Cashing out/converting Bitcoins to Dollars used to be hard and shady, not anymore. Every day a new and more convenient way of using or selling your Bitcoins is released, in this article, you will know a few!
Bitcoin transactions to the tune of over $2 billion traded every day, means millions of people use Coinbase GDAX to convert BTC to USD around the world.
There are thousands of cryptocurrency traders in the global cryptosystem, and every one of them claims to be the best.
This means that it behooves everyone to carry out a due diligence exercise before leaping into the innovative, but hazardous cryptocurrency marketplace.
In an earlier article, I listed several ways to buy Bitcoin. In this piece, I will illustrate how to sell bitcoin for US dollars or, convert BTC to USD.
Turn Bitcoin into Cash
Make sure you check our Living on Bitcoin article!
The Coinbase platform gives users an instant bitcoin price against fiat and other cryptocurrencies. In addition to its primary operation as the intermediary between buyer and seller, Coinbase is also a bitcoin exchange and bitcoin wallet provider.
In 2017, the GDAX became the largest broker-cum-exchange, offering services in 33 countries around the world and gaining a reputation for honesty and fair trade with both customer and governments.
Coinbase uses the GDAX (GDAX (Global Digital Asset Exchange) and acts as a broker where people can buy bitcoin and turn bitcoin into cash. GDAX (previously known as Coinbase Exchange) is registered and monitored intermediary between buyer and seller trading in not only BTC but also Litecoin and Ethereum. As such, GDAX operates as a DLT platform and not a completely anonymous crypto marketplace.
Get a GDAX Coinbase Exchange account
Even if you own BTC or are just starting out, the first step to getting automated for buying and selling is to “create an account ” on GDAX. The verification asks for email address and phone number, and you are required to provide legitimate information.
The process can take a few days to complete the KYC (Know Your Customer) regulations, which are a little different depending on your country of residence. A good piece of advice is to simultaneously sign up for Coinbase Pro to save jumping through the same hoops twice and gives better control when selling!
The final piece of the account creation and registration is to link your bank account. This facilitates easier cash withdrawals.
Once you have received confirmation that your account is open, you buy BTC by the transfer funds in USD, Euro or GBP directly from your bank using a wire transfer. GDAX gives you the option of either using your bank account to fund trading or cut straight to funding your account using ETH or BTC.
Online Looting: How safe is your dosh?
Here’s the thing: leaving your cryptocurrency in the exchange is not the best policy for one primary reason – hackers!
MT Gox hackers got away with about 3 billion dollars’ worth of BTC belonging to average Joes who had a ton of money invested. Coinbase claims to have insurance for all currency held in GDAX, but who wants to test this one?
The safest option, therefore, is to have a Bitcoin Wallet.
There are many different types: desktop, laptop, and mobile wallets, all using online software. All the wallets use an encrypted software program. The desktop model, security selling point is the fact that it can be loaded into a spare computer and used as “cold” storage activated only to access BTC.
Web-based “online” wallets have the advantage of easy access from anywhere, using any device. The weakness is security, which is dependent on and tied directly to the provider, and linked through private key activation. This means that you are required to put a lot of trust in the online wallet platform provider.
Mobile wallets run on the same principles as the online version, but do allow access through phone, giving users the benefit of paying with coins for goods and services and a second format that allows access to “online storage servers,” and this is where the risks arise.
What is Exodus?
Exodus is a new exchange, desktop wallet giving improved security and offering users a complete interface with “ShapeShift” that allows access to multiple cryptocurrency tokens.
The kicker: Exodus is a “LITE Wallet” designed for better control and new users and doesn’t require the entire blockchain download.
Sell Bitcoin for USD
When you are ready to sell Bitcoin using Coinbase or Coinbase Pro, you log in to your account and go to the “trading” section. Ensure that you select to SELL and enter the amount you wish to trade. The option to place a “sell order” at the current bitcoin price or you can place a “limit order” fixed at the price at which you are happy to sell.
The trade takes place without any further participation on your part. As long as your selling price is close to the current market rate, the sale is expedited quickly.
When the sale price is met, Bitcoin is transferred from your exchange account, and the equivalent amount is deposited into your account in your chosen fiat, such as US Dollars.
The quickest way to get funds involves checking the “withdraw” then “bank wire” and then inserting the amount you wish to transfer. The money is transferred to your bank account, minus fees.
Coinbase fees are variable according to the country of origin, type of bank account and amount.
To purchase $100 (worth) of BTC from within the USA, using a USD wallet or bank account, there is a flat (minimum) fee of $2.99. The variable percentage fee is 1.49% of the total. At $100, this is $1.49. This means that you pay the “minimum” of $2.99.
For credit and debit card transactions, there is a minimum fee of 3.99%, and since this is higher than the flat fee of $2.99, this will be the fee charged.
Bitcoin ATMs are an excellent way to use BTC and withdraw fiat currency. They allow a certain amount of anonymity and are very quick to use just by scanning your mobile phone or “eWallet.” The biggest drawback is the fees of, on average, 8.9%. The most significant advantage is that they are available in most countries around the world.
Although there are many exchanges out there, Coinbase is still regarded as the safest route to take, especially for beginners. On the security side, keep your information safe by using secure IT connections and try not to use public servers, especially when you are abroad.