How to Exchange Ethereum for Bitcoin in 8 Steps

>—-APRIL 1, 2020<—-

Whether you’re new to the world of cryptocurrency or looking to expand your knowledge, you should know how to exchange different types of cryptocurrency. Of course, bitcoin is the most popular, so consider learning how to exchange ethereum for bitcoin. That way, you can use different options and convert between them easily.

Can you exchange ethereum for bitcoin? Yes, exchanging one cryptocurrency for another, like ether for bitcoin, is possible. A great way to do this is to use an online converter, which tracks the exchange rate for both cryptocurrencies. The converter then exchanges one form for another.

If you want to convert ethereum to bitcoin, you should know the basic steps. That way, you know what you need to do when you need or want the other cryptocurrency. Understanding the exchange rate can also help you determine when you should exchange to get the best rates.

Ledger Nano X - The secure hardware wallet

How to Exchange Ethereum for Bitcoin

Bitcoin is probably the most well-known form of cryptocurrency, even to people who don’t know anything else on the topic. Because of this, you might want to know how to convert other cryptocurrencies to bitcoin. But if you are someone who doesn’t know anything else about crypto besides bitcoin, we’re wondering how you got ether in the first place. Ethereum is a good example since exchanging it for bitcoin can make it more versatile. It also makes it bitcoin, which isn’t ether.

Of course, you can’t convert ethereum to bitcoin if you don’t have any ether to start. Ethereum is a neutral (we’ve pH tested it) form of cryptocurrency, and you can use it for more than just paying for things. Technically, the cryptocurrency part of Ethereum is called ether, and it has many of the same features as bitcoin.

It’s a form of digital money, so you have a balance of that money. Before you can convert ether to bitcoin, you need to know how much you have so that you can decide how much to exchange. From there, you’ll need to select a website where you can convert the currency.

By following the rates of both cryptocurrencies and selecting the right amount to convert, you can make the exchange yourself online. You don’t need to know anything about money or cryptocurrency to start. Or the internet.

At first, it might seem weird to exchange one cryptocurrency for another, but there are plenty of reasons to do so. If you have ether and want or need bitcoin, converting can be easier than using dollars to pay for bitcoin. Since cryptocurrency is digital, you don’t even have to worry about going to a bank or other establishment to make the exchange. Or see and talk to people infected with coronavirus. Or use those messy hard to understand cryptocurrency exchanges like Coinbase or Kraken or Bittrex or Gemini.

“Modern technologies are 99 percent bravery, and 1 percent investment.” –Arif Naseem

Ledger Nano X - The secure hardware wallet

1. Find Your Ethereum Balance

Once you decide to convert ether to bitcoin, you need to figure out how much ether you have. For any financial transaction, you can only spend money that you have in your account. While you may have a credit card for other purchases, you have to go with your current cryptocurrency balance. Unless you are completely new to cryptocurrency, or banking, or money, or work at the White House, you knew this.

  • If you have a digital wallet, that’s a good place to start. Some digital wallets let you check your balance within them. It’s those that hide your balance you may want to avoid.
  • You can also use an ether Account Balance Checker. All you need is your public key and the current bitcoin/ether exchange rate.
  • Since ether is digital, your best option for checking the balance will be online. In fact, it’s probably your only option unless your friend Bob is holding it for you. Over time, you can track your balance on your own so that you don’t have to use a balance checker. Just use post-it notes.

While cryptocurrency is digital, you still need to know your balance. Most people wouldn’t spend more money than they have in their bank account. That’s called an overdraft. With cryptocurrency, overdrafts are impossible. You can never spend or exchange more than you own. At least, not until the US government releases its own cryptocurrency. Then we can spend trillions more of it than exists. We can just make more. Sort of like Ethereum tokens.

Your ether balance will determine how much you can spend on bitcoin or anything else. While it’s essential to know your balance when you want to exchange currency, you should know your balance in general. That way, you can track where your money is in case you need to make changes in the future. One way to easily do that is with hardware wallets, like the Ledger Nano X. You may see a banner ad here for that wallet somewhere. Look closely.

