Bitcoin has been heralded by many as the currency of the future, but few places are willing to accept it. Fortunately, exchanging bitcoins for usable currencies like dollars is quick and easy. If you want to know what the bitcoin exchange rate is, look it up on the internet. If you intend to exchange bitcoins for dollars, enter them into the digital marketplace and sell them to interested buyers. The digital marketplace will exchange your bitcoins for dollars quickly and easily, then transfer them to a debit card, bank account, or digital wallet of your choice.
Step
Part 1 of 3: Choosing an Exchange Service
Step 1. Compare the exchange rates offered by various exchange services and choose the best one
Although the average bitcoin exchange rate is increasing, various exchange services offer different exchange rates. For example, one exchange service offers a bitcoin exchange rate of 1 to $5,000 while another offers 1 bitcoin to $5,200. Other things being equal, you should opt for a second service to get more profit from your bitcoins.
Step 2. Exchange your bitcoins using a service that charges a low fee
Exchange services usually charge an exchange fee. Sometimes the fee is fixed regardless of the amount redeemed, and sometimes the exchange service charges a percentage of the amount redeemed. Compare exchange fees from various exchange services and choose the one that offers the lowest fees.
The exchange fee changes frequently, make sure you check the terms and fees of the exchange
Step 3. Make sure the service you use is safe
There are several ways to ensure that a bitcoin exchange site is secure. One of them is by checking reviews from trusted sources that ensure the integrity of the site. Another way is to make sure that the URL of the site uses the https protocol (as opposed to the less secure http protocol). Finally, use an exchange service that uses two-factor identification, ensuring that only you can approve bitcoin exchanges.
Step 4. Choose a service that offers fast transfer times
There are sites that transfer bitcoins to your account after 5 days, but faster services can convert your bitcoins to dollars in 3 days or less.
Part 2 of 3: Registering and Uploading Bitcoin
Step 1. Create a new account
Provide your name, date of birth, address, email address, phone number and other personal data to register an account. You will also be required to provide a bank account number, an electronic payment service such as PayPal, or both (depending on how you want to exchange and transfer your bitcoins).
Step 2. Choose the strongest security option when you register
When you create an account on the bitcoin market, you will have the opportunity to enable two-factor authentication, which means that you will enter a password and a random code sent to your phone. You may also want to enable the multiple signatures option, which requires multiple independent approvals before exchanging or withdrawing bitcoins.
Both of these security options can protect against thieves and hackers, so enable them if you are given the choice
Step 3. Put your bitcoins on the market
The specific mechanism used to enter your bitcoins will vary depending on how your bitcoins are currently stored. Usually, you just click "Deposit bitcoin" (or something similar) near the top of the market site homepage to enter bitcoins.
- If your bitcoin encryption key is available, you will be asked to enter it.
- If your bitcoins are in a “wallet” (an encrypted file or code), you will be prompted to upload the file.
- Don't be afraid to contact customer support if you have problems entering your bitcoins.
Part 3 of 3: Making the Exchange
Step 1. Exchange your bitcoins if the exchange rate is favorable
Exchange rates fluctuate over time. For example, at today's exchange rates you could exchange 1 bitcoin for $4,900. A week later, the exchange rate might change to $5,100 for 1 bitcoin. Do not rush to trade your bitcoins until their exchange rate against the dollar rises.
- There is no fixed percentage or rate that determines a favorable exchange rate. Some people may feel that if the value of one bitcoin goes up by $100, it means it's a good time to exchange their currency. Others will probably wait until the value they will get increases by 5 percent.
- Check exchange rates regularly online or subscribe to a service that provides up-to-date information on the bitcoin exchange rate against the dollar so you know when the exchange rate is rising.
Step 2. Sell your bitcoins on the market
There is a marketplace that allows you to sell bitcoins to other people. Some allow you to sell them directly to the marketplace, who will then resell them to interested buyers. Either way, the specific method you use to sell bitcoins will vary depending on the market you're in. In general, all you have to do is click “Sell bitcoin” or a similar option to start the process.
The bitcoins will then be converted to dollars and transferred to the bank account provided
Step 3. Put your bitcoins into the debit card
There are markets that allow you to put bitcoins on a debit card that automatically converts them to dollars. You might be able to get a digital debit card, which gives you a series of numbers that you can use for online purchases that require dollars, or you could get a regular debit card.
Both types of debit cards cost money (digital debit cards usually cost around $5, while regular debit cards cost $15-$20), but both offer added convenience, especially if you rarely use cash
Step 4. Transfer your bitcoins to another digital wallet
There are bitcoin exchange services that allow you to convert bitcoins to dollars by transferring them to PayPal, Apple Pay, or similar services. If this is how you want to exchange bitcoins for dollars, specify your withdrawal method to the digital wallet you want to use. Then, just sell or transfer your bitcoins to the service of choice through the market menu.
- Exchanging bitcoins for dollars by transferring them to a digital wallet usually costs more and has a lower limit than transferring them to a bank account.
- However, this option is preferred for people who routinely make digital purchases and don't want to bother transferring money from a bank to a digital wallet.
Tips
- No matter how you transfer and exchange your bitcoins, you usually need to wait a few days for a third-party marketplace to verify your identity and account details.
- Bitstamp, Wirex, and Coinbase are just a few of the many services that allow you to exchange bitcoins for dollars. All are basically the same except for the layout, design and cost breakdown.
- The best marketplaces can be accessed from both desktop and mobile devices.
