Cashing out your Bitcoins is not much straightforward when compared to buying them. You can either do it via an exchange, direct trade or carry out a peer-to-peer transaction if you decide to sell your Bitcoins online. You can withdraw fiat money using a Bitcoin ATM or sell your Bitcoins in person, outside of the comfort of your own home.
Despite having several disadvantages, when it comes to trading Bitcoins, exchanges are a one-stop solution. Exchanges act as an intermediary that holds both seller’s and buyer’s funds, in the case of selling the cryptocurrency.
First, with an exchange of your choice, you need to set up an account. The absolute majority of reputable exchanges will require a connected bank account and complete identity verification so that you can withdraw your funds.
Then, you just place a ‘sell offer,’ expressing the type of currency you desire to trade, its amount, and your asking rate per unit. Once someone matches your offer, the exchange will automatically complete the transaction.
You will need to withdraw them to your connected bank account after the funds are credited to your account. Especially if the exchange is experiencing issues with its banks or facing liquidity problems, this can sometimes take an excessive amount of time. The Mt. Gox Exchange was experiencing this exact problem several months before its bankruptcy. Moreover, some banks just totally refuse to process transactions with funds obtained through cryptocurrency trading.
It is also vital to consider a fee you’ll need to pay for using some exchanges. For example, one of the world’s largest cryptocurrency exchanges CEX.io charges a flat fee of $50 for withdrawal via Bank transfer, $3.80 if you’re withdrawing your funds to a Visa card and $3.80 if you’re using MasterCard+ 1.2 percent of a transaction. transaction fees are almost always either tiny or non-existent at all and the withdrawal fees can vary dramatically depending on an exchange.
Also, on the amount of money you’re allowed to store, most exchanges will have a limit. If you stay loyal to a particular exchange, The limit will increase over time.
Finally, it is important to remember that exchanges are by no means a secure and reliable place to store your funds despite offering wallet services. There have also been instances of exchanges shutting down and running away with their users’ funds and they are also very prone to hacker attacks. Hence why you should store any amount that is not immediately needed in a secure offline wallet and take full responsibility for your funds.
|Coinbase||USD, EUR, GBP||Credit card, bank transfer|
|Bittrex||190+ crypto pairs||Cryptocurrency|
|LocalBitcoins (P2P)||All currencies||Cash, PayPal, bank transfer|
|CEX.IO||USD, EUR, GBP, RUB||Credit card, bank transfer, Ethereum|
|Kraken||USD, EUR, CAD, GBP, JPY||Bank transfer, Altcoins|
|CoinMama||EUR, USD||Credit card, Ethereum|
|Bitfinex||USD||Bank transfer, Ethereum, Dash, Monero, Zcash|
|Poloniex||75+ crypto pairs||Cryptocurrency|
|Bitstamp||USD, EUR||Credit card, bank transfer|
|Bisq (P2P)||59+ crypto pairs||Cryptocurrency, bank transfer|
|GDAX||USD, GBP, EUR||Bank transfer, Ethereum, Litecoin|
|ShapeShift||40+ crypto pairs||Cryptocurrency|
Direct trade with another person is another way of selling your Bitcoins. On websites usually associated with exchanges and includes an intermediary facilitating the connection, this service is accessible.
You will need to register as a seller at first. You will need to fully verify your identity, apart from setting up your profile. You can post an offer indicating your intention to sell some Bitcoins once you’re registered. You get a notification from the service and from then on you are only interacting with the buyer, When a buyer wants to trade with you. The website just serves as a platform to conduct the trade.
The process of selling Bitcoins on some of those sites can be time-consuming and quite involved. So, it is imperative to make sure you have the time and patience required and do your research before deciding on a trading platform.
BitBargain, Bittylicious, Coinbase, Openbitcoins, Bitsquare, and Local Bitcoins are some of the websites offering the option of direct trading.
Online P2P trading
A relatively new development in the Bitcoin world is Peer-to-peer trading marketplaces. There is no direct exchange of funds taking place. Instead, those websites act as a platform that brings people with complementary, yet different needs together.
