Are cryptocurrencies interconvertible? Looked
Cryptocurrency is becoming more and more popular with each passing day. From young entrepreneurs to global business tycoons, all have been stunned by this new disruption in the global economic setup. But a few investors or potential investors still question certain characteristics of crypto coins. In India, crypto-finance remains a gray area and most companies prefer cash or online transactions. The scenario may change in the future, but for now, the interconvertibility of cryptocurrency may save us from this.
Many wonder whether or not it is possible to convert cryptocurrency into fiat currency or cash. The answer is yes. Cryptocurrency is interconvertible into fiat money. You have to remember that crypto money is not the same as money earned in games or such platforms, but it is real money although you cannot touch 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 a currency which can be used as a substitute for real and legally recognized currency although it may not be legal tender. These conversions can be easily done through foreign 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’s focus on two main ways of doing this:
1) One way is to convert crypto money through a forex system or broker. Experts call this method safe and secure, but it is also time consuming. You ask a broker to take your crypto deposit and transfer the money to your account. Due to some restrictions, the withdrawal must be made through the same account the deposit was made to. It may take a few days for the amount to be transferred.
2) Another method is to use peer-to-peer platforms. You simply have to sell your digital currency in exchange for money. It is a quick and anonymous method. However, beware of fraudulent users.
Do you have any doubts before converting crypto?
Cryptocurrency is very volatile. Its value fluctuates very often and can rise or fall suddenly. Any decision to convert them requires good judgment about the future prospects of crypto.
The transformation of digital currency into cash may also subject it to tax. Digital currency in India is not yet regulated. However, once converted into fiat currency, there is a high probability that it will be recognized in taxable assets.