CRYPTOPEDIA

How to Sell Bitcoins: Online Guide

Selling Bitcoin is not as easy as buying it. However, there are also several good options that will help you with selling your cryptocurrency safely. First of all, you need to decide wether you would like to carry out he operation through the Internet or offline. There are many questions concerning this issue: “How to sell bitcoins for cash?”, “How to sell bitcoin for USD?”, “How to sell bitcoins for Paypal?”. It is true that there are more than enough options how to approach this important activity. Let is try to understand ho to do it together! Think of your preferences and possibilities before proceeding to selling your crypto!

Bitcoin Exchanges

Without a doubt, millions of users buy and sell Bitcoin through crypto exchanges. It is probably one of the most popular ways to conduct any operations with various cryptocurrencies including BTC. It is important to remember that an exchange is also a third party or intermediary between a buyer and seller, which takes control of the funds of both sides.

What are the steps for selling Bitcoin through an exchange?

After choosing the one, which meets your expectations, you need to register an account. All modern exchanges require full personal verification, so you will be asked to provide your ID or passport, address, phone number or even bank account number. After all formalities are completed, you will be able to create a “sell request” indicating a particular cryptocurrency that you want to sell, the amount and a price per unit. As soon as some user is ready to buy crypto for the price that you’ve stated, the system will automatically finish the transaction.

After you receive the funds and the transaction is completed you will have to transfer them to your bank account (you will state this info at the stage of registration on an exchange). Do not forget that sometimes waiting time can take up to several hours or even days, notably when the system is too busy or an exchange has some technical problems. Thus, you need to very very careful when choosing a good exchange and to consider its liquidity, hacking history, total market cap, etc. It is important to mention that some banks do not accept funds affiliated with the cryptocurrency market. For example, in 2017 a number of prestigious American banks officially stated that they will ban all transactions connected to cryptocurrencies. This measures were taken to protect users from scam and fraud that is often associated with this new industry.

Some cryptocurrency exchanges are free, while other require certain amount of money to be paid monthly. Cex.io, one of the most prestigious crypto exchanges in the world, charges 50 USD for bank affiliated transfers, around 4 USD in case you use VISA or MasterCard for such operations. The fees depend on the exchange and a type of transaction.

You also need to check the max amount of crypto that you are allowed to store on the exchange. Do not worry, the limit will grow over time in case you are loyal to the exchange.

Direct trade 

Direct trade is a convenient way of selling Bitcoins through a direct communication with another user. There are many different platforms which provide direct trade option to its users and acts as a third party, which ensures security and connection. What do you need to do? Firstly, register an account on one of the platforms for direct trading. You will need to verify your account and identity so prepare your passport details, address and email. After that you will need to create a sell request, where you will indicate your aim to sell some funds. As soon as a platform users sends you a buying request you will be able to communicate with him / her through a small chat window. You will be asked to provide your bank account details so the buyer will be able to send you some funds in exchange for the crypto he wants to buy. You will be able to communicate throughout all the process of transferring funds. After you confirm that the transaction is successful you will need to “unfreeze” your BTC and it will be automatically sent to a buyer. Everything is safe and transparent. Sometimes the process of transferring funds and selling / buying Bitcoin takes some time, so you need to be patient.

Among the best direct trading platforms are Bittylicious, BitBargain, Openbitcoins, Coinbase, Bitsquare and LocalBitcoins.

Peer to peer trading

P2P trading market place is a new option on the Bitcoin market. Such platform to not have direct exchange options, but rather unite members of Bitcoin community, who wish to buy products for cryptocurrency from shops that don’t accept crypto, buy Bitcoin with credit card and simply ask for a piece of advice. Moreover, most platforms offer escrow and a wallet for storing your funds.

For example, Jenna from Mongolia wants to buy goods for cryptocurrency, but she neither has crypto funds nor an access to such websites. She asks Lee from Japan to do it for her and as soon as the goods are delivered, her fiat funds will be unfrozen and sent to Lee.

Among the best P2P platforms are  Purse, Brawker and OpenBazaar (all of them are centralized).

Bear mind that you will still need to verify your identity and provide full personal and banking information.

Bitcoin ATMs

Bitcoin ATMs are used both for buying and selling Bitcoins. There are more than 200 Bitcoin ATMs in the world and their number is constantly growing. Bitcoin ATMs become more and more popular, because it is a smart way to purchase the crypto that you need. It is also import to discuss crypto ATMs fees. The average commission is 3% – 9% depending on the sum of the operation and cryptocurrency. Bitcoin ATMs are particularly popular in Europe, USA, Australia. Check the location of such ATMs on a special website. However, bear in mind that most developing countries do not have Bitcoin ATMs or the cryptocurrency are illegal in some counties (China, etc.). Among the major disadvantages of such offline trading are high commission fees, location difficulties, time consuming registration and verification etc. It is important to note that not all Bitcoin ATMs have selling function. You need to search for Robocoin, Genesis1, Satoshi2, Genesis Coin, BitAccess and BATMThree in order to sell your funds successfully. Thus, most Bitcoin ATMs are used for buying, not selling Bitcoin.

Read more on how to buy Bitcoin here. 

Trading in person

You can also try to find a person, who want to buy Bitcoin offline in your city. The process is very easy: you will have to scan a special QR-code on the buyer’s smartphone and get cash on the spot. All you need is to find a buyer and to arrange a meeting. Don’t forget that both you will need a Bitcoin wallet set up and verified. Think of the Bitcoin price that you would like to set and other details that might be helpful. Where can you find such traders? There are more than enough crypto forums and platforms, where users communicate, share their experience and look for advices.

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blockchain, ICO, bitcoin, ethereum, mining

CRYPTOPEDIA


How to Sell Bitcoins: Online Guide

Published by blockchain, ICO, bitcoin, ethereum, mining