Tuesday, June 28, 2022

How Do You Sell Cryptocurrency

How To Sell Cryptocurrency

How To Sell Cryptocurrency In Etoro (How To Close Trade)

One of the questions we get asked a lot by people just starting their cryptocurrency journey is how to sell bitcoin? And we agree that this is a pretty valid question especially considering that getting your money out is just as important as investing your money in the first place.

Here is the thing you should know right from the get-go. Selling bitcoin or other cryptocurrencies for that matter is just as similar as the buying process. The only difference is that the process is reversed. To sell your bitcoin or other cryptocurrencies, youll need to have BTC or the digital asset in your wallet. By the way, if youre still confused about how to buy bitcoin and other cryptocurrencies, youre welcome to read this detailed guide on how anyone can buy bitcoin and other digital assets.

Thanks to the many advancements in the crypto space, you can now seamlessly buy bitcoin via a number of ways we will expound on shortly. Whenever you are ready to sell all or some of your digital assets, you can easily do so via some platforms including selling your asset on an online crypto exchange. You can also sell your bitcoin through peer-to-peer transactions online, offline, or via a bitcoin ATM.

Let us take a minute to deeply explore all of the awesome ways anyone can sell their cryptocurrency without sweating it.

Sell Cryptocurrency With Coinbase

Perhaps the best-known crypto exchange in the world, Coinbase leads in fiat currency management. The site operates in over 30 countries, is fully regulated and allows verified US users to withdraw fiat currency direct to their linked bank accounts.

Coinbase supports Bitcoin, Litecoin, Ethereum and Bitcoin Cash.

Once youve connected a bank account to your exchange account, withdrawing fiat is as simple as clicking. Note that fiat withdrawals are not currently available in Wyoming, Hawaii, or Minnesota due to state regulations.

Image from Coinbase.com

How To Sell Your Crypto

BeginnerNov 25, 2020 · 4 min read

Key Takeaways:
You can sell crypto to convert it back into fiat currencies, like US dollars or Euros. This can be interesting if youre trying to take your profits, or simply need the cash. Several options exist to sell your crypto, with the most common one being exchanges. When using Ledger, you can sell your Bitcoin directly through Ledger Live with our partner Coinify.

On the flip side of buying cryptocurrencies, you can sell them too. However, how can you sell crypto? And why could you want to do that? Lets dig into it.

Read Also: Where Does Crypto Money Go

When Is The Right Time To Sell Bitcoin

Before selling Bitcoin it is important to analyze the market carefully. Is it really the most optimum time to sell? Of course, you will never truly know the answer to this question but there is Bitcoin price prediction analysis that can be performed to help you decide whether to sell or hold. Our guide to cryptocurrency technical analysis is another useful tool to help you better understand and read the cryptocurrency market.

Avatrade Legacy Crypto Trading Platform For Investors

How to Buy Cryptocurrency: A Complete Guide on The Easiest ...

AvaTrade is a top brokerage firm that offers exposure to over 600 global stocks and shares. It was launched in 2006 and has licenses from the British Virgin Islands and several locations.

AvaTrade is also popular for its social trading app AvaSocial, enabling new traders to copy other traders moves and connect. AvaTrade is popular for the support of several trading platforms. These include the likes of MT4 and 5 alongside its proprietary AvaTrade platform.

In addition, it operates an automated trading software with cutting-edge technology and a more inclusive trading experience. These include its Duplitrade, Mirror Trader, RoboX, and API Trading. AvaTrade also offers exposure to indices, stocks, commodities, cryptocurrencies, CFDs, ETFs and requires a $100 minimum deposit.

Pros

Your Capital is at risk.

Don’t Miss: What Is The Latest Cryptocurrency

How Do Royalties Work

Royalties are paid to the creator whenever their work is sold on the secondary market, allowing them to be recognized and compensated for their work.

When the creator puts an item up for sale, they can specify how much royalties to charge as a percentage of the listed price for each secondary sale. For example, if you set a 10% royalty, then you will get $500 when your work is sold on the secondary market for $5,000.

