Bitcoin for Fiat: Best Ways to Cash Out Digital Coins
If a few years ago an expression "I have 20 Bitcoins" aroused confusion or laughter, in our time this fact means a person has a solid state. Although many people have heard of digital currencies, it is rather difficult to spend them in real life. For this reason, many lucky owners of digital coins want to convert them into traditional fiat money. In this article we will analyze what methods of cashing out Bitcoin exist, and also review their reliability, convenience and speed. Contents: (please, click the topic to scroll down to it)
- What are the ways of converting cryptocurrency into fiat?
- Cryptocurrency exchanges
- Currency exchanges
1. What are the ways of converting cryptocurrency into fiat?There is no universal best method of exchanging cryptocurrency for fiat money. The fact is that every single person has his/her own personal preferences. Therefore, each of the methods presented below works better or worse than others, taking into account certain circumstances in a particular situation. For this reason, we will evaluate each method according to three key criteria:
- using cryptocurrency exchanges;
- using the WebMoney wallet;
- using regular exchanges;
- using the services of individuals.
2. Cryptocurrency exchangesPerhaps, the most popular method of releasing and withdrawing digital coins is the cryptocurrency exchanges. Some projects are cryptocurrency only, they have no place for fiat, however, there is also a sufficient number of platforms on the market where you can exchange real money for Bitcoin and vice versa. If we talk about converting cryptocurrency into the usual money, Bitcoin, Ethereum and Litecoin are best for these purposes, but even little-known coins (for example, the Poloniex exchange) can be used as well.
- Security. Pretty high, but you should remember that exchanges are subject to hacker attacks. Larger sites monitor reliability carefully, but they are still not 100% safe yet.
- Profit. The size of the commission is set by the developers of a particular exchange, it can vary. It is smaller at less popular exchanges and bigger at the top ones. On average, it is 1-2%.
- Convenience. Large exchanges have a fairly pleasant and intuitive interface, but the speed of money transfer is directly proportional to the exchange rate. The more profitable the procedure is for the seller, the longer he/she will have to wait for the buyer and vice versa.
3. Currency exchangesThere are quite a few similar services on the market, for this reason, it is practically impossible to track the exchange rate manually. For the convenience of users, there are special websites where rates at various exchange offices are monitored. The most popular monitoring site in RuNet is bestchange.ru. Very often, beginners are hunting for the most profitable rate and do not conduct a thorough research of an exchange itself. This could lead to sad consequences, from an overestimated commission of 10-15%, to total deception and theft of users' funds. Therefore, before you convert BTC at any exchange office, you need to find out about its reputation.
- Security. It differs depending on the exchange chosen. If you seriously approach the issue of choosing a service, it can be high. But there is a possibility to run into an unscrupulous office with a high commission, which is written about in a small transparent font, or you could even lose all your coins.
- Profit. Often it is not very high, but it generally depends on the final point of withdrawal (the value of the payment system or the recipient bank of fiat). The average commission is 7-8%.
- Convenience. Depends on the level of the exchange, large projects differ in thought-out usability and automatic transaction confirmation system. Smaller projects, where the Bitcoin rate can be more profitable, often work in manual mode. They often lack a reserve of assets, etc.
4. WebMoneyService WebMoney has recently began supporting Bitcoin. To be able to convert digital assets, you must have:
- a formal certificate;
- generated WMX wallet.
- Security. The highest of all the abovementioned methods. All funds are stored in the WebMoney system, which has not caused complaints from its users for many years of its work.
- Profit. Commissions in the service are the arithmetic mean between cryptocurrency and regular exchanges, but again, everything depends on the speed of exchange. For urgency you will have to pay an additional 0.8%.
- Convenience. Quite high, if you have a formal certificate. Everything is simple and logical.
5. IndividualsPerhaps, it is the most dangerous and ambiguous way to convert cryptocurrency into fiat money. You can find private traders on specialized resources (for example, bitalk.org). The human factor is very unpredictable, so there is no single description of this method.
- Security. Very low, because you can come across either an honest man or a criminal.
- Profit. In case of exchange with a reliable seller, the commission may be minimal, but if you come across a fraudster, you can lose all money or even suffer physically.
- Convenience. If you are dealing with an honest seller, you can agree on the most comfortable way to commit a transaction.