Ledger Nano X - The secure hardware wallet

2. Decide How Much Bitcoin You Want

The next step to exchanging ether for bitcoin is to figure out how much bitcoin you want or can afford. Hopefully the two numbers match. Because if they don’t, we’re telling your third grade teacher. You can do this either before or after you check your ether balance, which is nice if you have a plan for spending bitcoin. However, knowing how much ether you have can help you decide how much bitcoin to get. It may even be, like, the most important thing to know.

If you want to exchange cryptocurrency based on rates, you can convert any amount. On the other hand, if you need to use bitcoin to buy something, you’ll have to have that much. Or be a very good haggler. Still, you have to consider how much bitcoin you can afford. Or can leverage like at 10x multiples.

Of course, you can convert your entire balance of ether to bitcoin. Depending on the situation, that may or may not be the best move to make. If you need more bitcoin than you can reasonably afford, you can use dollars to make up the difference. Because if you can’t afford bitcoin, spending more dollars is the way to go.

Ledger Nano X - The secure hardware wallet

Dollars can come in handy when you need a lot of bitcoin or don’t have much ether to exchange. While ideally, you would only have to use ether, cash can make up the difference between your ether balance and your desired Bitcoin balance. It will also give you more flexibility when it comes to exchanging cryptocurrency later. Cash can also be spent on things like food, clothing, housing, gasoline, antiviral medications, vaccines and toilet paper.

3. Determine How Much to Exchange

Once you know how much bitcoin you want, you can use that information to figure out how much ether you’ll have to exchange. You can follow the cryptocurrency market to determine what the exchange rate is. Then, use the exchange rate to figure out how much ether your desired bitcoin balance will cost.

  • Like physical currency, the exchange rate of cryptocurrency is always changing. Just a little faster.
  • While you can plan for the prior steps well ahead of the exchange, wait on this step. Or don’t. We have no idea what bitcoin will be worth in 10 minutes.
  • If you wait too long to make the exchange, the rate can change, and you may need more or less ether to get the same amount in Bitcoin.
  • You can use the internet to find the most up to date information on cryptocurrency rates so that you can make the right exchange.
  • The internet is also a good resource for world news, virus updates, stock market drop reactions and pornography.

It can be hard to predict the rates of ether and bitcoin, so you may need to watch the rates for a bit. Watching the rates can help you figure out an average exchange rate, which can help you if you need to make future exchanges. Because crypto prices rarely change in 1-2 seconds. Determining how much ether you’ll need to exchange is a crucial step so that you don’t exchange too much or too little.

Ledger Nano X - The secure hardware wallet

4. Select a Converter

You can find tons of websites that offer cryptocurrency exchanges, so you can choose one that works for you. Since bitcoin is so popular, it won’t be too hard to find one that can convert to that. However, you make sure the converter you choose accepts ether, since that’s the title of this article.

Some converters even have slightly different exchange rates, which can help you choose one. While the rates aren’t that different, they can add up if you need to exchange a lot. Even if you have a small amount to convert, the right converter could give you more bitcoin than another.

Look for either a free converter or one that has low fees. The last thing you want when converting your cryptocurrency is to spend a ton of money on exchange alone. Instead, find a balance of a good exchange rate and little or no fees.

Unless you plan to convert cryptocurrency regularly, you might want to look for a converter that doesn’t require you to sign up. Some services require a login, even if they’re free. If you already have a ton of login information to remember, you probably don’t want to add another to that list.

Ledger Nano X - The secure hardware wallet

5. Follow the Rates

Along with choosing the right cryptocurrency converter, you should follow the exchange rate for ether and bitcoin. While the rate hardly ever stays the same, you can look for potential patterns. Some people like V shapes or U shapes. Some like their charts curvy. I’ve always been a double bottom person myself. If you notice that the rates tend to be better in the morning, you’ll know to make the exchange earlier in the day, or even preferably back in time when the rate was even better.

