Over the past decade, Bitcoin and other cryptocurrencies have evolved from a magic-like novelty to a large-scale stock market. While millions of people have recognized them as valuable assets, others still doubt their tangibility. But what can be a better proof of the cryptocurrencies’ worth than the possibility of their conversion into other currencies, both digital and traditional?
There are several options for those who wonder how to exchange digital currencies for fiat money. Read on to find out about each way and the commission that comes with them in detail.
How to Exchange Bitcoins for Cash?
The worldwide web offers many options to cash cryptocurrencies out. Some seem to be more straightforward than others. However, remember to prioritize security when selecting crypto to cash exchange services.
Are you looking for answers to the question “how to exchange the cryptocurrency I own without risking losing it?”? We have collected the safest ways to exchange bitcoins and other cryptocurrencies for cash.
Crypto exchange services are a trending way to withdraw digital coins. These are special platforms that allow users to trade cryptocurrency for fiat money, and then cash it out via a bank card, PayPal, and other payment systems.
The process of cashing out cryptocurrencies through an exchange service looks like this:
- Сhoose an online exchange service.
- Indicate which cryptocurrency and how much you want to withdraw.
- In response, the exchange service will display the amount you will receive in fiat currency.
- Fill in the card information.
- The exchange service will indicate the address to which you should send the coins.
- Make sure to confirm the transaction on the exchange website. Otherwise, the money will not be transferred.
- When the cryptocurrency arrives at the address of the exchanger, its employees will process the transaction and transfer the funds to the card you provided earlier.
If you are planning to search how to transfer bitcoins between exchanges, note that a similar procedure applies.
Usually, the process takes up to 30 minutes. If significant time has passed and you still have not received your funds, contact the service’s technical support and find out what is the reason for the delay. It can happen due to the congestion of the cryptocurrency network. In such cases, transactions are confirmed slowly.
Otherwise, you could have made a typo in the information in your application. In this case, the cryptocurrency is likely to be lost, especially if you were using the service anonymously. Therefore, always check the details with extra care.
You can avoid using exchange services. Many crypto trading platforms nowadays have the “funds withdrawal” function. This feature makes them another popular way of exchanging digital currencies. On the one hand, it is more convenient and safer, as you do not risk encountering a dishonest exchange service.
The disadvantages of conducting exchange on trading platforms are:
- the duration of the transactions;
- the need to open an account on the platform;
- the ability to use funds on this account exclusively for trading. To use cryptocurrency for other purposes, you must first withdraw it to a regular electronic wallet.
Even taking into account the fact that you withdraw money first to an electronic wallet, and then to a card with a commission, it will be safer and sometimes more profitable, since on the exchange you can reach a transaction with the most favourable rate. Also, registration and verification may take you some time, but if your priority is a reasonable exchange rate, it will be worth it.
On the other hand, commissions for withdrawing cryptocurrency directly from the exchange can be significantly higher than those set by exchange services. The reason for it is that not all trading platforms deal with fiat currencies directly. Instead, many of them enter partnerships with other services, which results in higher transaction expenses for the users.
There is another less known, yet relatively safe, way how to exchange Bitcoin for money accepted in your municipality of residence. You can cash out cryptocurrency using crypto ATMs. Each of them has a digital address. The user can transfer funds to it and cash out Bitcoin and several other popular currencies.
Crypto ATMs have several drawbacks:
- There are high commissions, often over 5%.
- They are challenging to find.
- There is a risk of using a device not operated officially.
Apart from knowing how to exchange Bitcoin cash, many users are seeking opportunities of transferring it to crypto wallets for safer storing of their funds.
How to Transfer Bitcoin from Exchange to Wallet Platforms?
Bitcoin is a digital record, but it also needs a wallet to store it. In total, there are four types of crypto wallets:
- Bitcoin wallet on a mobile device.
- Internet wallet.
- PC wallet.
- Hardware wallet for Bitcoin.
The procedure of transferring Bitcoin to a wallet may differ depending on the platform. However, it typically follows these key steps:
- Log in to the Exchange platform.
- Open your Balance.
- Select the “Withdraw” option.
- Pick the desired currency.
- Carefully fill in the wallet’s address.
- Select the funds to be transferred.
- Approve the transaction.
So, the process of learning how to transfer bitcoin from exchange to the wallet is straightforward and understandable even for beginners in the crypto trading sphere.
Which Cryptocurrencies Can Be Exchanged for Bitcoins?
If you want to understand how to automatically exchange Bitcoin (BTC), you need to start by knowing its trading pairs. Since Bitcoin is the first implementation of the cryptocurrency concept, it is present on all exchange sites. Thus, it is the most widely compatible coin in the digital currency market. Here are BTC’s most common crypto to crypto trading pairs:
In digital currency trading, it is vital to know which services you can trust with your funds. Read ahead to find out how to choose cryptocurrency exchange platforms.
How to Choose Cryptocurrency Exchange Sites?
There are dozens of popular services on the Internet that offer to exchange digital money on various terms. When choosing an exchange service, you need to focus not only on a profitable rate but also on the security of cooperation. The main features of a reliable service include:
- Good reputation. The easiest and most reliable way to protect yourself from fraudsters is to work exclusively with trusted exchangers with an unblemished reputation;
- An extensive list of supported currencies, at least the five most popular ones should be present.
- Mid-market exchange rate. Scammers often set a very favourable rate.
- Support of the major payment systems, as well as their ratings and attestations. It is suspicious if a system that carries out hundreds of transactions per day has only an initial WebMoney passport.
- Prompt work of technical support. Fly-by-night companies are often not interested in such investments into the service’s image.
Please note that some services charge commission for the exchange. Therefore, it must be compared with the exchange rate. Sometimes, it may seem to be extremely profitable, but with the deduction of commissions, you will get less than on a site with an initially better rate.
There are a few more tips on how to choose a bitcoin exchange. Before transferring your funds to the account of a new exchange site:
- read reviews about it on the Web;
- check its rating in reliable sources and specialized forums;
- when in doubt, test it with a minimal transaction.
Long-term collaboration is excellent for those who are looking for ways how to exchange bitcoins for cash. However, remember to check other service providers occasionally. Sometimes popular resources change their conditions to less profitable ones since they have already gained a large client base and reputation.