Diversify Your Crypto Portfolio
It doesnt pay to have too much invested in one single cryptocurrency.
As with stocks and shares, spread your money out among different digital currencies.
This means you dont risk being over-exposed should one of them plummet in value especially as the market prices of these investments are highly volatile.
There are thousands to choose from, so do your research.
Best Uk Exchanges For Selling Cryptocurrency In 2022
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 in the UK 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.
Cryptocurrencies That Can Be Sold
Nearly all cryptocurrencies can be liquidated to cash it is dependent on the broker and the digital assets that it offers. If an investor owns crypto like Bitcoin or Ethereum, they can access liquidity within the platform and have their crypto converted to fiat, which is ultimately withdrawn to their bank account.
Below are some of the popular cryptocurrencies that are subject to instant liquidity. They are often considered a great store of value and they are recognized in hundreds of exchanges.
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What Are The Steps To Purchase Bitcoin
The process to purchase bitcoin consists of four steps: choosing a venue or exchange to place your order, selecting a payment method, and ensuring safe storage for your purchased cryptocurrency. Depending on the type of venue chosen in the first step, there might be additional steps involved in the process. For example, you might need to factor additional costs for an online wallet and custody of your bitcoin, if you purchase the cryptocurrency through Robinhood because it does not offer these services.
Select The Crypto That You Want To Sell
After youve tapped on Sell, youll see a list of cryptocurrencies that you can sell.
Now, you need to select the cryptocurrency that you want to sell.
For example, if you want to sell Bitcoin, select Bitcoin.
On the other hand, if you want to sell Ethereum, tap on Ethereum.
You can also use the search function to find the cryptocurrency that you want to sell.
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One Funding Your Wallet
After purchasing MANA, many investors store their assets in external wallets. These wallets could be hardware wallets or software wallets. To be able to sell some or all of ones assets, it has to be transferred to the chosen brokerage site.
This is done by funding the wallet provided on the platform. However, before jumping to this step one must create an account on the platform. The process for creating an account is short.
Navigate to the brokers website. Move to the signup button and click on it. The next prompt will require you to fill in details like first name, last name, and email address.
A link will to sent to your email address. It is to verify the email address given. Log in to your email account and click on the link to complete the first verification.
Now, you have an account on eToro. Certain features will be available. It is best to complete the registration before carrying out trades.
eToro regards the worldwide anti-money laundering policies hence they have to collect some personal details. This ensures they know the kind of clients trading on their platform. To finalize the verification, submit a government-issued ID card and a proof of address document.
All valid documents are acceptable. The kind of documents required may vary for some countries, so, check for detailed guidelines for your country. The verification usually lasts a short while and the account will be approved afterward.
MANA coin on eToro
Sell Cryptocurrency With Bitquick
Bitquick is another peer-to-peer marketplace for buying and selling Bitcoin. The site offers private transactions with on-site escrow and manual verification of buyer payments.
Bitquick only supports Bitcoin.
The site streamlines the crypto-to-fiat conversion process by offering only three payment methods. You can receive fiat for your bitcoins as a cash deposit to a bank, a cash deposit to a CO-OP credit union, or by Western Union or Moneygram transfer. To sell, you only need to enter how much crypto youre offering, your minimum price, whether you want a static or dynamic price and where to send the money.
Despite its name, Bitquick is potentially slower than the other direct sale sites because of the manual purchase verification process, which takes around three hours on average.
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How To Sell Cryptocurrency For Cash
Learn how to sell cryptocurrency for cash. Selling your cryptocurrency once you have it for US dollars, Euros, Japanese Yen and other FIAT money is often frustratingly complex. Thankfully, there are exchanges and brokers who accept crypto and send fiat to your bank account, plus emerging services that make using your digital funds much easier. Heres a look at some of the best solutions currently out there.
Crypto Scams Are Increasing
There are two main types of crypto scams.
Scammers try to trick people into investing in fake opportunities to buy crypto. Watch out for these tactics:
- false promises of very high returns
- fake endorsement from celebrities or government agencies
- people who contact you through social media or text messages
- using dating apps to establish a romantic connection and gain trust
- multiple or constantly changing bank accounts used for transfers
Read more about the tactics used by investment scammers.
Rhett is scammed $97,000 by a fake endorsement
Rhett saw an article on a news website about The biggest deal in Shark Tank history, that can make YOU rich in just 7 days!
Rhett was interested in trading Bitcoin, so he provided his contact details. Soon, an Account Manager named Max began calling Rhett. Max called often, pressuring Rhett to open a trading account and make a deposit. By depositing between $40,000 and $50,000 upfront, Max promised Rhett he could earn at least $15,000 per month.