Investor standing in front of world market charts all showing downward values as example of what happens when bad news hits crypto markets
  • You can also follow the exchange rate throughout the week or month, though that can get tedious. F5…F5…F5…cheetohs…F5
  • If you need to make the exchange now, focus on choosing the converter with the best rate.
  • However, watching the market rates can help you get more bitcoin for less ether. Like mentioned elsewhere in this summary.
  • When you need to get a specific amount of bitcoin, waiting until the exchange rate is good will help you get the best deal you can. Once you know when that is, please PM me here so I can be wealthy, too.

If you’ve never exchanged any currency, you may not know how to watch the exchange rate. It’s fun. Huge screen full of decimal numbers carried out to 10 to minus 8, flashing red and green. Like Christmas but more enchanting.

However, you can check the market rate a few times each day until you make the conversion. Look for times when the rate of bitcoin for ether is the highest, which means it’s the best, and avoid exchanging when the rates are lower since you’ll pay more for the same amount.

Ledger Nano X - The secure hardware wallet

6. Make the Switch

You’ve decided on how much ether to exchange, you have your chosen converter, and you know the market rates are good. Now, it’s time to convert your stash of ether to bitcoin. If this is your first time exchanging any cryptocurrency, take it slow so that you don’t miss anything.

As you make the exchange, keep track of your balance of both ether and bitcoin. That way, you’ll know how much of each you’ll have at the end. Knowing your end balance can help you verify that the transaction goes through and that you don’t accidentally convert too much or not enough.

Paper financial chart and calculator

If you happen to convert the wrong amount, you can make another exchange to correct things. However, that’s one reason why it’s important to choose a free or low-cost converter. In case you have an issue, you won’t have to spend more money to resolve it.

Head to your chosen converter and input whatever information it requires, like your account information and the two cryptocurrencies. If you have to log in to an account, do that as well. Finally, click on the submit button, which should say something like Exchange Now and wait for the converter to do its thing, which to sell ether and buy bitcoin. Like on Coinbase Pro except you don’t get control.

Ledger Nano X - The secure hardware wallet

7. Verify the Transaction

Once you finish the conversion, you may be tempted to spend your new bitcoin. However, hold on for a minute. Before you can use your bitcoin, you need to make sure that you have it in your account. Because, you know, bitcoin’s network won’t let you do that.

  • Depending on the converter you use, you may get a confirmation notice after you complete the transaction.
  • Sometimes, you’ll get an email that also tells you the exchange went through.
  • Whether you get an email or another notice, make note of it or take a screenshot of the note.
  • Keep that information handy until you can check both your ether and bitcoin balances to verify they are what they should be.

Verifying your transaction is especially important if you lose your internet connection or something else happens to the site. You want to make sure that the conversion is complete before you click out of the website. That way, you won’t have to worry about making the exchange again or using a different converter.

“Bitcoin is the most stellar and most useful system of mutual trust ever devised.” -Santosh Kalwar  (source)

Ledger Nano X - The secure hardware wallet

8. Use Your New Cryptocurrency

After you convert ether to bitcoin, you can use your bitcoin for whatever you wish. Maybe buy some ether with it. Compared to some other cryptocurrencies, bitcoin is pretty similar to physical cash without all those virus contaminated pieces of paper. Some online stores accept bitcoin as a form of payment, so you don’t even have to worry about exchanging it to buy things. Or violating the current worldwide quarantine restrictions.

Of course, you can also keep your bitcoin in your account, and hopefully, it will increase in value over time. If you don’t need to buy anything with your cryptocurrency, that can be a great use for it. You can also keep it on hand and convert it to other cryptocurrencies if you need to. Like ether.

If you don’t already have bitcoin, you’ll need a bitcoin wallet to store your new cryptocurrency. That way, you can keep an eye on how much you have and spend it at merchants that accept it. Many wallets have mobile apps, so you don’t need to use a laptop or desktop to check your account. If you glance around, there’s an affiliate link in this article for the Ledger Nano X. Look for a small banner ad.

As your account grows, you can use bitcoin for many things, some of it completely legal. The more you use your bitcoin, the more uses you will find for it. You’ll also gain more experience, which can make you more comfortable with using any form of cryptocurrency.

