So it’s time to sell your bitcoin and pocket some profit? Even if you are not trying to sell yourself Bitcoin HODLer (definitely one) and your bitcoins in the near future, it is important to know (and when) to sell cash and To sell. Read also: Selling Bitcoin Complete Guide 2021
Before you cash your bitcoins, there are a few things you need to consider.
- How Many Bitcoins Do You Want To Sell?
- How do you want to receive your generous money?
- Do you want to withdraw money to your bank account? Your PayPal account, your credit card? Or do you like receiving physical cash?
- Which country are you from?
In this guide, I will walk you through the different ways you can sell bitcoins, so you can decide which way is best for you.
Let’s dive into this: Here are some of the safest and least expensive ways to exchange your bitcoins for currency issued by your government.
5 Easy Ways to Sell Bitcoin
(A) Sell Bitcoin through cryptocurrency exchanges
Step 1: Find a reliable cryptocurrency exchange to sell bitcoins
The most popular and easiest way to convert your bitcoin into fiat currency (or your local cash) is to use an online bitcoin exchange with a good reputation in your country.
Although most exchanges have some limitations on how much you can exchange without confirmation, this is a great choice for those who are just starting out and are not trading large amounts of bitcoin.
It’s easy, convenient and safe.
I have exchanged trusted bitcoins based on your country. They offer many ways to pay with affordable fees and competitive rates (such as bank transfers, PayPal and PayPal). Choose one that is available in your country.
However, selling a bitcoin through a crypto exchange is not the fastest way to convert your bitcoin into cash. Generally, you will have to wait a few business days for the bank to process and transfer the money to your bank account.
Let’s see how it works in detail.
Step 2: Set up an exchange account
Once you find an exchange website that supports your country, sign up for a free account.
Depending on the platform you are using and the country you are in, you will need to provide certain identification documents to comply with the “Know Your Customer” rules.
It can take anywhere from 10 minutes to 2 days for your account to be ready for trading.
Also, I suggest you set up an exchange account now, so you can sell your bitcoin immediately when you really need it.
To make it easier to understand, I am going to use Lono as an example exchange. You can follow the straightforward steps in any of your conversion accounts. The process of selling Bitcoin is the same in all cryptocurrency exchanges.
Lono is the easiest and safest exchange to withdraw your bitcoins and other cryptocurrencies.
- How to sell Wikipedia on Lono Think Madric
- Create a Lono Exchange account
- Complete basic personal details
Link your bank account to Lono so you can get the most out of your money.
If you want to sell a small amount of Bitcoin, you should be able to do it immediately. For large transactions, you will need to provide photo ID and proof of residence to upgrade your account.
Tip: Make sure you use two-factor authentication and a strong password.
Although two-factor authentication (2FA) is optional, you should enable 2FA (in all the Exchange accounts you have) to keep your accounts more secure
You only need to configure 2 FA once, it takes less than 5 minutes:
1) It will protect your account whether your password is stolen or broken
2) Improve the security of your account
3) Reduce the risk of identity theft
Learn how to activate 2FA on all your Exchange accounts.
Step 3: Transfer your bitcoin to your exchange wallet
To start trading, you must deposit the bitcoin from your personal wallet into the Exchange Wallet. You can store your bitcoin there whenever you are ready to sell.
For example, log in to Lono, click on “Purse”, and select your bitcoin wallet. Click “Receive” to get your Bitcoin wallet address.
Next, send the bitcoin (BTC) amount you want to sell from your bitcoin wallet to your Lono Bitcoin wallet address.
Hint: Wikipedia is completely non-refundable. Don’t send BTC to the wrong Bitcoin address or you’ll lose your money forever
Always double and triple check the address before sending.
Whenever you want to send some bitcoins to a new address, make it a habit – send a small piece of bitcoin, such as 0.001 BTC, to a bitcoin address. Once the transaction is successfully completed, just send the rest of your bitcoin to the address.
Step 4: Order a sale
Once your wiki l your Bitcoin at the best available price.
Step 5: Get your money
Once the sale is complete, your funds (USD, EUR, SGD etc) will be automatically deposited on your exchange wallet. You can then choose to withdraw your money directly to your bank account, PayPal or other methods.
Depends on your country and the exchange, usually you’ll be able to receive your funds within 1-2 days
How to Sell Bitcoin Anywhere in the World
(B) Sell Bitcoin via Peer-to-Peer Exchange
If you’re looking to sell Bitcoin quickly without going through the limited exchange option, try using Peer-to-Peer exchanges like Local bitcoins and Paxful.
