Because of how easy it is to buy, many platforms offer the option to sell bitcoins just as easily. What this means is that the type of exchange you decide to trade to will depend on the type of holder you are: small investor, institutional holder or trader?
However, Bitcoin ATMs are an exception. Because while some will allow you to exchange Bitcoins for cash, most won’t. Some platforms even allow large orders from institutional investors and traders.
But when it comes to retail clients, they can trade Bitcoin at exchanges, each of which has a different interface, some of which even offer services like secure storage and more. While some exchanges require verified identification for all trades, most are relaxed if small amounts are involved.
But if you don’t intend on just selling your bitcoin, you can exchange it for crypto-assets like ether, XRP, litecoin, and more. And if you’re still not convinced, then you can directly invest. All you have to do is register on a platform that will let you sell, and if anyone is interested, they will directly contact you. How does it work? It carries out transactions via wires and deposits to your bank account, wherein you transfer the amount of bitcoin agreed to the address after.
But if neither of these is the right option for you, you can just sell it to family and friends. All that’s left is setting up a bitcoin wallet for them. What next? Send the bitcoin, collect the money by whichever means they use, and relish your sense of accomplishment!
Selling your Bitcoin
Bitcoin has 4 main uses, these being that you can buy it, hold it, trade it or sell it. In this section of the website, we will be explaining how you can sell your Bitcoin. If you haven’t already, then I would suggest checking out the section of our website that illustrates How To Buy Bitcoin – it is wise to understand how to buy Bitcoin before understanding how to sell it!
Bitcoin is easy to buy and just as simple to sell. Many of the platforms that sell Bitcoin also buy it. This is because Bitcoin is most commonly exchanged on trading platforms and marketplaces, meaning there will always be people buying Bitcoin and there will always be people selling it.
How to sell Bitcoin
So, how do you sell Bitcoin? Firstly, you will need to register an account (if you do not have an existing one) on the trading platform that you wish to make the transaction through. If you are selling your Bitcoin from the same exchange that you bought it from, then you just need to log in to the account in which you made the initial purchase on. There are numerous established and renowned exchanges that offer these services, such as Coinbase (the world’s largest cryptocurrency exchange by volume), Trezor, Ledger, Binance and many more.
Once you have identified the platform that you want to sell on, you will then need to transfer the Bitcoin from your digital wallet to your exchange wallet, so that you are able to sell it on their exchange. Once the Bitcoin is in your exchange wallet, you just need to place a ‘sell order’ so that your Bitcoin is advertised as ‘for sale’ and a buyer is able to purchase it. Once the Bitcoin is sold, the transaction is carried out via wires and the exchange deposits the buyer’s funds into your bank account. In parallel, the exchange transfers the equivalent amount of bitcoin to the digital wallet address of the buyer.
Methods of sale
Now that your Bitcoin has been sold, what happens next? Well, once the transaction has been confirmed and the payment has been processed on both ends, it is a matter of waiting for the funds. If you sold your Bitcoin for fiat money, you can ‘cash out’ the funds into a bank account. Although the transaction of your Bitcoin to the buyer only takes a few seconds, it will generally take anywhere between 1-3 days for the proceeds of that sale to be deposited from your bitcoin wallet and into your bank account.
You can also sell your Bitcoin through Bitcoin retailers. These retailers can directly exchange fiat currencies for your Bitcoin without having to connect you to a buyer and taking a cut for being a 3rd party in the transaction, unlike exchanges. Although they do not charge a finder’s fee because they are not connecting buyers and sellers, they do offer slightly lower purchase rates. Each retailer has a unique interface and operates in a different way, some even offer services like secure storage and more. Some exchanges and retailers require verified identification for trades; however, most are relaxed if smaller amounts are involved.
You can also sell your Bitcoin through Bitcoin ATMs; however, this doesn’t tend to be a popular option, simply for the fact that some ATM’s allow you to exchange Bitcoins for cash, however, most don’t. On the other hand, if you can find a Bitcoin ATM that will exchange Bitcoin for cash, this can be a very efficient and simple way to sell your Bitcoin.
The options listed above are not the only methods of sale. Alternatively, you can sell Bitcoin to friends and family. This would involve the purchaser setting up a digital wallet (if they do not have an existing one) and the 2 parties agreeing upon a price to exchange the Bitcoin for. You will then need to arrange a payment method and then simply exchange the funds for the Bitcoin.
Finally, it is important to consider that selling is not the only option when it comes to your Bitcoin. You can also exchange it for other crypto-assets such as, XRP, Litecoin, and many more. This can be done through a wide range of crypto exchanges that operate across a number of cryptocurrencies. The process is the same as selling, however, instead of receiving Fiat cash for your Bitcoin, you are simply just exchanging it for another equivalent amount of cryptocurrency.
When to sell your Bitcoin
Bitcoins price is highly volatile, meaning that its value can significantly increase or decrease within a short period of time. In order to make a profit from Bitcoin trading, you simply need to sell it when the price is higher than what you bought it for. You can minimise the risk of taking a loss by selling Bitcoin when it reaches its highest price since you purchased it, this is referred to as your ‘time high’ and guarantees you make a profit. The advantage of ‘time high’ selling is that you are always guaranteed a profit, however, you may be holding the Bitcoin for a while before you sell it.
There are many strategies behind Bitcoin trading, for example you can take more of a risk in turn for a greater reward and see if the value continues to climb beyond your ‘time high’ so that you can make a larger profit. The risk of this is that Bitcoin’s price can drop at any time and you can miss the opportunity to optimise your profit. If this does happen, you can always continue to hold the Bitcoin until the price rises again.
Most traders generally enter the market with a predetermined goal in mind. For example, they may only commit to buying Bitcoin when the price falls beneath a certain threshold (for example £10,000 per coin) and only sell it when it surpasses another amount (for example £20,000 per coin). This is a safe way to trade because you can calculate the amount of profit you want to make prior to even entering the market. You can enter the market being aware that you may be holding on to your Bitcoin for a while upon purchase, however, it will be worth the wait to achieve the goal that you have set. Upon selling you can then walk away with a healthy profit and relish your sense of accomplishment!