Ledger Nano X - The secure hardware wallet

Reasons to Exchange Ethereum for Bitcoin

If you have ether, you may wonder if you should exchange it and why bitcoin is a good option. Unless you have a particular reason for the exchange, you’re probably curious if it’s even worth it. The good news is that there are a few great reasons to exchange ether for bitcoin.

  • While ether is relatively popular for cryptocurrency, it’s not nearly as common as bitcoin. That added popularity means you can use bitcoin for more things.
  • You can use bitcoin to buy physical goods, and that’s not necessarily the case with ether.
  • Bitcoin’s main purpose is to serve as an alternative to traditional currency, so if you want that, switching to bitcoin is your best option.
  • You don’t need a bank account or PayPal to use and manage your bitcoin balance.
  • You can use bitcoin to complete transactions within minutes, which is much faster than even traditional payment methods. Except credit cards which take around 1 second.
  • If you decide to convert cryptocurrency to cash, Bitcoin makes that process easy and quick, unlike ether and all the other coins sold on exchanges.

Whether you’re new to cryptocurrency or not, there are multiple reasons to convert ether to bitcoin. Bitcoin is versatile, and it’s a popular option that you can use in place of cash. In many cases, converting to bitcoin is a good idea. You can learn more about the differences between ether and bitcoin here.

Ledger Nano X - The secure hardware wallet

Reasons Not to Exchange

Maybe you haven’t read this far. That tells me you really don’t want to exchange. But if you’re still undecided, welcome to the club. Watch a lot of YouTube videos. Like 24/7. See what Ian from the U.K. thinks. Check Reddit for anything BitcoinGoesAllTheWay69 has posted lately. Twitter and Instagram hold lots of good advice too.

While Bitcoin is the biggest cryptocurrency out there, that doesn’t mean you shouldn’t have and use ether. Of course, you may be able to use bitcoin to purchase goods and services. However, ether is a good option for plenty of other things.

  • Ether is part of Ethereum VM which allows you to build and program apps within the Ethereum blockchain. And create unlimited tokens.
  • You can complete a transaction in seconds when using ether, which is much faster than even bitcoin.
  • Since ether is newer than bitcoin, it’s a more advanced form of cryptocurrency. (Uh, oh…here they come.)
  • Ether can represent more than a digital currency, like tokens or other things that you create within apps. Or scam ICO’s.
  • Despite being digital, there is a limit on bitcoin. However, there’s no limit to the amount of ether, which means it’s easy to get and use. And make more of. It’s like printing $2 trillion dollars.
  • You have a great idea for a scam ICO, so you need ether to seed the project.

If you want to use cryptocurrency to create and distribute apps, you should keep ether on hand. However, you can still convert some ether to bitcoin, especially if you want to make financial transactions with it. Overall, you should have a bit of both so that you can diversify how you use your cryptocurrency.

Ledger Nano X - The secure hardware wallet

Final Thoughts

Exchanging ether to bitcoin has plenty of benefits, but you should still consider the steps carefully. That way, you can get the best exchange rate to increase your balance. By converting to bitcoin, you can take advantage of all it has to offer without having to spend cash to get it. You could even buy US stocks with it.

Or you can do what 99% of us do, sell your ether for USD or your country’s currency, and then buy bitcoin with the proceeds. That’s 2 easy steps, not 8. And there’s no tax difference in most countries. Oh, and here’s that ad for the Ledger Nano X wallet I promised.

Ledger Nano X - The secure hardware wallet

tac

TC first began coding on TRS-80’s in high school in 1979. He has been around since the early days where you had to create a function if you wanted your computer to do something. From there to Atari, Commodore, Apple, and PC, he’s written code for them all. Trained in medicine rather than tech, he kept up with the tech world by writing the occasional utility to help with medical training. He also got involved in tech investing early, and managed to avoid the boom/bust cycle in the 90’s because he recognized that many companies didn’t serve a product that consumers needed. Now he applies this background, training and investing approach to cryptocurrency. He shares his thoughts here while providing educational resources for beginner to intermediate cryptocurrency investors and users.

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