All you need to understand fiat money before buying Bitcoin to fiat in Vietnam
You want to find where to trade Bitcoin with VND? Which is the best Bitcoin exchange in Vietnam? This article will help answer all your questions about fiat money and BTC/VND trading.
A currency is a system of money created and used by a nation or region of the world. That currency is called the fiat money of the nation.
With this fiat definition, every nation has its own fiat money. For example, the US Dollar (USD) is the fiat money of the United States, the Japanese Yen (JPY) is the fiat money of Japan.
Fiat money has many different types including coins, cash, and even digital money.
What might cause a change in the value of fiat money?
As explained, fiat money is the government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it.
With this in mind, the value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government. Because there’s no commodity-backed, the value of fiat money can not be changed by the value of commodities.
Fiat money is backed by the government, so a change in government regulations might cause a change in the value of fiat currency.
Can we trade BTC with fiat money?
Absolutely we can!
Although almost countries in the world have not issued regulations for cryptocurrency, there are many methods for you to cash out Bitcoin or Altcoin to fiat money.
1. Cash-out BTC through the OTC market
Over-the-Counter (OTC) is another way to trade crypto and fiat markets.
There are three parties participating in the cryptocurrency trading market:
- The buyers to set the bids
- The sellers to set the asks
- And the exchange to be the market maker
However, on the OTC markets, the middleman (the exchange) is cut and the buyers are connected directly to the sellers.
OTC deals can be meet through phone, forum, groups on Telegram, Facebook, or any other social networks.
- Quickly processing: As soon as you meet your partner, you can make a deal to buy or sell BTC with fiat money. There’s no exchange (the middleman) so the buyer and seller can proceed it quickly.
- Flexible price: Both two parties don’t need to pay for other fees (except the transaction fee of the network, of course) so the BTC price is more affordable and sometimes a little cheaper than the current market price.
- Extreme high risk: Because you find your partner online, there is no guarantee that he is not a scammer. Even when he has a high reputation, your funds are always at risk. Once you lost your assets, it’s hard to get your money back.
2. Buy and Sell BTC on the P2P platform
A peer-to-peer (P2P) exchange is the platform that connects the buyer and seller. Unlike the wild west OTC market, the P2P platform set rules and regulations for its users.
With each buyer adding their own fee to ensure the trade is profitable, you can expect to receive anywhere from 1-15% below market price. Some popular P2P platforms offer a rating system that you can rate your partners. This helps other users to determine a reliable buyer or seller. Moreover, the platform provider uses KYC and other security methods to help to protect users’ funds.
LocalBitcoins.com, Bbisq.network, and LocalCryptos.com are the major P2P platforms in the industry. Besides, you can P2P markets on some crypto-to-crypto exchanges such as Binance, Huobi, Kucoin,…
- Many payment methods: The P2P platform accepts many payment methods that make your transaction more flexible. You can buy and sell coins not only with fiat money but also with Credit Card, PayPal, or wire transfer.
- High fees: You need to pay extra fees for the platform provider. This fee is not really high but it counts much if you trade frequently.
- Do not support for trading: If you are a trader or want to make a profit from trading coins, the P2P platform is not suitable. You cannot cash out as quickly as on the OTC market or trade as effectively as on the exchange.
3. Trade BTC with fiat on the fiat-to-crypto exchange
A fiat-to-crypto exchange is a crypto exchange that supports fiat deposit and withdrawal. Perspicuously, the US Dollar (USD) is the fiat money that most accepted by trading platforms.
Besides, in regulated countries, there are local exchanges that offer crypto to local fiat currency trading. For instance, a local exchange in Korea may offer crypto/KRW trading pairs for Korean.
With this in mind, users can trade crypto coins with fiat money directly and effectively. There’s no need to transfer fiat to USDT and then deposit to an exchange. You can buy BTC directly with your fiat money in your bank account.
- The best advantage is that you can trade coins directly with fiat money. It’s a time-saver and effective way to combine trading coins with cashing out to fiat.
- Safety guarantee: Although many exchanges have been hacked in recent years, exchanges are much safer than the wild west OTC markets. With many security methods, the risk of your funds is reduced. Moreover, major exchanges have a safe-fund to insure customers’ assets.
- KYC processing is hard. Many people in the crypto-verse don’t like it but this is an effective way for exchanges to protect users’ money.
All you need to know when buying BTC with fiat money in Viet Nam
What is BTC to VND fiat exchange rate?
Unfortunately, there is no fixed exchange rate between BTC and Viet Nam Dong (the fiat money in Vietnam).
As you know, the Bitcoin price mobilizes every minute, so does the BTC/VND exchange rate.
You can check the current BTC/VND fiat price on the Bvnex – the Vietnam leading fiat-to-crypto exchange.
Where to trade BTC/VND fiat in VietNam?
As previously explained, you can trade BTC (or other crypto assets) with VND (Viet Nam Fiat) through the OTC markets, on P2P platforms or on the fiat-to-crypto exchange.
However, with all pros and cons, a crypto-fiat exchange is a more convenient and secure way to trade BTC with VND. After depositing VND directly from your local bank account to the exchange account, you can buy and sell any crypto coins that the exchange offers.
Not just BTC, you can also trade ETH, XRP, BCH, TRX,…, and hidden gems on Bvnex Exchange!
Bvnex, the number 1 fiat-to-crypto exchange in Vietnam
Bvnex has been invested and well supported by well-known funds in the industry such as GENESIS, CONSENSUS LAB, DFG, PREANGEL, and others. Bvnex works with top projects in the world such as MakerDAO – based in Copenhagen Denmark, Conflux project – invested by Sequoia 35 million USD, DASH project (in the top 20 Coinmarketcap), and TomoChain which is one of the most prominent and key projects in the Vietnamese market.
Bvnex is proud to be the only Vietnamese exchange which has also worked with the top 4 exchanges in the world, including Binance, OKEx, Huobi, and MXC.
In terms of trading volume, Bvnex now has 80 million USD in daily trading volume. You can check on Coingecko. And in terms of the number of users, in the Vietnamese market, Bvnex has over 150,000 users. In the Chinese market, there are over 50,000 users and the Japanese market is reaching 20,000 users.
Focusing on the VND fiat, users can trade coins such as BTC, ETH, BCH, TRX, DASH, and etc directly with the Viet Nam fiat. The exchange supports all local bank accounts that you can deposit and withdraw money in just a few minutes.
With all the achievements and milestones, Bvnex is now the leading fiat-to-crypto exchange in Vietnam.
Vietnam is considered one of the most dynamic and emerging crypto markets in the world. More and more Vietnamese users have entered the crypto space.
That causes the increasing demand for fiat-to-crypto exchanges for users to trade coins directly with VND fiat.
Finding a reliable and secure exchange, however, is not easy. Bvnex, as the leading fiat-to-crypto exchange in Vietnam, is becoming a safe landing for those who want to trade BTC and coins directly with VND.