Note that royalties are fixed at 10% for resales of collectibles created directly by creators through the platform.

Sell Cryptocurrency With Paxful

Paxfuls mission is to be a universal money exchanger. The sites not as attractive or user-friendly as LocalBitcoins, but it offers over 300 ways to convert bitcoins to fiat including bank transfers, cash, and exchanges for gift cards. Paxful uses on-site escrow to improve trading safety.

Paxful uses Bitcoin as its base currency, but some traders create offers in Litecoin, Ethereum, Monero, Ripple, Dogecoin, Bitcoin Cash, Bitcoin Gold, Digibyte, Dash and other cryptocurrencies. To convert altcoins to fiat, you must first convert them to bitcoins.

As a seller, create a listing for your crypto by choosing Sell Bitcoin. Enter how much you wish to sell and choose your desired fiat currency, then pick a payment method from the very long list. You may find it easier to browse the list of available sales to figure out which payment method suits you, rather than scroll through the list!

Read Also: Should I Invest In Tron Crypto

Wealthsimple Crypto Is Here

You can now buy and sell Bitcoin and Ethereum with Wealthsimple Crypto. Heres how it works, how to sign up, and everything else you need to know.

Wealthsimple makes powerful financial tools to help you grow and manage your money. Learn more

Beginning today, Canadians can use Wealthsimple Crypto to buy and sell cryptocurrency. Its pretty exciting if you happen to be into crypto, Wealthsimple, or using your phone to do fun things. But you probably have a few questions before you sign up. So we spoke with Danish Ajmeri, the product manager for Wealthsimple Crypto, about how it all works.

And even what crypto is in the first place.

So just to start out really straightforward: I can buy and sell cryptocurrency with Wealthsimple?

Yes, you can now buy and sell Bitcoin and Ethereum the two largest cryptocurrencies with Wealthsimple Crypto.

How do I do it? With the Wealthsimple Trade app?

Yes! And no. You have to open a new, dedicated Wealthsimple Crypto account. But your crypto account lives inside the Wealthsimple Trade app, so you only need to download one app to buy and sell stocks, bonds, ETFs and crypto.

If you buy and sell both stocks and crypto, you can just toggle back and forth between your Wealthsimple Crypto account where you can buy Bitcoin and Ethereum, and your Wealthsimple Trade account where you hold stocks and ETFs.

So how do you make money?

So you must obviously think its a good thing to invest in, otherwise you wouldnt have made Wealthsimple Crypto.

Buying Bitcoin Using A Peer

Crypto.com | How to Buy and Sell Cryptocurrency Step By Step Guide 2021

A variety of platforms facilitate the trading of bitcoin and other digital assets by offering 1) a venue for buyers and sellers to post their buy and sell orders, and 2) an escrow and dispute resolution service.

Since these platforms principally help people find each other, in many jurisdictions they aren’t technically classified as exchanges or ‘money transmitters,’ so in some cases they don’t require you to reveal your identity in order to use them. For privacy-conscious buyers, therefore, P2P platforms can be an effective method for obtaining bitcoin despite being generally less convenient, and often more costly overall . Note however, that as a seller, using a peer-to-peer platform to engage in the commercial sale of bitcoin may find you on the wrong side of the law in your country.

Read more: How does Bitcoin exchange work?

Most peer-to-peer Bitcoin exchanges integrate a reputation system, meaning they track and display the trading history of their users. If you’re looking to buy using a P2P exchange, you’ll want to choose sellers who have a good reputation, meaning they’ve completed several trades and never had a complaint.

The process for buying bitcoin using a peer-to-peer exchange is typically as follows:

  • Browse through listings by payment type , amount, location of seller, reputation, and so on.
  • Initiate a trade. Doing so locks up the bitcoin in an escrow account.
  • Recommended Reading: How To Get Crypto Coins

    Trading Cryptocurrency For Another Type Of Cryptocurrency

    Generally, when you dispose of one type of cryptocurrency to acquire another cryptocurrency, the barter transaction rules apply. You have to convert the value of the cryptocurrency you received into Canadian dollars. This transaction is considered a disposition and you have to report it on your income tax return. Report the resulting gain or loss as either business income or a capital gain .

