How to cash out bitcoins anonymously

Let's talk about how to cash out bitcoins anonymously.

Introduction

In a millennium where technological advancement has gradually diminished the word "privacy," is it still possible to anonymously sell digital currencies like bitcoin? The simple answer is yes. The blockchain has been helpful in this regard, reducing the need for third-party interference. For users, Bitcoin, one of the first digital currencies (otherwise termed cryptocurrencies) on the blockchain, allows them to buy and sell bitcoin anonymously. However, most platforms that support anonymous trading using anonymous trading accounts are still centralized, needing verification of some sort before granting their users access. Thanks to the regulators and KYC systems put in place by various exchanges and systems, anonymity has a limited range of access.

However, there are various ways users can sell bitcoins anonymously and convert them to cash anonymously. This article gives details about some.

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Ways to convert bitcoins to cash anonymously

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1. Convert Bitcoin to Cash anonymously through Peer-to-peer (p2P)

While most exchange platforms require a KYC, limiting a user's anonymity spectrum, peer-to-peer can offer a completely anonymous exchange between users. Several platforms support P2P services, and thus, bitcoin can be sold anonymously on them. They include:

Binance, Remitano, LocaBitcoins, Paxful, etc.

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Steps to Using a Peer-to-Peer System

P2P is a simple system that functions in four steps:

• The seller indicates interest in selling, places an ad, or matches up with a buyer at an equal rate.
• The seller places his bitcoin in the system, which serves as an escrow.
• The buyer transfers cash to the seller using any payment options the seller chooses (for complete anonymity, use a payment option that does not require your name).
• After confirmation of receipt by the seller, the system releases the coin to the buyer.

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2. Convert Bitcoin to cash anonymously using Bitcoin ATMs

Using bitcoin ATMs to cash out BTC is one of the easiest ways to do so without revealing your identity to anyone. This is similar to using the usual cash ATMs, and the only difference is that it converts your bitcoins to cash. You can obtain a bitcoin ATM from several crypto bodies that offer such services, including Shitcoins, Coinbase, Wirex, BlockCard, BlockFi, etc.

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How to use a bitcoin ATM to trade anonymously

Locate the nearest bitcoin ATM, then take the following steps:

1. Click on "withdraw cash."
2. Choose "bitcoin" among other choices of cryptocurrencies.
3. Enter the amount to be withdrawn.
4. Send the same amount of BTC to the address provided to you. To avoid errors, scan the barcode instead.
5. Take your fiat currency to complete the transaction.

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3. Cash-out Bitcoin Anonymously on Tor Browser

Most browsers like Chrome, Firefox, etc., review users' identities by keeping track of users' IP addresses. Hence, it isn't easy to trade bitcoin anonymously through them. Choosing a more secure browser and a trusted Bitcoin ATM company is advisable to trade bitcoin anonymously. Unlike the conventional browsers, the Tor browser or VPNs allows users to surf the internet without violating or revealing their identity.

Tor nodes are designed to first encrypt and route users' internet traffic to random computer nodes on the Tor network before redirecting it to its final destination. For this reason, it is challenging to track or monitor transactions on a tor browser or VPN network.

Since the Tor browser is dedicated to eliminating IP surveillance, executing any transaction when logged on to the Tor Browser helps preserve users' trade anonymously. 

To trade Bitcoin anonymously using Tor or VPN networks, using centralized exchanges on the Tor browser is not relevant. Instead, use software wallets and peer-to-peer platforms like Paxful, LocalBitcoins, etc. 

Connecting to the Tor network varies from the device. However, for a Windows PC, users must run the Tor Client and connect the Bitcoin network using the localhost address 127.0.0.1 via standard Tor port 9050.

4. Buy Gift Cards or Shop Directly

Several chopping services support payment via bitcoins. This includes several big shopping sites like Amazon and Overstock, and users can thus purchase items they need directly from the stores.

Another option is buying high-need products and reselling them at other shopping sites for cash.

If the two options above are not convenient, the user can purchase a gift card using bitcoins on sites like Paxful that allow such operations, resell the gift card, or use it for shopping later.

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Top anonymous bitcoin wallets to convert Bitcoin to cash anonymously. 

Similar to your traditional bank account, bitcoin wallets allow you to secure your bitcoin. You can secure and cash out bitcoin anonymously through a secure bitcoin wallet. Several bitcoin wallets, including cold (hardware) and hot (software wallet), convert Bitcoin to cash anonymously. 

Hardware wallets, often called cold wallets, are bitcoin wallets that allow you to store bitcoin outside of the internet and connect it online anytime you want to use it. It is dubbed as the most secure kind of wallet to secure or cashout bitcoin anonymously. Examples are BC Vault wallet, Ledger Nano, Safpal wallets, etc.

On the other hand, software wallets, dubbed hot wallets, are the typical kind of wallet that is usually online and are more accessible to transact and cashout bitcoin anonymously. Examples are Blockchain wallets, Coinomi, Coinbase, Crypto.com, etc.

Before discussing how to convert bitcoin to cash anonymously using top bitcoin wallets, all cryptocurrency wallets are not for bitcoin, and Bitcoin wallets are those crypto wallers (software or hardware type) that allow users to store Bitcoin and support bitcoin blockchain integration.

Step to cashout out bitcoin anonymously using bitcoin wallet

1. Chose your preferred Bitcoin wallet. You can choose between the hardware or software wallet type. 
2. Download or purchase the Bitcoin wallet to cashout Bitcoin anonymously. If your preferred wallet is the software type, you will have to download it from google play, the app store, etc. if it is a hardware wallet, make an order for a secure Ledger Nano, BC Vault, or any other kind of hardware wallet. 
3. Install the clients and software where necessary. Whether you purchased hardware or downloaded a software wallet, proceed to install the software clients of the wallet. 
4. Copy your bitcoin public key to receive and send out bitcoin. Head to Bitcoin to copy the correct address to receive your first Bitcoin anonymously. 
5. Cashout your bitcoin at a preferred Bitcoin exchange or Bitcoin ATM. Now that you have some Bitcoin on your Bitcoin wallet, you can proceed to convert your first Bitcoin to cash anonymously. To do that, approach Shitcoins Bitcoin ATM or any nearest one to cash out or convert your bitcoin to cash anonymously. 

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Conclusion

While technologies like Web 2.0 and several other systems are put in place to reduce the privacy of living and transactions, using the methods such as VPN, Tor browsers, Bitcoin Mixing and Bitcoin ATM and other methods  outlined in this article, users can remain anonymous while carrying out financial transactions.