Since its launch in 2009, Bitcoin has dramatically increased its market capitalisation from $500 to $57,000. That’s 11,400 % growth! It is considered the number one cryptocurrency in the year 2021. Seriously, a lot of people have already gained profits from the cryptocurrency and others are zealously waiting to join this ecosystem. However stable the market is, there will be instances when you’ll think of selling Bitcoins. For one, you want to have hard cash, or you want to sell it on the open market. But as a beginner, you’re not expected to know everything! This article will help you answer your hows and whats in selling bitcoins. This is very helpful when you’re trying to earn more profits from cryptocurrency.
Selling Point #1: Exchanges
Exchanges are the best for trading bitcoins. The first thing that you should do is to set up an account with a crypto exchange of your choice. It is important that you secure a complete identity verification as the majority of the top exchanges ask for it. Do not forget to connect your bank account so that you can withdraw your funds. In case you are using a cold wallet for your Bitcoin, it’s a need for you to transfer it to an exchange wallet.
To do this, just go to the marketplace of your exchange, label your bitcoin with a “sell” offer and indicate the type of currency you wish to sell, amount and price per unit. Once someone matches your offer, the exchange will help you complete the transaction. And once it’s done successfully, you will get your funds. When you do, transfer it to your linked bank account. Fees may be applied to some exchanges, so make sure that you take note of it.
Bear in mind also that there is a limit in the amount of money you store. But it will increase once you consistently trade in a certain exchange. A word of caution to everybody: not all exchanges are secure and reliable places to store your funds because they are susceptible to hacker attacks. Look for exchanges that are safe and secured. It’s also a good decision to store any amount in a secure offline wallet.
Selling Point #2: Direct Trades
Direct selling is done with another person. An intermediary facilitates the connection, which is done online on the website. You need to first register as a seller and fully verify your identity. Once the registration is complete, post an offer indicating your intention to sell your Bitcoins. A notification will be sent to you once there is a potential buyer. You may then communicate with the buyer. The website will help in completing the trade.
This process can be complex and time-consuming, so make sure that you have enough time and patience to go through all the processes or transactions. Research on some reliable trading platforms, too. Great crypto platforms like Coinbase and Bitcoin Up offer the option of direct selling so you can trade easily.
Selling Point #3: Online P2P trading
Peer-to-peer selling (P2P) is the best for you if you do not want to wait three days to turn Bitcoin into cash. You can tell the buyer about the payment method that you want to use when selling Bitcoin to other people on some exchanges. Arrange a meeting with the buyer, and they will pay you in cash for your bitcoins.
P2P is designed for the benefit of people who want to buy Bitcoins with their credit card and for others who want to spend their Bitcoins to buy goods from places that don’t accept digital currencies as payment. The website will help the users with an escrow for the transaction as well as a wallet to store Bitcoins. P2P is considered safe, but you must still be aware of fraudulent people.
Bitcoin exchanges are highly secured because of their escrow service, as your Bitcoins will be locked until the payment confirmation is received from the buyer.
Familiarising Bitcoin ATM
Bitcoin ATMs are different from the traditional ones in the sense that the buyer’s bank account is connected to the Internet instead of directly connected to the user’s bank account. It accepts money in cash and exchanges it to Bitcoin as a paper receipt with QR-code on it or moving the funds to a wallet on the Blockchain network. The locations of these Bitcoin ATMs are marked on the Bitcoin ATM map as they are quite difficult to find. Users can use them to buy and sell Bitcoins. However, transaction fees are said to be 7% high.
Peer-to-Peer Selling of Bitcoins
In-person trading of digital currency is easy-peasy. You only need to scan a QR code on another person’s phone and receive cash in real-time. Always make sure to secure yourself and your funds when meeting with people to do the transactions, especially with a complete stranger from the Internet. Choose a safe place for the meet up preferably a public place with access to the internet, as both of you will need to access your online wallets. Going along with a trusted person of yours is acceptable as long as you notify the buyer prior to the meeting. If you are carrying a hefty amount of cash, you should be careful.
When is the Best Time to Selling Bitcoins?
First and foremost, check the ongoing market stability. You might think of selling Bitcoin now because there was a plunge in the price of Bitcoin in the past. However, remember that it still has the potential to skyrocket to even higher than its previous price.
As the current trends show, the crypto market still has a long way to go. And as this happens, consumer protection will improve as well. This will result in more secure crypto platforms. More people will be interested in joining the community as well.
Before you make the decision to put your Bitcoins on the market, research what the crypto experts say on social trading sites about it, check crypto forums for predictions, and learn from the experiences of the people who succeeded in this field.