Because bitcoin hasn’t been completely included into the economy, the day will undoubtedly come when you’ll need to exchange one or more Bitcoins for local currency.
Maybe you’ve been hoarding Bitcoin as an investment vehicle, and the current price hits your predetermined cutoff point at which you can cash in on your gains. Or perhaps you’ve suddenly found yourself short on cash due to an unanticipated expense—like a medical bill—that you can’t pay with Bitcoin. Regardless of the circumstances, having Bitcoin entails trading your virtual money for the real, fiat equivalent – at least until complete integration is accomplished.
This method may initially appear a little intimidating to novices who are just starting the ownership phase of Bitcoin. Users who have newly joined the Bitcoin bandwagon may find it difficult to understand phrases like “buy order” and “sell order,” compare centralized and decentralized exchanges, and execute trades when Bitcoin’s volatile value fluctuates.
This website should act as your all-in-one resource for everything you need to know about selling Bitcoin for local fiat money, including tips on exchanges, the advantages and disadvantages of private sales, and the increasingly popular Bitcoin ATM utility.
What Is The Easiest Way To Sell My Bitcoin For Fiat Currency?
There are numerous Bitcoin exchanges operating online, including Kraken, Coinbase, and BitBrothers, among many more.
In essence, a centralized currency exchange is a third-party platform where users can connect with other users looking for the other end of the transaction, deposit cryptocurrencies or fiat money, and set a pricing point for purchases or sells. Thus, if someone wanted to get rid of two Bitcoin, they would specify a price at or close to the exchange value at that moment, and the exchange would find a suitable trading partner who would buy Bitcoin at the required price.
After that, the buyer receives the Bitcoin from the seller’s personal account, and the seller receives the fiat money in the opposite manner.
The most convenient places to sell bitcoin are typically centralized bitcoin exchanges like Bitstamp, BitFinex, BTC-e, BTC-China, and Huobi. However, convenience often comes with security risks.
The most notorious incident in the history of Bitcoin, in fact, concerned the now-defunct controlled exchange known as Mt. Gox, which was the most well-liked platform for trading Bitcoin between 2010 and 2013. That year, after a string of trading problems, Mt. Gox abruptly shut down due to insolvency, embezzling monies from customer accounts in the process.
Naturally, the Mt. Gox incident has made Bitcoin fans work extra hard to make sure that a similar catastrophe never arises, and in the current market, Bitcoin exchanges that have undergone extensive due diligence are usually safe.
Having said that, the whole point of cryptocurrencies like Bitcoin, which is to eliminate the need for reliable third parties like banks, PayPal, and other financial institutions, is completely undermined by the use of any kind of centralized currency exchange. Because most Bitcoin aficionados are looking for alternatives to the paper trail nevertheless, the paperwork that is currently usually required by centralized exchanges in order to organize withdrawals to your fiat currency bank account might be burdensome.
What Is The Safest Way Of Selling Bitcoin For Fiat Currency?
A decentralized currency exchange is an alternative to a centralized exchange with all of its associated third-party hazards.
Encouraging platforms such as B&C Exchange, Bitquick, Bitsquare, LocalBitcoins, and Coinffeine are spearheading the movement to make decentralized exchanges the standard for trading cryptocurrencies.
Instead of serving as third-party intermediaries to transfer funds between two sources, these decentralized exchanges enable one-on-one transactions. Orders are placed by users to purchase or sell different currencies (also called bids and asks), and the exchange publishes these orders for the community to see.
When a seller has Bitcoin to unload, they would put in an ask order with the quantity of Bitcoin they are offering and the price in fiat money. In the meantime, buyers can sort through different ask orders to find appropriate trading partners that are offering Bitcoin at a fair price. Then, they can get in touch with those partners directly to set up the trade. On the other hand, if you’re a seller, you can look for bid orders from people who are attempting to buy Bitcoin with your local fiat money.
Additionally, decentralized Bitcoin exchanges do not require documentation, enabling traders to maintain their privacy during the exchange process. This is accomplished by using a decentralized exchange to act as a typical escrow agent, holding the trade’s funds while the individual traders work out the specifics. The exchange only releases the money into the relevant accounts to complete the trade after it has been concluded and approved by both parties.
Can I Sell My Bitcoin For Cold Hard Cash?
Selling Bitcoin for cash is the ideal option for those who only need to get their hands on some green dollars to make ends meet.
Similar to a Craigslist swap, LocalBitcoins, one of the decentralized exchanges previously mentioned, offers a service that links Bitcoin sellers and buyers to organize in-person trades. Furthermore, you should always consider your personal safety when trading Bitcoin for cash in a real environment, just as you would when bartering products and services online through Craigslist.
Request to meet at a public location, such a restaurant or even a police station, to avoid any chance of robbery or other illegal activities.
However, if you take these safety measures, converting your Bitcoin into cash is actually a very simple process. To pay the buyer Bitcoin in exchange for cash in hand, a bank wire transfer, or another method akin to this, just ask them for their public key information and Bitcoin wallet address. Then, using your own wallet, send the buyer the Bitcoin.
Additionally, you can benefit from programs like as Mycelium Local Trader, an app that comes with the Mycelium Android Wallet and uses your smartphone to find Bitcoin buyers. Make sure to associate with buyers who have solid reputations in the community as both the LocalBitcoins and Mycelium platforms offer “reputational” services to find people with clean records.
What About Those Bitcoin ATMs?
Going to a Bitcoin ATM that has been specially created is another way to exchange Bitcoin for local money.
Usually, these machines are configured to accept deposits in fiat money and withdrawals in Bitcoin; however, you can also “sell” Bitcoin by making deposits and withdrawals in fiat money.
Over 800 of these Bitcoin ATMs are presently in operation, serving customers in 54 countries,.
With 76 functioning machines, New York City leads the United States in the adoption of Bitcoin ATMs. It is followed by Los Angeles (46), Chicago (42), Washington, D.C. (34), Atlanta (30), Dallas / Fort Worth (22), the Bay Area (18), and Las Vegas (16).
There are 450 bitcoin ATMs in the U.S. overall; Canada has 117, the UK has 36, Spain has 26, and Finland has 17 more.
Thus, it goes without saying that using Bitcoin ATMs to sell off cryptocurrency requires being in a large North American or European city. However, those numbers are increasing daily, so when Bitcoin integration reaches its full potential in a few years, selling virtual currency to a machine will be the most convenient and safest way to convert it to fiat money.
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