The term cryptocurrency, by definition, is a digital medium that uses cryptography tO allow people to perform secure transactions and verify the transfer of assets. The technology that is used for digging the cryptocurrencies is named blockchain. The first and the most popular cryptocurrency today is bitcoin, but there are at least 6,000 variations of it and other currencies.
The usage of cryptocurrencies is still controversial in the bigger part of the world, but the rest of them already found a way to dig this virtual money and to convert them to real cash. There are some cases when a direct bitcoin transaction is available.
But, before you decide to cash out your cryptocurrencies, you should be aware that there are fees and other steps you need to pass to get the money. Then, you should exactly know the amount you want to withdraw and at the same time, you should have a piece of great knowledge about laws in your country or region, that are related to this type of transaction. You can check how much money you will get with your bitcoin fund using the bitcoin calculator available on bitcoin-profitapp.com.
What are the most popular cryptocurrencies?
You sure have heard about Bitcoin, but you should know that there are many other cryptocurrencies, such as Ethereum, Ripple, Litecoin, Bitcoin Cash and many others. Every one of these can be converted to real cash if you know how to do it.
Cryptocurrency exchange using third-party platforms and services
Many people choose third-party exchanges because they offer reasonable transaction fees and are safe and secure. But, before you decide to use a third-party exchange, you need to check first if it is safe, so you can avoid scams and phishing. Also, you need to follow all the strict rules of these platforms and sometimes you may need to give a deposit, a step that is used to prevent money laundering.
The cryptocurrency markets are really big and you have a chance to join the great millionaires. You should only be aware of laws and security. Sometimes, cashing out may take a few days, because all of these platforms should first verify the transaction before they proceed to withdraw the money to your bank account or your PayPal or another virtual account.
What is a P2P exchange?
P2P exchange is short for peer-to-peer exchange, which is a decentralized way to exchange bitcoins or another cryptocurrency for money. The transaction happens between parties, without involving authorities. This is a private way to complete the transaction and it is more discrete and anonymous, but it also brings a higher risk for scams.
By P2P exchange, you will spend less on fees, but you’ll never be 100% sure that the other side won’t steal your cryptocurrencies. Some P2P platforms offer escrow help, so they can decrease the scamming risk.
Can I send the crypto amount to my bank account?
It’s pretty normal for those who own some amount of cryptocurrency to look for the fastest and safest way to withdraw the money to their account and use them as cash. There are a lot of applications that offer money transferring. They will also calculate how much money you will get after the conversion.
Just like P2P exchange and third-party exchange, the application should be verified, so you can avoid double scams, including stealing your bitcoins and using your bank account for illegal transactions.
Should I store the cryptocurrencies before converting them?
The answer is yes, you need to store the virtual money to some verified and safe crypto wallet. After you create your wallet, you’ll get a protection code that you should never share with any other, even with the people you believe the most, just like you do with your bank account data.
Keep in mind that cryptocurrencies are big networks with their own rules, and there you can find a lot of valuable information about how to store your money and how to avoid scams. You’ll never be 100% sure that the transaction is safe, but you can lower the risk using only trusted services for storing and cashing out cryptocurrencies.
Also, there are real “cold” wallets that look like USB flash drive but work like e-banking tokens, that you can use to store your cryptocurrencies and later, to confirm the transactions.
Many banks try to run some projects that will help people to convert their cryptocurrencies into cash. You need to check the scene in your country and see if you can convert the bitcoins or any other cryptocurrencies to your local currency.
Can I use cryptocurrencies as a payment method?
There are some cases when direct payment is allowed. Some services will offer you to pay them with bitcoins or other crypto money, using some application or online platform. As always, you need to do your research so you can find the method that is the best for you. After that, you will get a transaction card or you would use your cell phone to finish the payment.
You should follow the rules of this virtual society, but also, you shouldn’t forget that the rules are changed every day. Now, when you know everything about bitcoin transactions and using cryptocurrencies as a payment method, you can say that you are a great part of the crypto world.
In general, more than $2 billion worth transactions are happening every day and this is just about bitcoins. The amount is even bigger if you include all of the popular and less popular cryptocurrencies. You should be very careful when you start doing this, both digging and mining and money withdraws after that because the scammers are waiting for inexperienced and new people in this world. Sadly, there are a lot of people that do this. That is why you should use trusted and recognized applications and services.
All of the withdrawal methods mentioned above have their advantages and disadvantages and that is why you need to do your research and find what works the best for you.