You have probably heard of the term Bitcoin or Cryptocurrency a lot lately, and it has been taking the world by storm recently. There are many types of cryptocurrency, namely, Bitcoin, Dogecoin, Ethereum and many more.
The main idea is that cryptocurrency will be a mode of transaction and replace all the traditional currencies one day. People have been investing in it as they see it as a commodity that will grow over time and bring them profits. If you have bitcoins now, you should hold on to them, as the demand keeps increasing, and it will be an excellent time for you to ‘sell’ and transfer the amount to your bank account.
Remember, the end goal is for bitcoins and other cryptocurrencies to be the main or the only form of currency that cryptocurrencies will accept worldwide. There have only been a few but big and significant companies that have started accepting cryptocurrency transactions, such as Microsoft, Etsy, and Starbucks. But you still cannot use them at other stores or websites, which may be a reason for you to transfer your bitcoin into cash that you can use.
So now, how do you make them into cash? There are two ways to change your cryptocurrency to cash third party broker exchanges and peer to peer platforms.
As for the third party broker exchange, it is a pretty simple concept. It is the same as if you were changing currencies at the airport or the money exchanger. You are “selling” the bitcoin or cryptocurrency and then “buying” the equal value in the traditional currency that you desire. You could keep up with the exchange rate, demand, and supply of crypto by constantly referring to real-time crypto news.
But the third party broker must adhere to money laundering laws, so you must withdraw from the same bank account that you used for the deposition.
The exchange rate is determined by the demand instead of the economy, government or the county’s central bank.
It is pretty simple, safe and secure, but it isn’t the fasted. According to the country, it may take up to 4-6 days for the transaction to be deposited into your account and an additional fee to pay. Bitcoin ATMs and Bitcoin debit cards work the same way too. Yet again, there is a downside, a high cost for transactions.
For a much faster option, you can rely on peer to peer platforms to sell and turn bitcoins into cash. You would also escape the high cost of transactions with this method. This method is also much easier compared to the previous method, third party brokers.
You simply ask the buyer to deposit cash into your bank account, make sure to get the receipt or any proof of transfer to ensure you are not being cheated. You can also stay anonymous by using a VPN to secure your connections. Just be extra careful before opting for this method of exchanging your bitcoin or cryptocurrencies to cash.