Bitcoin is on the most renowned cryptocurrencies and probably the pioneer in the digital currency section. With the popularity of the cryptocurrency increasing, many people are starting to use it currently. However, a small but growing number of bitcoin users may have a hard time using bitcoin as they still find it difficult to convert BTC into fiat cash here is where Cryptobase ATM comes in.
At this article we provide you with all you need to know about how to easily convert Bitcoin into cash. So why convert bitcoin into cash exactly? here are some of the reasons:
To raise the value
Over time it has been proven that bitcoin raises in value for example while in 2010 100 bitcoins were worth as much as 100 dollars today they are worth over 5 million. Therefore, to get some value one may convert the bitcoins into cash.
The Limited Purchasing Power
Bitcoin has a limited purchasing power like any other traditional currencies, in countries that have banned bitcoin, it is hard to buy a cup of coffee with bitcoin. So the purchasing power of bitcoin is only in the internet and hence it is hard to use it for purchases physically
The Weak Economy
With the weak economy and the price of items skyrocketing its better to have some cash in reserve. As such it may be advisable to convert bitcoin into cash.
How to convert bitcoin into cash
There are a number of ways on how one can convert their bitcoins into cash the easiest way is using a bitcoin ATM. so exactly how do Bitcoin ATMs work?
Bitcoin ATMs are physical entities, much like a regular ATM, allowing the deposit and withdrawal of cash for bitcoin transactions. An example of such an ATM is Cryptobase ATM. They are independently owned and operated by companies that manage the machines inside. Bitcoin ATMs can be found in a number of major cities like New York, Rio de Janeiro, London or Hong Kong. The company operating the machine is usually responsible for converting the bitcoins into cash and paying out either in a fiat currency or bitcoin as requested.
However it is important to note that there are transaction fees attached to a bitcoin ATM, these fees vary based on the platform but is usually around 3%. In Cryptobase ATMs this fee may be even less.
Most bitcoin ATMs support a limited range of currencies, Bitcoin is the only one supported at this moment. However some machines support multiple cryptocurrencies. A common limitation is that your bank account needs to allow for such transactions. Also it is important to ensure that your bitcoin wallet has some balance before making this transactions.
The second way to convert bitcoin into cash is through peer-to-peer transactions. This is as simple as using any other online platform to make such transactions. All a user has to do is to provide their bitcoin address and the amount they want to sell for other currencies. The exchange platform will then send the payment after receiving confirmation from the user. The platforms will then help to convert the bitcoins into cash and send it to the payment address. This platforms are dependent on the rate that their bitcoin sellers list rates for their bitcoins, therefore it is important to know that you are dealing with an exchange platform with reasonable rates.
Lastly, one may use third party broker exchanges to convert their bitcoin into cash. The process is similar to that of an exchange platform, essentially you provide an amount of bitcoin you want to exchange and then request the withdrawal in cash. It is important to note that you should be considerate of the legitimacy of the site that you are exchanging in so not to get defrauded.
Bitcoins is one of the revolutionary cryptocurrency forms. So while your exchanging be sure to keep some for the future!