How to Convert Bitcoins to Dollars
Many have declared Bitcoins as the currency of tomorrow, but there are still few places that accept this cryptocurrency.
Fortunately, converting bitcoin to USD or other fiat currency is quick and easy. If you want to know how to turn bitcoin into cash, you will be able to do that after reading this article, as all it takes is to deposit the Bitcoins in a cryptocurrency exchange and sell them to any buyer interested. The digital market will quickly and easily convert your bitcoins to dollars or any other fiat currency and transfer them to a bank account, debit card, or digital wallet of your choice.
Step 1: Choosing a Conversion Service
- Analyze the rates offered by different cryptocurrency exchange services and choose the best one.
Even when bitcoin conversion rate improves on the average, different cryptocurrency exchanges offer varying conversion rates. For example, suppose one exchange offers to convert your bitcoin to the USD at a rate of 1 to $7500, and another offers to convert 1 bitcoin into $5,200. All other things being equal, you should go with the exchange service offering the higher rate to get the most out of your cryptocurrency.
- Convert your bitcoin using a crypto exchange with low fees.
Cryptocurrency exchanges typically charge a fee for conversion. There is a flat fee sometimes, no matter how much you exchange, and sometimes the exchange charges a percentage of the amount you convert. Compare the fees various exchanges charge and go with the one that offers the best deal.
- Make sure to confirm that the exchange platform you’re using is safe.
There are many ways to check whether a bitcoin conversion site is safe or not. One way is to check reliable sources for reviews that verify the integrity of a given exchange platform. Another way is to make sure that the website uses HTTPS, instead of the less secure HTTP in its URL. Finally, use a crypto-exchange that implements the 2FA (two-factor identification), guaranteeing that only you will have the ability to approve the conversion of bitcoins in your wallet.
- Choose a service that allows relatively low transfer times.
It takes some exchange services up to 5 days to transfer the bitcoins to your wallet, but faster exchange services could convert your bitcoins to dollars in less than 3 days.
Step 2: Signing up and Uploading Your Bitcoin
- Create an account.
Creating a trading account requires providing your name, email address, date of birth, address, mobile phone number, and other personal information. You’ll also be asked to give a bank account, and in case you want to convert bitcoin to usd paypal, you will be required to connect your PayPal account to your trading account on the platform.
- Select the most reliable security options when you create your account.
When you set up an account on a bitcoin exchange, you will be given a chance to enable two-factor authentication, which means you will enter a randomly generated code sent to your mobile phone and a password. It is also advisable you use a multi-signature option, which needs multiple independent approvals before making a withdrawal or bitcoin conversion.
Enable both of these security options when you are given the opportunity, as they can protect against theft and hackers.
- Deposit your bitcoins on the exchange platform.
The specific way by which you deposit your bitcoins will differ depending on where your bitcoins stored currently. Typically, depositing your bitcoins is as straightforward as clicking a “Deposit bitcoins” button or something related near the top of the exchange service’s home page.
- You’ll be prompted to enter your bitcoin encryption key if it is printed out.
- You might be demanded to upload the file if your bitcoins are in a wallet.
- If you’re having trouble depositing your bitcoins, don’t be afraid to reach out to customer support.
Step 3: Doing the Exchange
- Convert your bitcoins to USD or other fiat currencies when the exchange rate is favorable.
Exchange rates rise and fall over time. For example, the exchange rate might let you trade 1 BTC for $4,900 today, and next week, the exchange rate might offer $5,100 for 1 BTC. Wait till the corresponding dollar value rises before you change your bitcoin.
A fixed percentage or value do not determine a favorable exchange rate. Some people might feel that if the cost of a bitcoin rises by $100, it is a good time to convert their bitcoin. Others might decide wait until the amount they’d get for their coin rises by 5 percent.
One of the important things to do when learning how to how to sell bitcoin for usd is to check the exchange rate online from time to time or sign up for a service that gives updates on the bitcoin-to-dollar exchange rate, so you’ll know when the value changes and it is good enough for you.
- Sell your bitcoins on the exchange platform.
Some cryptocurrency exchange services let you sell your bitcoins to other users of the platform. Others enable you to sell them directly to the exchange, which will then later resell them to interested buyers. In either case, the particular method you use to market your bitcoins will differ slightly depending on the exchange you use. On most platforms, you can simply click on the “Sell your bitcoins” button to get the process started.
The bitcoins will then be converted to its equivalent amount in USD and transferred to the bank account or PayPal account you provided.
- Put your bitcoins on a debit card.
Some exchange services let you load your bitcoins on a debit card that converts them to dollars automatically. You might be able to obtain a digital debit card, which merely provides you with some numbers you can use for online transactions that require dollars, or you could get a standard debit card delivered to your mail.
Both types of debit cards are not free of charge, however, as digital debit cards typically cost around $5, while regular debit cards cost around $15-$20, but they provide added convenience, especially if what you are interested in is how to withdraw bitcoin, and you rarely use cash.
- Transfer your bitcoins to a different digital wallet.
Some cryptocurrency exchange services let you convert your bitcoins to dollars by transferring the cryptocurrency to Apple Pay, PayPal, or related financial services. If this is how you want to turn your bitcoins to USD, set your payout system to the wallet you want to use. After this, simply sell or transfer your bitcoins to the exchange service of your choice.
Converting bitcoins to dollars by transferring them to a wallet usually has higher fees and lower limits than having them transferred to your bank account.
However, this option might be better for people who buy digital currencies regularly and don’t want the trouble of transferring their money from a bank account to a digital wallet.