If you are one of the lucky ones who was an early adopter of Bitcoin you might be wondering how to sell some of your Bitcoins for a profit. Perhaps you just need to liquidate some of your holdings. Whatever the reason, selling Bitcoin can be done in a number of ways. Here is a brief guide on how to sell Bitcoin.
Determine if You Really Want to Sell Your Bitcoin
Those who invest in Bitcoin and other cryptocurrencies know how volatile the market can be. The price of Bitcoin can fluctuate from hour to hour! Sometimes there is a temptation to get rid of Bitcoin you may have bought as an investment because you are afraid the value is going to drop. This is what is known as panic selling.
In almost all situations a panic sell is a bad idea. If you hold onto your Bitcoin the value may go back up. Of course, there is always the possibility that you have spotted a long-term reversal in the trend and that the token will keep dropping in value. A good rule of thumb when you consider a sell because of current market value is to take a cooling off period before you make the decision. Use that time to study the market closely and weigh the options of getting out versus staying in.
You should also ask yourself if you really need the cash at the moment. If not, the best place for your Bitcoin might be to remain in your wallet or at an exchange. No one likes to lose big on an investment, and you might be doing that if you get out too soon. This is especially true if you bought Bitcoin when the value was comparatively low.
At the end of the day only you can decide if selling your Bitcoin is a good idea. When the decision is made, you’ll have three primary options for selling – peer-to-peer, a Bitcoin debit card, or an exchange.
Selling Bitcoin to an Individual
This could be the best option for you if you know someone that wants to obtain tokens. All that is required is a mutually agreed upon price and a quick transaction. The buyer will send you the money for the requested amount of Bitcoin and you will send Bitcoin to their cryptocurrency wallet. Nothing could be simpler.
Begin by seeing if there is someone in your immediate family or perhaps a trusted friend that wants to buy. This kind of transaction is much easier and less likely to go awry. You could meet with your family or friend in person to complete the transaction, or you could do it with a computer. Either way will be effective.
If you don’t have anyone you know, you may need to use a service like LocalBitcoins. This service brings buyers and sellers of Bitcoin together so that they can complete a transaction. However, before you opt for this type of selling there are some very important guidelines that you should follow.
Never agree to meet someone you do not know in person to sell Bitcoin. The news if full of tragic stories that begin with a meeting arranged online. LocalBitcoins will make it possible for you to complete the transaction without the need for a personal meeting, and the fee for doing so is very low. Also, never send Bitcoin to someone without receiving the cash for the purchase. If you do this there is a good chance that you have lost your Bitcoin. At the end of the day, common sense is what matters most when selling Bitcoin.
Use a Bitcoin Debit Card at an ATM
Yes, Bitcoin debit cards really are a thing today. Several companies are providing them, and we have reviewed them here at Cryptoswede. You’ll need to check out the ones that are available to residents of your country, and also be aware of the fees that each card charges.
A Bitcoin debit card works like this. You can load the card with Bitcoin from your cryptocurrency wallet. The Bitcoin is usually then converted to fiat currency at the current exchange rate. Some of these cards are now even making it possible to instantly pull Bitcoin from your account, convert it, and dispense it at an ATM machine in the form of cash.
This isn’t a bad way to go when you realize that residents of some countries might be able to take advantage of an anonymous option for a Bitcoin debit card. The fees for making an ATM withdrawal are generally pretty low, and the limits on daily withdrawals are generous.
Use a Bitcoin Exchange
The third way that you can easily sell your Bitcoin is with a cryptocurrency exchange. This option is slightly more complex than the other two methods because it will usually require you to create an account with the exchange before you are able to sell.
You will probably be asked to provide some basic information, and you may be required to verify the exchange account with personal documents. At this point your anonymity is gone, so keep that in mind. After you have completed the steps you can add your Bitcoin from a wallet to the exchange where you may trade it for other digital tokens or cash. Cash withdrawals can usually be sent to a bank that you have provided.
The major downside of using a cryptocurrency exchange is that there are sometimes significant fees to contend with. There is no way around paying these fees, so it is recommended that you make fewer larger sales instead of several smaller ones.
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