How to sell Bitcoin

How to sell Bitcoin | various methods to cash out crypto

How to sell Bitcoin

Selling Bitcoin unlike its buying is not so much easy or straightforward. Like buying Bitcoin, you can use several ways to sell Bitcoin. You can do it via an exchange, ATM, direct trade, or via P2P transaction. However, these methods are different in many details; some of them are faster while some of them are cheaper, safer, or simply easier.

In the following article, we will introduce several ways that could be used to sell Bitcoin. After reading this article to the end, you can understand the difference between ways of selling and cashing out Bitcoin via various methods. The following methods of selling Bitcoin are explained in this article:

–         By Exchanges

–         Direct Trades

–         Online P2P trading

–         Via ATM

–         Selling Bitcoin In Person

We also show tips to negotiate when you are selling your Bitcoin in person. After that, we discuss the ways that could be used to withdraw Bitcoin. So, if you want to understand all about selling Bitcoin methods, read this article to the end.

related article: What Is Bitcoin, The Most Asked Question In Google

How to sell Bitcoin

Requirements before starting to sell Bitcoin

When you want to start selling your Bitcoin, cryptocurrency exchanges could be an easy and fast method. However, almost all of them require the following things:

–         Register an account

–         Providing documents for “Know Your Customer” (KYC) to confirm your identity

Besides, you also need to have a cash-out method to receive your funds, meaning a bank account or credit card. If you already registered an account in an exchange by which bought your Bitcoin. Then you don’t need to re-enter your identity documents to sell Bitcoin. You should also check the crypto exchange currencies list to make sure that it supports the currency you want to cash out with.

How to sell Bitcoin

Sell Bitcoin by Exchange

Most crypto exchanges work as a middleman that stands between seller and buyer and accomplish some tasks that otherwise could be somehow difficult. You should choose a crypto exchange that meets your needs. As we mentioned earlier, some exchanges work only with some fiat currencies and don’t support other currencies. Some exchanges only change cryptocurrencies to other cryptocurrencies, so you should choose another cryptocurrency. That could be easily cashed out to your fiat currency when you use this type of exchange. US citizens might also find broker exchanges a better option that works fast and securely. According to your needs, you can choose a suitable crypto exchange.

After choosing, you should register an account. As we mentioned earlier, probably you should provide the required documents for KYC. This process could take a few days.

Sell Bitcoin by Exchange

related article: How To Buy Bitcoin |Everything About Wallets And Exchanges

Transfer your Bitcoin to the exchange

After registering your account and offering your documents, you will need to deposit your Bitcoin on the exchange that you won’t use. Different exchanges present various ways for this task, you should find the “send/request” or “deposit” button. When you hit this button, the platform that you use will present an address or QR code. If you use a mobile wallet, you can simply scan the QR code and send your desired amount of crypto to your account.

bitcoin sell order

Create a sell order

After you transfer your Bitcoin to your exchange account, you should make a sell order. You should specify the amount of Bitcoin you want to sell, and the price that satisfies your need at this stage. This process varies from a platform to another, but the main items are the price and amount of cryptocurrency. You can use the price offered by the broker platform, which makes your trade accomplishment faster. However, you can also offer a custom sell order. The main difference between brokers and exchanges is that you can sell Bitcoin on broker platforms faster, but with higher fees.

cryptocurrency sell order

related article: How To Buy Bitcoin |Everything About Wallets And Exchanges

Processing your order

If you live in the USA, then chances are very high that you want to use Coinbase to sell Bitcoin. This broker exchange offers a price when you want to sell your coins and buys your coin by its own resources. This means that processing your order would take no time.

If you are using an exchange, which means your sell order would be added to the exchange order book. Exchanges provide “automatic” matching of your request with other users’ requests. However, this process might take a little time. After which a buyer would be introduced to your order and the selling process would be done.

