The common question raised by most of the bitcoin earners is ‘How to convert bitcoins into cash?’. This is a reasonable question as we cannot use bitcoins as normal currency most of the time. In this article you can learn how to convert bitcoins into cash or local currency and how & where to buy bitcoins.
Recommended article for Indian users – Profitable sites to buy & sell bitcoins in India.
Few points to help you to be secured:
- As bitcoins are digital currencies, they are always prone to be hacked if not secured properly. So, you should create a personal bitcoin vault and accumulate your bitcoins there and send it to your online bitcoin exchange wallet only when you wish to convert it into cash.
- Read this article, to learn how to create a personal bitcoin wallet in your computer.
- After creating a wallet (only applies for online wallet), create three factor authentication to increase your account security.
- Three factor authentication includes primary mail verification, secondary mail verification and mobile phone number verification i.e. if you want to send money to someone you have to pass all the verification to send money successfully.
- Mobile phone number verification ensures your account is 99% safe, as only the mobile phone number you use can get the verification code.
How to buy and sell bitcoins online:
Here you can find two sites where you can buy and sell bitcoins. The first site coinbase is a very good site to sell and receive cash directly to your bank account automatically (If auto-withdraw is enabled). And coinbase mobile app will be very useful to trade from your smartphone itself. But, few countries like India are not supported. The second site is local bitcoins well known for the reputation where you can buy and sell bitcoins in local currencies and withdraw through various sources (auto-withdraw unavailable). But the rates varies and you’ve to be cautious in selling your bitcoin to good rate.
- To create a account, click here – Coinbase.
- You will be asked to verify your email address before you can use their services. I highly recommend you to activate your mobile phone number authentication to secure your account.
- To sell bitcoins click buy/sell bitcoins on the left panel and again click sell bitcoins to see the selling panel as shown in the picture below.
- Before you can withdraw your cash you need to verify your bank account and phone number as said earlier.
- Coinbase also sends payment through Paypal, Payza etc. So, if you wish to withdraw through your payment processor account you can choose this method. However this facility is available in only selected countries.
- Coinbase has a great feature called ‘instant exchange’. If you enable this feature your bank account will be automatically credited with money if available. But, I recommend you to disable if you wish to sell when bitcoin rate increases.
- You can use coinbase as primary bitcoin vault and save your bitcoins in highly protected coinbase vault.
- Coinbase vault will be very helpful to secure your bitcoins. So, there will be no need for creating another private bitcoin vault.
- Another great feature of coinbase is its mobile app. The free coinbase bitcoin mobile app is available for Android and apple iPhone users – Mobile apps to earn money online.
- By using the mobile app you can send, receive, request, sell, buy bitcoins anytime, anywhere without using computer.
Advantages of coinbase:
- The easy navigation and attractive design makes coinbase good and understandable even for a person who don’t know what is a Bitcoin.
- Direct conversion of bitcoins without any middle man make us to feel safe
- Coinbase is very reliable through which you can convert the bitcoins and withdraw the cash directly to your bank account.
- Coinbase mobile app is one of the main reason for handful of customers owned by coinbase. Coin base mobile app allows you to trade anywhere, anytime.
- Coinbase secure vault adds more advantage to it.
Disadvantage of coinbase:
- Coinbase does not operate buy/sell activities in few countries like India. So, if you find that coinbase trade is disabled in your country you should go for alternatives.
- Mostly coinbase transactions are made in United states dollar ($ – USD).
2. Local Bitcoins:
- Local bitcoins is a very good alternative for coinbase and works great for people all over the world.
- Local bitcoins offers facility to their members to buy and sell bitcoins in local currencies.
- Local bitcoins is not like coinbase. Here you can buy or sell bitcoins only though middle man.
- You have to browse the offers posted by the merchants as shown in the picture above and choose the best merchant to buy or sell bitcoins.
- The search bar will ease your job of searching the right trader to buy or sell the bitcoins.
- In the search bar you can set the requirement like amount, currency, payment method and click search to find the right trader.
- Another great facility in local currencies is you can search a buyer or seller in your home town itself.
- After choosing a buyer or a seller click buy or sell to know more about the seller and his reputation.
- Read the terms of the trader and send a message using the given space like how much you’re going to buy or sell etc.
- You can also personally contact the trader via phone call, messaging and what app.
- Once both of them agree the currencies can be exchanged.
Link – Localbitcoins.com
Advantages of Local bitcoin:
- Local bitcoin offers facility to exchange bitcoins in local currencies for almost most of the countries in the world.
- Finding a local trader, even next to your house is possible only on Local bitcoins.
- Through local bitcoin you can buy or sell currencies through hundreds of sources of which Paypal, Payza, Google wallet, NEFT, Yandex money, STP, Paytm, web money, PM are the few examples.
- Local bitcoins allows you to sell bitcoins at the rate you fix. The rates are not fixed by the site like in coin base.
Disadvantages of Local Bitcoins:
- No mobile app at this moment. This is a major disadvantage for people who wish to trade from anywhere.
- No vault. Through local bitcoins have two factor authentication facility, the unavailability of the vault makes is less secure compared to coin base. In this case you can use xapo wallet as primary vault.
- Fluctuation in rates. As we have to find the trader every time, the buy sell rate might vary. This condition make you to lose more money in emergency.
- Vulnerability of getting cheated by fake trader. But, this does not apply on most of the cases as local bitcoin is very safe.