We can’t have enough of cryptocurrencies. This trend, that won’t ever stop, has taken over the internet, and we can say the same about our lives. Everything revolves around crypto these days. If you’re even remotely following the news you know what we’re talking about. The majority of the population is getting involved with digital currencies one way or another. Even those who are not yet involved with Bitcoin or similar currencies are preparing their gear to go all in. They’re the ones who have the best question regarding crypto.
One of those questions that we can look at and say “that’s a good one” is without a doubt do you lose money when converting crypto into cash? This is a fair assessment and everyone who is remotely connected to digital currencies needs to ask themselves this question. There’s a lot to be learned about digital currencies conversion. To be honest there’s still a lot to learn about cryptocurrencies in general. They’re evolving each day and for some of us, it is getting hard to keep track of all the updates. This is what happens when the financial market meets the internet. Blockchain technologies are getting more and more superior each day, and all we can hope for is that they’re not leading us to a Matrix situation. All joking aside, let’s discuss the conversion of digital currencies some more.
Can You Exchange Cryptocurrencies For Cash?
Let us first answer this question. The first answer is a simple yes. It can be done, and it’s something most people do on regular basis. To do this, you’ll need to own a cryptocurrency first and to have an opened account in exchange. In most cases to complete this task, you’ll need to have a third party involved. Now, remember, no one works for free on the internet anymore. Once you have a broker involved you’ll need to know that there will be transaction fees involved as well as taxation on their part. If you want a reliable partner in all matters of crypto you can visit this site. As far as the exchange goes the fees involved will grow depending on the number of digital currencies involved. What you need to be aware of is that this is not a straightforward process. In fact, in some cases, it can last up to a few days.
Of course, there is always a possibility that you sell your Bitcoin or any other crypto to someone you know. This might prove to be an easier method if you have someone you can trust. They’ll transfer you the cash, and you’ll give them your crypto. Also, there’s an option of peer-to-peer transfer with a stranger. This method also involves a broker and fees, but it is deemed as a faster, albeit less secure way of doing things.
Can You Lose Assets in the Process?
This is where things get interesting. Everything regarding cryptocurrencies is fun as hell. It’s hard to disagree with this statement. Converting crypto to cash is not something out of the ordinary. As we said, everyone does rather sooner than later. As with every other asset on the financial market digital currencies carry some risks. Some of them occur when you convert crypto to cash. This is not something that should frighten you as titans do people within the walls in Attack on Titan. This is less sinister but also not something to be neglected.
If you’re not aware by now one of the primary traits of most cryptocurrencies is their volatility. What this means is that their value fluctuates, sometimes even on daily basis. Because of this trait, many people have managed to become millionaires in a very short time frame. Volatility is like a wave. If you know what you’re doing you can ride until the sunset. If you’re not aware of its dangers, you’ll get suffocated.
The moment you decide to convert your crypto into cash the game begins. Your assets will be frozen before the conversion is completed. As we mentioned, this process can take up to a few days, and in the mid-time, if your crypto starts fluctuating and grows in value while you have it trapped in an exchange, you’ll be losing money. You won’t be losing it per se, but the loss in the value it gained will not be recuperated by you until you’re once again out on the market with your crypto. But, this is a two-way alley. In the same manner, you could avoid losses. If the value of your crypto plummets while you’re in the process of converting it to cash you’ll feel like the smartest man in the world.
So, while you won’t be losing money through conversion, besides the fees and taxes involved things can take an u-turn due to the nature of cryptocurrencies. While for some this is a massive turn-off, for most of us involved with digital currencies this is the reason we joined the race. Volatility is the trait of cryptocurrencies that can’t be ignored. In fact, you need to base your crypto strategy around it. Yes, it is unpredictable, but so was the 2015/2016 Golden State Warriors team, and yet King James managed to tame them. Some would argue that the Cleveland Cavalier’s win in the 2016 NBA Finals is, in a lifetime event, but Tom Brady came back after trailing Atlanta Falcons 28-3 with little more than a quarter to play.
Everything is possible, and this is the reason why you shouldn’t give up on digital currencies due to their volatility. No, you need to adapt and overcome the obstacles. At the moment, what you should know is that you won’t be losing any money when you convert your hard-earned Bitcoin into cash. As we said, there are fees involved but they’re the same for everyone. What you should do differently is solely up to you, but we suggest that you take your internet surfboard and start riding this wave into the sunset. The best is yet to come when it comes to digital currencies.