What Does Selling Crypto Mean
Remember when you bought your first cryptocurrencies? Or perhaps you are thinking about it? You would spend your US dollars, Euros or other fiat currencies to get yourself your very first Bitcoin . Sure enough, buying crypto with money is a common entry point into the world of cryptocurrencies.
So where theres an entry point, there must also be an exit, right?
There sure is: you could sell your crypto assets. While with buying youd convert your money into cryptocurrencies, selling crypto is the exact opposite. You would get Dollars, Euros, Yens etc. in return for your digital assets. Its often referred to as cashing out, since youd be getting cash and getting rid of your cryptocurrencies. Well take a look at how you can do this later, but first:
Buying Bitcoin From A Centralized Cryptocurrency Exchange
With this method, the bitcoin you purchase will at first be held by the cryptocurrency exchange on your behalf. If you’d like to take full control of your bitcoin, you’ll need to withdraw it from the exchange to a non-custodial wallet like the Bitcoin.com Wallet. When you withdraw bitcoin from an exchange, you’ll be subject to the exchange’s withdrawal policy and fees. In some cases, you may not be able to withdraw for days or weeks, and the withdrawal fee could be much higher than a Bitcoin transaction fee would normally be.
Here’s the typical flow for buying bitcoin from an exchange.
Is It Better To Sell Btc For Cash
The people who have some Bitcoins and are new in the sphere may still inquire what the best way is to sell BTC. There is no single correct answer to this question. In any situation, using online exchanges with positive reputation is often the most preferred option. And the easiest one. The services like CEX.IO provide the opportunities to sell Bitcoins instantly.
Selling Bitcoins for cash may be seen as an alternative. However, one may not always be sure that he or she will win from the operation due to the price or security concerns. In this case, a reliable and trustworthy platform like CEX.IO may come in handy due to the high level of security and a variety of options to sell BTC.
Try the service right now and make sure it is easy and convenient for your trading activities.
You May Like: How To Get Free Cryptocurrency
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 You Sell Bitcoins
When you feel like its time to trade those precious Bitcoins back to fiat money there are a few things youll need to think about.
First, how do you want to get paid?
Do you want to receive money to your PayPal account? your credit card? your bank account? or maybe you prefer cash?
These considerations will lead you to the second question: Which exchange do you want to use?
Different exchanges provide different payment methods, fees, and exchange rates. Its important to conduct ample market research before choosing the right exchange.
Finally, theres the issue of taxation.
I wont go into detail about this one since its different for each country. Ill just say that its important to know how your country taxes cryptocurrency sales in order to understand if and when to report about the sale to authorities.
Some countries havent come up with clear guidelines, while others have very strict rules. Make sure to consult a CPA in your jurisdiction.
Now that weve got the basics out of the way, let me review the various methods you can use to sell Bitcoins.
Recommended Reading: How To Do Technical Analysis Cryptocurrency
How To Buy Sell And Trade Cryptocurrencies
There is a difference between buying/selling cryptocurrencies on an exchange and trading cryptocurrency CFDs on a CFD platform. Both activities are undertaken with the intention of making a profit by trading in the crypto market, but the processes involved are very different. This article describes how to buy and sell cryptos, as well as how to trade cryptocurrency CFDs.
Buying and Selling Cryptocurrencies
Buying and selling digital cryptocurrencies is basically all about using one cryptocurrency, such as Bitcoin, to exchange it for another cryptocurrency, such as Ethereum, on a buy or sell basis, working on a cryptocurrency exchange. The process involves looking for a cryptocurrency pair in order to perform a crypto-to-crypto exchange or exchanging crypto for fiat or fiat currency for cryptos. The transaction is done twice, and in opposite directions to complete an exchange cycle with the goal of profiting from the exchange.
The buying and selling of cryptocurrencies is done on cryptocurrency exchanges. A trader needs to open an exchange account by filling out an online form. Most exchanges feature an order book that will indicate what traders are buying and selling and where they are doing this.
Making Deposits and Withdrawals When Trading Cryptocurrencies
The Process of Trading Cryptocurrencies
Trading Cryptocurrency CFDs
Where Can I Trade Cryptocurrency CFDs?
How Are Deposits and Withdrawals Made When Trading Cryptocurrency CFDs?
Binance Best Way To Sell Bitcoin Uk For Crypto
Binance is a super-popular cryptocurrency exchange with over 100 million clients on its books. Until recently, the exchange allowed UK customers to sell Bitcoin back to pounds and pence and then withdraw the proceeds to a bank account via the Faster Payments network. However, the FCA has since put a block on this so fiat currency withdrawals are no longer available in the UK.
