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Converting Bitcoins to Fiat Currency

Before we go on, we need to know what is mean by "Fiat" or "Fiat Currency."

Fiat currency is declared by a government to be legal tender in the territory(ies) controlled by it. Fiat money that has value only because of government regulation or law is not backed by a physical commodity such as gold or silver. The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government rather than the worth of a commodity backing it. It is based on the faith and credit of the economy. Most modern paper currencies are fiat currencies.

Every cryptocurrency newcomers want to know how to cash out bitcoin or withdraw from bitcoins to fiat currency(USD, EUR, INR) which will be acceptable in their native countries. There are some easy ways to convert BTC into USD, INR, EUR or GBP, some of them are listed below. Before picking any of the listed methods, you need to find out how you want to receive your fiat currency. You can sell Bitcoins in person for cash or can sell it on exchanges and get the money directly into your bank account. You can also spend your Bitcoin to buy stuff from Amazon.

Converting Bitcoins to Fiat Currency

Cryptocurrency Exchange

The first one is to use a cryptocurrency exchange. Whenever you go to on a business trip, or you go to other countries, the first thing you need to do is that you have to go to an exchange to switch your local currency for the currency of that country you are visiting. Its the same thing with bitcoin. There are cryptocurrency exchanges that will convert your cryptocurrency into your local currency such as US dollars, euros or yen. There are many options to do so. Some of them are Coinbase. Coinbase is available in over 30 different countries, and they will easily be able to convert your bitcoins into currency and deposit it directly into your bank account. There are other alternatives available, and these are Kraken, Gemini, BitStamp.

Bitcoin Debit Card

It is also used to convert your bitcoin to fiat currency. The bitcoin debit cards allow their users to deposit their crypto coins via an online website which automatically converts them into a fiat currency such as the Dollar or Euro. There are multiple options available for this. For instance, Coinbase offers a Visa Bitcoin debit card which enables you to keep your holdings in bitcoin, and you can be paying anywhere that accepts Visa using your Bitcoin debit card.

Selling Bitcoins

The next option is to simply sell your bitcoins to someone else. As we know that, you can transfer bitcoin directly to another person without involving the services of a third party such as a bank or a credit card. So you simply need to do is to find out somebody that wants to buy your Bitcoins. When the buyer is available, you can transfer your bitcoins directly into their wallet and can get paid for that. In this type of transfer, there are some security risks involved because when you do a transfer of bitcoin to someone else, that transaction is irreversible. So if you send your bitcoins to someone else and that person does not pay you for the bitcoins, then there is no way to retrieve your bitcoins back. So whenever you are going to sell bitcoins to someone else whether it's a family member, a friend or someone that you might have met at a local Bitcoin Meetup, make sure you trust this person, and you're going to get paid for the Bitcoins that you send.

Bitcoin ATMs

Bitcoin ATM also known as BTMs or Bitcoin Teller Machines are machines where you can buy bitcoins, or you can sell your bitcoins. Bitcoin ATMs are available in most major cities around the world. The bitcoin ATMs provides a relatively fast and easiest way to quickly withdraw funds in your local fiat currency against your bitcoin holdings. Many Bitcoin ATMs also allow users to buy Bitcoin with money in much the same way as someone deposit money into their bank account at a regular ATM.

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