To convert bitcoin to Naira or the stronger and more popular USD has become one of the most vital pieces of information these days. Why? The answer is simple; Bitcoin (and other cryptocurrencies in general) are now more popular than ever. People who own this asset are looking to convert it to currencies that are accepted around where they live when they need to make purchases.
Demand for bitcoin has increased, yet …
As already mentioned in the opening, bitcoin has become more popular in recent years. The goal of using the decentralized digital currency worldwide, without a central bank or single administrator, is nearing its achievement.
In November 2020, PayPal announced that US users could buy, hold, or sell bitcoin on its platform. Several other companies like MicroStrategy, Square, and Massachusetts Mutual Life Insurance Company have backed the currency by investing large sums of money in it.
Additionally, the Canton of Zug, Switzerland, announced starting to accepting tax payments in bitcoin by February 2021, and the Legislative Assembly of El Salvador voted legislation to make Bitcoin legal tender in El Salvador, with the law taking effect on 7 September 2021.
While these examples appear to prove the crypto’s increased popularity, it has also suffered some major setbacks, most famous of which is Tesla’s reverting of its acceptance. It happened on 12 May 2021, 49 days after initially announcing that it purchased $1.5 billion and the plan to accept Bitcoin as a vehicle payment means.
The highest selling car manufacturer in the world cited concerns that “mining” the cryptocurrency contributed to the consumption of fossil fuels and climate change. Elon Musk later revealed that if Bitcoin mining reaches and trends above 50 percent renewable energy usage, Tesla will resume accepting it.
Therefore, not many of the world’s sellers are yet willing to accept it as a transaction means. For this reason, people who own bitcoin have to convert it to USD, Naira or other currencies for trade.
If you have a business, it may be a great idea to accept cryptocurrencies as payment. Setting up a crypto wallet is easy, and it doesn’t take you more than a few minutes with Bitcoin Superstar. Additionally, crypto transactions are fast, secure, and reliable, so you don’t have to worry about any problems in receiving your funds.
How to convert bitcoin
There are several ways to convert your bitcoin when you need to, but before choosing any method, first, consider these important factors:
Taxes: Since third-party brokers are obligated to report transactions for tax purposes, if you make a profit on selling your bitcoin, you will have to pay taxes on your income.
Fees: Many bitcoin-to-bank-account conversion methods require users to pay fees. However, some third-party brokers offer the service for free for a limited amount of time or transaction.
Speed: Not all brokers offer immediate bitcoin conversion services. The fact is that many will require users to wait for about three days or more for their transaction to be completed.
Hence, if you have considered all the factors above and understand them, you can go ahead and try these methods of converting cryptocurrencies.
Third-Party Broker Exchanges
Also known as a cryptocurrency exchange, a third-party broker uses the same process as bureau de change or currency exchange outlets at airports. It includes bitcoin ATMs and debit cards. They exchange your bitcoin for cast a given rate. Then, you can withdraw in the currency that you choose, and it will be paid into your bank account.
Remember that you must withdraw with the same account you used in making a deposit. Also, you will be required to pay a fee, which differs by country. It is not an instant method and may take between 3-7 days to be completed.
All you need to do is sign up and complete the verification process; then, you can make your deposit. When this is finalized, you can choose any means of withdrawing your funds.
A more privacy-inclined method is to use a peer-to-peer platform to sell your bitcoin for cash. Not only will this method grant you anonymity, but it will also allow you to choose payment methods. Since it is a transaction between individuals, the exchange rate is not fixed. Instead, it depends on supply and demand.
For example, if the buyer needs the bitcoin urgently, they may be willing to pay more than regular exchange rates. The reverse is the case when the buyer does not need it.
Another vital thing to look out for when using this method is a platform that allows you to keep your bitcoins locked until you confirm that the buyer has received the payment. This is popularly called the escrow option.
Some platforms even allow you to create an ad for your sale. Famous rates you should have handy when conducting bitcoin trades are:
1 bitcoin to USD = USD 44,675
100 bitcoin to USD = USD 4,400,675
[Bitcoin price updated in September 2021]
Despite the growing popularity of bitcoin in many places and its acceptance as a means of a transaction by some companies, it is still a long way from being accepted worldwide. Its decentralized nature and its trading on online exchanges in many countries make it difficult to regulate it.
Until it is widely accepted as legal as the dollar or Naira, many traders will continue to seek ways to convert bitcoin to acceptable currencies. This is why third-party brokers and peer-to-peer-selling platforms will also continue to be helpful.
Many financial experts believe that the rise of bitcoin to worldwide acceptance is certain. It only has to overcome challenges like climate change, legal regulation, and so on. For now, it continues to gain the trust of millions of people who are joining and trading with it.
You may also like to read our latest article, Best bitcoin trading secrets for maximising profits you should know.