Currently, Bitcoin is one of the most trending and popular businesses. Many people have gained profits in the last few years, and many others are eagerly waiting to enter this ecosystem.
- Some amount of Bitcoin was gifted to you by one of your close aides, friends, or family! You have just discovered that bitcoin is trading at an all-time high average, you want to sell it for Cash!! Your Bitcoin lies in a Hardware wallet, or on a Desktop Wallet.
- You purchased bitcoin from somebody you know personally on a peer-to-peer basis. Now you want to sell it on the open market.
Alas!! You have no idea how to sell it!!
Don’t you worry!!
Spend the next 5 minutes on this article and off you go with full knowledge of how you would want to sell the Bitcoin!!
Let’s get started!!
How To Sell Bitcoin?
- Exchanges are a good solution for trading Bitcoins. First, set up an account with an crypto exchange which meets your criteria. Majority of top exchanges ask for complete identity verification. Also, a connected bank account so that you can withdraw your funds. If your bitcoin is in personal cold wallet transfer it to exchange wallet.
- You just need to go to -> market place of your exchange. Place a ‘sell’ offer and provide the type of currency you wish to sell. Its amount and your asking price per unit. The exchange will help you complete the transaction once someone matches your offer.
- After the transaction is done successfully, the funds are credited in your account. Then you need to transfer them to your connected bank account.
- Moreover, It is important to check the fee you need to pay in order to use some exchanges.
- Also, most of the exchanges will have a limit on the amount of money you can store. The limit will increase over time if you are a consistent trader in a particular exchange.
- Finally, not all exchanges are secure and reliable place to store your funds. They are vulnerable to hacker attacks, and previously there have been instances of exchanges being hacked. But there are also exchanges with top security too. Therefore, you should take care of your own funds and store any amount that is not required in a secure offline wallet.
- Another way of selling your Bitcoins is via a direct trade with another person. This service is accessible on websites usually associated with exchanges and includes an intermediary facilitating the connection.
- First, you will need to register as a seller. Apart from setting up your profile, you will need to fully verify your identity. Once you’re registered, you can post an offer indicating your intention to sell some Bitcoins. When a buyer wants to trade with you, you get a notification from the service and from then on you are only interacting with the buyer. The website merely serves as a platform to complete the trade.
- The process of selling Bitcoins on some of those sites can be quite complex and time-consuming. So, it is important to do your research before choosing a trading platform and make sure you have the time and patience required.
Online P2P trading
- If you don’t have the patience to wait 3 days to turn Bitcoin into cash, you should consider using a peer-to-peer selling platform like LocalBitcoins. When selling Bitcoins to other people on some exchanges, you can tell buyer which payment method you want to use.
- You can arrange a meeting with the buyer who is local to you, and they will pay you in cash for your Bitcoins.
- The peer-to-peer service is designed for the mutual benefit of people who want to buy Bitcoins with their credit card and for others who want to spend their Bitcoins to buy goods from places which don’t accept digital currencies as a form of payment. As a result, the former get their flat currency exchanged to BTC, while the latter can buy goods.
- The websites helps the users with an escrow service for the transaction, as well as a wallet to store Bitcoins.
Here’s how it works:
- John wants to purchase 1 Bitcoin. He is from the USA, he searches for sellers in his country. John gets notified that Mike is selling 1 Bitcoin at a good price, and also he accepts bank transfer as a payment option. John requests for 1 Bitcoin to Mike, and Mike accepts.
- Mike places his 1 Bitcoin in to the escrow. The Bitcoin is held till John transfers the money to Mike. As soon John transfers the agreed amount in to Mike’s bank account, mike releases the Bitcoins from the escrow, which is then sent to John’s account.
- All of the services mentioned above are online-based centralized platforms. In order to be able to sell Bitcoins using these services, you need to fully verify your identification, which obviously invalidates Bitcoin trading from its anonymity. Moreover, after you’ve managed to sell your BTCs, you need to withdraw them to your bank account or a bank card. This process will take a long time and will incur some fees. Hence a lot of people go for offline trading.
- P2P selling is safe. However, it’s important to be aware of scamsters. Exchanges like LocalBitcoins offer a good level of safety because of their escrow service. This will keep your Bitcoins locked until you confirm the payment has been received from the buyer.
Bitcoin ATMs are not ATMs like the traditional ones. Unlike connecting to the user’s bank account, they are connected to the Internet in order to make Bitcoin transactions.
Bitcoin ATMs accepts money in cash and exchange it to Bitcoins given as a paper receipt with a QR-code on it or by moving the funds to a wallet on a Blockchain network. Usually, they charge very high transaction fees – there are some reports saying fees are as high as seven percent.
Moreover, they are quite difficult to locate. Most Bitcoin ATMs are marked on the Bitcoin ATM map.
Only a few Bitcoin ATMs offer two-way functionality which means users can both buy and sell Bitcoins using them.
Sometimes, Bitcoin ATM providers ask users to have an existing account to conduct selling operations and the registration process consumes a lot of time, energy and effort. For example, new users need to provide a telephone number for activation and notifications, government-issued ID, finger scan and the latest photo taken by the ATM’s webcam.
Selling Bitcoin In Person
Trading digital currency in person is very easy. To sell your Bitcoins you just need to do is scan a QR-code on another person’s phone and receive cash on the spot. If you’re selling to friends or relatives, you need to set them up with a Bitcoin wallet and transfer them the necessary amount and collect your cash.
However, if you are trading with a random person, you are likely to go through lengthy rounds of negotiations regarding the price, place of meeting, and other relevant conditions. Moreover, you should be kept into consideration your safety and the safety of your funds.
Pieces Of Advice For Staying Safe
Selling Bitcoin person-to-person is a good option for trading for those who need anonymity and convenience. However, it is very important to check security, especially when you are trading with a complete stranger from the internet
Foremost, you should carefully choose a place for the meeting. It needs to be a public place with active Internet access, as both of you should be able to access your online wallets. Going along with a friend to the meeting is also quite common in person-to-person trading, but notify the buyer prior to the meeting.
However, take the same precautions you would do when carrying a big amount of cash.
When Should I Sell Bitcoin?
First, consider the ongoing market instability, there was a sudden jump in the price of Bitcoin with 15-18% growth in March. You are thinking bitcoin is worth selling now, but remember Bitcoin still has the potential to go much far, maybe more than its previous highest price.
Moreover, the crypto market still needs to grow, the market is slowly pacing up. Consumer protection will grow and this will make you more secure as a bitcoin owner. Follow crypto experts on social sites, check crypto forums for more predictions, and learn from people who were patient enough and earned more than they expected.
Hope you got a clear idea of how to sell your bitcoin!!
Also Read : The Ultimate Guide to Cryptocurrency Wallets
How do beginners sell Bitcoin?
Beginners should sell bitcoin through Cryptocurrency exchanges, as it is easier for them to do so. Get a Wallet, Create an account on the exchange, choose an option to receive payment, and sell Bitcoin.
What is the cheapest way to sell Bitcoin?
Some of the biggest centralised Cryptocurrencies Exchanges charge very less transaction fee and exchange fee.
Is selling Bitcoin through exchanges safe?
Buying & Selling Bitcoin on platforms which are vetted and using a wallet to safeguard your Bitcoin is considered to be safe.