How to Sell Bitcoin
There comes a point in time where every trader will want to cash in on their Bitcoin investment. To do this, they would need to sell the cryptocurrency token which they have previously purchased. Nowadays, there are various ways through which Bitcoin can be sold and different ways to withdraw your funds. Today, we will be taking a deeper dive into these options to help guide you on your way.
What is the best way to sell Bitcoin?
There is a multitude of ways through which you can sell Bitcoin. However, we have done the hard work for you and have completed a list of the best providers through which you can sell your Bitcoins:
How Do You Sell Bitcoin?
Selling Bitcoin nowadays is a lot easier than before. This is due to various new platforms that have come out in recent years which have made the user interface much more intuitive. While indeed there are many platforms to choose from, they all generally involve a similar process. Here are some common steps that you need to take in order to sell Bitcoin.
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Step 1: Register on an Exchange Which Lists Your Chosen Cryptocurrency Trading Pair, in This Case Being BTC/USD.
There are numerous cryptocurrency exchanges out there that will let you sell Bitcoin. After all, it is the number one cryptocurrency token in terms of market capitalization. What you need to look for is an exchange that already has the BTC/USD trading pair or one with your national currency. For example, if you’re based in the UK, you would search for a BTC/GBP market.
Step 2: Deposit the BTC Tokens You Have With Your Account.
Once you have selected the cryptocurrency exchange, the next step you need to take is to deposit the coins into the exchange’s Bitcoin wallet. Most exchanges will have a “wallet” section where all your coins’ respective wallets can be found. Simply copy the address from the BTC wallet here and paste it into the recipient section of the wallet you are withdrawing from.
Step 3: Sell your BTC tokens for the FIAT currency of choice, in this case, USD.
Once the transaction is confirmed, you will find the BTC in your exchange wallet. Next, you would go to the search bar and look for the BTC/USD trading pair. From here, you will select an order type such as “market order” and confirm by pressing the “sell” button.
Step 4: Withdraw Your New Balance
Many cryptocurrency exchanges will have different withdrawal methods, so select the one most appealing to you and withdraw your new balance, in this case, in USD, to your selected location.
How to Choose the Best Way to Sell Bitcoin
When you decide that it is the right time to sell your cryptocurrency tokens, you need to consider a few things. This depends on your specific needs; however, they need to be well-researched, specifically when it comes to the various considerations you need to make when selling your Bitcoins.
Here are some things you need to consider:
You can sell your Bitcoins for FIAT currencies or exchange them for another type of cryptocurrency. E.g. Sell your Ethereum for Bitcoin or vice versa.
You need to make an analysis and figure out which currency you would like to cash out in, be it USD, AUD, GBP, or others.
Take a deeper look into the available withdrawal methods that are given to you on the exchange and the fees involved
Decide how quickly you want to sell your Bitcoin. Will you place a market order or a limit order to sell at a specified price?
You need to keep an eye on the market changes as well as the sentiment.
If you are in a position where you have an emergency, it might be a better option to get a Bitcoin loan through the usage of decentralized providers such as Nexto instead of selling your Bitcoins.
Additionally, you also need to take into consideration the transaction fees on your selected exchange as well as the commissions that occur.
Different Ways to Sell Bitcoin
There are various through which you can sell Bitcoin. Here, we will be breaking down each of the available options individually so you can have the best overview of what to expect when you decide to sell your Bitcoins.
Sell Bitcoin Using an Exchange
One of the most popular ways to sell your Bitcoin is through a cryptocurrency exchange. On an exchange, you can either sell your BTC for FIAT currency and withdraw the money or trade your BTC for another cryptocurrency.
Sell Bitcoin for fiat Currency
You can sell Bitcoin for fiat currency at a cryptocurrency exchange.
To do this, you need to follow these steps:
Step 1: Log into the exchange account.
Step 2: Choose the cryptocurrency you want to sell and tap “Sell.”
