Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Bitcoins are stored in an online wallet, and their transactions take place in a secured blockchain network. No matter how much you hold or buy at dips and make huge gains but one may always require cash in hand for any unforeseen situation, and converting bitcoin to fiat currency, as easy as it may sound, can be a very complex and time-consuming process for some people, so we have made it easy for you. Check out Bitcoin Trading Bot for more in-depth information on bitcoin trading.
Below mentioned are some of the most common ways to convert bitcoin to fiat currency which is as follows-
- Bitcoin Debit Card/Bitcoin ATMs
- Cryptocurrency Exchange
- Peer-To-Peer Exchange
- Third-Party Brokers
Bitcoin Debit Card/Bitcoin ATM:
This method is considered the fastest and the most reliable way to get cash by converting your cryptocurrency. As reported by Coin ATM radar, there are around 33,000 Cryptocurrency ATMs installed worldwide. These ATMs have a QR code on display, and you may send your cryptocurrency to the ATM by scanning this code. Some ATMs also accept Bitcoin Debit Cards.
Bitcoin Debit Cards: These act just like normal debit cards. The only point of difference is that, unlike conventional debit cards that debit money from your bank account, these debit cards deduct cryptocurrency of the same worth from your digital wallet. These cards are usually accepted at almost every machine which accepts banking debit cards. One should always keep in mind to check the commission rate before using either of the two because commission charges may go as high as 25% in some cases.
Cryptocurrency Exchange:
Several cryptocurrency exchanges like Coinbase, Binance, Kraken, and Gemini are well-established exchanges. These centres help you convert bitcoin to fiat currency, typically when someone moves to another country. Using this method, you may exchange your cryptocurrency for fiat money, but the only downside is that it may take numerous business days to complete the transaction.
One is advised to do their research well in advance for a hassle-free experience. They charge a nominal exchange commission varying from 4%-7%, and it’s suggested to opt for a reputed exchange with ample experience in this field.
Third-Party Exchange:
These exchanges act similar to cryptocurrency exchanges, but they are usually available at international airports. These exchanges are governed by money laundering laws which make them a bit secure, and that is why you are not considered the fastest way.
Peer-to-Peer Exchanges (P2P):
A peer-to-peer exchange platform acts as a mediation centre for two parties. You may put out your offer to buy or sell your cryptocurrency at a desired rate and the platform you are dealing with will lock the required funds until the transaction is completed, for which they charge a nominal fee.
These peer-to-peer exchanges run on decentralised exchange platforms, so one should be well aware of the procedures before and risks involved before initiating any transaction. Since it allows you to find the seller or buyer, it may be for your benefit that you find the best possible rate for yourself.
Choosing The Right Exchange Platform- Points To Note
This is one of the most important points when it comes to Bitcoin conversion to Fiat currency. The entire process of converting bitcoin to fiat currency may seem to be complex to you, but if you do your research well and plan, it’ll be a cakewalk for you. It is advised not to take a hasty decision and choose a method only after analysing the different exchange rates, the amount of cryptocurrency that you want to exchange, the time that a platform would take to complete your transaction and the taxes that you will need to pay after the completion of this entire process.
Conclusion
Numerous companies provide these services, but one should always keep in mind to research well and then choose a platform when you plan to convert bitcoin to fiat currency. However easy and simple it may look, there are still some risks involved that can be eradicated using a trustworthy platform.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.