You’re an astute investor who has made a fortune trading cryptocurrency. You have several hundred thousand dollars in your wallet and want to spend it on something enjoyable, such as a vacation or a new automobile. But there’s one problem: you don’t know how to convert those digital currencies into dollars! They aren’t precisely accepted in the grocery shop or the gas station. If you want to convert through brokerage, you have to be careful about signing in the account, taking care of the deposit, or cashing out of the amount via PayPal, such as bitcoin-buyer.app.
1. Think about the worth of your cryptocurrency
Now that you’ve decided whether or not to sell, it’s time to think about the worth of your bitcoin. If the price has dropped, selling may be the wiser option, and also investing in new crypt currencies that offer secure transactions. If it appears that keeping onto your coins, for the time being, would generate more money, later on, it may be better to postpone selling until values increase again.
2. Sell your stock on an exchange
The most basic way to pay out is to sell your shares on an exchange. You will have to pay a nominal fee compared to the amount you receive.
When you sell cryptocurrencies on an exchange, you exchange current assets for fiat currency (USD, EURO, or another currency). You should have an idea about the third-party broker exchanges but check whether they have faced any money-laundering acts or punishments before you start the process of conversion via these exchanges. Even if there are associated fees, you have to be careful about the amount.
For example, if I place an order at $1000 per BTC with a limit order set at $200 less than the current market price ($9000), my order will be open until someone meets my bid price ($9500). When my limit order is filled, I will receive BTC10 valued at USD9000 fewer costs levied by both exchanges (Coinbase & Kraken).
3. Transfer Bitcoin to a bank account
There are various options for converting your Bitcoin or other cryptocurrencies into cash. Some of these methods may be more convenient depending on how much money you’re attempting to convert and where you live.
Bank transfer: You can use a bank account to transfer fiat dollars to a third-party provider like Coinbase in exchange for Bitcoin. This approach will take longer than others and include costs, but it is still one of the simplest ways to trade cryptocurrency online (or offline).
Credit card: If you have a valid Visa or Mastercard debit card that supports cryptocurrency purchases, this may be the simplest option for first-time buyers with credit cards.
Credit cards enable immediate purchases without waiting for funds from another payment method such as PayPal or Venmo. However, they do come with an additional fee (1 percent +) on top of any price fluctuations that occur during conversion timeframes between currencies such as USDTetherUSDUS Dollars, and so on.
4. To convert your cryptocurrency into cash, use a peer-to-peer exchange
- Peer-to-peer exchanges are online marketplaces where buyers and sellers can trade cryptocurrencies for cash. They’re also known as P2P for short, which shows how inventive these names can be!
- Because these marketplaces are not regulated by a central authority (such as the SEC), they carry a higher level of risk than traditional exchanges. However, if you want to sell your cryptocurrency for cash, peer-to-peer exchanges provide a simple and rapid way to do it.
If all goes well, you can sell and make a profit
That being said, there are no guarantees in crypto trading: The market is volatile enough that even the most seasoned traders will sometimes lose money—and sometimes bigly. So it’s important that you understand how to trade cryptocurrency in order to mitigate your risk and maximize your gains. Basically, while you tend to ‘sell’ the Bitcoins, you ‘buy’ currency that is equal in value.
While utilizing cryptocurrencies to purchase goods and services is gaining traction, it is still a very small market compared to traditional money. However, you have to be careful about the type of exchange that you choose, and also find out the reputation of the exchange that is actively present for conversion.
Alexia is the author at Research Snipers covering all technology news including Google, Apple, Android, Xiaomi, Huawei, Samsung News, and More.