    Limit Your Risk Exposure

    Cryptocurrencies are known to be highly volatile, which means they can spike up and crash within hours. This could be disastrous if you did not properly hedge your bets. When the market is turning against you, make sure you pull your investment to limit your risk exposure.

    Do not rely on the idea that it will rise immediately. It may take days even months before the bears lose grip of the market.

    Also Check: How To Receive Crypto On Coinbase

    How To Sell Bitcoin Without Using An Exchange

    The step-by-step guide above takes you through the process of selling Bitcoin on an exchange. However, this is just one of several options available when you want to cash out your Bitcoin, so let’s take a closer look at what other options you have.

    Selling through a peer-to-peer platform

    Why might you choose this option? If you want to set your own price and enjoy greater control over the sale process.

    • Pros: Provides flexibility and control over the sale process, while offering a better price than an exchange and increased privacy.
    • Cons: With competition from other sellers, it can take much longer to find a buyer.

    Peer-to-peer trades, which are sometimes also referred to as direct trades, provide the option of selling your Bitcoin to another person. Online peer-to-peer marketplaces give a user more freedom and control over the specifics of the transaction. You can set your price, nominate how you want to receive payment, and then wait for the right buyer to come along.

    The way the sale actually takes place will vary depending on the peer-to-peer platform you’re using. For example, while some platforms only accept online bank transfers, sites like LocalBitcoins accept everything from cash and credit cards to PayPal and Western Union transfers.

    Selling via a Bitcoin ATM

    Why might you choose this option? If you want a quick and easy way to turn your Bitcoin into cold, hard cash.

    Selling in person

    Best Exchanges For Selling Cryptocurrency In 2021

    Payment via cryptocurrency: How does it work?

    Cryptocurrencies like Bitcoin, Ethereum, Ripple, Dogecoin, or Litecoin can be sold on several exchanges back to the original source you deposited with, or you can exchange them into stablecoins like Tether .

    Selling cryptocurrency can pose quite a problem to people who havent tried to previously. As mentioned, it is quite profitable to learn how to dispose of your digital assets yourself without needing an intermediary aside from the broker that you are using. The basic advantage of this is you can avoid the risk of losing your digital assets along the way or being scammed by third parties. It is also important if you want to gain the actual value of your crypto without large fees that affect your profits.

    Here are some of the best exchanges to use whenever you are looking to sell your cryptocurrency for fiat:

    The brokers/exchanges above are some of the most popular in the cryptocurrency industry. They are prominent and indispensable for millions of investors that clamor for seamless trading as well as effortless selling. Primarily, they are structured in a way that appears friendly to novice traders and virtually everyone with an interest in digital assets.

    Beyond these, the majority of the above exchanges offer several methods of crypto-to-fiat liquidity via banking integrations, credit/debit cards, and secured peer-to-peer services.

    Also Check: Where To Trade Crypto For Free

    Selling Cryptocurrency On Exchanges

    For traders and investors, exchanges are the most familiar interface between fiat and digital assets. All digital exchanges accept crypto deposits, simply by sending to your assigned exchange wallet address. However, the exchanges that allow fiat withdrawals only support the most popular coins, so you may need to convert your altcoins and tokens before you can transfer them for withdrawal.

    Day Trading / Technical Analysis

    I wanted to speak briefly on this.

    A lot of people are getting into day trading, or technical analysis.

    This is essentially where you look super micro at a specific chart and attempt to trade on what that chart has done in the past and predict what itâs going to do in the future.

    Okay, youâve seen the graph⦠what should we do now? Buy or sell?

    There are two fundamental flaws of this.

    First of all, it assumes humans are rational.

    WE ARE NOT.

