If you are a lucky Bitcoin owner, you can use it to make direct purchases from a number of companies including Microsoft and Subway. You can also sell bitcoin on all of the same exchanges and services that you can buy it from. The sale transaction may take just a few seconds; it will likely take considerably more time to actually withdraw the proceeds of that sale from your bitcoin wallet into your bank account. In this guide we would like to share with you best ways to sell bitcoin.
Where to sell bitcoin?
As bitcoin and cryptocurrency continue to explode in popularity, more and more services are coming online to help users get their hands-on bitcoin or turn their bitcoin into USD or other fiat currency in a quick and effective way.
There are several methods for selling Bitcoin, each a little different from each other. And your choice would depend on how much you’re looking to sell, how much control you want over the eventual price you get for your cryptocurrency, and how much time you have on your hands.
One of the most common and simplest ways to sell bitcoin online to turn it into hard cash is through an exchange platform. Exchanges act as a middle-man by selling your Bitcoin for you. The most popular platforms are CEX, Coinbase, Kraken and others.
No matter what exchange you choose, you will need to create an account and a wallet and link your bank account with it. You will probably be required to provide photo-ID for the verification procedure before making any transactions. And the verification may take a few days or even longer, so to avoid any delays, make sure you set up your sales account well in advance of when you plan to make the trade.
Then you take your deposit address from the exchange wallet and you send the Bitcoins you want to sell to it. At this moment you can place a “sell order”, so your Bitcoins will be sold at the going market rate. Some exchanges will let you set a limit on your sale, so that if Bitcoin’s price were to drop below a certain point, the sale would not proceed.
After the sale has been completed, the funds in your relevant currency will be transferred directly to your linked bank account, or to your exchange currency account. So now you can withdraw the money. But keep in mind that you will probably be charged a small fee for using the exchange’s services.
- P2P exchanges
Peer-to-peer trading is another alternative for selling your bitcoins. You will probably need to create your account and get verified to confirm your identity. Once you’re set up, you can sell your Bitcoins in a much more ‘direct’ manner. You can set up a sell order for a specific value and when someone comes along looking to buy at the agreed upon price, the site will alert you that you can move ahead with the transaction. Once you give it the thumbs up, the buyer pays you, and you then send them the cryptocurrency in return. Sites like LocalBitcoins or Paxful have numerous methods of conducting the payment, including MoneyGram, gift cards, cash in the mail, and even cash in person.
There is no middle-man exchange with direct trades, so you don’t need to worry about the platform itself running off with your money or being hacked and having it stolen. However, direct trades are more time consuming than automated exchanges. You have to make the trade manually and you have to be ready to do so in a timely manner.
- Bitcoin ATM
If you don’t feel like selling bitcoin online, you can look into bitcoin ATM. Bitcoin kiosks are machines connected to the Internet, allowing the insertion of cash in exchange for bitcoins given as a paper receipt or by moving money to a public key on the blockchain. They look like traditional ATMs, but Bitcoin kiosks do not connect to a bank account and instead connect the user directly to a Bitcoin exchange. And Coinatmradar is one of the most famous among bitcoin ATMs.
- Bitcoin gift cards
Bitcoin gift card is another unique way to present bitcoins to your family and friends. After you purchase it online on portals such as bit4coin, the gift card or voucher will be mailed to the specified address. The recipient can easily redeem the gift card against bitcoins at an exchange rate at that time. Such portals not just help with the redemption; they also guide on how to open your own wallet.
- Your Retirement Account
The majority of individual retirement accounts or simply IRAs are managed by custodians or trustees for investors. However, outside of these traditional assets, there are other opportunities such as real estate, promissory notes, tax lien certificates, private placement securities, gold and even Bitcoins.
It is simple and fast to add Bitcoins to your self-directed IRA. Firstly, you need to open a self-directed IRA through a secure e-sign application; then the new account is funded via a rollover or transfer. Finally, the investor needs to complete a Bitcoin allocation order. You can start using your Bitcoin retirement asset after you are 59 ½ years old, otherwise, you will have to face a penalty for an early withdrawal.
How to sell bitcoin for USD?
If you are looking to trade bitcoin for USD and not sure what the best way to sell bitcoin is, then review the exchanges that we suggest below. What type of exchange you choose to sell your bitcoin will depend on what type of holder you are: small investor, institutional holder or trader?
CEX is a London-based cryptocurrency exchange platform founded in 2013 with more than a million active traders. You can sell bitcoin in a matter of just a few clicks on this website. This is a solid company which is trusted by a massive user base, and which has taken the proper steps to ensure the security of customer data and financial information. CEX has a Level 2 PCI DSS data security clearance meaning that this site is extremely trustworthy with users’ data and money. However, the exchange has relatively high fees.
If you are a retail client, you can sell bitcoin at exchanges such as Coinbase. This exchange is reputed to be the world’s largest Bitcoin broker, currently serving a total of 32 countries, that provides direct sales of Bitcoin at, or close to, the current average market rate (plus 1.5% fee). The company has also invested a lot of time and money into making their user experience smooth and painless.
