Bitcoin is one of the most popular cryptocurrencies, but there’s a considerable risk of fraudulent activities. Hence, to avoid the risk of fraudulent activities, many people are turning to convert their Bitcoin into fiat currencies.
Fiat currencies are regulated by the government. Hence, there is a lesser risk of any fraudulent activities. Unlike Bitcoin and cryptocurrencies, fiat currency isn’t regulated by the government, and it is a legal tender. However, it is not backed by any physical commodity such as silver or gold. The complete value of fiat currency is existent because of government regulations. It regulates most of the activities through the supply and demand chain. Moreover, it is completely based on faith.
Most of the modern paper currencies regulated by the government of respective countries have been assigned the reputation of fiat currency. Since it is legal in almost all countries, many Bitcoin holders are turning to convert it.
Why convert?
Conversion is extremely crucial for the newbies. Investors who aren’t aware of the transaction process of Bitcoins can turn to convert their Bitcoin asset into fiat currency. This type of currency is acceptable in almost all countries. Therefore, BTC can be easily converted into USD, INR, and GBP.
Methods for conversion
There are different methods for converting your BTC into the respective fiat currencies. Each of these procedures is different from one another and have their own advantages.
However, it is essential to note that most of these currencies may have certain criteria. If the investor does not meet the criteria, the conversion will eventually be impossible.
Cryptocurrency Exchange
One of the most accessible sources for converting your cryptocurrency is to turn to cryptocurrency exchanges. No matter where you go if you need some money and have Bitcoins, you can turn to your cryptocurrency exchange.
The exchange center will easily switch the local currency with that currency you’re visiting. Similarly, when you exchange Bitcoins, it will eventually turn to your local currency. However, these cryptocurrency exchanges come with significant criteria for conversion. Coinbase is one of the most popular sectors to boost the conversion process. Bitcoin trading is also one prominent cryptocurrency exchange where you can convert BTC into fiat currency.
Coinbase is legal in almost 30 countries, which is why you can easily indulge in the process of conversion. The fiat currency will be directly transferred into the bank account.
Bitcoin debit card
Not everyone has a Bitcoin debit card, but it is one great method for conversion. With the help of your Bitcoin debit card, you can easily convert the existing BTC into the required fiat currency. But, how do you get a Bitcoin debit card? If you have a cryptocurrency exchange account, you can apply for it online.
There are multiple options for converting your BTC into fiat currency. However, you can also hold some coins. You can pay with Bitcoins to the respective merchants—the Bitcoin debit card functions in a similar manner as a Visa or MasterCard.
Bitcoin ATMs
Bitcoin ATMs aren’t available everywhere. The Bitcoin ATMs are also referred to as Bitcoin Teller Machines or BTMs. With the help of Bitcoin ATMs, you can easily buy and sell bitcoins.
However, one of the most important things to note is that Bitcoin ATMs aren’t available in all countries. It is available in all major cities. Compared to other methods, Bitcoin ATMs are one of the fastest processes for withdrawing funds. The Bitcoin users can also deposit money in the respective account from their ATM.
Selling Bitcoins
This is hailed to be one of the best methods for converting Bitcoins into fiat currencies. If you don’t want to hold your Bitcoins and need some money, you should consider selling them to someone.
Although you can directly transfer the Bitcoins to the other party without the involvement of a credit card, you need to be careful. Rather than making aimless transactions, you need to ensure that the buyer is available for the transaction. As soon as the buyer is available, you can transfer Bitcoin to their account and receive the payment.
However, it is advisable to sell bitcoins only to trusted individuals. This is mostly because the other party may or may not pay. If they don’t, you can’t complain about it. Hence, make sure that you have followed all procedures for turning your BTC into fiat currency carefully.
