They say competition is key. In business, it certainly leads to quicker innovation and more refined product offering. The cryptocurrency world is no different, with the dominant Bitcoin battling runner-up Ethereum for market share.
Regardless of whose corner you stand in, cryptocurrencies are here, tradeable and making the news. If you bought Bitcoin at a low, through genuine luck or pure brilliance, you might be looking to 'cash out' now. Finding out what your holdings are currently worth, can be done by simply clicking BTC to CAD or typing BTC to USD, or a currency of your choice, into a search engine.
Once on the site, you will have to access to up-to-date cryptocurrency conversion rates, conversion tables, historical price data, Bitcoin news and a FAQ's section. These sites are a fantastic way to run conversion checks, which help you calculate what your Bitcoins are worth in your local currency. Done regularly and keeping track of findings, allows you to see market trends and decide on the right time to sell.
Read on to find out how to convert your Bitcoin easily and safely.
Bitcoin In A Nutshell
Bitcoin was not the first cryptocurrency invented, but it has certainly become the most popular. It is one of the earliest cryptocurrencies, with the most trade volume by a huge margin. The immense size of its trade volume, has gotten banks, private equity funds and even governments and world leaders into the crypto debate.
Bitcoin was registered online in August of 2008 as bitcoin.org. With the first transaction of 10 Bitcoins occurring a few months later, in January of 2009.
The first notable exchange of Bitcoin for physical goods was done on the 22nd of May 2010. 10 000 Bitcoins were traded for two pizzas from American pizza franchise Papa John's located in Jacksonville, Florida. The Jacksonville local, Laszlo Hanyecz, posted in a Bitcoin forum asking if anyone could order him two pizzas. A forum user, Jeremy Sturdivantuser, from England accepted and ordered the pizzas to be delivered to Hanyecz. The event would become infamous amongst crypto currency fans, as 'Bitcoin Pizza Day'. The 10 000 Bitcoins were worth around 40 USD at the time of the trade, as of July 2024, 10 000 Bitcoins would be worth a little over 580 million USD.
Bitcoin prices, valuations, transactions and news were typically negotiated and shared on the Bitcoin forum. With cryptocurrencies placed on the open market, they have become susceptible to more competition as well as market fluctuation. Users have moved from trading via forums to placing their Bitcoins into personal cryptocurrency wallets and transacting through online exchanges.
Smarter Conversion Tips And Tricks
Bitcoin is classed as a digital asset. Meaning it must be exchanged for fiat currency before it can be withdrawn as actual cash. A fiat currency is a national currency, such as the pound, euro or dollar. These currencies are not typically tied or pegged to an underlying commodity such as gold or silver, but rather maintain their value through a shared 'belief' of value by the country's citizens. The country's government or central bank would most commonly be the issuer of fiat currency.
Just like with fiat currency, the value you receive when selling or trading your Bitcoin depends on the cryptocurrency market and the levels of supply and demand. Users need to be aware that exchange fees can be added to both the buying and selling of Bitcoin, as trades occur over online cryptocurrency exchanges which take a cut of each transaction. Competition amongst exchanges over the years has seen fees drop from low single figure percentages all the way down to tenths or even hundredths of a percent. Online searches will help you find an exchange best suited to your needs.
Stablecoins are an option for those interested in the cryptocurrency sphere, but wanting less possible volatility. Stablecoins peg themselves on a fiat currency or a commodity such as gold. The introduction of Stablecoin has opened the market to a new wave of interested investors.
Now that you have decided on a suitable exchange, understood their fees and chosen your timing wisely, the process of selling your Bitcoin can begin. The Bitcoin is converted to fiat cash, which is stored in your exchange account. Meaning that you will have created a fiat wallet as well as a crypto wallet, which may contain any Bitcoin yet to be converted.
After your Bitcoins have been converted to fiat currency, you can link your bank account to the wallet and transfer the funds over to a regular account.
An alternative is to buy products directly using your Bitcoin, such as clothing items, gift cards, hotel stays and airline tickets. Your Bitcoin can be linked to your fiat card, meaning you are essentially cashing out by making purchases of regular products. A final option is using a Bitcoin ATM, just bear processing times, admin fees and the availability of such ATM's in your area in mind.
It's Your Decision In The End
Cryptocurrency decisions, as with most money decisions, need to be done carefully and thoughtfully. Be sure to do your homework, understand the fine print and fee structures, compare products, keep an eye on the market and know how much actual currency your Bitcoins will be worth once sold.