How to sell Bitcoin?
Table of Content
How To Sell Bitcoin?
Some argue that selling Bitcoin is more difficult than purchasing it, but the fact is that it is a straightforward procedure if you have all of the necessary information.
We may sell our Bitcoins on the internet using exchanges or websites that facilitate peer-to-peer transactions ( peer-to-peer )
We also may go out and perform transactions in the many ATMs that are located all over the world to receive cash.
Finally, we get the option to do direct sales activities.
Despite their centralized nature, exchanges remain the most convenient and straightforward method of selling Bitcoin.
The exchanges will be the direct buyers of the Bitcoins we wish to sell in this situation.
You might be interested in: Explanation of Cryptocurrency Exchanges
To conduct a transaction on a bitcoin exchange, we must first create an account on the portal. To withdraw your cash, the large majority of exchanges will want us to go through an identity verification process and provide a personal bank account.
Then we must make an ‘offer to sell,’ specifying how much Bitcoin we wish to sell.
Now, in terms of the asset’s pricing, we must keep in mind that many exchanges already have a defined buy price for Bitcoin. We only have the choice of changing or not adjusting to the pricing they set.
We can choose the price at which we wish to sell our Bitcoins if it is an exchange where we can exchange with other users. Once anyone matches our offer, the exchange will immediately execute the deal.
We can withdraw the monies to the connected bank account once the funds have already been credited to the Exchange account. It’s important to keep in mind that this might take a long time, particularly if the exchange is having issues with its banks or is collapsing owing to a large volume of sell orders.
In addition, several banks have openly refused to handle transactions involving monies earned from bitcoin trading.
We must also take into account the commission we must pay when withdrawing FIAT money from various exchangers. For example, CEX.io, one of the world’s largest cryptocurrency exchanges, charges a flat fee of $ 50 for wire transfers, $ 3.80 for Visa card withdrawals, and 1.2 percent of the transaction plus $ 3.80 for MasterCard withdrawals. Withdrawal costs might vary significantly depending on the exchange, thus we must assess each portal’s withdrawal charge separately.
Furthermore, most exchanges will impose a restriction on the quantity of money we may withdraw. The limit will be raised if we choose to authenticate our account using personal information obtained from the exchange’s address.
Finally, keep in mind that, although providing wallet services for storing our cryptocurrency, exchanges are not secure or dependable locations to keep your assets.
They are extremely vulnerable to hacker assaults. Hacker thefts have hit even the biggest exchanges, as shown with Binance and Cryptopia.
Furthermore, you do not truly own your bitcoins on exchanges because you do not have access to the private keys for the wallets you use.
The best practice is to keep our Bitcoins in separate exchange wallets and only send them to the gateway when we need to make a sale.
Here is a table with the most major ones that operate in the market so that we can get an idea of the commissions that are kept inside the exchanges:
|Exchange||Currency Options||Sales commission||Withdrawal Commission: Bank transfer||Withdrawal Commission: Credit Cards|
|Bitfinex||US Dollar, Bitcoin, Ether, Ether Classic, Litecoin, Zcash, Monero, BFX, Money Recovery Tokens (RRT), Dash||0% – 0.1%||Bank transfer – 0.1%.
