How to Sell Bitcoin? How to convert bitcoin to cash?

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Tokeneo
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4 min reading

Selling bitcoins is a more complicated process than buying them. In this case you have several options such as: peer-to-peer transaction, direct trading or placing an offer on cryptocurrency exchange.

how to sell bitcoins

Direct trade

One of the most popular ways to sell Bitcoins is to trade directly with another person. However, it is safer to use a cryptocurrency exchange plantform. You never know if the person you will make a deal with will fulfill it. Therefore, it is better to blow on the cold and choose a wise solution. To sell your BTC, you will therefore have to register on the platform of your choice. Most of them require a verification process, i.e. providing personal data. This is a necessary requirement and complies with AML and KYC (Know Your Customer) policies. Once you have completed all the required processes, you will be able to log into your account and make an offer for sale. If a user wants to buy back your Bitcoins, you will be notified.

NOTE: Before you decide to make a bid on a cryptocurrency platform, make sure that the transactions that are carried out on it run smoothly. This will save you unnecessary stress or nerves. So it is best to use a discussion forum or a group of cryptocurrencies enthusiasts to know other users' opinions and experiences. 

Exchanges offering direct trade include, for example: Coinbase or Tokeneo

Placing an offer on the cryptocurrency exchange

Cryptocurrency exchange becomes an intermediary which comes into possession of both the buyer's and the seller's funds. In order to make a transaction you have to create an account on it and go through the process of identity verification. On some exchanges it can take up to several days. After passing it, all you have to do is log in to your account and make a sale offer. In the appropriate tab you must choose the type of currency you want to trade, its quantity and the starting price per unit. When someone matches your offer, the exchange will automatically complete the transaction. Once the funds have been credited to your account, you will be able to withdraw them to a bank account of your choice.

When choosing a suitable crypto exchange, it is worth taking into account the amount of transaction fees, which are significantly different on every platform. Also make sure that the platform on which you want to sell your Bitcoins does not have problems with liquidity or banks. Don't forget that cryptocurrency exchanges very often fall victim to hacking attacks, so don't treat them as wallets where you can safely store funds. 

Examples of cryptocurrency exchange: Tokeneo and Binance

Peer-to-peer transaction

Peer-to-peer platforms connect people with different but complementary needs. These services are available to people whcurrency payments in places where this form is not accepted. These types of sites provide users with a deposit for transactions and a wallet to store virtual coins.

Please note that in this case you will also need to undergo a verification process. These platforms also charge transaction fees. Moreover, after selling BTC you will have to withdraw them to your bank account. This process often takes a very long time. 

Examples of peer-to-peer platforms include: LocalBitcoins and Paxful.

Selling BTC at a Bitcoin ATM

Although they look like traditional ATMs, they have nothing to do with them. They do not connect with your bank account, but with the Internet. Bitcoin ATMs accept money in cash and exchange it for BTC. The user receives a paper receipt with a printed QR code. It can also transfer funds to the wallet in the Blockchain network. Usually Bitcoin ATMs charge quite high transaction fees. Of course, not all of them offer bidirectional functionality. This means that in most of them you can only buy BTC, because some operators simply turn off the sale operation.

Personal sales

To sell BTC to another person, all you have to do is scan the QR code, send Bitcoins to the public address of their crypto wallet and collect cash from them. You can carry out such transactions with your family or friends. Remember, however, that with a stranger such maneuvers may not be safe. You can't be sure that other person is honest. You might as well fail to fulfill the contract between you and the stranger. Remember that in the blockchain network there is no possibility to withdraw the transaction.

Security issues

Personal Bitcoin sales are an ideal option for people who value anonymity. Remember, however, that it is worth taking special precautions, especially when large amounts of money are at stake. When choosing a meeting place, try to make it a public place with good Internet access, as this is necessary to transfer Bitcoins from one wallet to another. Never meet in private homes.

Withdrawal of funds

When selling BTC you will have to face withdrawal problems. The best known crypto exchanges handle international bank transfers. Some of them also accept withdrawals to credit or debit cards. However, you need to be patient, as transfers usually take a lot of time. Of course it all depends on the country and the amount of money to process. The banks may charge you an additional fee depending on how quickly you want to make the transfer.

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