Bitcoin has revolutionised traditional finance, giving people more freedom to diversify their wealth. As Bitcoin continues to grow towards mainstream adoption, more and more people are exploring the world of cryptocurrencies as an alternative to traditional fiat currencies, eventually leading to a need for converting their Bitcoin into USD.
Whether you're looking to cash out your Bitcoin or simply want to diversify your holdings, understanding how to convert Bitcoin to USD is crucial. In this comprehensive guide, we'll walk you through the steps of the process and introduce one of the best apps to convert Bitcoin to USD, the Xapo Bank app, designed to simplify this process.
Fiat vs Bitcoin: what are the differences?
What is fiat?
Fiat, or fiat money or fiat currencies, is a government-issued currency that is usually not backed by any collateral asset. It’s the traditional form of money that we use today. It’s a centralised form of money that acts as a country’s legal tender, its official currency.
Some of the most well-known fiat currencies are, for example, the US Dollar in the US, the Euro in the EU, or the British Pound in the UK.
What is Bitcoin?
Bitcoin (BTC) is the first cryptocurrency created, a digital form of money. Unlike traditional fiat currencies, Bitcoin relies on blockchain, which doesn’t require centralised authorities or banks to function. Bitcoin transactions are rather verified through cryptography and run on blockchains, distributed ledgers that are public and open to everyone.
While today there are thousands and thousands of different cryptocurrencies, Bitcoin remains the most well-known and the largest cryptocurrency by market capitalisation.
When should I convert Bitcoin to USD (BTC/USD)?
Now that we covered the differences between traditional fiat currencies and Bitcoin, let’s check when it can be necessary to convert Bitcoin to USD.
While Bitcoin offers exciting possibilities for holding on the long term, there are several reasons why you might want to convert Bitcoin to fiat. These reasons could include covering everyday expenses, diversifying your financial portfolio, and emergencies.
Learn how to convert Bitcoin to USD (BTC/USD)
Do you need to convert Bitcoin to USD? You can do so on various online platforms and mobile apps, like the Xapo Bank app. Here’s a breakdown of what the process usually looks like:
Find a crypto exchange or app–Selecting the right platform is essential to ensure a smooth conversion process. Consider the different factors that are important to you, for example supported currencies, user-friendly interfaces, fees, etc. One of the best apps to convert Bitcoin to USD is the Xapo Bank app.
Create an account–Before being able to convert Bitcoin to USD on the selected platform, you will need to create an account and pass KYC verification to comply with regulatory requirements.
Deposit Bitcoin–Before initiating the conversion, you'll need to transfer your Bitcoin from your wallet to the platform’s wallet. Use the QR code or the address of the receiving wallet to send your cryptocurrencies.
Place and confirm the sell order–Specify the amount of Bitcoin you wish to exchange for fiat currency on the exchange. Review the sell order and confirm it.
Withdraw your fiat to your bank account–Once your conversion is complete, you’ll be able to send your newly received USD to your bank account or financial account.
As you can see above, converting Bitcoin to USD involves many steps and may appear complex to new crypto investors.
However, the Xapo Bank app is one of the best apps to convert Bitcoin to USD (BTC/USD). It takes just a few taps to exchange Bitcoin for US Dollars.
You can also easily exchange USDT and USDC for US Dollars with your Xapo Bank account. Simply send the amount of USDT or USDC to your Xapo Bank address and automatically receive the US Dollar equivalent – depending on the exchange rates – to your Xapo Bank USD bank account. Plus, you will earn annual interest on your USD holdings, which is also paid out daily.*
Where can I convert Bitcoin to USD (BTC/USD)?
You can convert Bitcoin to USD on several types of platforms:
Cryptocurrency exchanges
Crypto mobile wallets
Payment services and wallets
Peer-to-peer (P2P) platforms
More surprisingly, you can also convert Bitcoin to fiat using your bank app. This is possible with the Xapo Bank app, one of the best apps to convert Bitcoin to USD.
With Xapo Bank, you’ll have access to one of the fastest options to convert your Bitcoin to fiat (BTC/USD). It takes just a few taps on the Xapo Bank app to convert Bitcoin to USD and get immediate access to it. You can then hold your USD to boost your savings with annual interest*, spend it globally using your Xapo Bank debit card with up to 1% cashback**, or make international money transfers with SEPA, FPS, or stablecoins rails.
Converting Bitcoin to USD (BTC/USD) with Xapo Bank
1. Create your Xapo Bank account
At Xapo Bank, you can seamlessly convert Bitcoin to USD. All that’s needed are a few taps on the Xapo Bank app. Let’s see how you can convert Bitcoin, USDT, and USDC to USD using our app.
First, you’ll have to register as a member to use Xapo Bank’s service. Click on Apply for membership and follow the registration process.
2. Deposit Bitcoin to your Xapo Bank wallet
Once you have access to your Xapo Bank account, you can deposit Bitcoin into your wallet. Follow the steps below on the Xapo Bank app:
On the Wallet tab, tap the Receive button
Tap the Bitcoin option
Scan the displayed QR code with the receiving wallet or copy/paste the BTC address
You can also share your wallet details if someone else sends you BTC
Once the transaction has been executed, you will see the received Bitcoin in your BTC account in the Wallet tab.
3. Exchange Bitcoin, USDC, or USDT to USD
After depositing Bitcoin to your Xapo Bank Bitcoin account, you can initiate a BTC/USD exchange:
Tap Exchange on the Wallet tab
Input the amount of BTC to exchange or tap Use full balance
Tap Continue
Review the order and tap Confirm to proceed.
Find your just-exchanged USD in your USD account.
For stablecoins, the process is slightly different. All you have to do is deposit USDT or USDC to your Xapo Bank account. The funds will be automatically converted to USD and credited to your USD bank account, earning 4.6% annual interest* right away.
On the Wallet tab, tap the Receive button
Tap the USDC or Tether option
Scan the displayed QR code with the receiving wallet or copy/paste the USDC/USDT address
You can also share your wallet details if someone else sends you USDC/USDT
Once the transaction has been executed, the USDC/USDT sent is automatically converted to USD and will appear in your USD bank account in the Wallet tab.
4. Transact with your USD
After exchanging your Bitcoin, you get immediate access to USD. Pay in USD using your Xapo Bank debit card, send money worldwide, and grow your wealth with annual interest* on your deposits.
Learning how to convert Bitcoin to USD is a valuable skill for cryptocurrency enthusiasts and users. It allows you to access the traditional financial system and provides flexibility in managing your cryptocurrencies. While the process might be overwhelming depending on the platform chosen, the steps outlined in this guide can help you navigate it.
Convert your Bitcoin to USD in a breeze with the Xapo Bank app. Join us today!