The service is designed for the mutual benefit of people who would like to those who want to spend their Bitcoins to buy goods from places that don’t accept digital currencies as a form of payment and buy Bitcoins with their credit card. As a result, while the latter can buy discounted goods, the former get their flat currency exchanged to BTC.
An Escrow Service is provided to the users for the transaction, as well as a wallet to store Bitcoins by the websites facilitating the service
Here’s how it works:
Including the discount amount he wishes to receive, Bob posts his required wish list which normally goes up to 25 percent. Through the marketplace stating Bob’s delivery address, Jack then accepts the trade and pays for Bob’s goods. The marketplace releases Jack’s money from escrow and transfers the funds into Jack’s wallet when the goods are delivered.
The system also charges Jack quite a high fee for the service while it allows h to acquire Bitcoins relatively easily using just his bank card. Purse, Brawler, and OpenBazaar are some of the websites providing this service.
All of the mentioned above services are centralized platforms that are online-based. You will usually need to fully verify your identification, which voids Bitcoin trading off its anonymity, To be able to sell Bitcoins using those services. Moreover, you will need to withdraw them to your bank account or a bank card, when you’ve managed to sell your BTCs. More often than not, this process will incur some fees and will take a very long time.
Bitcoin ATMs are not ATMs in the traditional sense despite looking like traditional cash machines. They are connected to the Internet to be able to facilitate Bitcoin transactions instead of connecting to the user’s bank account,
Money can be accepted in the form of cash by the Bitcoin ATMs and then exchange to Bitcoins given as a paper receipt with a QR-code on it or by moving the funds to a wallet on a Blockchain network. There are media reports citing fees as high as seven percent as they usually charge very high transaction fees.
Moreover, locating them can be quite difficult. Most known Bitcoin ATMs are marked on this Bitcoin ATM map.
Only in a few specific Bitcoin ATMs users can both buy and sell Bitcoins using them, that is bi-directional functionality. Robocoin, Genesis1 and Satoshi2 from Genesis Coin, BitAccess and BATMThree model from General Bytes are mong such machines. However, some operators might disable sell operations.
Sometimes, the registration process often involves a lot of time, energy and effort, and Bitcoin ATM providers require users to have an existing account to conduct selling operations and. For example, a telephone number for activation and notifications, government-issued ID, palm scan, and a current photo taken by the ATM’s webcam is needed by new users of Robocoin ATM. Depending on the machine and even on different operators running similar ATMs, the identification process varies, but some sort of identity verification will always be required if you want to sell.
You are given a QR code with a wallet address to which you need to send your Bitcoins after your identity is verified. You will receive a redeem code and need to wait for the transaction confirmation or you will either get cash out of the machine immediately, Depending on the machine you’re using. Sometimes up to six confirmations are required before the user can withdraw cash, but usually,y only one confirmation is enough.
So, they are still primarily used to buy Bitcoins, despite the ever-growing number of Bitcoin ATMs worldwide. Moreover, BTC ATM operators need to know your customer standards applicable in the jurisdiction where their ATMs are placed and adjust the setting on their machines by anti-money laundering. This requires a money transmitter license in some countries, while current regulations in other countries prevent any Bitcoin ATMs from being installed.
Selling Bitcoin in person
Trading digital currency in person is about as easy as it gets, in many ways, You should scan a QR-code on someone’s phone and receive cash on the spot to sell your Bitcoins. You only need to set them up with a Bitcoin wallet, send them the necessary amount, and collect your cash, if you’re selling to friends or relatives.
However, you will most likely go through lengthy rounds of negotiations discussing the price, place of the meeting, and other relevant conditions, if you are dealing with a random person. Moreover, you need to take a few measures considering the safety of your funds.
Pieces of advice for staying safe
For those who value anonymity and convenience, selling Bitcoin person-to-person is the perfect option of trading. However, security considerations are of utmost importance, especially when trading with a stranger on the Internet.
At first, you should carefully choose a place for the meeting. As both of you will need to be able to access your online wallets, it has to be a public place with active Internet access. In person-to-person trading, bringing a friend along to the meeting is also quite common, but it is important to notify the buyer before essentially taking the same precautions you would when carrying a big amount of cash. Be alert, never meet in private homes and avoid public transport.