The cryptocurrency market is still unbalanced but has a stable upward trend. More companies now accept bitcoins, lightcoins, and other cryptocurrencies, but using coins everywhere can be difficult. Here are the three best ways to convert your bitcoins into cash to use when shopping online and in-store.
Bitcoin in the financial system
Information surplus has become a sign of modern society and the monopolization of information. The answer to these processes was bitcoin. It supports the anonymity of transactions and their independence from any public and private financial institutions.
Bitcoin is a precedent for an open network that operates according to its own rules, it accepts any number of potential participants who want to go beyond the institutionalized space provided by the state and traditional financial institutions and participate in creating their own space of operational activity.
There are currently many types of cryptocurrencies. One of the most popular is Bitcoin, because this model of cryptocurrency has the most extensive and large network, and is one of the most liquid cryptocurrencies. The main idea of bitcoin is to create a currency that will work transparently, distribute freely, and will not depreciate. Unlike the usual currencies, no state can now control, further “print” or devalue bitcoins.
How to convert bitcoin?
It is too expensive to pay with bitcoins for goods and services today due to the low speed and high cost of transactions. It is much easier to convert cryptocurrency into “live” money.
Bitcoins can be transferred anywhere and anytime; everything will arrive in a few minutes. Bitcoin is intangible and is not pegged to any government currency, precious metals, or natural resources. For example, if you need to convert bitcoin to Naira, there are several possible ways:
- through an ATM
Bitcoin ATMs are available in most major cities around the world and provide a relatively quick way to convert bitcoins and other cryptocurrencies into government-issued currency. Many Bitcoin ATMs allow you to buy bitcoins in much the same way that you deposit money into a regular ATM.
- through the Internet exchange service
These are intermediary services with which you can withdraw funds from the sale of cryptocurrency to ordinary electronic wallets, for example, Yandex-Money, or even exchange virtual money using bots in Telegram.
It implies personal interaction between the seller and the buyer and payment for cryptocurrency in cash or transfer to a bank card. A potential buyer of virtual money can be found in one of the online communities, the largest of which is Lokalbitcoins.com.
Moreover, you can use a Bitcoin debit card. Cryptocurrency debit cards are a practical and affordable way to spend bitcoins and other cryptocurrencies in almost any retail store.
What are the risks?
There are many risks involved in buying, selling, exchanging, and converting cryptocurrencies. Individuals and legal entities must be aware of them, before performing such operations. The main risks include:
- the possibility of a loss of funds due to theft, for example as a result of cyber-attacks on cryptocurrency exchange platforms, or use infrastructure;
- no guarantees for the return of invested funds in cryptocurrency. Savings held in cryptocurrency are not guaranteed as they are not considered bank deposits;
- the possibility of fraud. Savings can be used to build financial pyramids, which can in a relatively short time lead to the loss of investors’ money;
- significant price fluctuations of cryptocurrencies and related risks – speculation and unregulated levels of commissions for transactions in cryptocurrencies;
- lack of infrastructure. Cryptocurrencies are not generally accepted in trade and service networks. They are not legal tender and are not currency.