Learn Where and How to Sell Bitcoin for Cash


June 11, 2018

How to Sell Bitcoin for Cash

It’s easy to sell Bitcoin and receive fiat money in return because this cryptocurrency is growing in popularity every day. Investors, miners or mining pools, a successful startup founder who raised funds in cryptocurrencies during the ICO – all of them need to convert the coins into fiat money on a regular basis. Traders, brokers, and merchants who accept cryptocurrencies also need to sell digital cash, sometimes in very significant amounts.

How to Sell Bitcoin at Exchanges

It is possible to trade your cryptocash at online exchanges such as Coinbase and Kraken. This option doesn’t suit the customer who wants to remain anonymous, because exchanges stepped up their customer identification policies. Most likely you will have to produce your ID, address, and phone number. Smaller trades don’t often have strict verification policies especially if you want to make the trade on a tiny amount of the coin.

Exchange rates can vary between platforms. Because BTC price is very volatile, exchanges can set very different conversion rates. One service offers to convert your cryptocurrency at a rate of 1BTC to, and another offers to turn 1BTC into $7250. Why throw money out of the window?

An exchange will change certain fees depending on the amount sold and the withdrawal method. Usually, there is a flat fee, but sometimes the exchange charges a percentage of the amount you exchange. Evaluate the costs and choose the service that offers you the best deal. Service fees change over time, so make sure to check terms and fees routinely. You may wish to hold your BTC until the price goes up. Some people may decide that if the coin goes up by $100, it is a good occasion to convert their currency. Some people may delay until the value grows by 5 percent. To decide on the best time for the trade, you can check the exchange rate regularly online or sign up for a service that updates you on the bitcoin-to-dollar exchange rate so you can act when it goes up.

Some trading platforms, for example, Genesis and Gemini better suit professional investors because the trades are usually done involving huge amounts worth of Bitcoin. You can also exchange BTC for other cryptocurrencies and not for cash. Some exchanges allow you to swap it with Ether, as well as altcoins such as Litecoin, Dash, and many others.

How to Trade Bitcoin Peer to Peer

If you want to sell Bitcoin at your price, you can choose a platform that pairs sellers and buyers of coins locally, for example, localbitcoin.com. At this service, you can register as a Bitcoin owner and create the sell order for the number of coins you plan to offer. Then you have to wait for the interested buyer. You can also be proactive and browse people who want to buy cryptocurrency and get in touch with them directly. To complete the transaction you can place the Bitcoin in escrow and wait for the wire transfer or another form of payment, and once you have received the money in your account, you confirm the trade to the escrow and the coins are transferred to the other party. You can also meet in person for cash deposit if the trade is done in your area but remember to be safe and meet only in public places.

Local communities

Another right way to find an interested buyer is to find a local community group of cryptocurrency enthusiasts. You can use Facebook to locate a group in your neighborhood. These people would most likely hold BTC and would be interested in buying more. The groups are free to join. If you are lucky, you can find a reliable buyer for long-term trading on a regular basis. Direct trades could be a better option compared to selling cryptocurrency online since the level of trust is higher.

Some are trying to start up local street exchanges across the world. These are called Buttonwoods after the first street exchange established on Wall Street in 1792 under a buttonwood tree. See if there is one, or start one, in your area.

This may be a reasonable way to trade Bitcoin for cash only if a small amount of cryptocurrency is involved. Another reason to trade privately is complete anonymity. The private buyer wouldn’t be concerned with complex verification checks that most banks and exchanges impose.

Can You Sell Bitcoin at ATMs?

While it’s possible to use Bitcoin ATMs to swap the crypto-coin for traditional money, not all jurisdictions allow this. This type of ATM usually sells digital coins for cash, not the other way around. Some apps help you locate the nearest ATM and ensure that it can both sell and buy this cryptocurrency.

How Not to Sell Bitcoin

Some business emerged that would credit you with money if you transferred them your BTC. Very often these businesses would give addresses in Pakistan or South America. The fact is that many of these did work, and there are a lot of stories on the forums of people who sold their cryptocurrencies this way. But it took a lot of time while the seller just had to wonder if they would get their money or kiss their investment goodbye.

As cryptocurrencies become more acceptable and valuable, sellers are going to see a version of the Nigerian Prince scam. So the warning is this: use exchanges and other services that move money smoothly onto and off of exchanges.