Even though digital assets, or to be more precise, cryptocurrencies, have been with us for more than a decade now, there are still many things people don’t know about them or that even confuse them. Of course, the fact that cryptos revolutionized our whole financial system and our perception of money is only the first step, as, when it comes to specifics and sometimes even the lingo, many are still unaware of how and where to find the right information.
All of this can be easily solved by a simple Internet search, but even that, for someone unfamiliar with how things work and at least a little bit of knowledge regarding the tech behind it, it can be challenging.
What are the most frequent questions?
Now, in order to better explain and answer this question, we first need to separate those looking to invest and trade in cryptos from those just being curious. There is a huge difference here, and people looking to place money into cryptos need more details regarding where, how, and when to invest. Furthermore, there are many questions about their volatility, what does it mean and why does it happen, and, what’s perhaps most important, how to use it to your advantage.
For most of these questions, the answer is actually pretty simple as doing research is often the only and best solution, and without it, any decision we make would only be a lucky guess. Besides that, since we invest in something, this shouldn’t be an option as we want to get the most out of our investment, and the same principle is applied here.
There are also questions regarding exchanging platforms and whether every coin can be converted to any currency and vice versa. The best example for this is perhaps Bitcoin, as it is the most popular coin out there and the one most folks are familiar with and know at least something about it. That is why we will today focus on BTC, whether you can convert it to any currency, and advice on how and where to do conversions.
Two options for converting
First of all, we need to answer the question and say that it is possible to convert Bitcoin into fiat money, and there are currently two most practical and popular ways to do that. We will explain them further in the text below and make it much clearer, even for those who do not have a lot of experience with the crypto market.
1. Classical exchange
The first method is similar to any other exchange when we want to change one currency into another, except we deposit crypto and get fiat money instead. These exchanges are also known as third-party brokers, and although it is pretty simple to do that, keep in mind that they are not the fastest way. It can sometimes last up to six days to get your money, which is pretty long if you need it instantly. The process itself is simple and secure, and it starts with depositing BTC, for example, and waiting for the broker to receive it. Once the BTC is received, all we need to do is to choose the fiat currency we want and request a withdrawal to our bank account.
Because of the money laundering laws, it is crucial to withdraw the money from the same bank you deposit BTC to avoid any possible problem. Another similar method is the usage of Debit Cards and ATMs made especially for BTC, but the biggest problems with those methods are high fees that vary from one country to another.
2. Platforms based on peer-to-peer
In most cases, we need a quick exchange, and a third-party broker is not a great solution because waiting up to six days can be pretty much for those in a hurry. Another benefit of this method is regarding the overall fees, as they are much lower, and, of course, anonymity. This method literally represents selling BTC for cash, so we can choose the currency we want our buyers to make a deposit to our bank account, or even use some of the platforms such as PayPal.
Because of that, it is much easier to get higher exchange rates because you are the one who chooses the buyer, and there is no third-party broker.
This method is pretty safe, but it is crucial to be cautious and choose a reliable platform because there are many scams online. It is always a good idea to ask for some personal document and proof that the payment is made before making a decision to send them Bitcoins.
Trustworthy platforms allow us to lock our BTCs, and keep them that way until we are sure that everything is okay and we are ready to release them to the buyer. This grants safety and, combined with anonymity and the short withdrawal waiting time, is why this is the most popular method.
How to do the conversion
What’s crucial here is to find a reliable third-party broker or peer-to-peer platform, regardless of your favorite method, just to make sure that all of your Bitcoins will be exchanged and you will not lose any money due to fraud. Just there are plenty of great solutions, there are also many scams, which is why you need to be thorough when doing research. All the rest steps are pretty simple, and it does not differ a lot from exchanging fiat money when traveling to a foreign country.
The bottom line
Now, when you have all the necessary info about BTC conversion options and rates, investing and trading Bitcoin should be much easier. Of course, just like it’s crucial to find a reliable method, it’s also crucial to find a reliable exchange platform or trading software, as it is the only way to be sure that your assets, or in this case coins, will be safe. Furthermore, a good trading app can really do wonders and help you gain the most out of your investment, and for more info on that, along with some tips on how to make your trading even more effective, click here.