To convert Bitcoin into real cash you need to use a Bitcoin and cryptocurrency exchange. The one we are going to talk about today is the site Coinbase. Coinbase offers a safe and easy site that is recommended and used by over 30 million traders all around the world.
In this text, we are going to go through how you use Coinbase and how you convert money into real cash on your bank account.
But what is Coinbase?
Well Coinbase is an online platform where people can buy, sell, transferring and store different digital currencies. You can trade Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin and Tezos. The platform was founded in 2012 by the duo Brian Armstrong and Fred Ehrsam. In 2014 the site already had over 1 million users.
The first thing you need to do is to create a private account on Coinbase. This first step can be the one that feels the hardest. But it is not as tricky as you can think. The only thing that can feel gruelling is to send in KYC documents to Coinbase. KYC stands for Know Your Customers. These documents can consist of a copy of your passport, driving licence or for example PAN card. This does not take a long time and is completely safe.
After sending in your knowing your customer documents the next step is to connect the bank account you want to use. By making a deposit you have connected the bank account. Now you can cash out your Bitcoin to money. For a more detailed overlook on how to use Coinbase visit Tradingbrowser.com.
It is important to not forget that Coinbase does not accept all kinds of currency. Coinbase works with USD, EUR and GBP. So, if you for example live in Sweden you cannot convert Bitcoin into Swedish kronor.
When converting Bitcoin, it can sometimes take between 4-6 days before the money reaches your bank account. This can a bit different regarding where you live.
But why would you like to convert Bitcoin into real cash? Well the entire idea with Bitcoin is that one day it will replace todays fiat currencies. Fiat currency is money that the government issued. These kinds of currencies are not backed by gold or silver. The goal for Bitcoin users is that in the future you can buy clothes and food with Bitcoin instead of for example US dollars.
Bitcoin ATMs are a physical centre where you can both buy and sell Bitcoin for real cash. There are over 5000 unique Bitcoin ATMs all over the world. To find out if there are a Bitcoin ATM near where you live you can visit the website Coin ATM Radar. Bitcoin ATMs are only usable when making smaller transactions.
The downside of using these smart machines are the high transaction fee.
A so-called Peer-to-Peer transaction is a good alternative if you are looking for a fast and anonymous way to convert Bitcoin to fiat currency. There are different platforms you can use to make a Peer-to-Peer transaction.
Bitcoin Debit Cards
This is a very special but accessible way to sell Bitcoin for real money. You sell your Bitcoin in exchange of a prepaid debit card. This card is like any other debit card and it is either powered by MasterCard or VISA. It is possible to shop both online and in physical shops with the card. You can also choose to withdraw the money in the card from a ATM.
Pros and cons with Coinbase
Even if Coinbase is the world best known and well-established cryptocurrency exchanges there are some cons with the site. We are going to list both pros and cons.
· If Coinbase would get hacked, all of the cryptocurrency is insured.
· Coinbase offers their users access to over 30 unique cryptocurrencies.
· There is a low minimum for users to get to fund an account.
· Coinbase has high fees compared to other cryptocurrency exchanges.
· There are only 42 states where Coinbase is available in the U.S.
Other cryptocurrency sites
Even if Coinbase is be biggest cryptocurrency site there are some other sites as well.
· Cash App
This is the perfect money transfer system for beginners. Cash App use a Peer-to-Peer system which makes it likes its own bank.
This exchange site was founded in 2017. Binance has its main focus on Altcoin trading. A huge advantage with Binance is the low fees.
Bisq is a great site that offers its users 27 different payment options. They are a non-KYC platform which is great when users want to be anonymous. A con for this site is that sometimes the trading volumes can be very low compared to other sites.
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