Cashing Out Bitcoin

 After that you sell Bitcoin via an exchange, its value would be transferred to your exchange account. Now you should transfer this value to your bank account. Different crypto exchanges will charge various fees for cashing out funds from your account to your banking account. These fees tend to be higher when you want to use a bank transfer rather than credit cards like Visa and MasterCard.

The process is fairly easy, you only need to hit the withdrawal button just like other platforms. You can choose the method by which you want to receive your funds. According to the platform that you choose, the required time is different. But that’s all, you have nothing to do but wait to receive your funds in your bank account.

Direct crypto Trades

Direct Bitcoin Trades

Some websites provide the feature to connect personal buyers and sellers. These websites work as a base on which you can process the deal. To sell Bitcoin on these websites, you should fully register your account and provide all required documents to verify your account.

After full registration, you can post your offer that shows you want to sell you how amount Bitcoin and with which price. When a buyer is interested in your offer, the website connects her/him to you and after that, you only interact with the buyer. You can negotiate about various conditions of the trade, and the website only helps you to make the trade.

This process would not be as fast as other methods and by no means you would be sure that you will find a buyer matching your offer. Some of the most well-known exchanges like BitBargain, Bittylicious, Coinbase, Bitsquare, and Openbitcoins provide this service. However, before using each one of them, it is recommended to make research about this method to know its cons and pros.

Online P2P trading

Online P2P trading

Another way to sell Bitcoin is using peer-to-peer trading marketplaces. On these websites two types of customers would be connected: those who want to buy Bitcoin with their credit card and those who want to sell Bitcoin and buy goods from places that don’t accept Bitcoin as a payment method. These customers will exchange their needs together, the former ones will gain fiat currency while the later ones can buy their desired goods with a discount.

The process will start with an offer by a Bitcoin seller. The seller posts her/his wish list on the platform with the discount that s/he wishes to receive. The buyer checks the offer and if is interested, s/he pays instead of the buyer and buys those items with her/his own credit card. When the goods are delivered to the seller, the marketplace releases the crypto and transfers it to the buyer’s wallet.

P2P trading platforms provide a relatively easy way for buyers to gain Bitcoin and cryptocurrencies with their credit cards, but they also charge a high fee for the service. These services, however, are centralized and customers have to fully verify their identity. That means you can not use these services anonymously.

When you are trying to buy goods as well as sell Bitcoin, this method could be useful. However, you should also verify your account and present your identity documents to use these services. Besides, the process of receiving goods and accomplishment could take a long time. As we mentioned earlier, also it is not free and comes with relatively high fees.

Bitcoin ATM

By Bitcoin ATM

Bitcoin ATMs or simply BATMs provide a relatively easy localized way to buy Bitcoin. Some of these machines accept cash and you can simply exchange your cash for Bitcoin. Unfortunately, only part of these machines offers bi-directional functionality, which means could be used to sell Bitcoin as well as buying it.

It should be noted that Bitcoin ATMs are connected to an online exchange and the same procedures of verification could be applied to them. Some of these machines require registration and users should provide various types of identity documents to register an account. These documents highly vary from one service provider to another, but when you want to sell, always you have to offer your documents.

How to sell Bitcoin

However, when you try Bitcoin ATMs to sell Bitcoin, you will receive a QR code with a wallet address that you should transfer your Bitcoins. After sending your Bitcoin, some machines immediately cash out your money, while others give you a redeem code that should be confirmed. The process of confirmation sometimes would be long and could require up to six confirmations before cash withdrawal.

Bitcoin ATMs are growing across the world, but they are primarily useful in buying Bitcoin. Additionally, they need adjusted machines to meet anti-laundering and KYC standards. These machines are not accepted in all countries and finding a bi-directional machine close to your place of residence could be a challenge. However, if you know one and registered an account for their service, it might offer a relatively easy localized method to sell Bitcoin.

Selling Bitcoin in Person

Selling Bitcoin in Person

Trying to sell Bitcoin in person could be just like selling any other thing, you should only negotiate about price, the payment method, and to make a transaction to the buyer’s wallet. If the buyer is your friend or relative, you only need to set a Bitcoin wallet for them and send the funds to their address and receive your cash.

