Can Cryptocurrency Be Converted Into Cash From Bitpapa

Can Cryptocurrency Be Converted Into Cash From Bitpapa

Yes, it can be. Cryptocurrency might be in rave today, but in most countries, you cannot buy any actual products using it, it also has not been legalized in many countries hence, being worried about encashing it is natural click here. There are ways to encash crypto coins through brokers or even direct peer-to-peer conversion methods.

What is Cryptocurrency

Cryptocurrency is the newest innovation in the field of finance. It is a digital currency that is not streamlined by a government and functions in the digital world like a source code on a Blockchain is like the digital version of a ledger that records the transactions taking place in cryptocurrency. The allure around cryptocurrency is mainly because it is limited in number. Trading in cryptocurrencies has boomed recently due to the increase in the number of players and the limited supply hence rising the demand and in turn the value.

Risk Factors in Trading Cryptocurrency

  • Many countries have not legalized it.
  • Market volatility is high hence high risk.
  • The credibility of the currencies cannot be determined.
  • Taxation for the profits booked in cryptocurrency is high
  • Most important of these, should be aware of cyber attacks from ransomware and trade only in a protected environment.

Why encash cryptocurrency

Cryptocurrency values might skyrocket but you cannot even buy a toy rocket using it, so to make use of crypto you need to sell it and transfer the value into the money of your choice in your bank.  But who knows, this might become the future of currencies and might become the norm like credit and debit cards and digital wallets.

How to transfer cryptocurrency to a bank account

There are two efficient methods for doing this.

  • Through an exchange-broker
  • Through peer-peer exchange

Exchange brokers

There are a few brokers in this field through whom you can convert your crypto coins into cash of your choice or the country of your origin. It works like any other money exchange like the dollar to rupee.

You sell your cryptocurrency to the broker and they transfer the current value in the money of your choice in your specified bank account for a fee. This typically takes around 5 to 6 days to be completed. Speed is the main issue here. Taxation is levied on the profits you gained by selling your cryptocurrencies.

Peer to peer exchange

This method is more anonymous and also more risk-prone. In this method, you can sell your digital currency to another buyer. Due to anonymity in cyberspace frauds waiting to rob you of your asset can also be the buyer, so you have to be very careful in this process. You should not give away your asset unless money is released from the other end.

However, this method saves time and easy transfer of money is possible. Nowadays there are online platforms to assist such transactions more safely.

Safety before selling

Before Investing always remember to assess your risk potential and consider the market conditions. Remember to diversify your funds and involve only a small capital at a time. Plan your entry and exit in the market strategically and also encash your investment in cryptocurrency at the right times. Remember to file your taxes on time.

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