Max promised Rhett that the money he deposited would be safe because he would have total control of the account. Its more or less moving your money in your left pocket from your right pocket, Max said. Max promised Rhett that he could withdraw his money whenever he wanted to.
Rhett deposited more money in the hope he could recoup his losses. Rhett ended up depositing and losing a total of $97,000.
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How Many Cryptocurrencies Are There What Are They Worth
More than 15,000 different cryptocurrencies are traded publicly, according to CoinMarketCap.com, a market research website. And cryptocurrencies continue to proliferate. The total value of all cryptocurrencies on Dec. 17 2021, was about $2.1 trillion, having fallen off an all-time high above $2.9 trillion weeks earlier. The total value of all bitcoins, the most popular digital currency, was pegged at about $868.7 billion.
Are Cryptocurrencies Legal
Theres no question that theyre legal in the United States, though China has essentially banned their use, and ultimately whether theyre legal depends on each individual country. Also be sure to consider how to protect yourself from fraudsters who see cryptocurrencies as an opportunity to bilk investors. As always, buyer beware.
Recommended Reading: How To Earn Cryptocurrency Without Investment
Set Up Your Fiat Wallet
Watch these videos to learn how to set up your fiat wallet :
After youve tapped on Fiat Wallet, youll land on your fiat wallet.
If you havent set up your fiat wallet yet, you need to do so.
If youre living in Singapore, you need to connect with StraitsX.
StraitsX is a payments infrastructure for the digital assets space in Southeast Asia.
Tap on Connect with StraitsX and follow the on-screen instructions to set up your fiat wallet with StraitsX.
On the other hand, if youre living in the US or Europe, you need to deposit fiat via bank transfer.
If youre living in the US or Europe, tap on Set Up New Currency, enter your residential address, and follow the on-screen instructions to set up your fiat wallet.
Make A Cryptocurrency Account On A Selling Platform
You can use a platform like Coinbase or Binance. With the account you created, search for a market on which to buy and sell bitcoin , Ethereum , Litecoin , etc. Using your money, buy the amount of crypto you want to sell and transfer it into a personal wallet. To find out how much bitcoin or other cryptocurrency is worth in US dollars, visitCoinMarketCap.com.
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Sell Bitcoins For Cash
Paxful is a peer-to-peer marketplace that allows individuals to safely buy, sell, send and receive bitcoin using cash deposit or PayPal as payment methods. The site features over 150 payment options, so any country-specific currency is valid to purchase bitcoins at a low fee.
Users can place ads with specific payment or shipping instructions, and interested buyers will contact them to purchase bitcoins using the advertised payment method. The site makes it easy for users to buy bitcoin online from local sellers quickly and safely without having to use a bank account.
Paxful also features an escrow service that holds funds until the transaction is complete, and trusted sellers can earn positive feedback for their efforts.
Begin With Small And Clear Amounts
This rather sounds counterintuitive but it is one of the most important principles if you want to make the best of your trading journey. The volatility of cryptocurrencies could empty your portfolio as a beginner, therefore, it is only safe to explore at first with small amounts that you can afford to lose.
These amounts should be a small percentage of your income, especially as a beginner. This way youd have a specified budget for cryptocurrency investment.
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What Is The Queue System
We have implemented a queueing system for limited-time drops in order to ensure stable performance and improve your purchase experience.
60 minutes before the drop starts, you will be taken into a waiting room with other users looking to purchase the drop. 10 minutes before the drop starts, people in the waiting room will be taken to the queue where queue numbers get assigned randomly before the beginning of the event. Once you are redirected to the drop event page, you can start the purchase process.
Those of you who join the queue after the numbers are assigned will be directly assigned a number at the back of the queue.
When you are in the queue, please do not close the queue page. You will lose your spot in the queue if you leave this page. Please make sure you join the queue with only one tab. Dont try joining the queue from multiple tabs or devices.
While Interest In Crypto Has Exploded Few People Are Using It For Its Intended Purpose: To Pay For Things
Billionaire tech executive Michael Saylor has called bitcoin the seminal invention of the human race. His website describes it as a bank in cyberspace offering a simple, & secure savings account to billions of people. He recently claimed ownership of 17,732 bitcoin worth about $740 million.
But one thing Saylor cannot do with bitcoin is pay for the $18 shrimp cocktail at Tony and Joes Seafood Place several floors below his penthouse apartment on Washingtons Georgetown waterfront. Though Tony and Joes has an ATM that can convert cash into bitcoin, the restaurant wont accept it.
