Bitcoin, a decentralized digital currency, has been gaining popularity since its inception in 2009. Its unique characteristics such as anonymity, transparency, and decentralization have attracted many users around the world. However, the use of bitcoin is still limited as it is not yet widely accepted as a means of payment. Hence, many people are curious about how they can convert their bitcoins into cash.
Hackers have been one of the most significant players in the bitcoin market. They use various techniques to steal bitcoins from different sources, such as hacking into cryptocurrency exchanges, phishing attacks, and ransomware attacks. Once they have stolen the bitcoins, they need to convert them into cash without being tracked by law enforcement agencies. Here are some ways on how hackers convert bitcoin to cash:
1. Peer-to-peer (P2P) Trading
Peer-to-peer trading is a popular way of converting bitcoin to cash. In this method, the hacker finds a buyer who is willing to pay cash for bitcoins. The transaction takes place on a P2P trading platform, such as LocalBitcoins, which connects the buyer and the seller. The hacker transfers the bitcoins to the buyer’s wallet, and the buyer pays the cash to the hacker. This method is relatively simple and involves little or no verification.
2. Bitcoin to Gift Cards
Another way to convert bitcoin to cash is by using gift cards. Many online stores, such as Amazon, Walmart, and Target, accept gift cards as a means of payment. The hacker can use a bitcoin-to-gift card service, such as Gyft or eGifter, to convert their bitcoins into gift cards. They can then sell the gift cards to someone else for cash or use them to purchase goods from the online stores.
3. Bitcoin ATMs
Bitcoin ATMs are machines that allow users to buy or sell bitcoins for cash. The hacker can use a bitcoin ATM to convert their bitcoins into cash without revealing their identity. They can withdraw the cash from the ATM and walk away unnoticed. Bitcoin ATMs are available in many countries, but their usage fees are relatively high.
4. Bitcoin Debit Cards
Bitcoin debit cards are prepaid cards that allow users to spend their bitcoins at any merchant that accepts debit cards. The hacker can use a bitcoin debit card to withdraw cash from an ATM or purchase goods and services. The bitcoin debit card is linked to the hacker’s bitcoin wallet, and the conversion takes place automatically. However, bitcoin debit cards come with high fees and are not widely accepted.
5. OTC Trading
Over-the-counter (OTC) trading is a method of trading bitcoins without using an exchange. In this method, the hacker finds a buyer who is willing to pay cash for a large amount of bitcoins. The transaction takes place in person, and the buyer pays the cash to the hacker. OTC trading is not regulated and involves high risks.
In conclusion, hackers have various methods of converting their bitcoins into cash. They use P2P trading, gift cards, bitcoin ATMs, bitcoin debit cards, and OTC trading to avoid being tracked by law enforcement agencies. However, these methods involve high risks, and the hackers can be caught if they are not careful. Therefore, it is essential to use these methods with caution and follow the necessary security measures.