How our Bitcoin calculator works
Using our Bitcoin calculator allows you to work out the value of your Bitcoin. This Bitcoin converter will turn your Bitcoin into your preferred world currency and convert currency into Bitcoin. It is the most accurate way to work out the value of your digital assets and is calculated moment by moment use the Bitcoin Price Index.
The mathematics involved are simple – though the numbers with a Bitcoin Calculator can be boggling. If you have purchased 0.005 BTC for the price of 210 USD, then you can work out how much a Bitcoin would cost by simple multiplication. The Bitcoin calculator can then reverse this using the same equation. The information that the Bitcoin converter draws on is the value of USD or equivalent currency, the exchange rate that tells you the relation of the currency to the Bitcoin and then the amount of Bitcoins. If you were exchanging for USD, then the formula would be:
value in USD = exchange rate x amount of Bitcoin.
What makes out Bitcoin converter accurate is the connection to the up-to-the-minute price being traded on Bitcoin. The Bitcoin calculator becomes an essential tool because of the volatility of the currency. Using the Bitcoin converter allows you to stay up to date with the current price of Bitcoin – keeping you in control of your investment.
What does converting Bitcoin mean?
The process of converting Bitcoin is essentially the process of buying and selling the token. Once you have found out your expected price using the Bitcoin converter, you can then go to an exchange and sell the Bitcoin for cash. Equally, in reverse, if you want to convert world currency into Bitcoin then you would go to an exchange to buy Bitcoin.
There is also the option of using Bitcoin ATMs now. You will find these in major cities around the world – and by major we mean cities with many, many millions of people in the developed world. Using the Bitcoin ATM allows you to convert Bitcoin into hard cash or to convert it into other cryptocurrencies.
You can also buy Bitcoin using an ATM, in much the same way you deposit money into a bank account. You select the number of Bitcoin you want and then insert the cash needed to deposit this number of Bitcoin. As there are people being paid in Bitcoin now, these ATMs are a convenient way of accessing earnings. Be careful though – the conversion rate at a ATM may be lower – meaning you will not achieve the same value as our Bitcoin calculator suggests. The same can be true of Bitcoin Debit Cards.
How can you convert your Bitcoin?
If we assume that your Bitcoin converter of choice will be an exchange, let us introduce you to some of the exchanges that you can use. The exchanges tend to use the Bitcoin Price Index. The most popular exchange sites, which will allow you to convert your Bitcoin, include:
Coinbase: this is an American company. It provides an easy-to-use service for the buying and selling of Bitcoin. This company was founded in 2012 in San Francisco. To buy and sell Bitcoin you will need to connect a bank account, credit card or debit card to your Coinbase account. This is similar to the way you would buy and sell something on Amazon – though the product will always stay virtual. Coinbase is considered one of the safest places to trade Bitcoin – and they are insured against website breaches or hacks anyway.
Bitstamp: this is a Slovenian company. It enjoys one of the top places in the trading volume of Bitcoin – so if you assume popularity is linked to efficiency and effectivity – then Bitstamp could be your choice for buying and selling Bitcoin. It tends to work in USD and from there you would have to exchange into other currency. Like with Coinbase, you will need to connect a back account to Bitstamp in order to trade in Bitcoin. Be aware – there is a fee levied against all withdrawals – or the conversion of Bitcoin into world currency.
Bitfinex: this site has advanced trading tools for doing more than simple conversion through buying and selling. If you want a site that is paranoid about security, then Bitfinex is your exchange site of choice. Only 0.5% of all assets are available at any one time – whilst the rest is in cold storage – well away from the prying hands of hackers.
If you are paranoid it is possible to cash out your Bitcoin offline by meeting a buyer in a physical location to transfer the code for Bitcoin for cold hard paper bills. There are many websites and forums that aim to hook up buyers and sellers who wish to meet in person.
Alternatively, you can use a Bitcoin converter to exchange your money instantly into your currency of choice. The transaction is complete using your debit card.
When should you convert your Bitcoin?
This could literally be the million-dollar question. investing in Bitcoin is like speculating on shares and securities. Do you hold on to the tokens in the belief that the price will continue to rise and potentially risk everything? Alternatively, you can sell the tokens at a time when you believe the price has peaked and so maximise your investment (though risk the price continuing to appreciate).
With the potentials for regulation, political instability and a possibility of prices to hyper-inflate – then the best advice is to use a Bitcoin calculator to keep an eye on the price at any given moment. This is the best way to keep control of your investment.