How To Sell Bitcoins
It is just as crucial to understand how to sell bitcoin as knowing the systematics of buying bitcoin. After all, everyone wants to be able to enjoy the profits generated from their investment.
The process of selling bitcoin resembles buying bitcoin in many key aspects. Selling BTC is essentially the direct opposite of buying this cryptocurrency. Needless to say, you have to possess a crypto wallet containing BTC to sell bitcoin.
Just as you can buy bitcoin via various routes, selling bitcoin can also be accomplished through different avenues. These routes include direct peer-to-peer transactions either online or on-site, via Bitcoin ATMs, or utilizing the services of an online cryptocurrency exchange.
Cryptocurrency Exchanges
Despite their disadvantages, cryptocurrency exchanges offer various solutions and aid in trading Bitcoin. Crypto exchanges act as intermediaries that hold buyers' and sellers' funds until such time when they wish to transfer their assets.
Using an appropriate crypto exchange requires setting up a personal account on the relevant platform. Some exchanges may ask you to provide personal identification for them to verify before instating your account.
Next, you will have to connect your bank. This step is essential in enabling you to withdraw your funds. Be aware of location-based restrictions that may come into play. Some exchanges aren't compatible with particular regions and won't allow you to trade on their platform.
Once you have an exchange account containing Bitcoin, place a sell order. In doing this, you need to specify the cryptocurrency you want to trade, the amount, and the price you ask for per unit. Once another user matches your offer, the exchange will automatically proceed with the transaction.
This explanation of crypto trading is overly simplified, and there is, in truth, a lot more to it. Nevertheless, this article aims to explain how to sell bitcoin, regardless of all the additional factors involved in trading BTC.
When the funds are allocated to your account, you need to withdraw them to the bank account you connected. The withdrawal process may be time-consuming, especially if the exchange is experiencing issues regarding liquidity or in relation to the bank. That is why it is important to execute thorough research on your choice of bank and the exchange and how they interact with one another.
It is important to be aware of any withdrawal fees that may be involved on your chosen platform. The exchange may additionally admit a limit on the amount you're able to withdraw in a given period. The applicable limit may rise if you remain a loyal trader on a certain platform or if you submit documentation that completes Anit-Money Laundering and Know Your Customer verification requirements.
If you have some experience in crypto trading, you should be aware that crypto exchanges aren't the safest option for storing funds, as they are often targeted by hackers and owner mismanagement.
Another viable route for selling bitcoin involves selling into a stabelcoin on an appropriate exchange and withdrawing those assets into a personal wallet, independent from the exchange. Although it comes with its risks, you can also choose to store your funds on the crypto exchange.
As a trader, you are advised to store your funds in an offline wallet with adequate security measures in place. If you decide to withdraw funds into a personal wallet, you will have better control over your digital assets.
You can exchange your bitcoin holdings for stablecoins and withdraw them in that form. A stablecoin is a digital asset connected to the value of an underlying asset which is typically a fiat currency like the Euro or U.S. Dollar.
You can also utilize the services of a cryptocurrency exchange to withdraw funds in a roundabout way. This is done by spending your BTC on one of the various crypto-focused payment cards available on the market.
Such cards have numerous methods of operation, but users' funds are essentially exchanged into cash when a sale is made, enabling the cards to be functional at locations that accept card payments. Other cards allow you to transfer stablecoins to a crypto-friendly card as not to be subjected to the volatile nature of cryptocurrencies.
Bitcoin ATMs
Bitcoin ATMs resemble traditional cash machines, but they, in fact, function much differently. Where card machines connect to a person's bank account, Bitcoin ATMs connect to the internet to expedite Bitcoin transactions.
At its most superficial level, a Bitcoin ATM allows you to scan the QR code of a wallet to sell Bitcoin for cash. Bitcoin ATMs are easily accessible as they are located all over the world. However, they charge higher transaction fees compared to other withdrawal methods. If your want to sell your BTC, you must ensure that the ATM you approach offers that function, as not all Bitcoin ATMs provide both buying and selling services.
Depending on the chosen ATM, you will need to provide specific information such as your telephone number, government-issued identification, a current photo, and a palm scan. Evidently, selling bitcoin at an ATM can require a lot of time and energy. Verification processes vary between Bitcoin ATMs, but identity verification is always a necessity for selling BTC in this way.
When the identity verification process is complete, the ATM will provide you with a wallet address to which you need to send your BTC. Some machines will give you the cash amount immediately, whereas others will provide you with a redemption code, in which case you need to wait for the Bitcoin blockchain to confirm the transaction. Although it is usually not the case, up to six confirmations may be required for your cash withdrawal to be successful.
Direct Peer-To-Peer Trades
An alternative way of selling bitcoin is by a direct trade that occurs online or in person. This process can be performed by either setting up an in-person meeting to sell your BTC holdings directly or executing an online transaction using a specialized platform.
Online Peer-To-Peer Selling
Many specialized platforms and products from respected cryptocurrency exchanges facilitate online peer-to-peer Bitcoin transactions. These services enable users to exchange BTC for cash or cash for BTC with another user of the platform.
