How to Sell Cryptocurrency in 2022
There is a wide range of ways for you to sell your cryptocurrency, with so many choices it is important to make sure you use the method that is best for you and what you are trying to accomplish. You have the option to use an exchange, broker, crypto ATM, or even P2P marketplaces. In addition to this, each interface will have alternative methods of withdrawing your assets – that could be using a credit card, debit card, or a direct bank transfer.
Each method will come with different fees that you need to be aware of. Additionally, other factors like speed and accessibility are aspects of research.
We have put together this guide for you to navigate the best possible ways to sell your cryptocurrency, an in-depth look at all the reputable methods, and have included some crucial information about tax and security.
What Is the Best Way to Sell Cryptocurrency?
With such a wide choice of ways to sell your cryptocurrency, we have put together this list that clearly shows which are the best options available to you.
You can sell your cryptocurrency using an exchange, Bitcoin ATM, P2P marketplace, or in person.
Each method of sale will have different withdrawal options for getting your cryptocurrency changed into cash.
Each withdrawal option needs to be carefully considered in terms of fees, speeds, and transaction limits.
Binance offers a great range of sale methods.
You will have to pay taxes on the crypto you sell and you need to take precautions to make it as secure as possible.
How Do You Sell Cryptocurrency?
There is a huge range of ways to sell cryptocurrency. Here is a quick look at the most popular methods available to you:
The most centralized way to sell your cryptocurrency. The broker sets the price for sales and charges a commission for facilitating them.
Provide slightly lower fees than most brokerages but can be more complicated.
Decentralized Exchange (DEX):
These operate in the same way as a traditional exchange, but are unregulated and are not owned/operated by a singular entity.
Person-to-person exchanges offer great rates as they have no middle man; it's best to think of this as swapping rather than trading.
Here is a more detailed look at the best ways we think there are for you to sell your cryptocurrency, including some examples:
Sell Cryptocurrency Using an Exchange
An exchange is one of the most popular methods of trading cryptocurrency. It is a mediated arena for users to make trades between themselves via an order book or ledger, so prices are not set by an individual or business as they are with a broker. Usually, this means that exchanges offer some of the best rates on offer when selling cryptocurrency.
On these types of platforms, you can sell your cryptocurrency in a variety of different ways. You could sell them for fiat currency, a different crypto asset, or trade them - you can then withdraw these funds to your bank account or card if it is supported by the platform.
Binance is the biggest exchange on the market today and offers some of the most competitive rates to sell your cryptocurrency.
Sell cryptocurrency for fiat currency
One of the most popular methods to choose is to sell your cryptocurrency for fiat currency. Fiat is the standard dimension of currency that we use in day-to-day life and is registered as legal tender (GBP, USD, EURO, etc).
This method is going to get you one step close to being able to withdraw your cryptocurrency into a bank account or card that you can use in day-to-day life.
Binance offers a huge range of trading pairs which means a wider range of supported fiat currencies. The most popular tokens/coins will have the largest selection of available pairs, and you will find on a big exchange like Binance that there is a huge array of supported fiat currencies.
Exchange cryptocurrency for other cryptocurrencies
As well as trading your assets for fiat currency, you can also trade them for other forms of cryptocurrencies. It may be slightly more difficult for you to transition a crypto-based asset into your bank account, but there are some other methods to use that we will go into further on in this guide.
Again, the more trading pairs a platform has the more trading options there are available to you. Binance is probably the industry leader in terms of the number of assets and pairs it offers to its user - it certainly isn't challenged by any of the other industry leaders.
Direct trades (person-to-person)
Direct trades have the undeniable financial benefit of not paying a middleman. Selling your assets directly, whether this is through a P2P marketplace or actually selling them in person, allows you to cut costs and save more money.
Online P2P selling
The cryptocurrency began as a means of person-2-person trading without the need of a mediator and now there are platforms specifically designed to offer this online service. These types of platforms cut out the middleman and directly link traders to one another.
