A Brief History Of Bitcoin Bubbles
The Great Bitcoin Bubble of 2017 made every other financial bubble before it, seem like a regular day on the NYSE. After reaching heights of nearly $20,000 a coin, the Bitcoin price slipped down to the $3,300-mark.
However, the cryptocurrency steadily recovered toward the $11,000handle over the coming year, and as of the start of Q4, 2019, the Bitcoin price is $8,300, after a selloff from the $10,000-mark.
The Bitcoin Bubble of 2017 caught everyone off-guard, even seasoned Bitcoin believers. The growth in the currencys value from the $4,000-handle to $20,000, took less than 9-months, and most economists have never witnessed anything like it in their lifetimes.
As the price crossed the $10,000-handle for the first time, the world started to get Bitcoin fever. The growth to the $20,000-handle barely took 2-months, and people thought that Bitcoin could reach $1-million a coin.
However, this mania was short-lived. The cryptocurrency crashed over the first three months of 2018, giving many investors a hard landing in the process. During the height of the mania, there were reports of people doing stupid things to acquire Bitcoin.
Stories of people putting mortgages on their homes to buy Bitcoin were common, and the stories of scams involving mining companies and ICOs continued to grow. The ICO mania sparked by the rise in the Alt-coin sector also cost many investors their shirts.
What Is Bitcoin And How Does It Work
The concept of digital money that people send online is not that complicated in itself. After all, most of us will be familiar with transferring money from one online bank account to another.
Bitcoin is a digital asset that operates like normal currency, but without the banks taking a cut with every transaction.
Unlike normal currency, there is no physical version of the coin.
Each bitcoin is created using an encrypted code, which is a string of numbers and letters. The same equation used to create the code is can unlock it .
Other important points about bitcoin:
- Cryptocurrencies, like bitcoin, are a form of payment that uses blockchain technology to send data in cyberspace
- Each bitcoin must be mined
- It is finite: only 21 million bitcoins that can be mined in total
- Cryptocurrencies are decentralised meaning they are not regulated by a financial authority, like a government or central banks
Find out more: Is cryptocurrency a good investment?
Learn How To Securely Send Bitcoin
Sending bitcoin is as easy as choosing the amount to send and deciding where it goes.
The exact procedure for doing so will depend on the type of Bitcoin wallet you’re using, but the main thing you need to know is the’address’ of the recipient. A Bitcoin address is an alphanumeric string that looks something like this:
One way to send bitcoin, then, is to simply copy the recipient’s address to your clipboard, then paste it in the send field of the Bitcoin wallet app you’re using.
Bitcoin addresses can also be displayed in QR code format. If you’re sending bitcoin from a mobile wallet like the Bitcoin.com Wallet, you can use your phone’s camera to scan the QR code of the address you want to send to. This will automatically fill in the address.
As for the amount to send, most wallets allow you to toggle between showing the send amount as bitcoin or showing it in your local currency.
IMPORTANT: Bitcoin transactions are irreversible, so if you send to the wrong address, you’ll most likely never see that bitcoin again.
Read more: Learn how to receive bitcoin securely.
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Choose A Crypto Exchange
For most people, the best place to buy Bitcoin is on a crypto exchange. These are online platforms dedicated to facilitating trades in cryptocurrency, usually by offering trading pairs and usually by matching buyers with sellers.
More inexperienced traders may wish to try a more general trading platform such as Robinhood. These have the benefit of being more user-friendly than the average crypto exchange, although their major downside is that many don’t let users withdraw their bitcoin.
Quick tip: New investors should check the fees charged by exchanges, since these can vary quite widely. They should also check for the minimum account balance required by their chosen platform, since certain exchanges impose a minimum. Others also set minimums for account deposits via bank transfer.
How To Cash Out Bitcoin Using A P2p Exchange
Cryptocurrency exchanges are generally a reliable and secure way of converting Bitcoin and other cryptocurrencies into fiat, but users lack anonymity. Moreover, you dont have control over prices, and you cant negotiate transactions.
If you want to learn how to cash out Bitcoin through an anonymous approach with more control over your funds, try checking out peer-to-peer exchanges.
Most of these platforms are secure, even without a central authority governing the network. However, sometimes transactions are more time-consuming and complicated to close.
Some of the most popular P2P exchanges are LocalBitcoins and Paxful. Transactions happen between users privately, with no intermediary. This adds more anonymity to the transaction, but it also increases the risk of scams.
Users can choose from various payment methods, including bank transfers, cash deposits, gift vouchers, Skrill, Payoneer, Western Union, Neteller, and sometimes PayPal. Each method has its own transaction fees and waiting times.
