How to Sell Bitcoin

Once you have bitcoins in your wallets, you may want to cash them out for fiat currency or any other payment method of your choice. There are various ways you can do that, with each method having its advantages and disadvantages. Here are some routes you can use to sell your Bitcoin assets.

Cryptocurrency Exchanges

Cryptocurrency exchanges are a one-stop solution when it comes to trading Bitcoin. Exchanges act as the intermediary that facilitates buying and selling of cryptocurrencies.

Centralized cryptocurrency exchanges handle and verify all transactions through a centralized server. They require users to set up an account with the platform and verify their identity. You will need to connect a supported payment method to receive the funds once you have sold your bitcoins. Most exchanges support bank accounts.

Additionally, you will have to transfer your bitcoin to your exchange wallet in case you had them in a different wallet. Once you have the funds in your exchange platform, you can simply place an order specifying the number of bitcoins you want to sell, and your asking price per bitcoin. The exchange automatically completes the transaction once someone has matched the order. Exchanges use to order books to match the buyer and seller requests.

Once the sell order is executed, your account will be credited with funds. You can withdraw the funds to your connected payment account.

One major advantage of exchanges is that they have high liquidity. It is easier to find a buyer on an exchange compared to other methods such as peer-to-peer transactions.

Withdrawing funds through exchanges may take an excessive amount of time, especially if the exchange is facing issues with its banks or facing liquidity problems. Furthermore, some banks may refuse to process funds obtained from cryptocurrency activities. It is important to research the policies of the bank you are planning to use, with regard to funds from cryptocurrency trading.

In addition, you should be mindful of the fees. Exchanges charge withdrawal fees. Some even have hidden fees.

Also, some exchanges have limits to the amount of money you can withdraw within a space of time.  

It is also important to keep in mind that exchanges are the least secure place you can have your Bitcoin assets. Exchange wallets expose your Bitcoin asset to threats of attackers targeting such platforms.

Some of the leading cryptocurrency exchanges in terms of trading volume are Binance, Coinbase, Kraken, and KuCoin.

Direct Trades

You can sell your bitcoins directly to a buyer without using an exchange as an intermediary. There are various ways to achieve this, including setting up a direct meeting with the buyer or selling through a specialized peer-to-peer online platform.

The online peer-to-peer method involves specialized platforms that allow sellers to find buyers. Unlike exchanges, these platforms do not take custody of users’ funds. Instead, the platforms allow buyers to post listings on the platform, noting their desired price, payment options, and other terms of trade. An interested party who finds the listings can complete the sale by following the instructions provided by the platform. Depending on the payment option, you can receive a transfer directly to your bank account or card, a wire transfer, or even popular traditional payment platforms.

You can also sell your bitcoins face-to-face for cash. You can find a local buyer through online peer-to-peer platforms or at any local Bitcoin enthusiast meetups. This method requires you to transfer money from your wallet to the buyer’s address.

Some of the factors you need to consider when selling Bitcoins in person is the price. Bitcoin is volatile and the price may change drastically in a matter of days or even hours. Confirming the Bitcoin price just before you perform the transaction is key to selling at the right price. Most traders use rates from prominent exchanges or Bitcoin Price Index by popular platforms.

In some regions, physical locations or shops exist at which traders can go and exchange Bitcoin for physical currency.

It is important to exercise caution when dealing with in-person Bitcoin sales. You must ensure your meetup place is safe when dealing with strangers. Additionally, you should try to avoid scams. Some platforms provide other people’s feedback about buyers, which can help you determine whether they are trustworthy and safe to meet.

Bitcoin ATMs

Bitcoin ATMs allow users to scan a wallet QRD code and sell their Bitcoin for cash. These ATMs are located across the world, and you can use online sites to find the nearest one.

Bitcoin ATM providers may require users to have an existing account to sell their bitcoin. Registration may require a long identification procedure. For example, you may need to provide a telephone number for activation, a government issued-ID, a palm scan, and a current photo taken by the ATM’s camera. The identification procedure may vary depending on the machine and the operator.

Once your identification is verified, you receive a QR code with a wallet address to which you need to send your Bitcoins. You can receive cash immediately out of the Bitcoin ATM machine you are using or you can receive a redemption code that requires you to wait for the transaction to be confirmed on the Bitcoin blockchain.