The Best Way To Convert Your Cryptocurrency To US Dollars

Investors from all walks of life have always had one thing in common, a need to secure the funds they manage. Some buy property, some buy stocks and others invest in a business. The advent of the cryptocurrency market has given savvy investors another financial avenue to contemplate.

Judging by the market value of and global fervor around top-performing cryptocurrencies, it has become clear to see that several have jumped on board. As the desire for cryptocurrencies increases, so too does the need to maintain personal oversight. Finding out what your crypto holdings are worth or what one Bitcoin currently costs, can be done by simply clicking BTC to USD or typing BTC to HKD, 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 FAQ's sections. These sites are a helpful way to run conversion checks, which aid the calculation of what your Bitcoins are worth in your local currency. Checked often enough and catalogued, these findings allow you to see market trends and decide on the right time to sell.

Continue your read, to find out more about Bitcoin and how to convert them.

A Bit More About Bitcoin

Bitcoin was not the first cryptocurrency to be developed, but it has certainly become the most popular. It is one of the earliest cryptocurrencies, with the most trade volume by far. The immense number of trades, has gotten financial institutions, investment houses and even governments interested.

Bitcoin was registered initially in August of 2008 as bitcoin.org. The first transaction of 10 Bitcoins occurring a few months later, in January of 2009. 

Stories about traders like Javed Khan who 'stumbled' into Bitcoin success, grow not only the image of Bitcoin but also its price. Khan says that he bought in at a price of $ 3000.00/Bitcoin in 2018. His reasoning was that it offered him an easier way to transfer funds than a traditional bank could. He noticed that the longer he left the Bitcoins sitting in his digital wallet, the more they grew in value. He adopted a simple yet effective strategy, every time the price dropped he bought more. Making sure not to over-extend himself financially and only investing what he could afford to lose. Two years later, he cashed in his profits and bought a Bentley.

When Bitcoin first started, its prices, valuations, transactions and news were typically negotiated and shared on the Bitcoin forum. As cryptocurrencies gained notoriety and were placed on the open market, they have become susceptible to more competition by fellow cryptocurrency companies as well as major banks looking to invest in this domain. Users have moved from trading via forums to placing their Bitcoins into personal cryptocurrency wallets and transacting through online exchanges. Positive media reports such as those reported by Khan, linked with the intrinsic volatility of a financial instrument and a deep desire by investors to find alternative options of interest, have helped to build the Bitcoin of today.

Conversion With Peace Of Mind

Bitcoin is classed as a digital asset. Meaning it must be exchanged for fiat currency before it can be withdrawn as real money. A fiat currency is a national currency, such as the euro, Canadian dollar or British pound. These currencies are not typically pegged to an underlying commodity such as gold or silver, but rather maintain their value through a shared 'faith' in value ascribed to them by their country's citizens. The country's government or central bank would normally be the issuer of fiat currency.

Cryptocurrency is similar to fiat currency, in that a set supply determines what is available for purchase and the market then begins to set a price. In the case of Bitcoin, the total number of coins to exist is 21 million. Which equals a little over 1.2 trillion US Dollars, as of writing in July 2024. This set supply, linked with the normal movements and appetites of the cryptocurrency market as whole, begin to form a continuous system. 

Wanting to partake in this system, by trading in Bitcoin, will mean you opening an account through a crypto exchange. Users need to be aware that exchange fees are added to Bitcoin transactions. 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.

Once 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 on your chosen exchange platform, 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.

Last Thoughts

Cryptocurrency decisions, as with most money decisions, need to be undertaken diligently. Be sure to do your research, understand the fee structures, compare exchanges, keep track of the market and move decisively.