However, Binance is still worth considering if you are thinking about selling Bitcoin for another cryptocurrency. If you are, then you will have access to hundreds of alternative crypto assets of all shapes and sizes. Whether you are interested in large-cap tokens like Ethereum, Tether, or BNB or smaller projects such as AAVE or Decentraland Binance will offer a market against Bitcoin.
Furthermore, the fees involved when selling Bitcoin for crypto at Binance are super low. In fact, you will only pay a commission of 0.10%. This means that by selling £5,000 worth of Bitcoin for Ethereum you would pay a commission of just £5. We should note that Binance also offers crypto savings accounts. This means that instead of selling Bitcoin you can earn regular interest until the market price is more favorable.
at eToro, UKs #1 Broker
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
Read Also: What Is The Next Crypto To Blow Up
How Much Bitcoin Can I Buy At Once
Even if you’re sitting on piles of money, itching to buy bitcoin, there are limits. Some platforms and exchanges put a weekly or daily cap on how much bitcoin you can buy depending on which payment method you use, how long your account has been active and your purchase history. And even if you verify your identity, you may still be limited to buying $750 of bitcoin per week with a credit card or $10,000 to $15,000 per week if you use a bank account.
Of course, you can purchase smaller amounts, too. Coinbase will let you buy $1.99 worth of bitcoin — but will take 99 cents off the top in fees.
Sell Bitcoin Uk For Crypto
If you want to sell Bitcoin in the UK for another crypto asset there is a lot less red tape involved. This is because there are dozens of cryptocurrency exchanges that allow you to swap one digital token into another without needing to go through a KCY process.
If, however, you are looking to sell a significant amount of Bitcoin you might need to provide a copy of your ID. This will depend on the respective exchange nonetheless.
If you are looking to sell Bitcoin for an alternative digital currency the steps required are as follows:
- You will need to open an account with a cryptocurrency exchange. Assuming you are not looking to access fiat currency facilities this typically only requires your email address
- Next, copy the unique Bitcoin wallet address that your exchange gives you
- Transfer the Bitcoin tokens over to the exchange
- Swap Bitcoin for your chosen digital asset. For instance, if you want to exchange the tokens into Ripple find the XRP/BTC market.
- You can then withdraw your newly acquired digital tokens to a private wallet
Due to a lack of regulatory oversight on crypto-to-crypto conversions in the UK you can complete the above process in a matter of minutes. On the other hand, if you want to sell Bitcoin in the UK for cash then the KCY process is unavoidable.
Also Check: How To Pay Someone Using Bitcoin
What Are The Fees For Buying Bitcoin
Fees for buying bitcoin depend on the payment method and platform/venue used. For example, if you’re buying directly from a friend and settling in cash, you’ll only need to consider the ‘network fee’ for sending the bitcoin from your friend’s digital wallet to yours.
If you’re paying with a credit card or bank transfer, you’ll of course need to factor in the fees for using those payment methods.
Beyond that, exchange services charge additional fees for facilitating trades. These fees cover the exchanges’ operating costs plus a small margin. In general, you’ll pay lower overall fees for larger purchases, so it often makes sense to avoid making many small buys.
Read more: How bitcoin exchanges work.
How To Sell Bitcoin: 5 Ways To Cash Out’ Your Btc Holdings
How do you sell Bitcoin? is one of the first questions that arise when people become interested in buying cryptocurrencies, since getting your money out is just as important as investing.
Selling Bitcoin can be similar to buying Bitcoin, except in a somewhat reversed process. To sell BTC, you must first have BTC on hand in your wallet.
Buying Bitcoin is possible via a number of routes. When you are ready to sell some or all of your Bitcoin, you can do so through a variety of avenues, including an online cryptocurrency exchange, direct peer-to-peer transactions online or on-site, and through a Bitcoin ATM.;
Recommended Reading: What Is The Next Big Cryptocurrency
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
What Are The Risks Of Shorting Bitcoin
Shorting Bitcoin is a good trading strategy for experience investors and professional traders. It is highly speculative that comes with certain risks that do not exist with the traditional buy and hold method using a;Bitcoin hardware wallet.;Trading CFD’s, Futures and derivatives involve leverage which creates the;possibility for uncapped losses that can exceed deposited funds.
Bitcoin is also a highly volatile asset class with sudden price movements both up and down that can result in forced-liquidations and margin calls. Shorting Bitcoin is recommended for experienced investors and professional traders with sound risk management principles.
