Does Bitcoin Convert To Cash
Some people kill time at the airport by browsing duty-free shops. I decided to shop for bitcoin.
But first, there are two things you should know about me: I tend to be almost as afraid of losing money investing as I am of flying. On some level, I figured one fear might cancel out the other.
Turn Bitcoin to Cash There are a couple of ways you can turn bitcoin into cash. You can turn any crypto coins into any fiat currency you want: USD, Euros, or British Pounds. However, before that, there are a few things that you will require. These websites are the ones allowing you to convert Bitcoin to USD or to EUR as well, and to cashout the amount in USD or EUR to your bank account. If you gave your exchange wallet address to the person sending you money, you can directly jump to the convert crypto to cash paragraph at the end of this post.
So last Thursday, while waiting for a flight to Nashville, I pulled up a popular application called Coinbase that can be used to buy and sell bitcoin. The virtual currency had hit $10,000 for the first time a couple days earlier, before retreating somewhat. News of bitcoin's rapid rise was everywhere, including on CNN.
For 15 minutes at the airport, I refreshed the price of bitcoin over and over, watching as it gained and lost hundreds of dollars in a matter of minutes. I called out the price fluctuations breathlessly to my wife, who gently encouraged me not to be an idiot, before returning to her magazine.
She was in good company. JPMorgan Chase CEO Jamie Dimon recently called bitcoin a 'fraud' and suggested people who buy it are 'stupid.' Warren Buffett called bitcoin a 'mirage' in 2014 and warned investors to 'stay away.'
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And yet bitcoin has climbed more than tenfold since Buffett's warning. Earlier this month, one college friend casually told me over drinks he'd made tens of thousands of dollars investing in another cryptocurrency. He said he hoped it would be worth enough one day to buy a house.
When I saw the price of bitcoin fall to $9,500, I pressed buy, defying the wisdom of two finance titans and my wife. One hundred dollars, or 0.0101 bitcoins. (A few days later, I bought another $150.) By the time we got to our hotel, my stake had already gone up 10%. One week later, it was (briefly) up 100%. My wife's opinion of me has reportedly decreased by the same amount.
What is happening?
It's an investing frenzy, plain and simple.
Bitcoin cracked $1,000 on the first day of 2017. By this week, it was up to $12,000, and then it really took off: The price topped $17,000 on some exchanges Thursday, and $18,000 on at least one.Other cryptocurrencies have seen similar spikes, though they trade for much less than bitcoin.
There's a long list of factors people may point to in an attempt to explain this. Regulators have taken a hands-off approach to bitcoin in certain markets. Dozens of new hedge funds have launched this year to trade cryptocurrencies like bitcoin. The Nasdaq and Chicago Mercantile Exchange plan to let investors trade bitcoin futures, which may attract more professional investors.
Yet a key reason the price of bitcoin keeps going up is, well, because it keeps going up. Small investors like yours truly have a fear of missing out on a chance to get rich quick. And when the value of your bitcoin doubles in a week, as it did for me, it's easy to think you're a genius. But you can get burned assuming it will keep skyrocketing.
Some investors have likened the bitcoin hype to the dot-com bubble. Others, like Dimon, have said it's even 'worse' than the Dutch tulip mania from the 1600s, considered one of the most famous bubbles ever.
As Buffettput it back in 2014, 'the idea that [bitcoin] has some huge intrinsic value is just a joke in my view.' Bitcoin is not backed by a company's earnings, or the strength of a government and rule of law. There's also no interest or dividends.
Why would anyone want or need to use bitcoin?
Bitcoin serves as a new kind of currency for the digital era. It works across international borders and doesn't need to be backed by banks or governments.
Or at least that was the promise when it was created in 2009. The surge and volatility of bitcoin this year may be great for those who invested early, but it undermines bitcoin's viability as a currency.
Right now, I can use my bitcoin holdings to pay for purchases at Overstock(OSTBP), or book a hotel on Expedia(EXPE). But if I use bitcoin to buy $25 worth of socks on Overstock today, and the price of bitcoin quadruples next week, I'll feel like those socks actually cost me $100. Then again, if bitcoin crashes, at least I'll always have the socks.
Rather than a currency, bitcoin is being treated more like an asset, with the hope of reaping great returns in the future.
So is there anything truly valuable about bitcoin?
Yes, the technology behind it.
Bitcoin is built on the blockchain, a public ledger containing all the transaction data from anyone who uses bitcoin. Transactions are added to 'blocks' or the links of code that make up the chain, and each transaction must be recorded on a block.
Even bitcoin critics like Dimon have said they support the use of blockchain technology for tracking payments.
Is there a legal and legitimate way to invest in bitcoin?
Bitcoin exchanges have a checkered history. Mt.Gox, once the largest exchange, shut down in 2014 after losing hundreds of millions of dollars worth of bitcoin after a hack.
Today, the leading exchange is offered by Coinbase, a startup that has raised more than $200 million from a number of top tier venture capital firms. Square(SQ), the payments service, is also rolling out a bitcoin product.
