ELI5 Bitcoin to USD conversion

ELI5 Bitcoin to USD conversion

Bitcoin itself does not offer a US Dollar for Bitcoin exchange system.

If you’ve just arrived in the world of cryptocurrencies, this may cause some confusion.

Bitcoin is a completely virtual crypto asset that exists within its own blockchain.

The only way to convert Bitcoin to US Dollars, and from USD back to Bitcoin, is by using specialized exchanges.

Bitcoin to USD Exchanges

Here’s a short list of exchanges where you can trade Bitcoin for USD.

  • Coinbase : Probably the most popular Bitcoin to USD conversion exchange. Based in the USA, well regulated and used by millions of investors.
  • eToro : eToro is a community-based stock brokerage that has adopted cryptocurrencies. eToro is based in Cyprus, UK and Australia
  • xCoins: Accepts credit cards and Paypal.¬† Based in Santa Monica, California. Well regulated by US authorities.
  • SimpleFX: A foreign currency exchange platform that includes cryptocurrencies. Allows for highly leveraged trading (high risk). Based in Kingstown, St. Vincent and the Grenadines.
  • LiveCoin : Cryptocurrency exchange which accepts USD deposits. RED VELVET INVESTMENTS LTD is located in Belize.

Other popular USD to Bitcoin exchanges include Bitfinex and Bittrex (the latter only for approved investors).

(Read more about Bitcoin to USD exchanges.)

What to Watch out For?

  • Only trade USD for Bitcoin at reputable and trusted exchanges.
  • Before making deposits, perform a quick web search filtering for recent results to see if any big scams have happened at the intended exchange.
  • The exchange must request your ID and perform personal checks. If they don’t, then stay away.
  • KYC and AML legislations must be respected by USD to Bitcoin and Bitcoin to USD exchanges

All these requirements decrease the chances of being scammed in the very volatile and still developing field of cryptocurrencies.

Regulations for exchanges are still being passed by most countries and states. For the time being, watching for AML and KYC compliance, along with honest online reviews, are the main steps every investor should take before trading Bitcoin for US Dollars.

 



Send us news tips, suggestions or general comments by email: contact [at] crypto.bi