Tips To Help You Convert Your Cryptocurrency To Canadian Dollars

They say competition is key. In business, it certainly leads to
quicker innovation and more refined product offering. The cryptocurrency
world is no different, with the dominant Bitcoin battling runner-up
Ethereum for market share.

Regardless of whose corner you stand
in, cryptocurrencies are here, tradeable and making the news. If you
bought Bitcoin at a low, through genuine luck or pure brilliance, you
might be looking to ‘cash out’ now. Finding out what your holdings are
currently worth, can be done by simply clicking BTC to CAD or typing BTC to USD, or a currency of your choice, into a search engine.

Once
on the site, you will have to access to up-to-date cryptocurrency
conversion rates, conversion tables, historical price data, Bitcoin news
and a FAQ’s section. These sites are a fantastic way to run conversion
checks, which help you calculate what your Bitcoins are worth in your
local currency. Done regularly and keeping track of findings, allows you
to see market trends and decide on the right time to sell.

Read on to find out how to convert your Bitcoin easily and safely.

Bitcoin In A Nutshell

Bitcoin
was not the first cryptocurrency invented, but it has certainly become
the most popular. It is one of the earliest cryptocurrencies, with the
most trade volume by a huge margin. The immense size of its trade
volume, has gotten banks, private equity funds and even governments and world leaders into the crypto debate.

Bitcoin
was registered online in August of 2008 as bitcoin.org. With the first
transaction of 10 Bitcoins occurring a few months later, in January of
2009.

The first notable exchange of Bitcoin for physical goods
was done on the 22nd of May 2010. 10 000 Bitcoins were traded for two
pizzas from American pizza franchise Papa John’s located in
Jacksonville, Florida. The Jacksonville local, Laszlo Hanyecz, posted in
a Bitcoin forum asking if anyone could order him two pizzas. A forum
user, Jeremy Sturdivantuser, from England accepted and ordered the
pizzas to be delivered to Hanyecz. The event would become infamous
amongst crypto currency fans, as ‘Bitcoin Pizza Day’. The 10 000
Bitcoins were worth around 40 USD at the time of the trade, as of July
2024, 10 000 Bitcoins would be worth a little over 580 million USD.

Bitcoin
prices, valuations, transactions and news were typically negotiated and
shared on the Bitcoin forum. With cryptocurrencies placed on the open
market, they have become susceptible to more competition
as well as market fluctuation. Users have moved from trading via forums
to placing their Bitcoins into personal cryptocurrency wallets and
transacting through online exchanges.

Smarter Conversion Tips And Tricks

Bitcoin
is classed as a digital asset. Meaning it must be exchanged for fiat
currency before it can be withdrawn as actual cash. A fiat currency is a
national currency, such as the pound, euro or dollar. These currencies
are not typically tied or pegged to an underlying commodity such as gold
or silver, but rather maintain their value through a shared ‘belief’ of
value by the country’s citizens. The country’s government or central
bank would most commonly be the issuer of fiat currency.

Just like with fiat currency, the value you receive when selling or trading your Bitcoin depends on the cryptocurrency market
and the levels of supply and demand. Users need to be aware that
exchange fees can be added to both the buying and selling of Bitcoin, as
trades occur over online cryptocurrency exchanges which take a cut of
each transaction. Competition amongst exchanges over the years has seen
fees drop from low single figure percentages all the way down to tenths
or even hundredths of a percent. Online searches will help you find an
exchange best suited to your needs.

Stablecoins are an option for
those interested in the cryptocurrency sphere, but wanting less possible
volatility. Stablecoins peg themselves on a fiat currency or a
commodity such as gold. The introduction of Stablecoin has opened the
market to a new wave of interested investors.

Now that you have
decided on a suitable exchange, understood their fees and chosen your
timing wisely, the process of selling your Bitcoin can begin. The
Bitcoin is converted to fiat cash, which is stored in your exchange
account. Meaning that you will have created a fiat wallet as well as a
crypto wallet, which may contain any Bitcoin yet to be converted.

After
your Bitcoins have been converted to fiat currency, you can link your
bank account to the wallet and transfer the funds over to a regular
account.

An alternative is to buy products directly using your
Bitcoin, such as clothing items, gift cards, hotel stays and airline
tickets. Your Bitcoin can be linked to your fiat card, meaning you are
essentially cashing out by making purchases of regular products. A final
option is using a Bitcoin ATM, just bear processing times, admin fees
and the availability of such ATM’s in your area in mind.

It’s Your Decision In The End

Cryptocurrency
decisions, as with most money decisions, need to be done carefully and
thoughtfully. Be sure to do your homework, understand the fine print and
fee structures, compare products, keep an eye on the market and know
how much actual currency your Bitcoins will be worth once sold.

This article was written by FL Contributors at www.forexlive.com.