How to Sell bitcoin
After you have been successful at learning how to buy bitcoins, you may also, at some point in time, have a reason to sell your cryptocurrency too. Though the process of buying may be relatively easy for you, this is not always true when you decide to sell the bitcoins that you have purchased. In fact, as you read this article, you will most soon discover that the process of selling your bitcoins is not as simple or straightforward as you may think.
Having said this, to start the process of selling your digital tender, you will need to become familiar with the different alternatives that’s available to you. Here are 2 main alternatives for selling your digital tender and some tips that can help you with selling them at a price that is very attractive and lucrative.
Online Trading Alternatives
Sell on the Exchange
Though exchanges are known for having several drawbacks to the seller, it is still an option that you may want to consider. First of all, one major drawback that you should know, is that the anonymity for this trade is normally not found in the exchange. This is primarily because reputable exchanges require both the buyer and the seller to register their personal information (personal Id) and their bank account before the transaction can be initiated and completed. Also, while this type of transaction should not be difficult to complete with the information that has been acquired, it is also important to note that some banking institutions will not allow these financial transfers to be transferred into the accounts of the seller. You should also be aware that hacker attacks are much more prominent on the exchange too. So, you will need to need to do your research prior to attempting to sell on the exchange.
Again, the exchange may still be a viable option that you want to pursue to sell the bitcoins that you want to trade. However, before going forward you should also know that there are fees that can be attached to these transactions. The rates for these fees will vary so you need to know what they are before you make a decision to choose one exchange over the other. In some cases, the fee that is charged may be a flat fee of $50 or more based on the exchange that you are working with.
If you decide that the exchange is not the best option for selling your digital coins, you may want to think about the alternative option that involves a direct trade. A direct trade has both pros and cons too so you need to do your homework prior to making this option your choice. Typically, with a direct trade, your goal is to sell your digital tender via an individual trader to another transaction. To perform this transaction may be another viable solution but it does involve having an intermediary to assist you with the transaction. The intermediary, in this case, is normally a website that does this kind of business, and some are much more prominent in this role than others. Just to name a few direct trade site options, you need to check out Openbitcoins, Bitbargain, Coinbase, Bitsquire, and localbitcoins.
Peer to Peer Trading
If you find drawbacks to exchange and direct trading opportunities, you may want to think about the 3rd option that you can take advantage of, and that is online P2P trading. P2P trading is a relatively new platform that people are using to connect with others who have common needs. Sites who are providing these services does it with the intent of making these transactions mutually beneficial.
For instance, when these bitcoin trades are being set-up, the buyer can get bitcoins at a reduced rate, while the seller benefits from getting their flat currency exhanged for them to BTC.
To provide these services, the sites must have two forms to make these transactions available, and they are known by names escrow to hold the funds and bitwallet to store the bitcoins. If you want to know who offers these services presently, you should check out what is being offered by
Sites like Purse, OpenBazaar, and Brawker.
Offline Trading Opportunities
Unlike the traditional bank ATM cash machines that’s attached to banking institutions, Bitcoin ATMs are attached to the Internet. The uniqueness of these transactions is its convenient for those dealing in offline trading. Today, these ATMs allow bitcoin traders to even use cash. In order for these transactions to be made, however, the trader will receive a paper receipt that has a QR code. To sell bitcoins using this medium, you should also know that there are relatively much higher fees to make transactions offline that range up to as much 7%.
Though these ATMs are known for their overall convenience, there is at least one major drawback to selling bitcoins in this fashion, and that is finding bitcoin ATMs in your local area.To find these ATMs, you will need to find a Bitcoin ATM map and will need to know common names of these machines like Genesis1, Genesis Coin, Robocoin and so forth.
Selling Bitcoins In Person
Some people say that selling this digital currency to someone in person is one of the simplest ways to make these transactions. When selling to a family member or a friend, all they need is a bitcoin wallet and a mobile phone. To receive a payment in cash, the seller will provide the buyer with a QR-code that they can scan on their mobile device and the transaction is made.
On the other hand, if you are not selling your bitcoins to someone that you already know, the process may take a little longer. This is because you will need to establish a neutral place to meet and negotiate a good price for the bitcoins that you want to sell. The price that you negotiate must factor in several key things, including the understanding that the price constantly fluctuates. Also, when meeting a stranger, the place that you choose should never be someones’ private home. It should, however, be a safe location for everyone involved.
Withdrawing Your Funds
Today, withdrawing funds does not have to be difficult if you are familiar with the options that you have available to you. For instance, you can transfer money internationally via a wire transfer or use a debit or credit card when you withdrawing money from an exchange.
In addition to using a wire transfer or a visa or debit card, you may also want to use a system that is called SEPA. SEPA is designed to accomodate a number of different needs including making transactions simpler for European cryptocurrency exchanges. Before using this option to make a withdrawal, however, you need to take into account that the transfer timing can be quite lengthy based on the amount withdrawn and the countries involved.