Note that some payment methods allow you to sell Bitcoin at a higher price, depending on how reliable the process is. So, its worth experimenting with different tools and apps to maximise your profits.
All you have to do is open an account with any of these exchange platforms, verify your identity, find a buyer, and make a transaction. Most P2P exchanges have a rating system in place, which enables you to choose buyers based on their reputation online.
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How To Cash Out Bitcoin Anonymously: Which Way Guarantees A 100% Anonymity
How to cash out of bitcoin anonymously is a rather popular question nowadays. Its possible to cash out a lot of bitcoin anonymously from ATM.
A Bitcoin ATM is similar to the traditional one. Users can easily cash out their USD, EUR, and other fiat currencies with the help of debit cards. In contrast to the traditional ATM, some BTC machines allow to cash out bitcoins.
However, transactions via such a machine are not free of charge. Experience has shown that fees between 7 and 10 percent are charged for the purchase/sale of Bitcoin. This means that cashing out Bitcoin in America and worldwide is significantly more cost-intensive than cashing out fiat currencies.
In addition, users often have to search longer for a suitable ATM to withdraw Bitcoin. Although the network of crypto ATMs has increased in recent years, comparatively few are still available.
What other ways to cash out Bitcoin do you know? Just share your thoughts in the comments!
How To Sell Bitcoins Summary
If you want to convert your Bitcoins back to normal money youll need to do the following:
If Coinmama doesnt work out for you here are some additional exchanges recommended for selling Bitcoin:
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Is It Time To Sell My Bitcoin
Its difficult to create wealth overnight. When you invest today, it grows tomorrow.
It is an agonizing dilemma for a bitcoin investor, with thousands of dollars in his virtual wallet: should I sell bitcoin now or leave it untouched, potentially earning more money.
If we go by top experts bitcoin price predictions for 2018, 2020, 2022, bitcoin will go higher and higher.
Thus, it is recommended that bitcoin holders should hold their bitcoins now.
But, if there are some pressing needs like you need to pay the bills, you are risk averse or have some urgent financial requirements, then instead of cashing out bitcoins completely, you should sell a percentage/portion may be 20, 30 or 40% of them, keeping rest invested.
So, its time to take a deep breath and decide wisely.
What, you have no idea of how to convert bitcoins into real money or how to sell your bitcoins. Walk through this post, I am sure it will prove to be a good help.
Refresh your knowledgeWhat Are Bitcoins? How Do Bitcoins Work?
Through An Exchange Or Broker
This is similar to the currency exchange system at airports. Once you deposit your digital currency to exchange and request for withdrawal, the broker will transfer the money to your bank account.
However, since there are money laundering restrictions on brokers, you have to withdraw your money through the same bank account that you made a deposit with.
The biggest disadvantage with this method of conversion is the time it takes. Experts say it’s safe and secure, but it takes time for the money to reflect in your bank account. The exchange also charges a fee for the transaction, and it varies from broker to broker and country to country.
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Watch For Cash Out Scams
Cryptocurrency is still relatively new and much of the market is unregulated.
There are many scams out there that may claim to help you turn cryptocurrency into cash that you can withdraw to your bank account.
Sometimes, these deals will advertise better than typical conversion rates or low fees.
The reality is:
With cryptocurrency, it can be almost impossible to recover your funds if you transfer them to a less than trustworthy exchange or organization.
Be on the lookout for scams and only use well-known, trusted companies to exchange your bitcoin for cash.
Why Are Some Bitcoin Transactions More Expensive Than Others
Now let’s imagine Alice buys one more BTC at a later date from a different miner. Alice will then have 2 BTC in her wallet, but each one will have originated from different ‘notes.’ In effect, this means Alice has two 1-BTC notes in her wallet. If Alice wants to send 2 BTC to Bob, she’ll be sending those two notes. And since more notes means more data, and more data means higher cost, this transaction will be more expensive than if Alice had sent a single Ã¢â¬Ënote.Ã¢â¬â¢ Put another way, the transaction will consume more bytes, so Alice will have to pay more satoshis to convince a miner to include it in the next block.
For the average user, this means you’ll end up paying significantly more for a transaction if it involves moving many ‘notes.’ For example, imagine you’ve received a hundred small payments into your wallet from different people, over a period of months, until you’ve accumulated one full bitcoin. Now, if you want to send that one bitcoin to someone else, you’ll actually be sending 100 ‘notes.’ This will incur significantly more fees than if you’d sent a single ‘note’ as our miner did in the first example.
