Selling Bitcoin (BTC) 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.
Want more than just to sell BTC? Access dozens of different cryptocurrencies selling guides 2022 here.
- How to Sell Litecoin (LTC)
- How to Sell Binance Coin (BNB)
- How to Sell Bitcoin Cash (BCH)
- How to Sell Dogecoin (DOGE)
- How to Sell Ripple (XRP)
- How to Sell Shiba Inu (SHIB)
- How To Sell Solana (SOL)
- How To Sell Ethereum (ETH)
What is Bitcoin?
Bitcoin (BTC) is a peer-to-peer cryptocurrency. Think of it as a digital token. You can’t physically touch or hold Bitcoins, and all Bitcoin transactions are logged on a public, decentralized, immutable ledger.
Many found Bitcoin appealing because it was a new way to pay for goods and services that didn’t rely on a centralized bank, government, or credit provider. These days, there are ongoing debates over whether Bitcoin really functions as everyday money or more as a store of value (aka “digital gold”).
Read More: What is Bitcoin?
How Does Bitcoin Work?
Cryptocurrencies run on a distributed public ledger called blockchain, a record of all transactions updated and held by currency holders.
Units of cryptocurrency are created through a process called mining, which involves using computer power to solve complicated mathematical problems that generate coins. Users can also buy the currencies from brokers, then store and spend them using cryptographic wallets.
If you own cryptocurrency, you don’t own anything tangible. What you own is a key that allows you to move a record or a unit of measure from one person to another without a trusted third party.
Although Bitcoin has been around since 2009, cryptocurrencies and applications of blockchain technology are still emerging in financial terms, and more uses are expected in the future. Transactions including bonds, stocks, and other financial assets could eventually be traded using the technology.
Why Sell Bitcoin?
First things first, there’s no sure-win formula to time the market, and that’s why combining HODLing with a DCA investment strategy is a reasonable approach to long-term investing. If you are looking to sell your crypto to lock in profits, do your own due diligence to understand the long-term value of the coin. Sometimes, especially if it’s a coin you believe in, you could consider HODLing.
Moreover, we recommend focusing on optimal gains. After all, it’s impossible to time the market perfectly, and we don’t need to hit a home run each time to grow our portfolio.
Instead, start taking a portion of your gains in the 30% incremental range. Instead of waiting for a 50% or 100% incremental gain, focusing on a smaller increase will make it more likely that you won’t be caught in a demoralizing 20% to 40% correction that can hit the rapidly shifting crypto market.
Another benefit of focusing on optimal gains is that you can compound those gains by shifting those profits into other coins that are just starting a price run. The compounding gains can lead to large overall earnings in your portfolio if you follow this disciplined approach.
Lastly, it is reasonable to sell when you have other investment opportunities that you’ve DYOR on and would like to put your money in. It’s important not to fall prey to FOMO (fear of missing out) or FUD (fear, uncertainty, and doubt).
Where to Sell Bitcoin?
Option 1: Cryptocurrency Exchanges
Cryptocurrency exchanges often support a wide range of fiat currencies. A crypto exchange can act as an intermediary between sellers and buyers of cryptocurrency. To sell Bitcoin for cash, you will first need to set up an exchange account and deposit your BTC in the hot Bitcoin wallet that is provided by the exchange.
Note that most reputable BTC exchanges require their users to provide personal information before they can sell cryptocurrency, in order to comply with KYC and AML rules.
The key advantage of using a cryptocurrency exchange to sell Bitcoin for cash is that well-known exchanges have deep liquidity and provide quick access to a large pool of potential buyers.
They are also relatively easy to use: you will need to place a sell offer, define how much cryptocurrency you wish to sell, and set your asking price per unit. The exchange then automatically processes the transaction once your offer is matched.
Option 2: Direct Trades (Person-to-Person)
1. Online P2P Selling
2. Face-to-face Transactions
Rather than doing the work for you, a peer-to-peer (P2P) exchange lets you choose your price, and the platform helps find a buyer willing to pay it. The two parties then decide between them how to pay. You can sometimes do this on the site — often called direct trades — but normally, you would use a separate bank transfer.
P2P trading allows you to sell cryptocurrency without the limits of an exchange. This means that you could do a wire transfer, send gift cards for popular online stores, trade cash in the real world or even send expensive art if that’s what you want; as long as both parties agree, and you’re in a P2P marketplace that doesn’t limit payment methods.
There are some problems around this, such as what happens if the buyer doesn’t pay up, and the peer-to-peer marketplaces will still have some information on who you are. However, this is still a good step if freedom of choice and minimal interference are your priorities while still having access to things like escrows to hold the bitcoin for protection from fraud.
Option 3: Bitcoin ATMs
It may be hard to come to terms with since Bitcoin ATMs are directly connected to the internet, but BTMs are entirely secure. BTMs are equipped with technology that protects against software and hardware malfunctions. Malware technology is also not able to threaten Bitcoin ATMs. Your digital wallet is encrypted and protected. Without the correct passwords and security credentials, no one aside from you can access your wallet.
