How to Sell Bitcoin for Maximum Profit
Before venturing into a crypto investment, most investors would first inquire about buying and selling Bitcoins. If you already purchased or earned some Bitcoins and want to get back fiat currency by selling it, there are multiple ways to do so.
Unless you're a staunch crypto enthusiast waiting for Bitcoin to replace fiat currencies, it's crucial to know when to seize your profits. Selling Bitcoin follows a relatively similar process as buying, except in a reversed direction.
The process doesn't have to be complicated if you already went through the buying process. In selling, your role is the seller. Therefore the things you'll be looking at are essential to ensure you don't lose your crypto profits to scammers. We'll explain the process to you to understand how to go about it safely.
What are the Ways to Sell Bitcoin?
Well, you can sell your Bitcoin on any of the platforms that offer buying services. When ready to “cash out,” there are multiple avenues through which you can do. These include online crypto exchanges, trading platforms, peer-to-peer trading, Bitcoin ATMs, and face-to-face sale.
How to Sell Bitcoins Using Crypto Exchanges
Despite their setbacks, crypto exchanges offer a one-stop solution when dealing with cryptocurrencies. When selling, the exchanges become an intermediary to hold the funds of the buyers and sellers.
We have detailed the variety of steps involved with selling your bitcoins using a crypto exchange, to help you understand the process when it comes time to sell your bitcoin, and convert it back to fiat.
Creating An Exchange Account
An exchange platform is a quickest and less complicated way of converting your Bitcoin into fiat currency. And there are hundreds of exchanges to choose from, including Binance, Coinbase.
If you don't have an account, choose your preferred exchange, and go through the signup process. Depending on your location, there are different forms and rules to fill out, including sharing a copy of your identification documents. Most commonly used include passports, driver's licenses, or other government-issued identification.
The process can take a couple of days to complete and be processed. After approval, you'll need to connect your bank account to the exchange to get your fiat currency when you sell your Bitcoins.
Sending Bitcoin to Your Exchange Wallet
You probably have your Bitcoins stored securely somewhere, whether in a hot or cold wallet. You'll need to transfer those Bitcoins from whichever wallet you've kept them to your exchange's wallet, ready for a transaction.
Depending on the exchange you're using, you'll have to find the authentification processes to follow to complete the transfer. Most are usually in the settings section. If using a digital wallet to store your Bitcoin, you'll need your exchange account's logins to authorize the transfer. The process can be lengthy, taking up to a couple of days, so there is no need to rush to complete it.
Creating a Bitcoin Sell Request
Once you've topped up your exchange wallet, linked your bank account, you're ready to sell. At this level, all you need is a buyer. You'll have to let other exchange users know that you're selling your Bitcoins.
Most exchanges have simplified the process by creating a Buy/Sell menu option. The process is also pretty standard for most exchanges.
Selling Your Bitcoin
Set your preferred currency as Bitcoin, then choose how much you'd like to sell. Different exchanges have different starting limits for a sale to occur. But once a deal goes through successfully, the funds will go to a holding period. If you make other transactions during this time, the funds won't go directly until their respective holding time has elapsed. Take note that the process of selling Bitcoin through exchanges is not as simple as described here. You'll need to consider the time to sell, the rates, and a lot more. All that goes into investment advice, which is something that extends beyond this guide on how to sell bitcoin meant for beginners.
Withdrawing Your Fiat Currency
Once your funds are deposited into your exchange account, you'll have to make a withdrawal to your bank account. The withdrawal process can take some time, depending on whether the exchange has impending issues with its selected banks. Also, don't forget about the restrictions set on the limit of transactions you can do within a specified timeframe. The exchanges also charge transaction fees as well.
Selling Bitcoins Through Direct Trade
This involves meeting another entity that wants to buy Bitcoins. The process can be done online through specialized platforms (Peer to Peer) or face to face, or even using automated banking machines (bitcoin ATMs).
Selling Bitcoin Peer to Peer Online
Specialized platforms create an avenue for two entities to do Bitcoin transactions online. Typically, a Bitcoin buyer will post a listing on the platform, stating their budget price and preferred payment method. The seller will then browse through the listings to find one that matches their preference ad follow the platform's guidelines to complete the transaction. These P2P platforms offer security to both buyer and seller through escrow functions. Sellers will receive payment through specified payment options such as a bank or card transfer or other traditional payment options.
Face to Face Bitcoin Sale
You can also arrange to meet a buyer face to face through some online trading sites. You can also get a referral from friends or family to sell your Bitcoins to another person in exchange for cash. This approach requires you to understand the technicalities of sending Bitcoin and working with cryptocurrency wallets where you've stored the crypto. Bear in mind that Bitcoin prices constantly vary, so be sure to know the value at the time of your trade. Most traders prefer using rates from popular exchange platforms. The prices are also different on various exchanges and locations. This difference is known as a premium. Choose open public places to meet, especially if selling to a stranger. It's highly advisable to be in the company of someone else during the trade. There are trading spots specially set for such face-to-face Bitcoin transactions in some countries to occur.
These operate in the same sense as a cash ATM but instead have an internet connection to allow transactions to occur. They're often very rare and not readily available in all countries. But their locations can be found on the web.
At a Bitcoin ATM, you'll scan the QR code of a wallet to allow you to sell Bitcoin for fiat currency. Take note, though, that they have massive transaction fees than other methods. Another limitation is they don't always offer sale and purchase functionality. Always check the functionalities that a Bitcoin ATM offers before choosing it for a sale transaction.
At times, before using a Bitcoin ATM, you'll have to register for an account. The process takes a lot of time, involving phone number verification, identification ID, scan of your palm, and a camera of your face taken.
Selling Bitcoin, especially on trading platforms, does require some prior knowledge of the crypto markets to ensure you don't run losses. Regular research and up to with the trends is necessary to know when to sell.
Your choice of selling method should look at the complexities, time, and risks involved. Trading platforms are the most preferred as they offer anonymity, safety, and privacy. However, they're prone to threats such as cyber theft. If you choose the face-to-face trade, ensure you're conversant with bitcoin wallets and choose an open public environment.Want to learn more about trading cryptocurrency?
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