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Sébastien Estines
Co-founder Lyzi
Lyzi will be present at EthCC from 30 March to 2 April 2026
Converting your cryptocurrencies into fiat currencies (FIAT) is now an easy task. Indeed, a multitude of platforms offer this service.
Bitcoin is a digital currency, also known as a cryptocurrency. There is no physical bitcoin; instead, only digital data is stored on the blockchain. This means that it is a secure form of currency with no government control.
The Bitcoin source code states that only 21 million Bitcoins will be produced. This limited supply is also what gives bitcoin its value. As the demand for bitcoin increases, it is possible to exchange one bitcoin for more money or services. In this way, Bitcoin became a tradable store of value, just like gold.
The ultimate idea is for Bitcoin to replace traditional currencies. People are currently investing in Bitcoin because they see it as a commodity that will increase in value over time. If you have bitcoin, you might want to keep it for that reason. However, since demand has recently increased, you could make a profit if you “sell” your bitcoin now and transfer the same value to your bank account.
In theory, you can one day use Bitcoin for all types of transactions. For now, there are still few businesses or individuals that accept Bitcoin payments. This is one reason why you might want to convert your bitcoin into cash, so you can use the value of your bitcoin to buy real things. It's important to note that Bitcoin is not the only cryptocurrency you can invest in; we invite you to check out our advice on the 12 best cryptocurrencies to buy in 2022. Now let's see how to convert your cryptocurrencies (especially Bitcoin) into fiat currencies.
Transferring bitcoin to a bank account is a process similar to exchanging currencies at the airport upon arrival in a new country. It is essentially “selling” your bitcoins and “buying” the same value in dollars (or in the currency of your choice).
The “exchange rate” of this currency is not determined by the economic actions of a government or a central bank. Instead, the Bitcoin exchange rate is determined by demand. The number of people who want to buy Bitcoin at any given time and what they are ready to give determines how much you will get for your Bitcoin.
Transferring bitcoin to a bank account is essentially a currency exchange. But because Bitcoin is not controlled by the government, the exchange process takes place privately and is not influenced by global economic structures.
Before converting all of your bitcoin into cash, consider the following pitfalls:
Taxes - If you make a profit selling your bitcoin, you will have to pay taxes on your earnings. Keep this in mind when planning your tax year. Any reputable third party stock broker will report trades for tax purposes.
Honoraries - Most methods of converting bitcoin into bank accounts involve exchange fees.
Vitesse - Exchanges between third-party brokers may take a few days to transfer money to your bank account.
There are two main methods for converting bitcoin into cash and transferring it to a bank account. First, you can use a third-party stock broker. These third parties (including Bitcoin ATMs and debit cards) will exchange your bitcoin for cash at a given rate. It's simple and safe. You can also use a peer-to-peer transaction to sell your bitcoin. This is a faster and more anonymous method because you are selling your bitcoin directly to another person.
A third party broker is another name for a cryptocurrency exchange. The process is similar to exchanging currency at an airport in a foreign country. You deposit your bitcoin in the stock exchange. Once the exchange receives your bitcoin, you can request a withdrawal in the currency of your choice. The withdrawal will be deposited into your bank account.
Brokers are subject to anti-money laundering laws, so you'll need to withdraw to the same bank account you used for the deposit. This method is simple, easy, and secure, but it's not the fastest. The average time it takes for money to arrive in your account is 4 to 6 days, although this varies by country. The associated fees also depend on the location of your bank.
Bitcoin ATMs and Bitcoin debit cards work in the same way as third-party brokers. In both cases, you create an account that allows you to sell bitcoin and withdraw physical money. The downside is the increase in transaction fees. Coinbase and Kraken are the most popular brokerage exchanges for buying and selling bitcoin.
For a faster and more anonymous method, you can use a peer-to-peer platform to sell bitcoin for cash. When you sell bitcoin to others, you can choose what payment method you want buyers to use. This often allows for faster transactions with lower fees. You can also get a better exchange rate with an individual buyer than with a third-party broker.
You can ask the buyer to deposit money into your bank account or send you a bank transfer (PayPal can also be used). Always ask for proof of identity and payment before handing over your bitcoins. Selling between individuals is safe if you know what you are doing. However, beware of scammers. Using a peer-to-peer platform that allows you to lock your bitcoins until you confirm receipt of payment can be helpful.
The most popular peer-to-peer platform is LocalBitcoins.
Using a broker to trade your bitcoin is also easy if you follow these steps:
👉 Choose the third party brokerage exchange you want to use. Coinbase and Kraken are popular options. It is also possible to do it on Lyzi.
👉 Sign up and complete the broker verification process.
👉 Deposit (or buy) bitcoin into your account.
👉 Cash your bitcoins by depositing them into your bank account or PayPal account (applicable to certain services).
👉 Remember that withdrawal times can range from 4 to 6 days and transaction fees may apply.
Most peer-to-peer platforms offer an securitization option that allows you to keep your bitcoin until you confirm that you have received the payment.
Many peer-to-peer platforms allow you to create an advertisement for your bitcoins (although this method may incur additional fees). There is also a rating system, similar to eBay, that allows you to leave feedback about the buyer or seller. This allows you to safely choose a buyer.
Peer-to-peer platforms also allow you to remain anonymous. You can use a VPN to secure your connection and choose payment methods such as online currency or gift cards.
