As an outline of digital currency, Cryptocurrency exists only electronically – all that you can see are records of transactions between different addresses. The demand for fast and simple cryptocurrency exchanging services is increasing globally. The exchange rate depends on the free market dynamic. If you want to turn your cryptocurrencies into real paper dollars that you can hold in your hands, then you are in the right place. This blog will help you out on finding methods to convert your cryptocurrency to cash.
What are Cryptocurrencies Really?
If you take away the misconceptions about cryptocurrencies and reduce it to a simple explanation, you find it to be just limited entries in a database no one can alter without satisfying specific constraints. This may seem simple, but, believe it or not: this is exactly how you can define a currency.
Take your bank account as an example: Is it more than entries in a database that can only be altered under specific constraints? You can even take physical coins and notes: What are they else than limited entries in a public physical database that can only be changed if you match the condition than you physically own the coins and notes? Money is all about a confirmed entry in some kind of database of accounts, balances, and transactions.
How Miners Create Coins and Confirm Transactions
Coming to the mechanism ruling the databases of cryptocurrencies. A network of peers is used in a cryptocurrency like Bitcoin. Record of every peer is maintained with a complete history of all transactions and thus of the balance of every account. Transactions are made using public key cryptography, which has nothing quite easy to achieve. A transaction file which says “User A gives X Bitcoin to User ‘B’ is signed by B’s private key. After being signed, a transaction is broadcasted in the network, sent from one peer to every other peer. This is basic p2p-technology.
The transaction is communicated almost immediately by the whole network. It gets confirmed but only after a specific amount of time. Confirmation is a significant concept in cryptocurrencies. You could say that cryptocurrencies are all about confirmation. As long as a transaction is unconfirmed, it is pending and can be forged. Only when a transaction is confirmed, it is said to be set in stone. It is no longer forgeable, it can‘t be reversed, it is part of an immutable record of historical transactions: of the so-called blockchain.
Transactions can be confirmed only by the miners. This is their task in a cryptocurrency-network. Miners look for transactions, stamp them as permissible and broadcast them in the network. After a transaction is confirmed by a miner, every node has to add it to its database. It has become part of the blockchain. The miners get rewarded with a token of the cryptocurrency for their work, for example with Bitcoins.
Cashing out Crypto-Currencies
Exchange or Market Trading: Exchange or Market Trading the quickest and safest method available, but you can only sell your holdings at the current market price + an exchange policy fee which is absolutely fine if you’re advertising your cryptocurrency for more than you have bought it for. There’s usually negligible risk associated with this method. Most accepted exchanges that allow fiat withdrawals are Coinbase and CEX.
Peer-to-Peer: There are many famous yet common peer-to-peer services you can use such as Localbitcoins or BitBargain and sell your cryptocurrency at a quality, sometimes charging more than 15% above the market price. This exchange process, however, will take some time as you will be required to send appropriate documents for certification purposes first, and only when approved you will be able to become a seller. You will also need a bank account that accepts “quicker payments”. The jeopardy carried with this option tends to be reasonable as you’re revealing yourself to potential chargeback. You can, however, assuage it by increasing the buyer’s eligibility criteria.
Face to Face: Crypto-currency can be arranged to be sold in person via so-called “bitcoin markets”. It’s a public place where crypto-currency fanatics come together to exchange digital money for hard cash. This proves to be the most lucrative option to sell because you can charge high premiums as well as add extra for travel expenses and the luxury of meeting in person. Normally, you can push for 30–35% premium above the market value, but the risk associated with this option is high. Although, if necessary safety steps are taken and a good plan of all possible outcomes are in place, you can mitigate the risks quite substantially. And in addition to this, if you get paid in cash, the buyer can’t commence a chargeback.
All options have their pros and cons and it all depends on the timeframe one would want to convert digital money into cash in, but it surely is more difficult to sell than to purchase!
Characteristics of Crypto-Currencies
* Revolutionary properties. This is perhaps the most important property because of the nature of cryptocurrency. This is because it is cryptographic in nature, and it is also dependent upon the logic of mathematics. Security is maintained using Algorithms and complex mathematical equations in the world of cryptocurrency, and this means that there is no dependency on human beings. This currency is truly revolutionary in that it is hands-off, and all digital all the time.
* Transaction properties. The transactions in cryptocurrency are unique in every way. Once your transaction is complete it cannot be changed. There is no way that anyone at any point in time can ask you to reverse what you’ve sent, and no one is able to take the money away from you. Make sure that you are not attempting to send money to someone that has tried to persuade you for a cause or for any other reason. Keep in mind that while the privacy of these transactions although beneficial, you have no way of tracing your funds. Just be aware that no real identities are ever involved in transactions, so conduct your business wisely. Additionally, international transactions are now easy and worry-free. These transactions take place online, which means that they are transferred in minutes and with little to no fees.
* Monetary properties. Since there are no central banks involved, the delivery of cryptocurrency is controlled. Frequent currencies have been established, and while this creates options it also means that money has its own restricted number of tokens. When you get hold of a specific currency always keep this in mind. The system is obscure, but with cryptocurrency, there are plenty of complex details. Another interesting detail of cryptocurrency is that there is no debt (According to us, The Best Part). Transactions are what they are, and they are importing and exporting and exchanging as well. Everything that you can see on your ledger is yours. Consider that everything you can see in your ledger is what you own. That is an empowering feeling!
Some of the biggest exchanges in the world right now are Coincap, Bittrex, Binance, Zebpay etc. So if you have some cryptocurrency in your wallet, there are numerous places where you can cash them out at a realistic price, and your job is just to find the method that suits you best. The next step is to wait when merchants start accepting cryptocurrency offline to reduce all those mediator operations. Taking into deliberation the rising popularity of cryptocurrencies, it may become a certainty in several years. The above methods we discussed, there are some more methods that we have not talked about the above article. But these methods that we conferred about like peer to peer or maybe face to face are the best methods that anyone’s going to suggest you.
In a global market awash with world-class developers (and some not-so-great developers), finding the RIGHT ones for your enterprise/startup may seem impossible if you decide to search on your own.