I would take Monopoly money before I took cryptocurrency,said a manager, who declined to give his name.
Nearly 30,000 bitcoin ATMs now dot the American landscape in gas stations, liquor stores and hair salons, up from 1,800 four years ago. About half of Coinstars 17,000 kiosks, which convert coins into cash, now sell bitcoin. And consumers have a growing array of options for buying, selling and transmitting the digital currency, including popular payment apps such as Venmo and Cash App.
The moves have raised alarm among some academics who study crypto.
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How To Sell Your Bitcoin Into Cash On Binance
08 Feb 21 Binance
While we at Binance advocate for everyone to buy crypto, we understand that you sometimes need to sell crypto because you might need cash. And as the worlds largest crypto exchange, trusted by millions of users, we offer you some of the best methods for selling Bitcoin at the rate thats most favorable to you. Besides, our 24/7 Customer Support team is always ready to help you if there are problems with your transaction.
But First: Explore Other Non-Selling Alternatives.
With crypto becoming more prominent day by day, there are a lot of ways for you to pay for your transactions using the crypto you have. Ask yourself the following questions:
Will I sell Bitcoin into cash to protect myself from the price fluctuations?
If yes, then dont sell immediately. Explore converting your crypto into stablecoins such as BUSD. Using stablecoins protects your cryptos’ fiat valuation without needing to cash out and incurring fees in the process.
Is there a way for me to pay for my transactions using crypto?If yes, then we suggest opting for those methods. Most of the time, opting for crypto payments can end up costing you less than going through the hassle of converting crypto into fiat.
Now, if after those questions, you still need to convert crypto into your local currency, then were here to help you regardless.
Sell Bitcoins In The United States
If you live in the US, CoinBase is the easiest way to sell Bitcoin for cash. CoinBase allows users to buy and sell Bitcoin online with a credit card or through their bank account. You can even deposit fiat currency into your PayPal account. Users who have used BitPanda in the past know that they charge hefty fees when buying and selling Bitcoin, but CoinBase charges a smaller fee.
Read Also: How To Track Crypto Trades
Why Do I Need To Verify My Identity To Sell Bitcoin
When you sell bitcoin through an exchange service, you’re interacting with a regulated business. Such businesses must comply with Know Your Customer and Anti-Money Laundering regulations. These regulations require the collection and storage of customer information, including identity documents and sometimes proof of address.
Use A Crypto Debit Card For Spending
Another option for cashing out crypto from Metamask is by using a crypto debit card. In this case, you made a profit on some tokens by using Metamask. As a result, you just want to spend the profits in real life instead of funding a bank account.
Why not use a debit card for this? Nowadays you can pay in any store whether online or offline where VISA is supported on a global scale. Besides, if you live in a part of the world where getting a bank account can be hard for ordinary people then the crypto debit card is an acceptable alternative. A good example of a platform that works with crypto debit cards is Bitpanda.
In short, Bitpanda is a popular trading platform that besides trading in cryptos also offers to trade in popular tech stocks like Amazon and Tesla. In addition, users of the platform can choose to send a debit card to their home address. Using a debit card for spending has the following benefits:
- Pay in any store that supports VISA
- No need for a bank account
- You are actually spending your crypto
Bitpanda plastic debit card
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Crypto Taxation In The Us
The Internal Tax Revenue Service in the United States is bearing down on digital currencies and it has developed a taxing structure for the industry. It is important that potential or active investors in the United States know the basics of this structure to stay on the safe side.
The tax rate for cryptocurrency for federal taxes is the same as the capital gains tax rate. Majorly, there is a classification for cryptocurrency taxes as short-term and long-term capital gain taxes. The ratio is from 10 to 37% for short-term capital gain taxes and 0 to 20% for long-term capital gain taxes in 2021.
For short-term capital gains, the tax rate is measured based on the holding period. If you hold your crypto for less than 365 days, the IRS would classify it as ordinary income and therefore subject to the short-term capital gains tax.
The rates at which short-term capital gains are charged depending on the value of your crypto and the entity holding it. On the other hand, long-term capital gains are subject to tax once the crypto has been in the individual or collective possession for a period above 366 days. The tax rate is between 0-20 percent as the actual taxing begins from $40,401.
Your crypto also is subject to tax if you earn crypto interest from decentralized finance, earn airdrops, crypto payments, staking pools, and crypto mining. To learn more about cryptocurrency taxing in the US, visit the IRS FAQs section.