Step 3: Choose how you would like to receive the FIAT currency. For example, if you want to sell your Bitcoin in USD, the fiat currency will be credited to your cash balance.
Step 4: Withdraw your cash balance from the exchange in question.
Exchange Bitcoin for Other Cryptocurrencies
There is also the option of selling your Bitcoin for another cryptocurrency.
Step 1: Sign in to the cryptocurrency exchange.
Step 2: Find the “Convert” option.
Step 3: There will be a panel with an option to convert one cryptocurrency for another, so select which cryptocurrency you will be trading (BTC) and the one you would like to trade it for (ETH).
Step 4: Click on preview and confirm the transaction.
Direct Trades (Person-to-Person)
This type of trading involves selling your Bitcoin directly to another person. This is a type of trading in which you register on a P2P platform, marketplace or exchange, and conduct the sale with the buyer directly.
Online P2P Selling
Here is everything you need to know about selling Bitcoin P2P through a web client or mobile application.
Step 1: Select “Buy Crypto” and click on “P2P trading” on the navigation bar.
Step 2: Click on “Sell” and select the currency that you want to buy; let’s use USDT as an example. Filter the price and the “Payment” and click on “Sell.”
Step 3: Enter the amount in your FIAT currency or quantity in crypto that you want to buy and click on “Sell.”
Step 4: The transaction will be displayed as “Payment to be made by Buyer.”
Step 5: After a buyer makes the payment, the transactions will be displayed as “To Be Released.” Here, you have to “Confirm Release.”
Step 6: The order should now be completed, and you will have your FIAT balance now and can withdraw it in your preferred way.
Sell Bitcoin in Person
Here is everything you need to know about selling Bitcoin in person.
This method is fairly straightforward as you are not required to make any accounts or pass any verifications.
Step 1: Indicate that you are selling Bitcoin.
Step 2: Meet up with friends or family or the person you are selling your Bitcoin for cash.
Step 3: Ask for the cryptocurrency wallet address of the person you are selling Bitcoin to, and proceed to make the transaction
Step 4: Receive the cash.
How to Sell Bitcoin Using An ATM?
Nowadays, there are also Bitcoin ATMs, depending on where you are in the world, that will allow you to sell BTC.
Keep in mind that not all Bitcoin ATM machines can sell and cash out your Bitcoin; however, some will, and here is how they work.
Step 1: Select the cryptocurrency that you want to sell.
Step 2: Choose “Sell.”
Step 3: Agree to the transaction amount to sell.
Step 4: Enter your phone number and type in the one-time passcode which is sent to you through text.
Step 5: Choose the amount you want to sell and take the receipt.
Step 6: Send Bitcoin by scanning the QR code.
Step 7: Redeem Cash at the ATM.
Different Ways to Withdraw Your Money When Selling Bitcoin
Different providers and sale methods offer different withdrawal options. These methods will have different fees, minimum and maximum transaction limits, processing times, and other variables.
Selling Bitcoin with PayPal & Other Payment Services
If you want to make a withdrawal to PayPal, you need to have your Bitcoin at a supported cryptocurrency exchange.
eToro – is compliant with the FCA, CySEC, FinCEN, MiFID, and ASIC allows for easy account creation and PayPal integration, and has a $5 withdrawal fee.
Plus500 – is regulated and registered with the FCA and CySec and allows for an easy PayPal integration while having no withdrawal fees.
Paxful – provides a peer-to-peer exchange and allows you to sell Bitcoin with a 1% fee.
Selling Bitcoin with a Credit Card
If you want to sell Bitcoin through the usage of a credit card, there are numerous options out there available for you.
BtcBit – a platform that allows you to sell BTC with a credit card. There are commission fees involved as the bank takes 3% and the company itself takes 2%.
Paul – provides you with an opportunity to sell BTC with a credit card and has a 1% fee.
Bit2Me – lets you sell Bitcoin through the usage of a credit card and has a fee of 2.76%.