Don’t Miss: How Do I Get Crypto Buying Power On Webull
Best Places To Buy Bitcoin In 2021
- Transaction Fees: Flat fee between $0.99 to $2.99, plus funding fee of up to $3.99%.;
- Wallet Included: Yes
If you are brand new to the world of bitcoin and cryptocurrency, Coinbase is an excellent place to start due to support for a number of popular cryptocurrencies, a strong security track record, and reasonable fees.
More than 56 million verified users
Support for a large number of currencies
Spread pricing opens possibility for high fees
High fees for debit card transactions
Coinbase is a large cryptocurrency wallet provider and exchange based in San Francisco. It boasts over 68 million users in over 100 countries, making it a popular choice for cryptocurrency enthusiasts, investors, and traders. Coinbase claims it holds over $180 billion in assets and facilitates more than $462 billion in trade volume each quarter. You can trade dozens of currencies, including Bitcoin at Coinbase.
Coinbase charges several fees, which it discloses upfront when entering a transaction. Those include a flat per-transaction fee and a spread of about 0.50%. Fees vary based on the funding method going up to 3.99% when you use a debit card to buy. Serious users may want to upgrade to Coinbase Pro, which uses its own pricing model.
Coinbase offers strong security through Coinbase Vaults, two-factor authentication, and its use of offline storage for the vast majority of client assets.
Transfer Bitcoin To The Website Wallet
Now, under the wallet section of the website, you will find your unique Bitcoin deposit address. You can transfer your Bitcoin to the wallet, and usually this could take 5-50 minutes for the transfer to be done.
On CEX, click on Wallets, and you will find your Bitcoin wallet address:
A word of caution:
If you are doing something like this for the first time, you should transfer just a fraction of Bitcoin. Ex: 0.01 BTC.;
Read Also: Which Crypto Coin To Buy Now
One: Choose An Exchange
Signing up for a cryptocurrency exchange will allow you to buy, sell, and hold cryptocurrency. It is generally best practice to use an exchange that allows its users to also withdrawal their crypto to their own personal online wallet for safer keeping. For those looking to trade Bitcoin or other cryptocurrencies, this feature may not matter.
There are many types of;cryptocurrency exchanges. Because the Bitcoin ethos is about decentralization and individual sovereignty, some exchanges allow users to remain anonymous and do not require users to enter personal information. Such exchanges operate autonomously and are typically decentralized, which means they do not have a central point of control.
Though such systems can be used for nefarious activities, they are also used to provide services for the worlds unbanked population. For certain categories of peoplerefugees or those living in countries with little to no infrastructure for government credit or bankinganonymous exchanges can help bring them into the mainstream economy.
Right now, however, the most popular exchanges are not decentralized and do require KYC. In the United States, these;exchanges;include;Coinbase,;Kraken,;Gemini, and Binance.US, to name a few. Each of these exchanges has grown significantly in the number of features they offer.
How Do I Keep My Bitcoin Safe
Hardware wallets are the most secure way to store your bitcoin.
If you’re trading lower amounts, it’s probably OK to use the wallet provided by your exchange or another software wallet . If you’re going big, you almost certainly want a hardware wallet, of which there are a number of complicated, encryption-related options.;
We’ll take a look at the pros and cons of each of these options in a future article. In the meantime, bitcoin.org provides some good introductory information.
You May Like: How To Take Profit In Crypto
How To Sell Bitcoin On Binancecom And Binance Desktop
The Binance.com web platform and Binance Desktop user interfaces are almost identical with minimal differences. The step-by-step instructions for fiat withdrawal are exactly the same for both.;
1. Navigate to Binance.com and login with your Binance account. If you dont have a Binance account, .;
2. Open your Binance Fiat and Spot wallet and find Bitcoin you wish to sell into fiat.;
3. Now you need to switch your Bitcoin into fiat before you can withdraw it. There are two options available – Trade Bitcoin to fiat via Spot Trading or use the Convert function to swap between currencies immediately.
4. Once you obtain your preferred fiat currency, navigate back to the Fiat and Spot wallet and click Withdraw.
5. Select the currency you wish to withdraw and the preferred withdrawal method. Binance supports credit cards, debit cards, bank transfers, and local wallets. Each of them comes with different advantages. Credit/debit cards offer instantaneous withdrawal but at higher fees, while the bank transfer takes a bit longer, but the fees are generally lower.*
6. Enter the amount you wish to withdraw and fill in the required details. If youre withdrawing fiat for the first time, youll be required to link your debit/credit card or bank account, depending on the withdrawal method you chose in the previous step.
7. Confirm the withdrawal, enter your verification code , and youre done.;
*The available payment methods might differ based on your region.;