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How To Sell Bitcoin for Real Money

by CryptoWordTalk
How To Sell Bitcoin for Real Money v2

When individuals are interested in purchasing cryptocurrencies, one of the first questions they ask is, “How do you sell Bitcoin?” Because getting your money out is just as essential as investing, one of the first questions they ask is, “How do you sell Bitcoin?”

Selling Bitcoin (BTC) is similar to purchasing Bitcoin (BTC), except the procedure is slightly reversed. You need to have BTC in your wallet to sell BTC initially.

A variety of routes are used to purchase Bitcoin. When you’re ready to sell part or all of your Bitcoin, you have many options, including an online cryptocurrency exchange, direct peer-to-peer (P2P) transfers online or in person, and a Bitcoin ATM.

Cryptocurrency Exchange Platforms

Although there are many drawbacks, exchanges offer a one-stop solution to Bitcoin trading. When it comes to trading bitcoin, exchanges serve as a middleman, keeping the money of both sellers and purchasers.

You must set up an account with your chosen platform in order to utilize a crypto exchange. Many well-known trades demand proof of identification. To withdraw cash, you need to connect to a bank account. However, be aware of limitations on the exchange depending on your country. Specific exchanges restrict participation in certain areas.

Simply transfer your Bitcoin to an exchange, then issue a sell order, saying the kind of currency you want to trade, the quantity you want to trade, and your asking price per unit. When someone matches your offer, the exchange will immediately finalize the deal. However, crypto trading with various kinds of orders and more may be considerably more complex than this short example.

You will need to withdraw the money from your linked bank account once the funds are credited to your account. This may take extra time, particularly if the exchange has difficulties or liquidity concerns with its banks. The Mt. Gox exchange faced this same issue many months before its downfall (bankruptcy). Moreover, some institutions just do not want to handle bitcoin transactions with cash.

It is also essential to be aware of any withdrawal costs on your chosen platform. Furthermore, exchanges may impose a restriction on the quantity of money you may withdraw in a certain time frame. If you remain loyal to a certain platform or submit more documents to satisfy Know Your Customer (KYC) and Anti-Money Laundering (AML) verification procedures, the limit may rise over time.

Finally, despite the fact that exchanges provide wallet services, they are not a safe or trustworthy location to keep your money. Hackers may attack them, and there have been cases when exchanges have shut down as a result of their owners mismanaging customers’ assets or fleeing with their money.

Another possibility for selling BTC is to convert it to a stablecoin on an exchange and then withdraw the funds to a personal wallet located outside of the exchange. You may also just retain that money on the exchange, but this has its own set of advantages and disadvantages. It’s best to take full responsibility for your finances and save any money you don’t need right away in a safe offline wallet. In addition, withdrawing money to a personal wallet outside of the site offers you greater control over your assets.

A stablecoin is a digital asset whose value is linked to that of an underlying asset, usually a fiat currency like the US dollar. You may trade your Bitcoin for a variety of stablecoins.

Spending your BTC through one of the numerous crypto-focused payment cards on the market is another indirect way of selling it utilizing the services offered by a cryptocurrency exchange.

The operation of such cards may be accomplished in a variety of ways. In general, users’ assets are converted to cash at the point of sale, allowing the cards to be used in places that accept conventional payment cards. Alternatively, some cards enable users to load stablecoins onto a crypto-friendly card and avoid the risk of cryptocurrency volatility.

Trades Made Directly (Person-to-Person)

A direct transaction with another entity, either online or in person, is another method to sell your Bitcoin. There are many options for doing so, including setting up a face-to-face meeting to sell Bitcoin or doing the transaction online via a specialist platform.

P2p Selling On the Internet

Several specialized platforms — and even products from reputable cryptocurrency exchanges — exist to enable online P2P Bitcoin sales. In some manner, these services basically allow you to exchange Bitcoin for cash, or vice versa, with another person via the internet.

In general, Bitcoin purchasers publish their desired price, chosen payment method, and other details on these sites. Interested parties then search for listings they like and execute the transaction by following the platform’s guidelines.

Escrow services are often used on these platforms to offer a degree of protection for both parties and to guarantee asset transfer. The seller of Bitcoin may get a transfer straight to their bank account or card, a wire transfer, or an agreement to receive money via one of the major conventional payment systems, depending on the payment choice.

