How to Sell Ethereum for Cash: The Beginner’s Guide

Date:

June 12, 2018

How to Sell Ethereum for Cash

Have you accumulated some Ethers from mining? Or did enjoy a successful ICO and need to put the Ethereum you collected from investors to good use as you develop your project? While it’s tempting to pay for your coffee in crypto, only a handful of businesses accept cryptocurrencies including Ethereum at the cash desk.

You may also sell Ethereum as a part of your trading strategy when at some point your analysis showed that it’s time to cash them out, either because the price of ETH is falling and you don’t want to risk, or if you are eager to explore a different investment opportunity.

Cryptocurrency exchange is perhaps the easiest way to trade Ethereum for fiat currencies. This trading platform allows you to convert your funds to a different cryptocurrency as well as to sell the coins you have collected and received the equivalent in US dollars or Euros. Then you can initiate the wire transfer of the fiat currency into your bank account. This usually takes 3-5 days.

Step 1. Find the Right Exchange

The first thing to do is selecting a reputable, trusted exchange. Some well-known exchanges sell ETH are Coinbase, Kraken and Gemini. You have to ensure that the trading platform that you are researching is legitimate in the jurisdiction where you live. Even the largest exchanges can be forbidden in some countries.

Step 2. Open an Exchange Account

Your next step is to open an account. After completing the basic login and password creation you will have to provide a valid bank account. Some exchanges will suggest additional verification steps that may include your date of birth, phone number or scans of documentation. Whichever platform you prefer, be prepared to provide some personal documentation for verification such as government-issued ID, a phone number and in some cases the proof of your residence address, such as utility bill. As the regulation on cryptocurrencies exchange and trading becomes more stringent, exchanges are required to do basic identity checks on their customers.

After you have set up your bank account and passed the verification checks, you will need to choose one of the following ways of selling Ethereum: to trade your Ether for fiat currency according to the market Ether price or trade it for a different cryptocurrency.

Step 3. Deposit the Amount of Ether to Sell

Wallet services can be found on most exchanges to allow buyers and sellers to receive the funds that will be then traded. Locate the service under various tabs such as “deposit” or “sell” words (depending on the platform). You can note the address of your exchange wallet. Key in this address to your existing wallet which contains Ether tokens to allow users to transfer the desired amount to the trading platform. This transaction usually takes a few seconds.

Once you have transferred some tokens to sell, you can proceed in two ways. You can now create a market order and wait for a buyer to accept the price of the order. This is done by pairing ETH/USD. The price of Ether can be set automatically, and it is calculated with live data such as current market token price and the number of tokens in the order. The second way is to do the pairing with another cryptocurrency of your choice, for example, Bitcoin.

Let’s take a look at the technical process of selling Ethereum at some of the most popular exchange platforms.

COINBASE

This is the easiest platform for beginners in cryptocurrency trading and exchanges. You can sell your Ethers online or download their mobile application.

At Coinbase, your first step is to create the account and link it with your bank account. Once completed, you have to send your Ethereum from your own wallet to the wallet at the platform. To do this, go to “Accounts” tad and click on “Receive” button. Here you will get your public address. Copy it and enter in the sending area of your wallet that contains Ethereum.

Once the coins have been transferred, choose the “Sell” tab and ensure that your currency is set to Ether. Here you can enter the number of tokens to sell. Your selling order appears in the order book, and you have to wait for someone who is willing to purchase your coins at your price.

Note that the Coinbase fee for selling Ethereum into the bank account is 1.5%. But if you want to move the USD to your Paypal account, the fee becomes quite high and reaches 4%.

KRAKEN

When you decide to sell your Ethereum on another reputable exchange Kraken, you follow the same initial steps such as registration and connection of the exchange account with your bank account. Kraken steps up its verification procedure so you will have to enter your full official name, country of residence, phone number and the date of birth. Then you top up your account with Ethereum in “Fund” section. Here you will generate the new public address that will receive your the tokens. The rest of the process is simple. Either create a sell order with the amount of coins you want to sell for US dollars or Euros or convert your Ethereum to another cryptocurrency.

GEMINI

This exchange platform is a little more difficult when it comes to selling cryptocurrencies but its fee structure is a lot lower than that of other exchanges. There are no mobile versions or apps, so you are left with using the web version. Your initial steps are the same — you create the account, load it with Ethereum from your wallet, set the selling order and wait for someone willing to buy ETH to accept it. Fees are calculated based on your monthly trading volume and range from less than 0.1 percent to 0.25 percent. Gemini doesn’t charge you anything for transferring fiat currency into your bank account which is another solid benefit. You will still have to wait for a few days for funds to appear in your account as with all wire transfers.

Sell Ethereum Peer to Peer

If you would rather not connect your bank account to the cryptocurrency exchange you fear breaking bank policies regarding cryptocurrencies, trading your Ethers directly from one person to another is an option. There are websites like localethereum.com which allow to place an order similar to the exchange and to wait for a buyer to accept it. The trade is completed using the escrow and any disputes are resolved easily thanks to smart contracts. The service fee is very reasonable at around 0.25 percent.

Trading Ethereum directly involves certain risks. Take precautionary measures: check the private address to ensure that the amount to be sent and the price are right if the exchange rate matches the average market rate; make sure to meet with the other party in a public place, ideally during the daytime and where video surveillance is available. Do not agree to meet in your own home and do not go to other peoples’ houses.

You should follow the similar procedure when selling Ethereum that you have mined. Your mining pool has assigned you an address that receives your mining trophies. While you can set your exchange account address as the one to receive mining profits, exchanges do not recommend this because their public receivables addresses can occasionally change. So you should first send your mined Ethers to your wallet and only then transfer them to your exchange address.

Selling ETH as a Trader

Selling Ether for a profit can be very rewarding. Since cryptocurrency fluctuates at a tremendous pace, there is a big room for profit as you will buy Ethereum at a low value and re-sell it once the price goes up. The real trick in trading is predicting when this will occur and if this appears to be in your favor. In highly volatile pairs such as ETH/USD, you may want to be in and out of a trade in minutes! Some of the most common trading strategies involve analyzing Ethereum price charts and predicting dynamics of the price of Ethereum that might occur on them. But technical analysis is often not enough. To find cryptocurrency price indicators you can also research reputable media sources since changes in , and technological innovations often affect currency prices.