Selling Bitcoins with a Bank Account
Some platforms allow you to sell Bitcoins with a bank account.
Coinbase - one of the most popular cryptocurrency exchanges, which allows you to cash out using your bank account. It has a fee of 2.49%.
Paxful – provides you with the opportunity to sell BTC with a bank account but has a 1% fee.
Coinmama – a cryptocurrency exchange that lets you sell Bitcoin and get your funds to a local bank account, with a fee of up to 3.90%.
How Do I Sell Bitcoin for Cash?
You always have the opportunity to sell Bitcoin for cash directly.
Coinbase – a cryptocurrency exchange where you can sell Bitcoin for cash and has a 2.49% flat fee.
Bitcoin ATMs – this varies from one ATM to another. However, the transaction fees on average are 10%.
Anycoindirect – allows you to sell Bitcoin for cash for a fee between 1% and 1.15%.
Selling larger amounts of Bitcoin
In order to sell larger amounts of Bitcoin, you need to take a look at Over-The-Counter (OTC) trading options.
Here, you will be a dealer who will act as a market maker and quote the price at which you will sell your Bitcoins. A trade can be executed when two participants are in an OTC market.
Do I Have to Pay Tax When Selling Bitcoin?
This is dependent on the country you live in. While in certain countries in the world, all of the financial gains acquired from selling Bitcoin have to be taxed; this is not the case in every single country in the world. You will have to contact the regulatory body in your country to find out more.
Can I Sell Bitcoin from Anywhere in the World?
The main point of the appeal behind cryptocurrencies is in the fact that they are borderless. In other words, you can be anywhere in the world and send BTC from one cryptocurrency address to another all without the need of an intermediary. That being said, some cryptocurrency exchanges may not accept users from certain countries so you will have to check the terms and conditions for each platform.
Privacy and Security Tips When Selling Bitcoin
Security needs to be your main priority when it comes to trading cryptocurrencies, as the last thing you want happening is having your cryptocurrency account becoming compromised.
Here are a few things you need to take into consideration when selling Bitcoin.
Some things will vary from coin to coin, while others will remain similar across all cryptocurrencies.
Enable 2FA
You should enable two-factor authentication on all the cryptocurrency exchanges that you use. Through this process, a text message will be sent to your phone with a code that’s needed to log in to your account, thus increasing the security.
Complete Necessary KYC
On regulated exchanges, you will be required to complete a know-your-customer (KYC) procedure, where you will have to send personal identification. This can help to determine who you are and also help in case of security threats.
Request Support Only Through Official Sources
If you require support when it comes to selling cryptocurrencies such as Bitcoin, ensure that you contact the official support team through official means, such as email, live chat support, or phone support, not a random chat box you find online as these are oftentimes used by scammers to trick users into giving up private information
Double-check the receiver address
Make sure that you are entering the right Bitcoin cryptocurrency address where you will be sending the cryptocurrency tokens, so you do not end up sending them to the wrong address by accident and, as such, end up losing a lot of money.
Use Different Passwords if Using Multiple Exchanges, Wallets, and Brokers
Never use the exact same password on multiple websites. This is due to the fact that you do not want potential hackers to gain access to all your accounts with the same password. Keep things as secure as possible by having different passwords for different websites.
Keep Your Large Amounts of Cryptocurrencies on a Hardware Wallet
A hardware wallet is a wallet that requires you to physically confirm transactions commonly by pressing a button as opposed to doing so just on your computer. Large funds should be kept on a hardware wallet as they tend to be very secure and not as prone to hackings as exchanges. Final Thoughts on Selling Bitcoin
Hopefully, now you know everything there is to know about selling Bitcoin. The best option for you will be the one that lives up to your expectations in terms of the fees that incur whenever you sell Bitcoin and the variety of withdrawal options you have the moment you sell it. Ultimately, it will all boil down to how comfortable you feel with using the platform and how low the fees are.
FAQs
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