Cryptocurrency is getting more and more popular with every passing day. From young entrepreneurs to global business magnates, all have been dazed by this new disruption in the global economic setup. But a few investors or potential investors are still questioning certain features of the crypto coins. In India, crypto finance remains a grey zone and most businesses prefer cash or e-commerce transactions. The scenario may change in the future but for now, inter convertibility of cryptocurrency can save us from that.
Many wonder whether or not it is possible to convert cryptocurrency into fiat currency or cash. The answer is yes. Cryptocurrency is interconvertible to fiat currency. You should remember that crypto money is not the same as money earned in games or such platforms but it is real money though you can't touch it or see it.
Convertible virtual or digital currency
Cryptocurrencies, unlike virtual currencies earned in video games, are exchangeable for real currency and are called convertible virtual currency. It refers to such currency that can be used as a substitute for real and legally recognised currency though it may not have a legal tender. These conversions can be easily made through currency exchange services or peer-to-peer networks. Bitcoin, Ether and Ripple are some examples of interconvertible crypto. However, Bitcoin remains the most popular in the game.
How to convert cryptocurrency into cash?
Let us focus on two main ways in which this can be done:
1) One way is to convert the crypto money through a currency exchange system or a broker. Experts call this method safe and secure but it is also time-consuming. You request a broker to take your crypto deposit and transfer the cash to your account. Due to certain restrictions, the withdrawal has to be made through the same account through which the deposit was carried out. The transfer of the amount may take a few days.
2) Another method involves appealing to peer-to-peer platforms. You simply need to sell your digital currency in return for cash. This is a quick and anonymous method. However, beware of fraudulent users.
Are you having second thoughts before converting crypto?
Cryptocurrency is highly volatile. Its value fluctuates very often and may rise or dip suddenly. Any decision to convert them requires a good judgement of the future prospects of the crypto.
Turning digital currency into cash may also subject it to taxation. Digital currency in India is yet not under any regulation. However, once converted into fiat currency, there's a high probability that it will be counted under taxable assets.