There may come a time when you need to convert your Bitcoin into fiat or another cryptocurrency.
Perhaps you want to realise a profit, simply need the cash, or believe another cryptocurrency offers more potential.
There are several different ways you can sell Bitcoin, and there are also lots of exchanges that enable you to convert Bitcoin into fiat currency such as GBP or another cryptocurrency like Ethereum.
The first step is to ensure the timing is right – and that’s where a Bitcoin calculator comes into play.
Bitcoin calculators are an essential tool if you’re considering converting Bitcoin to cash because they show you how much currency you’ll get for your Bitcoin.
Since the price of Bitcoin is extremely volatile, it’s important to check its conversion rate in real time. This will ensure you don’t end up cashing in at the wrong moment – for example, when Bitcoin’s value has just plummeted.
There are a whole host of free Bitcoin calculators available on the web which let you convert Bitcoin to and from a range of world currencies using up-to-date exchange rates.
You can check the live Bitcoin rate with GBP, EUR, USD, JPY, and lots more fiat currencies. Some calculators also show the closing rate of the previous day as well as the highest and lowest rates of the conversion.
If you think the price is worth it, the next step is to make a Bitcoin conversion.
Converting Bitcoin to fiat
The main method of converting Bitcoin to fiat is to sell it on a cryptocurrency exchange. A crypto exchange lets you quickly and easily exchange your Bitcoin for a wide range of world currencies. The exchange essentially acts like a middleman between you and the buyer and will take a cut via trading fees.
To sell your Bitcoin, you will need to set up an account with the exchange of your choice. This will involve going through an identity verification process and connecting your bank account to the exchange.
Once completed, you can then make a sell order by entering the amount and type of coin you wish to sell (in this case BTC) and selecting the fiat currency you wish to receive.
Once the cash funds are in your account you can withdraw them to your connected bank account – a process that could take up to a week to complete.
There are other ways to make a Bitcoin conversion – for example, through a peer-to-peer platform, via a Bitcoin ATM, or through a direct trade with another person.
The right method for you will depend on factors such as how quickly you want to sell your Bitcoin, whether you want to secure the market rate, and the fees you’re willing to pay.
Converting Bitcoin to other crypto
Although most people who make a Bitcoin conversion do so in order to get cash, there might be instances where you want to exchange your Bitcoin for another cryptocurrency such as Ethereum or Litecoin. Again, you will need to head over to a cryptocurrency exchange.
The first step is to find an exchange that supports your chosen Bitcoin trading pair. There are a vast number of exchanges in existence and, together, they let people exchange Bitcoin for hundreds of altcoins, so this step should be relatively straightforward.
Once you’ve selected an exchange, you can sign up for an account with your personal details and proof of ID.
The next step is to deposit Bitcoin into your exchange account. On most exchanges, you select the deposit button, choose Bitcoin as your deposit currency, and copy the account address shown.
You then need to open up the external wallet you’d like to send your Bitcoin from, enter the account address, and press send.
Once the Bitcoin has arrived in your account, you can begin the exchange process. You simply navigate to the currency pair you wish to trade – for example BTC to ETH – and then enter the amount of BTC you want to convert and click sell.
To avoid the risk of being hacked, it’s recommended that you transfer your new crypto from the exchange into a secure, external wallet for safe storage.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.