Transactions That Take Place Face To Face

Selling Bitcoin P2P at a physical place is also an option. Some online services allow users to sell Bitcoin for cash in person, while others may just meet up with friends or family and sell Bitcoin for cash on their own. To sell Bitcoin in person, you must first learn how to transfer Bitcoin and use a crypto wallet, or the platform where you keep your money (such as if you hold your funds on an exchange, for example).

Bitcoin’s value varies often, so knowing the price at the moment of an in-person transaction is critical. The majority of traders rely on rates from well-known exchanges. Alternatively, sites like Cointelegraph’s Bitcoin Price Index may be utilized to find out what the crypto asset’s current price is.

Physical places or businesses exist in certain areas of the globe where participants may exchange Bitcoin for physical money or physical currency for Bitcoin.

It’s essential to remember, however, that Bitcoin may trade at different values on different exchanges and in different parts of the world. This difference is referred to as a “premium.” A Bitcoin price premium is essentially the amount by which an asset trades above or below the rest of the market or the price of an underlying item (when referring to other types of trading, such as futures).

In South Korea, bitcoin often trades at a premium to other currencies, a market phenomenon known as the “Kimchi premium.” A Bitcoin price premium has also been reported on the Coinbase Pro crypto market.

It’s essential to be cautious if you’re planning an in-person Bitcoin sale with a stranger, whether via a platform or otherwise. When exchanging Bitcoin with strangers in person, there are hazards, just as there are with any in-person financial transactions.

Bitcoin ATMs

Despite the fact that Bitcoin ATMs resemble conventional cash machines, they are not ATMs in the classic sense. Instead of linking to the user’s bank account, they connect to the internet to make Bitcoin transactions possible.

Bitcoin ATMs, at their most basic level, allow you to scan a wallet QR code and subsequently sell BTC for cash. Bitcoin ATMs may be found all around the globe, and their locations are readily searchable online. However, as compared to other methods, they typically demand hefty transaction costs. Furthermore, not every Bitcoin ATM supports both purchase and sell transactions, which is something to bear in mind while searching for a Bitcoin ATM to sell BTC.

Users may be required to have an existing account with a Bitcoin ATM provider in order to perform selling activities, and the registration procedure may take a long time, energy, and effort. New users may be required to give a phone number for activation and alerts, a government-issued ID, a palm scan, and a recent picture shot by the ATM’s camera, for example. The identification procedure varies based on the machine and the operator, but if you want to sell Bitcoin, you’ll always need to provide proof of your identity.

Furthermore, BTC ATM operators must modify their machines’ settings to comply with AML and KYC regulations in the country where their ATMs are located. In certain countries, this necessitates the acquisition of a money transmitter license, while in others, existing laws prohibit the installation of any Bitcoin ATMs.

Following the verification of your identification, you will be issued a QR code with a wallet address to which you must transfer your Bitcoin. You’ll either get cash out of the machine right away or you’ll get a redemption code and have to wait for the transaction to be verified on the Bitcoin blockchain, depending on the machine you’re using. One confirmation is usually sufficient, but up to six confirmations may be needed before cash may be withdrawn.

Withdrawing Funds

After selling your BTC on a crypto exchange, a wire transfer or automated clearing house (ACH) transfer to a bank account is a popular method to convert Bitcoin into cash.

Money may also be sent via the Single Euro Payments Area, or SEPA, which handles euro transactions. It is a mechanism intended to improve the efficiency of international transfers between European Union countries. This method of transfer is accepted by certain European bitcoin exchanges.

Both of these methods, however, are far from ideal. Depending on the nation and the quantity of money being sent, transfers may take days to complete, and processing can take much longer. Furthermore, these systems may be subject to extra fees.

Some banks, for example, may impose a set cost for a SEPA payment, which may increase depending on how soon you want the transfer to occur. It’s also worth mentioning that enabling transactions to and from bitcoin company accounts may be frowned upon by certain banks.

So, if you’re establishing a bank account only for the purpose of withdrawing funds from Bitcoin sales, do your homework and choose the bank that best fits your requirements.

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