    The crash of Bitcoin in 2017 is the perfect example of this. If we were all rational human beings, we wouldnât freak out that the price has gone down by $500. We would all hold because that way, it wouldnât drop any more.

    But, we really think to ourselves, what happens if I donât sell, and everyone else does. Then Iâm screwed! Iâm going to sell it all.

    And then you get a crash that wipes off more than half the value of the crypto industry.

    Even though you might want to trade because usually you think when thereâs two peaks in a row, it means the price is going to go down, please donât assume itâs going to go down. Sometimes it will, and sometimes it wonât.

    After studying finance and investment analysis for 4 years, the one takeaway I walked away with was that Iâm silly if I think I can predict the market.

    The second fundamental flaw is that we forget that the person with the most information will usually win.

    And that person is rarely us.

    Who do you think won?

    Yeap, the monkeys still wonâ¦

    Yeap.

    Read Also: How Can I Buy Xrp Cryptocurrency

    Should You Buy Or Trade Cryptocurrencies

    The decision lies mainly in your hands, and you may need to consider a few things like your budget, your needs, and your preferences. If you are a day trader, selling cryptocurrencies may increase your alley. However, if you are more long-term in your investment strategies, you may consider buying value-driven crypto assets for the long haul.

    Meanwhile, there are a few differences in both strategies:

    Buying
    Trade as contracts for differences
    Buy and own the underlying asset No physical possession of the underlying asset

    Sell Bitcoins In The United States

    How to use Coinbase to Buy and Sell Cryptocurrency

    is a prominent and feature-rich crypto exchange which allow you to sell Bitcoins for USD.

    also caters to Americans. It has high volume and advanced trading features. Ensure that you read the respective documentation for all these cryptocurrency exchanges for further information on trading limits and terms.

    Recommended Reading: How To Buy Libra Crypto

    Transfer Your Bitcoin To Your Exchange Wallet

    If you followed our guide on buying Bitcoin, youd have stored your Bitcoin in a secure maybe even cold wallet. To trade on Coinbase, youll want to send your Bitcoin to an exchange wallet and keep it there, ready for sale.

    Beginners can always use the Coinbase Wallet app, which connects the wallet in a super simple way, as it automatically works with Coinbase trades. Just open the app and wait for the notification to Connect Now, then enter your Coinbase login information. If you dont see the notification, you can always go to Settings and choose Connect To Coinbase to get started. The Coinbase Wallet also has a few other handy features, including paying merchants directly from the wallet if they are part of the Coinbase Commerce program.

    Coinbases security is excellent, providing support for biometrics and advanced authentication technology. However, if you prefer to use another digital wallet, head to its settings and look for ways to connect to a currency exchange. You should be able to input your Coinbase login on the most popular digital wallets and start an authentication process to connect it. However, this may take several days to complete, so its definitely not a last-minute step.

    How Do I Start Trading Cryptocurrency

    Trading cryptocurrency is not unlike trading stocks in the traditional markets. The principles are similar albeit there are a few differences in execution. To start trading crypto, follow these steps:

  • Do your research. Just like in the stock market, you need to do a thorough research of the market and the assets before you decide to invest real money
  • Find the best crypto exchange for you
  • Buy crypto of choice
  • Read Also: How Does Buying Crypto On Robinhood Work

    Revolut Finance App With Crypto Support

    Revolut is not a traditional cryptocurrency exchange. However, the personal finance app provides support for cryptocurrencieswhich is why it made our list. Based in London, Revolut allows users to send, receive, and exchange currencies all from the comfort of their phones.

    Revolut does not offer a trading platform, but it supports the exchange of over 30 cryptocurrencies in seconds. It also enables simple transactions allowing users to exchange their currencies without any hidden fees.

    Despite its generic business style, the London-based exchange service has over 15 million active users and is a preferred channel for international cross-border exchange of currencies. It also offers ticket and travel insurance on its Revolut app, and users can access loans. Revolut provides both physical and virtual cards.

    Pros

    Your Capital is at risk.

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