Bitcoin is a decentralized virtual currency that does not require bank intervention. However, how to turn this cryptocurrency into physical cash? How to proceed to sell it and what is the current exchange rate for 1 dollar in Bitcoin? In this article, we will cover several ways to sell Bitcoins and convert them into cash.
While acquiring Bitcoins is simple, the reverse process of converting them into physical cash can be challenging.
Conversion in exchanges
Have you had experience with transactions on the stock exchange? Exchanges operate in a similar way, acting as intermediaries between buyers and sellers. In these places, you must inform the desired currency type, the desired value and price per unit.
Although exchanges facilitate the operation, it is crucial to highlight that not everything is simple.
It is important to note that most exchanges have a limit on the amount of money an investor can store, which is gradually increased as the investor demonstrates loyalty to the platform. However, exchanges are not considered safe and reliable for storing long-term funds, as they are subject to significantly greater unforeseen events than conventional banks, such as hacker attacks and risk of bankruptcy. There are reports of exchanges disappearing with investor funds, which raises concerns about the security and reliability of these platforms.
It is recommended that you leave only the cash you need for immediate transactions on exchanges, and that you take care that most of your cash is stored in a secure offline wallet.
In addition, exchanges charge fees so that the investor can carry out transactions within the platform. These fees vary according to investor choices and may include a flat fee for wire transfer withdrawals as well as a specific percentage fee for each card brand.
Conversion at Bitcoin ATMs (Bitcoin ATM)
Although rare, Bitcoin ATMs do exist. Most of these Bitcoin ATMs, also known as Bitcoin ATMs, only accept investor purchase transactions. However, there are some machines on the market that have two-way functionality, allowing the buying and selling of Bitcoins, such as Robocoin, Genesis1 and Satoshi2 by Genesis Cain. It is important to note that although these machines have bi-directional functionality, some operators may disable the put option.
P2P Conversion
In P2P trading, also known as peer-to-peer, i.e. person-to-person, investors trade directly without the need for an intermediary such as an exchange. Communication is done through forums, applications or platforms, where the parties discuss and agree on the terms of the transaction, which includes converting their amount of Bitcoins into dollars.
Although it is a faster and more practical method, it is important to point out that P2P trading requires greater attention and care from investors, as there is a greater risk of fraud and security breaches. Many investors opt for this form of trading to avoid having to provide personal data to an exchange.
It is also possible to negotiate the value of Bitcoin in person by scanning a QRcode. However, for this it is necessary that the other party has a Bitcoin wallet, which requires registration in a digital wallet.
There are some precautions when negotiating P2P, mainly in relation to price, which depends on several factors, such as the final exchange rate, normally agreed upon in a meeting.
In addition, local fluctuations in the value of Bitcoin and the different exchange rates that vary depending on the investor’s country are also sensitive topics and must be agreed upon in advance. Interesting events and considered safer to buy and sell Bitcoin are Bitcoin meetups, where it is possible to meet other investors and negotiate the price in person.
Trading directly through a platform
You may have already dabbled in the buying and selling experience on retail platforms. Intermediate through a platform is very similar, you register, provide your complete identity information, and publish your offer. The platform notifies you when a potential buyer is interested in your offer and, from there, you negotiate directly with the other party involved.
However, just like converting through exchanges, the process of selling Bitcoin on these platforms is not so simple and can take a long time.
Read more about Bitcoin:
- Everything you need to know about Satoshi cryptocurrency
- Virtual workers: What is Bitcoin mining?
- Simplifying Blockchain Technology
Possible fees for selling Bitcoins
So far, we’ve seen some of the alternatives for turning your digital currency into physical cash, but we need to talk about fees. Do you know what fees are involved to convert Bitcoin into real money?
During Bitcoin-to-real-money transactions, some of the most common fees include the transaction fee, which is required to process the transaction and varies depending on network congestion and transaction size; the conversion fee, charged by the brokerage to transform the virtual currency into physical money; the deposit fee, charged to deposit Bitcoin on the platform; the withdrawal fee, in cases of ATMs, for example; and the exchange rate, which can fluctuate significantly and affect the final amount of money after conversion.
Before making a final decision on which exchange to use for converting Bitcoin into real money, it is essential to carefully analyze the fees and percentages of each one. Each broker has its own fee system, and comparing the different options can help ensure that you get the best possible value for your money.
I sold my Bitcoin, now what? How to withdraw the funds?
After selling your Bitcoins, there are several ways to withdraw your funds, including international bank transfer, which is the most common option, as well as credit and debit card withdrawal functionality on some more developed exchanges.
Another less common option, but accepted by some European exchanges, is the transfer via SEPA (Single Euro Payments Area), a system developed to facilitate international transfers for members of the European Union.
However, as the cryptocurrency market is still relatively new, withdrawal systems are still in the process of being improved and popularized and may include expensive fees to process the withdrawal. For example, Barclays bank charges from £25 to £40 depending on how quickly the customer wants to receive the money through SEPA.
Regardless of your choice, it is important that you carefully review the available options and do additional research. Talk to friends who carry out similar transactions, join forums, check the reputation of banks and exchanges, understand the fees charged and make a decision that prioritizes your financial security. In this way, you will be able to evolve your heritage in a safer and healthier way.
Translation by Laura Bonci
