A Guide To How To Convert Bitcoin Or Cryptocurrencies Into Fiat Currency
Easiest Ways Of Converting Bitcoins Into Fiat Holdings
Bitcoins have heralded a new dimension in the global financial spectrum. However, it still has a long way to go before reaching the brim of complete acceptability. Fortunately, the conversion process from Bitcoins to usable fiats such as dollars, pounds etc. is pretty easy and quick. Whether you wish to convert your Bitcoins in to traditional bills or book some profit from your crypto holding, you can follow the below mentioned methods for the same.
Fiat Accepting Exchanges
These exchanges accept Bitcoin in exchange of popular fiat currencies like EUR, USD and GBP. We have provided a list containing the most popular crypto to fiat conversions hosted by exchanges:
- bitFlyer– USD/JPY
- ZebPay (India Only)-Convert BTC to INR or any other altcoin
- Unocoin (India only)- Convert BTC to INR or any other altcoin
- WazirX(India Only)- Convert BTC to INR
- Koinex (India Only)- Convert BTC to INR or any other altcoin
All the options listed above might not work globally since the cash system varies across countries. Sellers in such a case can opt for the second option of LocalBitcoins for engaging in peer to peer purchase and sale of Bitcoins.
This start-up based in Helsinki, Finland has been in operation since 2012. It provides a P2P Bitcoin exchange platform to on-ground buyers and sellers spread across 15000 cities and 248 countries. It tries to primarily link transacting parties nationally before trying out international territories. Users can receive money in any of the supported formats amongst PayPal, Payoneer, bank deposit or cash while dealing directly with the buyer. This has helped LocalBitcoins in achieving the position of one of the most preferred choices amongst people who do not wish to avail of an exchange.
Both buyers and sellers can meet in this online platform for executing offline trade. Bitcoin can be converted into an array of currencies such as JPY, USD, Dinar, EUR, AUD, INR, CNY etc. depending about the specifications of the parties to the transaction. Users can filter their country in accordance with the type of fiat they wish to avail. LocalBitcoins simply acts as an escrow manager in all the transactions where the seller decides on the fee structure. This easy way of Bitcoin redemption should be proceeded with only after conducting a thorough background check on the transacting parties.
This is a relatively faster method of converting cryptos such as Bitcoin into corresponding fiat equivalents which has already become functional in major cities around the globe. Certain Bitcoin ATMs even allow users to purchase Bitcoin by depositing equivalent cash in a manner similar to depositing money at a regular ATM or bank. Most of these crypto ATM’s have also extended their support towards additional cryptos such as Ethereum and Litecoin as well. However, the fees of Bitcoin ATM’s are comparatively high in contrast to online services. The conversion rate is also lower compared to other methods. Thus, you might not emerge as a gainer out of this mode of exchange.
Converting BTC Into USTD Like Digital Fiat
If you wish to steer clear of tax liabilities and have enough time in hand, then it is always advisable to convert your Bitcoin holdings into USDT (Tether). In comparison to dealing in EUR or USD, using USDT brings along its own benefits especially if you plan on purchasing Bitcoins down the line. Regular movement of cash from your bank account can pile up your taxes and make you more accountable on the go. While opting for the USDT method, you will not have to worry much about the volatility of cryptos since parity is always maintained with actual US dollars. Thus, the value of $1 per USDT is kept at all times. This also reduces the obligation of users to transfer fiat currencies to the exchanges for purchasing Bitcoins since the same can be bought via USDT. Supported across an array of exchanges such as Binance, Gate.io, Cryptopia, Bitfinex, KuCoin and Bittrex, USDT surely has evolved in to one of the most popular forms of exchanging crypto holding into fiat.
Conversion of cryptos in to regular fiat currencies hikes up their usability instantaneously. Once the conversion process is completed, users won’t have to worry anymore about volatility which is an inherent feature of the virtual coins. At the same time, there also exists an opportunity cost if the price of cryptos skyrockets in days to come. Thus, it is advisable to store your crypto holding in an online wallet service and convert the same into fiat form only when required. Making use of CoinJar or Coinbase for transferring cryptos to a bank account might not be of much help during emergencies since it requires up to five days for being processed.
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Rohit Kukreja is a Commerce graduate with Financial Markets expertise involving Stocks, Forex, Futures & Options Market and now Bitcoins & Cryptocurrency Markets. Blockchain Enthusiast but not a techie, Rohit is an active member of various Blockchain & Crypto communities all over India.