Lately, many people have heard such a concept as cryptocurrency. Of course, there is much to be said for the new electronic monetary system that has taken over the world. You can criticize its stability, or, conversely, extol it to the skies.
Not so important. Financial market trends over recent years confirm that at the moment cryptocurrency is a stable monetary unit, bringing profitability to the owners themselves up to 80% per year (data for 2020). Those who are already actively making money on mining or specialized exchanges, or those who are only interested, are equally thinking about the following question: how can a cryptocurrency be exchanged for money? And is it even possible? Next, we will try to answer this question.
Cryptocurrency: principles of work
But before telling how money is withdrawn from cryptocurrency systems, it is necessary to briefly remind or familiarize the reader with what it is and what features it has. This concept first appeared due to the fact that many financial geniuses have long thought about creating an independent monetary unit, their own kind of payment system, where there would be no fiscal component, and cash flows were not controlled by the state.
And the first such system, the so-called bitcoin, emerged in 2008. Moreover, in such a system, each of its participants is a full-fledged owner who can dispose of his savings. There are no banks, regulatory bodies, etc., here the equality of rights of everyone who is related to the system reigns. It is also necessary to understand that bitcoin, which is the most popular and recognized currency, cannot have a cash form like money, for example, hryvnia, ruble, dollar or euro. But at the same time, it is equivalent to other currencies, the same dollar and euro.
The main features of the work of bitcoin and other cryptocurrencies:
- They do not have a central governing body, that is, the system is governed by decentralization and interaction between all participants who are independent in making decisions.
- Virtually any cryptocurrency can be created using special program code. But for it to become popular and have its value, it must be recognized by the public, that is, be in demand.
- A payment system of this level operates in isolation and, therefore, cannot be banned or disabled. This is due to the fact that each user has his own computer and video card connected to the network. And even if one PC fails, the entire system does not fail.
- Each user is isolated and not identified, since the user himself comes up with the code and the access key to the system.
- The release of new bitcoins is possible only according to a specially created schedule, which was originally incorporated into the program code. Thus, the release of new units does not lead to inflationary processes. The money supply is limited.
Of course, it is quite difficult to explain in an accessible language what a cryptocurrency is and what its principle is, and for ordinary people who are not very versed in codes, ciphers, etc., it is almost impossible. You can, for example, try to explain it this way: a cryptocurrency is a currency created by a special program in the form of a diary of entries, where each subsequent one depends on the previous one. In other words, any operation is a special code, which is then based on encrypted information about the next transaction, etc. If someone tries to change the cipher of one entry, this will entail changing all the others. This is the guarantee of the safety of financial transactions.
The direct release into circulation of bitcoins or another currency of such a plan is called mining. The mining algorithm is based solely on solving certain mathematical problems.
How to withdraw cryptocurrency?
So how do you exchange cryptocurrency for real money?
There are several ways to do this. How to exchange cryptocurrency for money:
- Withdrawal of electronic money through special exchange systems, the so-called exchangers.
- Withdrawal through special exchanges.
- Use a special terminal.
Each of the methods has its own disadvantages and advantages, and it all depends on the goal.
Withdrawal of cryptocurrency using exchangers
If we talk about the use of exchangers, then this method allows you to withdraw cryptocurrency into real money very quickly. The interface of such services is quite convenient and simple. To make a withdrawal, you must first of all decide on the exchanger. For example, you can exchange satoshi to usd, without leaving home. It is very convenient, and most importantly, fast!
There are a lot of specially created services on the Internet. You can read reviews and choose the most reliable and optimal one. There can be a lot of options. You can register on such an exchanger, you can perform operations without prior registration. But the withdrawal with a personal account allows you not only to track the history of transactions, but also to accumulate bonuses.
On the service, you just need to indicate which currency the user wants to exchange, that is, sell, for example, bitcoin, and which one to buy. In this case, when completing the transaction, the exchange will be carried out in the form of crediting funds in hryvnia to a bank card.
By the way, the choice of currencies, including crypto, on such special services is quite huge. But you need to understand that you will have to pay for such a service. Each site can set its own percentage that it deducts for the provision of exchange services. As a rule, the rate is at the level of 2-4%.
Mandatory information that must be indicated to each user when making an exchange:
- Required amounts of the sold and purchased currency;
- Bankcard number;
- Email address;
- Surname, name, patronymic (not always necessary).
When registering in the system, such data is specified once, and then automatically filled in by the program. Each time you need to confirm the exchange using a special code sent to your mobile wallet or mail.