Before you start converting all your BTC to bank account, know the following pitfalls that are associated when converting your bitcoin to dollar:
Taxes – Death & taxes are totally inevitable, and that goes for the bitcoin investors. Even though certain jurisdictions have still to clarify the stance on bitcoin & taxes, most of the tax authorities say you need to pay certain taxes on the profits that you might make when you are selling 1 BTC to USD. Lest you think that you may just ignore the rules, remember some bitcoin exchanges can report the profits to tax man whenever you cash out.
Fees – Many BTC-to-bank methods described over entail exchange fees. Thus, selling bitcoin straight to the friends can be the exception, and assuming friends are very nice enough not charging the transaction fees.
Peer-2-Peer Transactions: For the faster and anonymous way, you may use peer-to-peer way to sell BTC for dollar. When you are selling BTC’s to other people, one can determine payment mode you would like these buyers to use. It includes:
- Bank Transfer: You may ask buyer to send the bank transfer payment (or you can use PayPal). Request the proof of identity from buyer before you go ahead. When you have received money, you may release these bitcoins to them.
- Cash deposit: One can ask buyer to deposit the cash in your bank account. Ask for the proof of ID & proof for payment before you release the Bitcoins to them.
When you are ready to convert BTC to cash, you need to consider a few things as cost & ease of cash out method, and where you want this deposited (PayPal, bank account, and more.) the kind of currency you want to convert the bitcoin to, or how long you wish to wait to get the cash. Whatever your requirements, there is the method that will fit and options continue growing as the bitcoin gets very common & accepted across the world.
Important facts about BTC
- Was launched in 2009
- First decentralized cryptocurrency
- Maximum number of BTC is 21 million
- Brainchild of person and group called Satoshi Nakamoto
- Bitcoin is also considered a commodity & currency
- First BTC transaction was buying 2 pizzas
- Around 80% of Bitcoins have been mined
Launched at a first cryptocurrency exchange in April 2010, BTC price was around $0.003. Then, price rate improved dramatically, and bringing thousand percent earnings to the initial owners.