These days, people are coming up with more creative ways to make money. The digital space has allowed a variety of options in making money like ecommerce, foreign exchange trading and cryptocurrency trading. There are many viable options but these digital currencies have been making waves in the global market.
When it comes to investing in assets, many experts have expressed their opinion on whether or not cryptocurrency is worth the hype. However, after years of issues and various debates regarding its features, many institutions have already accepted crypto as a form of payment, specifically Bitcoin, which was first launched in 2008. The digital currency landscape hasn’t been the same since.
If you have been trading Bitcoin for some time, here are some ways on how you can convert them into United States dollars:
- Use cryptocurrency exchanges
Cryptocurrency exchanges are considered to be some of the most reliable ways to trade Bitcoin to USD. Exchanges like Trade by Trade are platforms where investors can exchange one type of crypto currency to another. However, it can also be used to trade Bitcoin to a traditional currency such as Japanese Yens, Great Britain Pounds or Euros.
Keep in mind though that if you have altcoins other than Bitcoin, be ready for limited options since most cryptocurrency exchange platforms have little choices to choose from. Since Bitcoin is the primary currency of digital trade, it might be ample to trade all your alternative currency or altcoins to Bitcoin or BTC first, then trade them for fiat currencies like United States dollars.
- Peer-to-Peer or P2P exchanges
Peer-to-Peer exchange in virtual offers a decentralized option to exchange Bitcoin into dollars. If you are looking for an anonymous means of earning cash, then these exchanges allow you to physically get cash from viable buyers. It’s quick, simple and efficient.
Here’s an overview of how P2P works:
- First, both parties must publish their offerings before they decide on an agreeable price.
- Next, they can continue the transaction through online or offline means.
- Use Bitcoin ATMs
One of the most easily accessible and user-friendly platforms, Bitcoin Automated Teller Machines or ATMs, combine the features of traditional ATMs with the option of trading Bitcoin from your wallet into physical cash. Some of these platforms may include two or more different types of currency.
- Purchasing and using a prepaid card
Investors who are looking for quick ways to get dollars can also purchase a prepaid card that is usually issued by various major card companies. These cards depend on your location and available financial institutions.
Most of these cards work through the following:
- Loading the card first with Bitcoin
- Searching for the bank’s nearest platform to convert them into cash
If you are unsure of what platforms are available, contact your nearest major card company today.
- Use cryptocurrency lending platforms
In cryptocurrency lending platforms, your amount of Bitcoin can be used as a form of collateral which can be exchanged into the currency of your choice. However, if you decide to do this, remember to present a form of identity to the lender, as well as reading the fine print on how you intend to pay your loan back.
This is a risky avenue since Bitcoin increases and decreases in value so you might have to pay more than you’re being lent in the long run.
- Over-the-counter trading
OTC trading platforms are available for Bitcoin millionaires who have a huge amount of Bitcoin in their account. These platforms are especially useful since the exchange rates of currency is not affected and investors can avoid slippage which can result to losses. They are open to a load of alternative currencies.
The downside is that the platform is not made available to the public and may only be used by people who have met the millionaire standard.
- Investing in another digital wallet
Digital wallets are great investments to have, especially when you’re dealing with online purchases. Digital wallets generally work by allowing a person to make various transactions online. Many of which house numerous cryptocurrency such as Bitcoin and Ripple which you can then convert into dollars, as well as other currency types.
- Use hedging
While Bitcoin has stabilized over the years, there are still instances where prices can suddenly move up and down which can incur in a lot of losses. To avoid losing some of its value, investors may have to adopt hedging by buying another investment which reduces the risk of losses that could stem from Bitcoin’s volatility.
One example is Coinaupid which locks the coin’s value and buys your Bitcoin to its corresponding exchange rate.
- Shop with Bitcoin
Considering that there are various of institutions and shops that accept Bitcoin as a form of payment now. This method is incredibly useful if you want to exchange your coin into US dollars. Simply purchase the said item and ask if they can be converted into US dollars.
This may not work with a lot of retailers but there are some who may be willing to convert Bitcoin to dollars to get a piece of the cryptocurrency pie.
- Sell Bitcoin
Last but not the least, one surefire way of converting your collection of Bitcoins into United States dollars is to simply sell them at an agreeable price. While the standard equivalence of a single Bitcoin is now around 3,380.36 USD, one may also combine this technique with other platforms mentioned earlier to have a wider range of options.
With all conversion options available, it’s only a matter of time until other forms of crypto coins will get the same treatment as Bitcoin. While it may take some time for it to be possible, investors who are still trading Bitcoin today will be glad to know their investment was all worth it. To keep tabs on the cryptocurrency market, make sure to at least save a few Bitcoin pieces behind and resist temptation to trade them for cash, all at once.