Part of the process is knowing how to get out: be ready for when the time comes to withdraw (even temporarily) from the cryptocurrency craze. In this guide we explain how to sell bitcoins step by step.
But before doing so you should consider that if you decide to sell at the same time as everyone else, you could have some delays. Fortunately, we are here to tell you about these problems so that you can sell your crypto successfully.
If you still don’t have your piece of the bitcoin cake, which is already a decade old, you can also read our guide on this cryptocurrency and how to make your first purchase.
The simplest and “automated” way to convert your Bitcoins into cash is through an exchange platform. These sites act as intermediaries, selling cryptocurrencies. As it is one of the most popular and well-established ones, we recommend Coinbase. If you prefer to choose another, you have many alternatives.
Creating an account is easy, but you need to follow a few steps. Depending on the country you live in, you will need to comply with different steps of the “ Know Your Customer ” rules, so you may need to submit identification or personal documentation. This information may take a few days to process. Although it is not strictly necessary, it is recommended to register with Coinbase Pro to have greater control of your sales.
When you have registered, link your exchange account with that of your banking institution so that, when the operation is finished, you can withdraw the money without problems and quickly.
If you followed the step by step guide on how to buy bitcoins, you will probably have stored your cryptocurrencies in a secure wallet. To transact on Coinbase, you need to send your bitcoins to the exchange. Use the transfer function in your wallet to send the cryptocurrencies and wait for confirmations when the process is done. This can take a couple of hours or, if it’s a time of high demand, a couple of days.
With your exchange account set up, your bank account linked, and your bitcoins deposited on the exchange, you are ready to make a sale. The process is much simpler in the latest version of Coinbase. Select Buy/Sell from the top menu and go to the Sell section . Select bitcoin as your currency and make sure you choose the correct destination for your funds in the Deposit To section . If you have a linked bank account, you can choose it for a direct transfer.
Check your wallet to see how many bitcoins you have and choose the amount you want to sell. In 2018, Coinbase raised its default transaction limits and allowed people to trade crypto immediately after purchasing it. You can see your weekly banking limit in the same section. Choose if you want to repeat this sale and, if so, how often. To finish select Sell bitcoin .
There will be a short holding period before the sale is complete. You can make as many sales as you like during that period, but transfers won’t go through until your retention period ends.
As for deciding when to sell, that’s getting into investment advice, and there are plenty of strategies based on your long-term plans and how much bitcoin you want to move. Bitcoin has gone through periods of devaluation and slight recoveries, although the current boom has changed the scenario. You may need a deeper investigation to decide when is the best time to sell.
If you prefer to have more control in the sales process, direct transactions ( peer-to-peer ) are an alternative. You will need to register, which in some cases will involve the need to confirm your identity. Because of this, as with all sales methods, we recommend setting up your account well in advance. When you are ready, you will be able to sell your bitcoins in a much more direct way.
Unlike exchange platforms, where transactions are automated, in this case the business is done in direct contact with the buyer. You set up a sell order for a specific value and when someone looks to buy at the agreed price, the site will let you know that you can go ahead with the process. When you give the go-ahead, the buyer pays you and you send them the amount in cryptocurrencies.
The method to make the payment will depend on the service you use for the exchange. Sites like BitQuick work exclusively online, using bank transfers. However, platforms like LocalBitcoin or Paxful have other options, such as Moneygram, gift cards, money in the mail, and even cash in person.
Although some of those methods are more time consuming, they are more anonymous and allow you to keep the transaction away from prying eyes, if that is what you are looking for. If you decide to trade in person, make sure you do it in a public place.