private keys with anyone. Finally, only sell to buyers who have a good reputation.
Want to be sure that you can legally cash out your bitcoin? Check out if bitcoin is legal in Canada here.
