While converting bitcoin to fiat currency, we can easily take it from scratch to the actual topic. First of all, what is a bitcoin? It is a digital currency, which means you have it in your virtual wallet, traded on various cryptocurrency exchange platforms. It clearly states that there are no middlemen or authority in the case of cryptocurrency.
To get started, you need to choose a crypto trading platform that allows you to withdraw your virtual wallet to your bank account. With the use of a cryptocurrency exchange platform, you can easily buy or sell your Bitcoins.
Firstly, the bitcoin can be transferred to any currency that supports the buying and selling of bitcoin. Following are the steps through which you can initiate the conversion of bitcoin to fiat currency-
Step 1– Create an account click here to do the deposits, withdrawals and transactions of Bitcoins.
Step 2– Also, the option of deposit and withdrawal is also visible on the app.
Step 3– Next, you can click the withdraw option to convert your Bitcoin into fiat currency, and the amount will be transferred to your bank account within6-7 days after sending you an email for the same.
It is for sure not everybody wants to keep their virtual wallet as it is. Some might have a different decision to either sell it or convert their bitcoin. For the conversion of bitcoin to fiat currency might be several reasons which are listed below
- There might be profit the investor is making due to the situation in the marketplace
- So that a person can be more flexible with the currency they have because it is accepted worldwide.
- There are increases in Bitcoin price, and the investor does not want to wait for any further increase in Bitcoin price.
So, it always depends upon individual choices, whether to opt for conversion of bitcoin into fiat currency or not.
The most common currencies in which the bitcoin is changed are as follows
Below highlighted are the most common forms of cryptocurrencies out of which Bitcoins are used. Read on to know further.
- US dollar–
Firstly comes the US dollar. The most commonly traded fiat currency is the US dollar. US dollar is used the most in conversion from bitcoin to fiat currency. More than 80% of the conversion transaction on crypto exchange platforms is done through US dollars.
- Japanese Yen–
Japanese yen is also used to convert Bitcoin into currency. But they are still getting used to this and the second most widely used currency while converting from Bitcoin to fiat currency after US dollars.
Next comes the Euros. The least used fiat currency in case of conversion from bitcoin is Euros. Europeans are adapting to this while there are many regulations while they are trading on crypto exchange platform. Therefore, with time cryptocurrency has become widely famous.
There are many ways of converting Bitcoin to fiat currency. Some of them are mentioned below in detail. Read on to know further.
- Cryptocurrency Exchanges
Cryptocurrency Exchange is the most used method for conversion from Bitcoin to Fiat Currency. But in this method, it takes much time to transfer money in your bank account when you click on the withdraw option.
- Bitcoin Debit Card
Next comes Bitcoin Debit Card. This is used by people when they urgently need money because this is the fastest method of converting Bitcoin into Fiat Currency. But the service provider of Bitcoin Debit card charges a commission every time you let the conversion process take place.
- Exchange from peers
Since the involvement of a third party is not there, bitcoin can be sold by you to the buyer, and in return, the buyer will pay you cash for it. It has a disadvantage that if the Bitcoin is sold to the buyer, and you don’t get the payment afterwards-Then, the process gets irreversible.
There are other ways to convert bitcoin to fiat currency other than the one mentioned above, like Bitcoin Arm and the metal pay. It depends on personal choices of which route you are willing to go for conversion from Bitcoin to fiat currency.