With all these said, when you try to deal with a random person, probably the process of negotiation and arrangements to complete the trade would take a longer time. The negotiation could be a serious task that requires a few things to know. In the following, we will cover all tips that you should be aware of when trying to negotiate on Bitcoin price.

Negotiation on the price

Just like other deals, you should trust the person by whom you want to make a deal. When you use online websites that arrange a meeting between buyer and seller, chances are high that you don’t know the buyer. Several websites provide these services, and LocalBitcoins is the most well-known platform that is used for this type of trade. This website uses a rating system for its users, by which you can check records of your buyer and her/his trustworthiness.

These websites only provide the opportunity to become familiar and make deal with the buyer, so all negotiations about the price would be done in your personal meeting. The exchange rate in these deals usually would be fixed in place when you meet each other. Just like other price checkings, you can simply use prominent exchanges to receive the most recent price. However, you can also use other price resources such as news websites. It is also accepted for the seller to charge a fee on top of the current price for anonymity, convenience, and covering the costs. You can choose the amount of this fee quite arbitrarily, but the normal range is between 4 to 10 percent.

If you want to sell Bitcoin in person in another country, you should also make sure that you know the local price of Bitcoin, as it might be different in some countries. Another tip that could help you to conduct a safe trade is using local Bitcoin meet-up services. Because these services are somehow professional, it might provide the safest place to trade Bitcoin. These services are different in any country, but you can find them easily with a little bit of search on the internet.

bitcoin security advice

Security advice

When you want to sell Bitcoin in person, you should take a security first. This type of trading provides a high degree of anonymity and convenience, which is sought by many buyers. As we mentioned earlier, you only need to check the buyer and if you noticed something that makes you susceptible, you should avoid the trade.

For this type of trade, you should meet in a public place with active internet access, because both of you need to access your online wallets. You can also go to a meeting with a trusted friend; it is accepted, but you need to tell this before the meeting with the buyer. You should think of it as moving a big amount of cash, you will not trust anyone and would avoid public vehicles.

Considerations about withdrawing funds

When you use online methods to sell Bitcoin, you will need to withdraw funds from your exchange account to your banking fiat account. You might need to use international wire transfer, which is the most common way to move money and is accepted by most of the exchanges. However, a growing number of exchanges also accept credit and debit card withdrawals.

SEPA is another transfer method that some crypto exchanges accept as a withdrawal method. That is especially a good method when you want to withdraw your funds and cash them in euro.

It should be noted, however, that these methods charges are very different. International wire transfers always take a long time to process and their charge might be very high. Several banks also don’t offer their services to any activity related to cryptocurrencies. If you want to use a pair of exchange and bank account to withdraw your crypto funds, you should check all information first, especially charges and restrictions.

How to sell Bitcoin

Closing thoughts

Buying Bitcoin is a process that requires transferring money to an exchange account, and using that balance to buy Bitcoin. That process seems somehow confusing, but when you think it step by step, it would be easy. To sell Bitcoin, in contrast, might seem straightforward at first, but you might find it difficult that requires some hard decision makings. As you saw in this article, you can sell your Bitcoin in several ways. Online methods could be applied using crypto exchanges and other types of trading platforms. These methods are relatively easy and safe, but you need to verify your information and identity, which means you can not use them to achieve the anonymity promised by Bitcoin.

If you are a fan of anonymity, you might sell and buy Bitcoin only by trading in person. That way you only need a wallet address to send and receive funds. This way, however, is not so much safe, because you don’t know the other party, and there is no middleman or third party that supervises the trade. As you can see, all of these methods have their packages and no one of them is perfect. You should check these ways according to your needs to find which one is more suitable for you. If you need to sell Bitcoin fastly, then broker exchanges might be a great option, though their charges are very high. You should consider these factors and choose the best selling method that works better for you.

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