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Bonus: Start Using Your Bitcoin More
Its becoming easier and easier to use Bitcoins as a valid alternative to fiat money. Many websites offer extended payment options and, believe me, you will be surprised in number of ways how to use it.
You can easily buy stuff from , book your hotels with Expedia or even gamble a little.
Of course, with gambling everything is possible, but do never forget about possibility of loss.
How To Cash Out Bitcoin Using Over The Counter Markets
Cash Out Bitcoin Through OTC Markets
A certain volume of crypto transactions is simply not possible with any of the aforementioned options and that brings us to the last item on the list of ways to cash out bitcoin Over the Counter Markets.
What are OTC Markets?
Over-the-counter markets are avenues for participants to trade directly between each other, without the use of a central exchange or other third parties.
In practice, traders in an OTC market really dont trade directly with each other but goes through what we call OTC desks or exchanges.
OTC desks are maintained by some of the major exchanges such as Binance, Coinbase, and Circle to accommodate traders who are willing to sell large amounts of coins, like miners or early crypto investors who have accumulated millions ad even billions of dollar worth of coins.
More so, there are crypto millionaires and billionaires looking to buy crypto without using the public exchanges.
You can cash out bitcoin worth millions of dollars by approaching any of the popular OTC market providers and negotiate rates with them.
They have been known to facilitate the large volume of crypto transactions this few years and so far remains the top place to cash out a large amount of coins anonymously and securely.
If you think the OTC market is free of scammers youre wrong. The big scammers like hackers operate here and the same caveat beware of scammers applies in this market too if you dont want to lose huge.
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Determine Why You Want To Receive Profits From Bitcoin
As a virtual asset, Bitcoin isnt money in the traditional sense. You could cash out your bitcoin, so to speak, by shopping online through a service such as Moon or Lolli, which accepts Bitcoin as currency. Thats a lot like spending a massive gift card at your favorite retailer.
However, if you want to get cash in handor your bank accountyoull need to convert your bitcoins into fiat currencies, or government-issued currency, such as the U.S. dollar.
Unlike cash based on commodities, fiat money is backed entirely by the complete faith and trust in the authorities that issued it. In some nations, such as the United States, fiat currency also is the legal tender. .
Before I outline how to do that, though, think about why you want to sell and cash out your bitcoins. Depending on your needs, one method might be more convenient than anotherand save you on taxes and fees.
Lets examine how to sell and cash out Bitcoin through each of these methods.
Should You Convert Bitcoin To Fiat Currency
Before you rush into cashing out your bitcoins and realize your profits, theres one important question to ask yourself: Should you convert Bitcoin to fiat currency?
Dont forget that youll need to pay tax for the profit you made from selling bitcoins into fiat money.
Heres the thing: The beauty of Bitcoin isnt about the blockchain technology behind it. Its the decentralized digital scarcity.
Therell be only 21 million bitcoins in the world.
Take a look at Bitcoins yearly lows:2012 $42018 $3200
As more people are getting into the world of crypto, more businesses are accepting bitcoins, demand for Bitcoin is going through the roof. Despite the price volatility and government regulations, Bitcoin will only appreciate its value over time
A decade ago, 10,000 bitcoins bought you a pizza.
Today, 10 bitcoins would buy you a high-performance Tesla Model X.
In the next decade, with 1 bitcoin youd be considered pretty wealthy.
Perhaps you should also allocate a portion of Bitcoin for long-term HODLing.
There you go. By now you should know exactly how to exchange Bitcoin into cash.
If you need to convert Bitcoin to fiat to pay the day-to-day bills or even reward yourself, sell it via exchanges such as Coinbase. Cashing bitcoins with a cryptocurrency exchange can be more convenient, easier and safer for crypto beginners.
If you want to sell your Bitcoin at a higher price, try LocalBitcoins.
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What Are The Basic Things That You Need To Consider Before Investing In Any Cryptocurrency
Cryptocurrency is a high-risk/high reward investment. You have to be prepared to accept the risk. There is no governing body, so it can be difficult to resolve issues if bitcoins get stolen or lost. Learn to trade!
Since bitcoin is relatively new, there are still many unknowns and its value being volatile can change daily, significantly. So, invest the money after much understanding and dont invest the money which you need in the short run.
Bitcoin appeals to criminals due to its anonymity and lack of regulation. So, consider the risks involved and the nature of the bitcoin market.
Stay up to date with the crypto scene, the news, and the technology. For trading platforms, just try them after comparing their fees and the terms and conditions of use.
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