Kraken is another popular exchange that allows fiat currency deposits and withdrawals. It has been around since 2011 and processes the most Bitcoin to Euro transactions. However, they also support other major currencies like USD, CAD, and JPY!
Kraken charges very reasonable fees: fiat & cryptocurrency trades/withdrawals are much cheaper than on other exchanges. The exchange also provides excellent security initiatives: two-factor authentication is encouraged using Google’s 2FA app. And it takes between 1-5 working days for Kraken withdrawals to reach your bank account.
Gemini is aimed more at large orders from institutional investors and traders. It is aptly named after its two founders the Winklevoss twins and it holds a New York State limited liability Trust status. This gives the exchange the ability to deal both with institutional clients and individuals.
It allows users to withdraw and deposit directly to and from their bank accounts while deposit and withdrawal fees are 0 and trading fees are 0.25% off both sides of the trade.
How to sell bitcoin for cash?
If you wish to avoid all the hassle associated with withdrawing from an exchange, you could sell your bitcoin for cash directly to another person. Read further to find out how you can do it.
For those of you looking to trade your Bitcoin directly for physical cash, LocalBitcoins may be a better solution. It is a person-to-person trading site where people can post their own bids for the buying and selling Bitcoins to USD or other local fiat currencies.
LocalBitcoins provides an escrow service, and the transactions are instant, as long as both parties have sufficient funds in their accounts. Moreover, the platform also gives you an option to contact the other party directly for a face-to-face transaction offline.
Paxful helps to connect buyers and sellers to easily exchange bitcoin, accepting more than 300 different payment methods. Sellers will have to pay a fee equal to 1% of the transaction amount.
Paxful is a legit bitcoin exchange that competes with P2P bitcoin marketplaces like LocalBitcoins.
It has solid security measures in place to safeguard the bitcoins in your wallet. These include SMS verification, 2-factor authentication, security questions, and heavily-encrypted servers.
You can also use Meetup.com to find your local Bitcoin Cash related meetups, where you can meet other BCH enthusiasts and trade directly with them in a safe environment.
- Bitcoin ATM
If you are in a hurry and want to sell bitcoin instantly, then Bitcoin ATM would be your best option. The first Bitcoin ATM appeared in 2013 and its number is still growing. Coinatmradar will guide you to bitcoin ATMs in your area.
Bitcoin ATM is one of the fastest ways to sell bitcoins. It really depends on the machine type, but some bitcoin machines like Lamassu support a 15 second operation.
One can argue that bitcoin ATMs are less available than online bitcoin exchanges. They have a physical location, which you need to visit, compared to just using your computer or mobile phone connected to internet from anywhere. Also bitcoin machine is usually available during business working hours, which is far less than 24/7 availability of online exchanges.
How to sell bitcoin for PayPal?
If you want to know where and how to sell bitcoin for USD cash like exchanging to PayPal, then you have come to the right place. However, it might be hard and confusing.
Since 2016 you are able to withdraw your USD balance to your PayPal account via Coinbase. This means that you can move Bitcoins into your Coinbase account and withdraw them as USD straight to your PayPal account.
In order to sell your Bitcoins:
- move the Bitcoins you want to sell into your Coinbase account.
- Go to “Buy/sell bitcoins” and choose “sell Bitcoins
- Decide how many Bitcoins you want to convert to USD
- Choose PayPal as your payout method
- Click “sell Bitcoins”
BitPanda is an Austrian start-up company that specializes in selling and buying Bitcoins and other cryptocurrencies. Even though BitPanda doesn’t allow you to buy Bitcoins with PayPal, you can still sell your Bitcoins in order to fund your PayPal account.
- Sign up to BitPanda
- Choose “sell” and “Paypal” as your payout method
- Once you send the Bitcoins to BitPanda you will be sent a payment via PayPal.
VirWox stands for Virtual World eXchange, which is a centralized Austria-based digital convertible currency exchange, founded in 2007. VirWox is the only website that allows instant buying and selling of Bitcoins with PayPal.
- Initial deposit – After you deposit a certain amount of Bitcoin, you’ll receive an e-mail directly from VirWox. Also, calculate in a small confirmation fee. The operation is instantly fulfilled.
- Posting – The expected posting time is 1 hour.
- Purchase – Buy the max quantum of L$ at the ongoing market price, which incurs extra commissions of 2.9% plus the conversion of L$ into SLL.
- Flat currency – In this step, you’re buying the max USD amount at the ongoing market rate, which, again, leads to 2.9% in exchange fees, plus your L$ conversion to USD. You’ll receive a second order confirmation e-mail from VirWox.
- PayPal withdrawal – Final USD withdrawal to your PayPal account will come with another 2% alongside 1$ for PayPal fees. It posts instantly to PayPal.
Bitcoin is much more widely known and used today than just several years ago. However, it is still not easy to acquire bitcoins in the first place and sell it in exchange for fiat currency might be even harder. But if you read the article, you should now know how to cash out Bitcoin! We have showed you different options how to sell bitcoin online and P2P, you can also sell bitcoin instantly using a bitcoin ATM or transfer money to your PayPal account using the VirWox platform. And now it’s up to you to make a decision.
Read also: TOP-10 best places to buy Bitcoin