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How to sell BTC? The ultimate guide for beginners

Many crypto users need to cash out cryptocurrency. Suppose you somehow ended up with several million Satoshi, or even a couple of BTC. Of course, you’ll want to sell tokens and get your money. But at this step, you can make a lot of mistakes that will lead to partial or even complete loss of funds. For example, you can lose part of your capital on hidden fees or become a scammer’s victim. Let’s talk about the most popular ways to sell Bitcoin.

Exchanges

Now, many exchange platforms offer the possibility of cashing out cryptocurrencies. You can withdraw funds directly to a bank card or third-party payment systems (mainly foreign). The commission (about 2-5%) depends on the trading platform and the method of withdrawing money.

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To sell Bitcoin for cash through the exchange, you should:

  • Select the proper function
  • Pick the coin and the withdrawal method
  • Indicate the number of tokens and account for sending funds
  • Confirm the operation, including by email.

Using large and well-known exchanges to cash out cryptocurrencies is safer than exchangers. It reduces the risk of blundering upon a dishonest service. However, another trouble arises when any platform, even the most popular, can go bankrupt, be hacked, or steal client funds.

When cashing out cryptocurrency through an exchange, it is crucial to know the origin of your funds. If they were previously involved in illegal activities, the service could block the coins as soon as they go to the wallet. It isn’t easy to check the purity of assets. But when it comes to ETH and Ethereum-based tokens, it can be done using the Etherscan blockchain explorer. If you find your wallet with it, the built-in ETHProtect function will check the funds on it.

Experts advise not using exchanges without a support service, and where the conditions for trade are too good, this should raise suspicion. It is also best to avoid places with inadequate security standards, such as those lacking two-factor authentication (2FA). It is essential to check the site’s registration; if it is not there, possible problems cannot be solved through the courts.

Analysts also recommend paying attention to the Binaryx cryptocurrency exchange. This reputable platform makes it easy to buy, sell, and trade bitcoins. At the same time, the procedure for selling crypto on Binaryx does not take much time, and all personal data of users is protected by cryptography.

Direct trades

Another way of selling your Bitcoins is via direct trade with another person. This service is accessible on websites usually associated with exchanges and includes an intermediary facilitating the connection.

First, you will need to register as a seller. Apart from setting up your profile, you will need to verify your identity thoroughly. Once you’re registered, you can post an offer indicating your intention to sell some Bitcoins. When a buyer wants to trade with you, you get a notification from the service, and from then on, you are only interacting with the buyer. The website merely serves as a platform to complete the trade.

The process of selling Bitcoins on some of those sites can be quite involved and time-consuming. It is imperative to do your research before deciding on a trading platform and make sure you have the time and patience required.

Some of the websites offering direct trading are BitBargain, Bittylicious, Coinbase and Openbitcoins.

Online P2P trading

Let’s talk about peer-to-peer (P2P) platforms. They allow you to carry out transactions directly, without intermediary involvement and the KYC identification. These services offer different fraud protection techniques. Here are the most popular platforms where to sell Bitcoin:

  • LocalBitcoins allows the seller and the buyer to meet in person (offline) if they wish to conclude a deal. It is worth noting that such meetings can be even riskier.
  • The Coinffeine developers have proposed a specific protocol. The seller and the buyer must make a mandatory deposit to escrow accounts in some bank. This deposit will return after the transaction is completed. In this case, the trade itself can be divided into several microtransactions, and each of them must be less than the deposit made. It’s useful for the parties to complete the exchange so as not to lose the deposit.
  • Bisq (formerly known as Bitsquare) allows the seller and buyer to select a referee who only interrupts when a dispute arises. In this system, the seller of the crypto transfers funds to the so-called 2/3 multi-signature address. It’s the simplest form of a smart contract: the buyer can only dispose of them if the transaction is confirmed by another party, the seller, or the arbitrator. If this transaction is not completed in a few days, the parties can contact the arbitrator and charge for a transfer or return of bitcoins. The referee will require confirmation of the money transfer and will decide who to trust. However, the seller may be left with nothing too if the buyer manages to ask for his bank transfer after taking bitcoins.

There are more famous websites providing this service, such as Purse, Brawker, and OpenBazaar.

Via ATM

Despite looking like traditional cash machines, Bitcoin ATMs are not ATMs in the conventional sense. Instead of connecting to the user’s bank account, they are connected to the Internet to facilitate Bitcoin transactions.

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Bitcoin ATMs can accept money in cash and exchange it for Bitcoins given a paper receipt with a QR-code on it or by moving the funds to a wallet on a Blockchain network. They usually charge very high transaction fees – there are media reports citing costs as high as 7%.

Only a few specific Bitcoin ATMs offer bi-directional functionality meaning that users can buy and sell Bitcoins using them. Among such machines are Robocoin, Genesis1, and Satoshi2 from Genesis Coin, BitAccess, and BATMThree model from General Bytes. However, some operators might disable selling operations.