24 hours express – 1%
|Bitstamp||US Dollar, Euro, Bitcoin, Ripple (XRP)||0.1% – 0.25%||International Transfer – 0.09%, EUR – € 0.09||$ 10 up to $ 1000 – 2% for more than $ 2000|
|CEX.IO||US Dollar, Euro, British Pound, Russian Ruble, Bitcoin, Litecoin, Ether||0%||$ 50 / € 25 / ₽1750 / £ 30||Visa – $ 3.80,
MasterCard – 1.2% + $ 3.80
|Coinbase||US Dollar, Euro, British Pound, Bitcoin, Ether||1.49%||US – 1.49%, EUR / UK – € 0.15||Not available|
|GDAX||US Dollar, Euro, British Pound, Bitcoin, Litecoin, Ether||0%||US – $ 25, EUR –
|Kraken||US Dollar, Euro, British Pound, Japanese Yen, Canadian Dollar, Bitcoin, Ethereum, Ether Classic, Iconomi, Augur, Dogecoin, Lumen, Monero, Ripple, Zcash, Stellar / Lumens||0% – 0.36%||0% – 0.19% or fixed commission||Not available|
2. Peer-to-Peer Businesses Online
A direct transaction with another individual is another approach to selling Bitcoin. As the name indicates, this service will allow us to conduct person-to-person transactions through a web portal that will operate as an intermediary to guarantee that the transaction is completed between the parties.
The first step in selling here is to register as a vendor. We’ll have to complete a profile creation and identity verification process when we register.
We may now publish an offer signaling our plan to sell Bitcoin after we’ve completed our profile.
We will receive notification of the service when a buyer wishes to bargain with us, and we will then participate in a dialogue with the buyer.
Users can utilize an escrow service to ensure the transaction, as well as a wallet to hold Bitcoin, on the websites that provide this service. To ensure the sale, the platform will ask us to put the coins into our account’s wallet and freeze them for the length of the transaction.
This is how an operation in this sort of portal works:
Bob has a large amount of Bitcoin that he wants to exchange for FIAT cash. To do so, he goes to a peer-to-peer trading platform and demands that a Bitcoin selling offer be posted. To assure the operation, the platform will demand Bob deposit the required amount of Bitcoin into the portal’s wallet.
The sale offering is publicized in the market after the Bitcoins are in the portal’s wallet.
When Jack sees the offer, he decides to buy Bitcoin and opens up a chat with Bob to complete the transaction. When the payment has been paid in accordance with the specified orders, Jack informs the system that the operation has been completed, and Bob tells the system everything’s in order.
Finally, the system deposits the value of Bitcoin purchased in Jack’s gateway wallet into his account.
If a problem arises, the platform might function as a court, assessing the case and awarding cash to anyone it believes is correct.
For serving as an intermediary in the transaction, all platforms that provide this service on the internet charge a commission. It’s also worth noting that the purchasing and selling processes on these sites are typically lengthy, convoluted, and slower than we’d want.
OpenBazaar and LocalBitcoins are two sites where we may perform this sort of business.
3. Withdrawal of Funds
If you sell Bitcoin online, you will certainly run into difficulties withdrawing your cash. The most frequent form of transferring funds is by international bank transfer, which is supported by the majority of major exchanges. However, several exchanges have recently begun to accept withdrawals by credit and debit cards.
SEPA, which stands for Single European Payments Area, is another option for transferring funds. It’s a mechanism that aims to make international transactions between European Union countries more efficient and cost-effective. This form of transmission is accepted by some cryptocurrency exchanges, such as Coinbase.
Both methods, however, are far from flawless. Transfers take a long time to process; depending on the nation and the amount of money being sent, it might take up to four days. Furthermore, both methods include additional fees. For example, pertaining to where you wish to send for a SEPA payment, Barclay’s bank costs GBP 25-40. Instead, an HSBC SEPA payment made through online banking costs £ 4, however, the bank is infamous for refusing to cooperate with Bitcoin as well as other digital currency-related money.
As a result, if you’re creating a bank account just for the purpose of withdrawing funds from Bitcoin sales, you should do your homework and select the bank that best meets your demands.
4. Through a Bitcoin Automated Teller Machine (ATM)
Bitcoin ATMs, despite their resemblance to ordinary ATMs, are still no ATMs in the classic sense. Instead of linking to the user’s bank account, they connect to the internet to make Bitcoin transactions possible.
Bitcoin ATMs receive cash and convert it to Bitcoin through a paper bill with a QR code or by transferring it to a Blockchain wallet.