Example: Binance P2P
Binance now has its own P2P platform built onto its parent exchange. Here users can directly trade with one another and set their own prices for assets. You may be able to get some better rates using this method when you sell your cryptocurrency, but it is worth noting that these trades can be quite complex and also have a lesser degree of protection compared with conventional selling methods.
Sell cryptocurrency in person
Selling cryptocurrencies in person is definitely one of the more niche ways of selling your assets. For this reason, there may not be a wide choice of coins/tokens that you can sell in this way, but some organizations do accept Bitcoin for cash.
Example: Shops and Private Sale
These days there are some shops you can go into and sell your crypto assets but these are rare. You can also just simply sell your cryptocurrency to your friends and family. As long as you all know how to use a wallet and how to send cryptocurrencies to and from different wallets you can negotiate the right price for you and sell your cryptocurrency in a more traditional manner.
How to Sell Cryptocurrency Using an ATM?
Bitcoin ATMs are becoming more popular these days; they work in the same way as a traditional ATM but instead of linking to bank accounts they link to the internet. However it is worth noting that not all Bitcoin ATMs will have the ‘Sell’ function, some will only allow you to buy. As the popularity of cryptocurrency grows it is possible we will see an expansion of this platform, and perhaps ATMs that will allow you to buy and sell other cryptocurrencies and not only Bitcoin.
Step 1: Create an account with the applicable application.
Step 2: Find a cryptocurrency ATM near to you to withdraw cash.
Step 3: Find your wallet address.
Step 4: Input your wallet address and convert your Bitcoin into cash.
Different Ways to Withdraw Your Money When Selling Cryptocurrency
Each platform that you can sell your assets on will have a range of different withdrawal options. It will depend on what the specific platform supports but here are some to name a few:
Here are some things to keep in mind when choosing your withdrawal method:
Min/max transaction limits
How to Sell Cryptocurrency?
Here is our step-by-step guide for how to sell your cryptocurrency using the popular platform Coinbase. We have chosen Coinbase as its not only one of the most popular platforms, but it is also an exchange that also offers features that a brokerage would also offer.
Step 1: Open the web trader or mobile app.
Step 2: Create an account with Coinbase by inputting all of your personal information and following the relevant KYC regulations.
Step 3: Click the ‘Buy/Sell’ tab.
Step 4: Click the cryptocurrency that you wish to sell.
Step 5: Select the amount of your cryptocurrency you want to sell and then input the price at which you would like to sell it if you are making a limit order or executing the trade at market price. Then, complete your order.
Step 6: Wait for the trade to be executed, and then find your funds in your wallet.
How to Choose the Best Way to Sell Cryptocurrency
When selling cryptocurrency there will be a lot of things to consider depending on the user's needs. Here are some of the considerations you should make when selecting your interface:
Ease of selling coin on the chosen platform
Selling for fiat currency or exchanging for other cryptocurrencies
Which currency do you want to cash out in
Where you keep your coins
Available withdrawal methods
Market changes and sentiments
Transaction fees & commissions
Selling Larger Amounts of Cryptocurrencies
Selling big amounts of cryptocurrency must be done with great care. You need to make sure you are getting a good rate for your assets, but also that you are using a trusted interface that has good levels of security and maybe even some kind of insurance.
Do I Have to Pay Tax When Selling Cryptocurrencies?
Yes. This is one of the most common mistakes people make - you will need to pay taxes on your cryptocurrency earnings. The specific regulations and amounts you will need to pay will depend on the following factors:
Country of residence
Country your account is based in
Amount of gains made
Privacy and Security Tips When Selling Cryptocurrency
Security is essential when trading any asset, and cryptocurrency is no different. We have put together a simple list of steps you can follow to make it as safe as you can to sell your cryptocurrency:
Enable 2-factor authentication
Complete only necessary KYC
Request support only through official sources
Double-check the receiver address of your assets
Use different passwords if using multiple exchanges/wallets/brokers
Keep your large amounts of cryptocurrencies on a hardware wallet / cold storage
Only use a trusted interface