Sometimes, Bitcoin ATM providers require users to have an existing account to conduct selling operations, and the registration process often involves a lot of time, energy, and effort. For example, new users of Robocoin ATM need a telephone number for activation and notifications, a government-issued ID, a palm scan, and a current photo taken by the ATM’s webcam. The identification process varies depending on the machine and even on different operators running similar ATMs. Still, some identity verification will always be required if you want to sell.

After your identity is verified, you are given a QR code with a wallet address to which you need to send your Bitcoins. Depending on the machine you’re using, you will get cash immediately or receive a redeem code and need to wait for the transaction confirmation. Usually, one proof is enough, but sometimes up to six confirmations are required before the user can withdraw cash.

So, despite the ever-growing number of Bitcoin ATMs worldwide, they are still primarily used to buy Bitcoins. Moreover, BTC ATM operators need to adjust their machines by anti-money laundering and know your customer standards applicable in the jurisdiction where their ATMs are placed. It requires a money transmitter license in some countries, while current regulations in other countries prevent any Bitcoin ATMs from being installed.

Selling Bitcoin in person

In many ways, trading with digital currency in person is about as easy as it gets. All you need to do to sell your Bitcoins is scan a QR-code on someone’s phone and receive cash on the spot. If you’re selling to friends or relatives, you only need to set them up with a Bitcoin wallet, send them the necessary amount and collect your cash.

However, if you are dealing with a random person, you will most likely go through lengthy rounds of negotiations discussing the price, place of the meeting, and other relevant conditions. Moreover, you need to consider a few things to ensure your safety and the safety of your funds.

How to negotiate the price

Numerous websites and forums help traders arrange one-on-one meetings to buy and sell Bitcoin, with LocalBitcoins being the most widely used platform. One of its main advantages is the rating system, which means you can assess the trustworthiness of people you wish to trade with.

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As Bitcoin’s value continually fluctuates, the final exchange rate is usually agreed upon during the meeting. Most traders use rates from prominent exchanges (e.g., Binaryx). Alternatively, services like Bitcoin Price Index can be used. Sometimes, sellers will charge a fee on top of Bitcoin’s current exchange rate for convenience, anonymity, and cover their costs. Choosing the amount of said fee is entirely up to you, but it usually is set at around five to 10 percent.

Moreover, it is vital to be aware of local fluctuations in Bitcoin’sBitcoin’s price. The exchange rate can be different depending on the country. It’s associated with difficulties in obtaining bitcoin with the local currency.

Alternatively, instead of setting up a one-on-one meeting in advance, you could visit your local Bitcoin meet-up. There are numerous such meet-ups worldwide, during which the attendees are happy to buy and sell Bitcoin and other digital currencies. It is probably the safest environment to conduct person-to-person trades. Of course, when selling at a meet-up, you need to be prepared to negotiate the price on the spot. You can find information about your local Bitcoin meet-up using services such as meetup.com.

Pieces of advice for staying safe

Selling Bitcoin person-to-person is the perfect option of trading for those who value anonymity and convenience. However, security considerations, especially when trading with a stranger from the Internet, are of utmost importance.

First of all, you should carefully choose a place for the meeting. It has to be a public place with active Internet access, as both of you will need to access your online wallets. Bringing a friend along to the meeting is also quite common in person-to-person trading, but it is essential to notify the buyer before the meeting.

Essentially, take the same precautions you would when carrying a significant amount of cash. Be alert, avoid public transport, and never meet in private homes.

Withdrawing funds

If you’re selling Bitcoins online, you will inevitably face the problem of withdrawing funds. The most common way to move money is international wire transfer, and most prominent exchanges support this transferral method. Recently, however, some services began to accept credit and debit card withdrawals.

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Alternatively, money can be transferred via SEPA, which stands for Single European Payments Area. It is a system designed to make international transfers between members of the European Union more efficient. Some European cryptocurrency exchanges accept this way of transferal.

However, both of these systems are far from perfect. Transfers usually take a very long time. Depending on the country and the amount of money, they can take up to four days to be processed. Moreover, both these systems incur additional charges. For example, Barclays bank charges £25 to £40, depending on how quickly you want the transfer to be done, for a SEPA payment. In contrast, HSBC only charges £4 for a SEPA payment made via online banking, but HSBC is notorious for refusing to work with Bitcoin and any other digital currency-related funds.

So, if you’re opening a bank account specifically for withdrawing money made on Bitcoin sales, you need to do your research and choose the bank that best suits your needs.

Conclusion

Of course, if you learn how to sell bitcoin, you can transfer them to any address or pay for something, even the VPN service. And yes, congratulations. You have completed a “best way to sell bitcoin” boot camp and opened the door to the crypto world. Welcome to the world of a prosperous financial future!