There are also bitcoin ATMs in scattered bodegas and convenience stores around the country, through companies like Coinsource. The ATMs let you exchange bitcoin for cash, or vice versa by scanning a QR code from the digital wallet application on your phone.
With Coinbase, you must first give the app permission to connect to your bank account. As with other stock trading applications, you pay a small fee for each transaction, buying and selling. But the transaction can take significantly longer.
My original $100 bitcoin purchase won't officially be completed on Coinbase until Friday, more than a week after the transaction. The price I bought it at remains the same, but I won't be able to sell at the earliest until Friday.
If the price plummets before then, I'm out of luck. No socks for me.
-- CNN's Selena Larson contributed to this report.
Are you looking to convert the bitcoins you’ve been holding up until now into fiat currencies? Our article for today will show you different ways in which you can cash out your BTC.
Exchanges that have Fiat Options
The first option is to find an exchange that has let you convert BTC into fiat currency. Most exchanges do not have this option available, but there a few that do. You can trade your Bitcoins against fiats like USD, EUR or GBP. A few platforms have JPY, but that option is limited to certain countries. Below are some of the exchanges that have fiat options. To find out more, enter CoinMarketCap and click on the Markets tab and then arrange the list according to https://coinmarketcap.com/currencies/bitcoin/#markets pairs.
- Bitfinex-USD/EUR
- bitFlyer– USD/JPY
- Coinbase-USD/EUR/ GBP
- Bitstamp-USD/EUR
- BitMex-USD
- Simex-USD
- Coinsuper- USD
- Gemini– USD
- Exrates – USD
- Gatecoin USD
- Kraken-USD/EUR
- CoinsBank-EUR/USD/ GBP
- Exmo- EUR/USD
- Coinroom- EUR
- Liquid- JPY/USD
- BTCBOX-JPY
- Zaif- JPY
- Bitbank-JPY
- Coincheck- JPY
- Cryptonex- JPY/GBP
- Bitinka-EUR
- Bitsane – EUR
The options presented above might not work on a global scale as the cash system differs from country to country.
LocalBitcoins
LocalBitcoins is a Peer-to-Peer Bitcoin exchange based out of Helsinki, Finland, which has been established in 2012. It brings together buyers and sellers from more than 15,000 cities across 248 countries. Considering these numbers, there is a chance that you will find a buyer in your country through LocalBitcoins.
Localbitcoins lets you interact with the buyer directly and you can receive your fiat in any of the supported formats (bank deposit, PayPal, Payoneer, cash).
The platform lets you meet the buyers/sellers online and make the trade offline. The buyers have the option to either pay in cash or wire the amount.
You can filter your country according to the payment mode of your choice. All the fees here are set by the seller while LocalBitcoins is used as an escrow manager.
It is advisable that you check the reputation of the buyer/seller; a higher reputation means that the buyer/seller is more serious. There have been cases in which BTC holders have been lured and forced to give up their digital funds, so you can never be too careful.
Convert BTC into USTD Like Digital Fiat
If time is not a pressing matter for you, you can first convert your BTC into USDT (Tether).
USDT conversion has its benefits when in comparison to dealing in USD or EUR. Moving money in and out of your bank account on a regular basis makes you liable and may add more to your taxes.
There is also the issue of volatility that you need to think of when you convert to USDT because USDT always keeps its value to that of the actual US dollar.
The most advantageous thing about USDT compared to fiat currency is that it is supported by far more exchanges across the world. You can later convert your funds into USD via Bittrex, Kraken and Binance, all of which are well-known and used exchanges.
USDT (Tether) is supported on a variety of exchanges including the following: Bitfinex, Binance, KuCoin, Cryptopia, Bittrex, Gate.io, ZBG, BitForex, OKEx, IDAX, HitBTC, Huobi, Poloniex.
Bitcoin ATMs
Bitcoin ATMs can be found in most of the bigger cities around the world and they let users rapidly convert Bitcoin and other cryptocurrencies into fiat money.
Using a Bitcoin ATM to exchange your digital funds into cash can be convenient for those theta receive their earning in cryptos. One disadvantage would be that this service comes with higher fees when compared to online exchanges. The conversion rates can also be much lower that what is on the market, meaning that you will not get the crypto at its actual market price.
Does Bitcoin Convert To Cash App
Use a Bitcoin Debit Card
Cryptocurrency debit cards are a practical and reasonable way of spending Bitcoin and other cryptos at traditional merchants who may not accept payments in digital coins but accept debit and credit cards. These cards enable their users to make deposits in cryptocurrencies via an online website that automatically makes the conversion to a fiat currency such as USD or EUR.
The most known debit cards dedicated to cryptocurrencies are Monaco, Bitpay, CoinJar, and BCCPay. Each card is supported by either VISA or Mastercard meaning that their usage is extended to both online and offline shopping at most businesses. Availability is variable depending on geographical region, as well as its daily and monthly usage limits, so before getting a card it is advisable to compare see which one suits your financial needs.
Conclusion
Can You Convert Bitcoin To Cash On Binance
We hope that our article has been of help and that our aforementioned options will suit your needs. Be sure to check any source, website, buyer/seller, service provider, etc. before you even start trading your BTC, as there are many frauds and scams lurking.