What You Need to Know Before Selling Bitcoin
Now that you learned things you should consider when preparing to buy bitcoin, you might have, you may already have your own bitcoin that you want to sell. In this case, there are also things you need to consider before you sell your coins. The process of selling bitcoin may be tedious and more dangerous if you have no clue what to do. This guide will highlight some of the fundamental things you need to have in mind when planning to sell your bitcoins.
- Understand why you are selling
This point may sound obvious, but it is often not with some people. The bitcoin market is volatile and prices may change significantly in hours, days, or months. If you are dealing with bitcoin for the first time, these changes in the bitcoin price coupled with negative news headlines may lead you to make emotional sales. Selling bitcoin under fear, uncertainty, and doubt (FUD) is often a recipe for failure in crypto investment. You should not rush to sell your bitcoins. Any transaction should be well thought out and calculated, with minimum emotional influence, to avoid making mistakes leading to losses. Furthermore, bitcoin often finds its way back even after a significant price drop, as evident in the historic price chart.
Nonetheless, there is no one-size-fits-all when it comes to bitcoin investment strategies. There are many factors to consider that may differ from one case to another. You may be in the dire need of money and the money from your bitcoin sale may help save the situation. Additionally, you may have done your research and realized it is the best time to sell your bitcoin to avoid excessive losses. All these factors put together can uniquely inform your decision to sell your bitcoin at a particular time, which is why this guide is not financial advice. However, if your decision is solely based on an emotional reaction to a development in the market, then you must reconsider your decision.
Also feeling the pressure to sell your bitcoin may be a sign that you have invested more than you can lose. If that is the case, then selling some of your bitcoin could be a good move.
The best time to sell your bitcoin is when you want to realize profits.
- There are Different Ways to Sell Your Bitcoin
Bitcoin is a versatile asset that you can cash in on in various ways. Various ways to exchange bitcoin include centralized, decentralized, peer-to-peer, face-to-face transactions, and bitcoin ATMs.
The best method to exchange your bitcoins may depend on various factors. One such factor is availability. The accessibility of some bitcoin exchanges may depend on a user’s location. Some exchanges are not available in some jurisdictions. Therefore, it is important to confirm if the platform you want to use is available at your location.
Another factor is convenience. Face-to-face transactions may not be convenient when there is a long distance between you and the buyer. Additionally, it may be insecure compared to using an exchange. Peer-to-peer exchanges offer a high level of anonymity. Also, centralized exchanges are readily accessible and more liquid, while Bitcoin ATMs may be unavailable in many locations. The transaction cost also varies from one method to another. Bitcoin ATMs are costlier than centralized and decentralized exchanges. Ensure, you consider all the factors you can think about when deciding the best way to sell your bitcoin.
- There are Fees for Selling Bitcoin
Selling bitcoins may attract different types and amounts of fees, depending on the platform and the payment method used. For example, selling bitcoin directly to a buyer and paying in cash may only attract the ‘network fees’. However, if you are receiving cash via bank transfer, then you should factor in the associated fees.
Exchange services also charge fees for facilitating trades, which covers the exchange’s operating costs and a small margin.
- Finding the Best Place to Sell your Bitcoin
Places for selling bitcoin may vary in terms of ease of use, security, and, price of Bitcoin. Exchanges may offer varying coin prices. In such a case, you should find the exchange that will offer you the best price for your bitcoin assets. You can use the price ticker to identify the exchange with the highest price.
Also, different exchanges may charge different fees. Finding an exchange with low fees can help you cut costs and realize more profits from your bitcoin sales.
Also, the reliability and security of the platform you are using are important. Using a stable platform with little to no history of attack is safer. Therefore, researching exchanges, including reading the platform’s reviews can help you find the best exchange to sell your bitcoin.