A number of Bitcoin ATM operators have come together to form the Cryptocurrency Compliance Cooperative to make the use of Bitcoin ATMs even safer for the consumer, furthering the legitimization of the cash-to-cryptocurrency industry.
How to Sell Bitcoin?
- Step 1: Set up an exchange account.
The first thing you need to do is decide which form of money you will accept for your Bitcoin.
Now that you know which currency you want in exchange for your cryptocurrency, it’s time to make an account on a platform that lets you sell your BTC.
There are tons of platforms to sell Bitcoin on, and the easiest, by far, are exchanges and brokers like Coinbase or Coinmama.
Signing up on Coinbase is really simple – it’s like making an account on Amazon!
- Step 2: Transfer your Bitcoin to your exchange wallet
Now that your account is created, you’ll need to deposit your crypto assets on the exchange.
Hit the “deposit” or “sell” button.
You’ll be presented with a wallet address and/or a QR code.
Scan that into your Bitcoin wallet and send the number of coins you want to sell.
- Step 3: Place a sell order
Now it’s time to make a sell offer on the platform you are selling on.
That means determining the price at which you are willing to sell your Bitcoin.
The process for doing this always looks a little different on every platform, but for the most part, it works the same way.
Look for the “sell” or “trade” tab, and either sell at the price offered by the broker or create a custom sell order on an exchange order book.
The only difference is, with a broker, you are selling at whatever the spot price is (minus some fees).
With an exchange, you can set whatever price you want. Just don’t expect the sale to be accepted by any takers if your price is too high.
The nice thing about the crypto exchanges is that the fees tend to be lower than the brokerages.
Direct Trades (Person-to-Person Trading)
- Step 1: Go to the P2P Trading Page
Select (1) “Buy Crypto” then click (2) “P2P Trading” on the top navigation.
- Step 2: Choose to Sell and Set Your Currencies
Click (1) “Sell” and select the currency you want to buy (USDT is shown as an example). Filter the price and the (2) “Payment” in the drop-down, select an ad, then click (3) “Sell”.
- Step 3: Find a Buyer
After the buyer makes the payment, the transaction will now display “To be released”. Please make sure that you’ve actually received payment from the buyer to the payment app/method you used. After you confirm the receipt of money from the buyer, tap “Confirm release” and “Confirm” to release the crypto to the buyer’s account. Again, If you have not received any money, please DO NOT release crypto to avoid any financial losses.
- Step 4: Choose How Much You Want to Sell
Enter the amount (in your fiat currency) or quantity (in crypto) you want to buy and click (2) “Sell”. The transaction will now display “Payment to be made by the buyer”.
- Step 5: Send the Offer
You can use Chat on the right side to communicate with the buyer during the whole process.
If you have any issues in the transaction process, you can contact the buyer using the chat window on the top right of the page or you can click “Appeal” and our customer service team will assist you in processing the order.
- Step 6: Confirm the Release
The transaction will now display “Pending Payment.” After the buyer makes the payment, the transaction will now display “Confirm Receipt”. Please make sure that you’ve actually received payment from the buyer to the payment app/method you used. After you confirm the receipt of money from the buyer, tap “Payment received” and “Confirm” to release the crypto to the buyer’s account. Again, If you have not received any money, please DO NOT release crypto to avoid any financial losses.
- Step 1: Choose to withdraw cash
- Step 2: Choose Bitcoin (these machines normally support other cryptocurrencies as well).
- Step 3: Choose the amount to withdraw
- Step 4: Send bitcoins to the given address QR code
- Step 5: Receive cash immediately as bitcoins transaction is propagated on the network
Read More: How to Buy Bitcoin?
Selling Bitcoin FAQs
Can I Sell Bitcoin for Cash?
Paxful is a peer-to-peer marketplace that allows individuals to safely buy, sell, send and receive bitcoin using cash deposit or PayPal as payment methods. The site features over 150 payment options, so any country-specific currency is valid to purchase bitcoins at a low fee.
Users can place ads with specific payment or shipping instructions, and interested buyers will contact them to purchase bitcoins using the advertised payment method. The site makes it easy for users to buy bitcoin online from local sellers quickly and safely without having to use a bank account.
Paxful also features an escrow service that holds funds until the transaction is complete, and trusted sellers can earn positive feedback for their efforts.
What Is The Best Way to Sell Bitcoin?
Going through an exchange is the quickest and easiest way to sell. This is because the cryptocurrency exchange does all the hard work of setting a good price and finding a random person looking to buy bitcoin for this price.
The reason being is that they offer not only a good selection of digital currencies but also facilitate bitcoin transactions in the trade of digital assets. To use a cryptocurrency exchange, users will need to set up a cryptocurrency exchange account with the platform and connect to a bank account for withdrawing cash.
Is It Easy to Sell Bitcoin?
Yes, you can sell bitcoin in just a few minutes. There are two main avenues to convert bitcoin to cash and ultimately move it to a bank account. Firstly, you can use a third-party exchange broker. These third parties (which include bitcoin ATMs and debit cards) will exchange your bitcoins for cash at a given rate. It is simple and secure. Or, you use a peer-to-peer transaction to sell your bitcoin. This is a faster and more anonymous method, as you sell your bitcoin directly to another person.