Localbitcoins
How to sell Bitcoin on Localbitcoins:
Sign up a free Localbitcoins. You’ll get a free and secure online Bitcoin wallet.
Send Bitcoin to your LocalBitcoins wallet.
Choose a trusted buyer.
Filter your country and choose the payment mode and amount of BTC you want to sell.
From the list of offers, choose a buyer with a good reputation score and high amount of completed trades.
Confirm the amount of BTC you want to sell, enter your payment details (for example, provide your PayPal email address or bank account)
Wait for the buyer to pay.
Release Bitcoin to the buyer once you receive payment in your bank account, Paypal etc.
Paxful
Similar to LocalBitcoins, Paxful is another popular peer-to-peer marketplace that allows you to sell bitcoins instantly to buyers around the world.
There are more than 300 payment methods are available for you to choose from: gift cards, bank transfers, PayPal, debit cards, credit cards, cash, digital currencies, gold and more.If you’d like to buy bitcoin instantly with no ID or verification, choose to pay for bitcoins with gift cards, cash in person or cash deposit.
How to Sell Bitcoin for Cash
(C) Sell Bitcoin with a Bitcoin ATM (The Offline Way)
How to Sell Bitcoin – The Ultimate Beginner’s Guide 2020. thinkmaverickIf you’d like to sell a small amount of Bitcoin for physical cash, using a Bitcoin ATM is a quick and convenient way to do so.
First, you’ll need to find an ATM machine near you. Use Coin Radar, a live worldwide Bitcoin ATM map to
locate the closest machines to your location.
Find out all the information about the ATM: Buy / Sell options, limits, fees, BTC price)
Get direction from your location to the selected Bitcoin ATM machine
In general, this is the process of selling Bitcoin (BTC) using a Bitcoin ATM machine:
Select your withdrawal option.
Choose Bitcoin and enter the amount you wish to sell.
Send your Bitcoin the given address or QR code using your Bitcoin mobile wallet.
Collect your cash.
The process of selling Bitcoin via a BTC machine is fairly simple and easy, even for novice users.
Plus, some machines don’t require any form of verification– meaning, you are completely anonymous. But there are certain disadvantages associated with them as well.
The main one is its high transaction fee. While most exchanges charge an average 0.1% -1% fee, Bitcoin ATMs charge 7-12% for buying bitcoins! Also, it’s more suitable for small transactions, as most Bitcoin machines have deposit and withdrawal limits between $ 1000- $ 10,000
Click here to learn how to sell Bitcoin using a Bitcoin ATM.
Bitcoin Loans:
Don’t Sell Your Bitcoin, Borrow Cash Against It
Did you know you can borrow money with your Bitcoin as collateral?
Yes, you can
If you are in need of money urgently but don’t want to sell your precious bitcoins, you can get a loan with your Bitcoin at reasonably low-interest rates!
There’s a growing number of new companies in the crypto spaces that allow you to take out loans without selling your Bitcoin. All you need to do is use your Bitcoin and cryptocurrency holdings as collateral
Basically, you’re borrowing money from your own bank.
Here’s how it works:
- You send your Bitcoin into a smart contract where it’ll be held.
- You receive local fiat currency in your bank account.
- You pay back the loan as and when you need to.
- You get your Bitcoin back after pay-off.
This way, you can get some real-money without actually selling your Bitcoin. What’s better, you don’t have to pay tax on the money you get from the Bitcoin loan.
If the price of Bitcoin increases within the next year, which is very likely to happen, you won’t miss out on potential profit because the Bitcoin is still owned by you.
You Holder and Celsius Network are two reliable companies that offer this borrowing service. If you’re interested to know more, check out this Bitcoin lending and borrowing guide.
Is it hard to sell Bitcoin?
With the growing demand for Bitcoin (BTC), it’s getting a lot easier to sell your Bitcoin for local currency. There are far more buyers than sellers in the market. More and more people are ready to swap their fiat currency with your Bitcoin.
Countries like Bolivia, Ecuodor and China have banned bitcoin, but you can still use a peer-to-peer exchange. ke LocalBitcoins and Paxful to trade.
Banks can cut off your credit lines with crypto exchanges, governments can regulate Bitcoin but they can never kill Bitcoin. No one can stop you from selling Bitcoin.
Do I have to pay taxes on Bitcoin?
It depends on the tax law of your country
For example, countries like the United States have a very strict rule on cryptocurrency. Selling Bitcoin or spending Bitcoin is a taxable event in the US. In other words, you have to report capital gains on your tax return and pay tax on your Bitcoin. While countries like Singapore and Germany are embracing Bitcoin, and don’t require you to pay taxes on Bitcoin investment gains.Visit finance guide for info.