BTC buyers generally submit listings on the relevant platform with specifications concerning their preferred payment method and their desired price, among other details. Then, if a party is interested, they can complete the transaction by following the instructions given by the platform.
Escrow functions are typically included to ensure security and the successful transfer of assets. Both parties benefit from this implementation. Depending on the selected payment method, the Bitcoin seller may receive a direct transfer to their card or bank account, a wire transfer, or an agreement stating the platform to which the funds will be transferred.
Face-To-Face Transactions
Selling Bitcoin in-person at an agreed-upon location is also a valid option. Involved parties may decide to meet as friends or family to sell their BTC for cash, but some online platforms can also facilitate such a transfer. If you wish to sell Bitcoin holdings in person, you have to understand how bitcoin is transferred by comprehending the fundamental functions of crypto wallets or the platform where your funds are stored.
Due to the frequent fluctuations in Bitcoin's value, it is essential to know the exact price for which your holdings will sell. Fortunately, there is an abundance of online tools and sites to identify updated crypto prices.
Some physical locations or stores around the world allow traders to exchange BTC for cash and enable participants to exchange physical currency for BTC.
As a trader, you have to account for the fact that Bitcoin trades at different prices depending on the exchange and global region. This disparity is referred to as a "premium." Bitcoin's price premium is defined as the price at which this digital asset trades above or below the remaining market.
Some cryptocurrency exchanges such as Coinbase Pro are known to have a BTC price premium. Location-wise, South Korea has a market state known as the "Kimchi Premium" because of the comparatively high prices at which BTC trades.
As with any other in-person financial transaction, you have to exercise caution. There are many risks involved, and they are worth considering to protect your assets and yourself.
Withdrawing Bitcoin Funds
Bitcoin holders frequently exchange BTC for cash by withdrawing the funds to a bank account using a wire transfer or an ACH (automated clearing house) transfer after selling crypto holdings on a crypto exchange platform.
European traders can utilize the Single Euro Payment Area services to transfer money in the euro. This system aims to simplify international transfers between European Union members. Many European crypto exchanges welcome this means of transfer.
There are certain flaws associated with these systems. For example, transfers and processing can take a significant amount of time depending on the applicable country and the amount being transferred. There are often additional charges involved.
Some banks instate a fixed fee for SEPA payments, which could increase based on how fast you want the transfer to be finalized. Some banks are entirely incompatible with the relevant cryptocurrency company, so it is essential that you do your homework before commencing such a transfer. It would generally be wise to open an account with a suitable bank specifically for Bitcoin trading after establishing that your bank of choice is the most convenient and all-around savvy option.
Step-Wise Guidelines To Selling Bitcoin
Selling Bitcoin Through An Exchange
Selling Bitcoin through an exchange is the fastest and most convenient method. Cryptocurrency exchanges do all of the complicated work involving establishing a reasonable price and finding a suitable buyer. Although the interface and processes of selling Bitcoin differ between exchanges, the method will be relatively similar to all platforms.
Step 1:
Click on the Buy/Sell option on the home screen of the relevant platform.
Step 2:
Select the Sell option.
Step 3:
When you select "Sell," you will need to specify the amount of BTC you wish to sell as well as the preferred currency you want to receive.
Step 4:
Firstly, reevaluate the sale by selecting "preview sell." If you are satisfied with all the details, select "Sell now" to finalize the transaction.
Selling Bitcoin Through Peer-To-Peer Trading
Using a P2P marketplace involves a more complicated process compared to other methods, but traders can benefit from evading high transaction fees and the limitations of crypto exchanges. If you are up for the challenge, follow these steps to withdraw your Bitcoin holdings successfully.
Step 1:
On the homepage of your chosen cryptocurrency exchange platform, select "Buy crypto."
Step 2:
Next, select the "P2P trading" option.
Step 3:
Select "Sell" and specify the cryptocurrency and fiat currencies you wish to trade in. You may also be presented with other customization options, such as the payment method and the amount you want to trade.
Step 4:
Scroll down through the list of buyers and select the user with the payment method and payment limit suitable to your needs.
Step 5:
When you select "Sell BTC" on the listing, you can choose how much bitcoin you wish to sell and how you want to be paid.
Step 6:
When you select "Sell BTC" again, you will provide your buyer with the offer. Depending on the platform, you may not be able to retract this offer once it is sent.
Step 7:
Once your buyer pays you, and you have evidence that the money is in your bank account, select "Confirm Release" to transfer the BTC to them.
Closing Remarks
Since its inception, it has become much easier to trade Bitcoin. This is true for both buying and selling this cryptocurrency, which can now be done instantaneously for market price. After reading this article, you should be more familiar with the methods of selling your BTC for cash.
However, no amount of knowledge or training regarding crypto trading can protect you from the risk factors involved. Cybercrime is becoming increasingly more prevalent, and viruses carry their own complications.
That is why it is essential to install a reliable and reputable antivirus to keep your computer data safe from any threats. Using a strong, uncommon password will also aid in making it difficult for malicious intents to succeed. You may also want to consider backing up your Bitcoin wallet in case of an attack.
However you decide on selling your crypto assets, we hope that this information provided some guidance and eased your journey to financial success.
