If you’re an early investor in bitcoin, then you probably have a big payday ahead of you. As of this writing, the price of bitcoin is already over $44,000. We get that you’re excited to take out your bitcoin and have it turned into real cash. Before you do, however, here are a few important things that you need to know about it.
You’re not limited to one means of cashing out bitcoin or any of your cryptocurrency. In fact, there are two primary options that you can choose from. The first one is a peer-to-peer exchange, which is very easy and convenient to do. The second option, albeit slower, is using a third-party broker.
Simply put, peer-to-peer lending is about you exchanging your bitcoins and cryptocurrency directly with another person. There are many platforms that handle peer-to-peer transactions so you can bet that this method is as legitimate as it sounds. Peer-to-peer exchanges can happen in numerous ways.
You can have the buyer directly deposit the cash to you and you’ll have to deposit your bitcoins to their wallet. You can also do bank transfer payments. If you are having trust issues, which is understandable, you can opt to meet in person and have them give you the cash directly. Many people pick this last option as it is the most secure.
On the other end of the spectrum, you have third-party brokers. This is just another name for a crypto exchange. It works by the exchange allowing you to transfer your bitcoin into their servers. Once the transfer has been received, you can ask the exchange to make a fiat currency withdrawal which is usually done via bank transfer.
The downside to broker exchanges is that the process takes longer. It usually happens after a few business days before the money finally reaches your account. Of course, another problem is that you might not know that the exchange you are using is a scam. As such, it’s advised that you do your research well before you transfer your bitcoins.
The good news is that there are already many exchanges that are tried and trusted. For instance, a lot of people are already trading cryptocurrencies with Swyftx, safely and from their own homes. Aside from having a secure platform to trade on, these top exchanges also offer the best rates when it comes to exchanging your bitcoin.
Exchanges are the most common ways for people to have their bitcoin or other cryptocurrency exchange. It’s convenient and safe despite the long delay with regards to transfers. If you want to, you can hold on to your crypto for now and wait for it to be on the rise once again.
As exciting as it may be to have your bitcoin exchanged into cash, you need to be careful. There are a lot of scams that can result in the loss of your hard-earned money. As always, stay vigilant whenever you are transacting online. Always be on the lookout for reviews and possible issues before you make any transactions.