If you are reading this post on how to sell Bitcoin online, you have probably figured out yourself that selling bitcoin isn’t as simple or easy as buying them. I am here to give you the basic information that you need to turn your digital currency into cash.
Selling bitcoin online is naturally the more common way to trade this type of currency, especially if it’s a non-physical, electronic currency. There are three sub-methods when it comes to how to sell bitcoin online.
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1: Direct Trade
The first one includes direct trade with the buyer or a mediator to finalise the deal. There is a number of websites that offer a selling platform which you can use to find buyers or be found by them. These are only platforms such as LocalBitcoins and Coinbase in the US, Bittylicious and BitBargain in the UK. Whichever site you choose, you would need to register as a seller and as well verify your identity. Once you’ve got your account all set up, you can post what you want to sell and receive a notification when there’s a buyer interested in your offer. You can message with the buyer, but you can complete the deal only through the website.
I have to warn you that the process of selling on these websites may require a bit more of your time and patience than you would expect, but the support that you get there is great and valuable, which is only in favour of the whole experience. But I would hint you just a little here. If you are based in the United States, you might go directly for Coinbase as your selling platform, which is known for its simplicity and lightness of work.
2: Exchange Trade
Exchange trades are the second method to use to sell your bitcoin online. It still involves registering and verifying your identity, but this time you don’t need to spend so much time organizing the sale. The exchanges have taken the role of mediator that holds everyone’s funds. What is required of you is to place your ‘sell order’ where you state the amount and type of currency you wish to sell and the price per unit you wish to sell it for. When someone offers a matching buy order, the exchange will finalize the deal for you. Shortly after that, your account will be credited with the cryptocurrency you bought.
There is a bit of a downside to all that, despite the ease of use. The thing is, if you are selling bitcoin for local currencies, you would then need to withdraw your funds to your bank account. At times, it would take a longer time to receive your funds, if the exchange has liquidity problems or issues with its banks. Decide for yourself how fast you prefer to receive your payment. But to avoid all this, do thorough research on the exchange you are about to commit your funds to.
There is also an alternative, that doesn’t necessarily mean that it’s the best one. You can choose to trade your bitcoin with another cryptocurrency or altcoin of your choice and preference. Although, people rarely choose this option and the reason to do so would be for example, if a shop accepts some other currency like litecoin or dogecoin for their goods.
In addition to the information about the exchanges, you have to be of course prepared to pay a fee when you use their services. Each of them holds updated information on their websites about the fees they charge and the different cryptocurrencies they work with. There is also a limit to the amount of money you are permitted to store on your account. It’s not wise to keep all your pots of coins on the exchange network, although it’s indeed easier this way if you are exchanging only digital currencies. But never entirely trust an exchange, because it can by mischance be hacked and you might lose everything you have stored there.
3: Peer-to-Peer Trade
Now moving away from the subject of exchange trades to focus on the last method, and that is the Peer-to-peer trading marketplaces. This is a considerably new invention in bitcoin society. Websites like Purse.io, Paxful, and Binance are set out to create a middle point for two specific groups of people with extra needs to meet.
The first group consists of people or individuals who want to buy a particular type of goods or services, but the seller doesn’t trade with bitcoins or any other digital currency. In the second group are the people who are willing to buy bitcoin using their credit or debit card. So here comes the marketplace where those two groups meet, match each other’s requirements and make a safe exchange of currencies.
The marketplace is the mediator, who provides users with the platform, bitcoin wallet and executes the transactions against a small fee.
At some point, there comes a moment to withdraw your funds, which is undoubtedly supported by some concerns regarding the safety of the transaction. The international wire transfer method is supported by all online bitcoin markets. After you’ve sold your bitcoin you can also choose to transfer the money to your bank account through the ‘Single European Payments Area’ (SEPA) system. It has been created to grant efficiency of the international transfers between the member states of the European Union. The downside is that transfers take about four days and sometimes hold large charges, which makes trading quite expensive in reality.
A big per cent of the bitcoin markets that we mentioned above require basic information from the buyers, but they require much more proof of identity from the sellers. Bitcoin markets are legally obliged to record who their members are, but most of them are collecting certain information in case of new future regulations. But even if you plan just to be a buyer at the moment, there is no harm in completing the whole procedure of verification of your identity just to get this out of your way in case you later decide to become a seller on the market.
Don’t worry if the website requires you to send them a scan of your identification document (ID card or passport) or even a selfie of yourself holding your ID and the name of the market written on a piece of paper! After all that you can dive into the buy/sell bitcoin experience.