As Bitcoin is volatile, and its value changes all the time, once you hit the right price and sell it, your Bitcoin wallet may contain less funds than before, but you can cash out pretty good without having any regrets for emptying it a little.
Those who don't know what is Bitcoin must know that selling Bitcoin isn't quite the same process as buying Bitcoin. First of all, selling this cryptocurrency includes various options and methods to be chosen. So, the first and most important thing is to choose the right method that perfectly suits your needs and expectations. Two main options that should be considered are selling Bitcoin online and selling Bitcoin in person. Each chosen option has its own advantages and disadvantages, so the importance gaining education and following the Bitcoin news is essential.
Selling Bitcoin online
The most common way of selling Bitcoin, which is selling this cryptocurrency online, includes three different ways of doing it:
- Direct trading – this is direct trading with another person, an intermediary that facilitates the connection
- Exchange trading – this method includes online exchange, where people trade using Bitcoin exchanges, rather than doing it with a specific BTC holder.
- Peer-to-peer trading – this one includes online peer-to-peer marketplaces, where one trader can get discounted goods with their coins via another trader who wants to obtain Bitcoin with credit cards and debit cards.
There are various websites that offer this trading method, such as CoinBase and LocalBitcoins in the US, and BitBargain and Bittylicious in the UK. On these websites, people mostly have to register as sellers, which also includes their identity verification. Once registration is complete, you can easily post an offer, letting other traders know that you wish to sell Bitcoin, and the system automatically alerts you as soon as some interested buyers appear. The next step is to interact with a buyer and use the website to complete the transaction.There are various websites that offer various trading methods, such as CoinBase and LocalBitcoins in the US, and BitBargain and Bittylicious in the UK.
The problem of trading on Bittylicous and BitBargain is that the process of selling can take a while and it requires trader's patience. For BTC holders who have a bank account in the United States, it’s best to consider trading on Coinbase or Circle, as they are very simple and user-friendly.
Another popular method of selling coins is via online Bitcoin exchanges, where users have to register, which also includes their identity verification. The advantage of selling through exchanges is that traders don't have too much work when it comes to organizing the sale.
Exchanges actually act like an intermediary who holds everyone's funds in one safe place. Traders just have to place the sell order, determine the type currency, set the amount, and determine the price per unit they wish to sell for. When a certain buyer places the matching buy offer, the exchange completes the transaction, and the currency goes to trader's account.
When trading cryptocurrencies for fiat currencies, a trader has to move the funds to his bank account to withdraw the money. The problem is that transferring the funds to the bank account can take some time if the Bitcoin exchange faces liquidity problems or specific issues with its banks. Therefore, it's essential to carefully research and learn more about the exchange you choose before trading currencies. Some popular crypto-to-fiat choices include exchanges such as Circle, Kraken, and Bitstamp.
There's also a number of pure cryptocurrency exchanges where Bitcoin can be traded for other cryptocurrencies. Even though it's not so common among BTC holders, some choose these exchanges for various reasons, such as arbitrage, or if certain shops accept some other cryptocurrencies. Some popular choices among users are websites such as BTER and CoinCorner.
Those who choose this option must be aware that they'll have to pay a certain fee when using services of these exchanges. General overviews of what fees are charged and what volumes are being traded in the global cryptocurrency market, it’s best to check some websites with up-to-date information such as CoinCompare and BitcoinCharts.
When it comes to peer-to-peer trading, there's a new type of websites such as Purse. These sites collect the data about the traders with specific and complementary needs and then linking those two groups of people pretty fast.
One group includes people who wish to use Bitcoin to buy goods from websites that don't still accept cryptocurrencies, while the other group includes people who wish to buy Bitcoin with credit and debit cards. These websites are bringing together people with matching interests and selling Bitcoin to ones while providing goods to others.
Identity verification problems
While numerous Bitcoin marketplaces do not require a lot of identity info from buyers, they require quite a lot of sellers. Even though there are not many legal requirements from BTC markets to know who their users are, they are still collecting a lot of data in case of new global regulations. So, to make to the process of becoming a seller easier, it's wise to think about completing the ID verification when registering on the website for the first time.
Selling Bitcoin in person
Selling Bitcoin in person was considered as the easiest way to trade for a long time, as it's enough to scan the PR code on another person's phone and accept the trade. Anyone who wants to buy Bitcoin needs to open a Bitcoin wallet and obtain it for cash. Before selling, BTC holders should determine the rate that works best for them. Traders mostly use rates from a popular Bitcoin exchange, CoinDesk. Some sellers also pose a percentage to cover trading costs. People can also use mobile apps such as Zeroblock and BTC report to calculate prices quickly and precisely.
For those traders who wish to stay anonymous and avoid banks, it's best to obtain BTC by trading face-to-face with a local seller. LocalBitcoins is the most popular website where these transactions are arranged, and all prices determined and negotiated. The website also contains an escrow to protect both parties.
Those who are not comfortable with these one-on-one trades should consider using MeetUp, which is a website that shows if there are any Bitcoin meetup groups in user's local area. These are the places where people can trade in groups and learn a lot from other users.
Should you sell your Bitcoin?
It's always profitable to hold for some time and then to sell the currency that rose up from $0.08 in 2010 to more than $16000 in 2017. This powerful digital currency is slowly changing the world of finance, so it's not a bad idea to hold on it for a while either, as it has already surpassed gold earlier this year.