These ATMs may also be used to sell Bitcoin for cash. You may use it in the same way that you would if you were withdrawing money from your bank account.
However, we must keep in mind that the fees paid at these ATMs are generally rather expensive. They don’t have a set number because they vary with each ATM, but the average we’ve seen from CoinATMRadar shows that they surpass 6% of the amount to be swapped.
The ATM presents you with a QR code that contains a wallet address so that you must transfer your Bitcoins in order to complete the transaction. Depending on the machine you’re using, you’ll either get cash right away or receive a redemption code and will have to wait for the transaction to be confirmed. One confirmation is usually enough, however, up to six confirmations may be necessary before the user may withdraw money.
Bitcoin ATMs have been fairly popular in the market, particularly in Hispanic nations. The Spanish-speaking nations with the most ATMs are Spain and Colombia, followed by Argentina and Mexico, both of which have been aggressively pursuing the Bitcoin market.
We may utilize the information supplied by CoinATMRadar, a platform dedicated to reporting ATMs from across the world, to find out where ATMs are located in Spain, Colombia, Argentina, and Mexico.
Bit2Me, based in Spain, is another alternative for selling Bitcoin for FIAT currency in the Hispanic market. It is possible to transmit Bitcoin to the Bit2Me exchange and make withdrawals from over 10,000 ATMs around the country thanks to an arrangement they have with halcash. It isn’t a Bitcoin ATM, but it does allow us to sell bitcoins for cash.
5. Sell Bitcoin in Person
It’s quite simple to negotiate a Bitcoin deal in person. To sell our Bitcoins, all we have to do is scan a QR code on someone’s phone and receive cash at the moment. If we want to sell Bitcoin to friends or family, we just need to create a Bitcoin wallet for them, transfer them the required amount, and collect our money.
If we’re dealing with a random person, though, we’ll very certainly go through several rounds of negotiations, debating the price, the meeting location, and other pertinent details. In addition, we must keep just a few things in mind to safeguard our personal safety as well as the safety of our assets.
5.1) How to Negotiate the Price
Many websites and forums exist to assist traders in setting up one-on-one encounters to purchase and sell Bitcoin. LocalBitcoins is by far the most popular platform. One of its key features is the user rating system, which allows us to analyze the trustworthiness of the individuals with whom we want to do business.
Because the worth of Bitcoin fluctuates so much, the final conversion rate is usually decided at the meeting. The CoinMarketCap rate is used by the majority of retailers. For convenience, privacy, and to cover their expenses, sellers may charge fees in addition to the existing Bitcoin exchange rate.
It’s also crucial to account for variations in the value of Bitcoin in relation to the local currency. This is due to the difficulty of getting bitcoin in the local currency by which it would be to be traded.
The amount of the charge is totally up to you and the amount of effort it requires to earn the Bitcoin.
It may be helpful: How the Bitcoin exchange rate is calculated
Alternatively, rather than scheduling a one-on-one meeting ahead of time, we may go to a local Bitcoin meetup. There are a plethora of similar events across the world, where attendees may buy and trade Bitcoin and other digital currencies. This is generally the safest setting for face-to-face communication.
It goes without saying that when we sell at a conference like this, we must be prepared to haggle over the price on the spot. Portals like meetup.com can help you find information about Bitcoin meetings in your region.
5.2) Tips to Stay Safe
For individuals who value confidentiality and ease, selling Bitcoin person-to-person is the ideal trading alternative. However, we must exercise caution, particularly when transacting with a total stranger over the internet.
First and foremost, we must carefully select the meeting location. Both the buyer and the seller will require access to their online wallets, therefore it must be a public location with active internet connectivity.
A buddy is mainly brought to the meeting for added security, but the buyer must be informed of the person who will be accompanying us.
To create a parallel, we must undertake the same precautions as if we were carrying a big sum of money. We must remain vigilant at all times, avoid taking public transit, and avoid gathering in private residences.