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    How to Sell Bitcoin? A Beginner's Guide

    Pathik Bhattacharya
    Pathik Bhattacharya
    Published on January 19, 2023 12:17 PM

    Updated on January 19, 2023 12:19 PM

    How to Sell Bitcoin: Whether you intend to spend or hold bitcoin, you'll undoubtedly want to sell some at some time. Here's our guide to selling bitcoin.
    How to Sell Bitcoin? A Beginner's Guide
    Source: Unsplash

    "How do you sell Bitcoin?" is one of the first things that people ask when they learn about cryptocurrencies, because getting your money out is just as vital as investing.

    Selling Bitcoin (BTC) is similar to buying Bitcoin, however, the procedure is somewhat reversed. You must first have BTC in your wallet before you can sell it.

    There are several ways to acquire Bitcoin. When you're ready to sell some or all of your Bitcoin, you have several options, including an online cryptocurrency exchange, direct peer-to-peer (P2P) transactions online or in person, and a Bitcoin ATM.

    Related Read: How to Mine Bitcoin?

    Sell Bitcoin Via Cryptocurrency Exchanges

    When it comes to trading Bitcoin, cryptocurrency exchanges are a one-stop shop. When it comes to trading Bitcoin, exchanges function as an intermediary, storing funds from both sellers and purchasers.

    To access a cryptocurrency exchange, you must first register with the platform of your choice. Identity verification is required by many legitimate exchangers. To withdraw money, you must connect to a bank account. However, keep in mind any currency limits imposed by your nation. Certain regions are barred from participating in some exchanges.

    Simply place a sell order, describing the type of currency you want to trade, the amount, and your asking price per unit, once you have an account on an exchange and have transferred your crypto to that exchange (or if you already have an account with Bitcoin kept in it). When someone matches your offer, the exchange will automatically finish the deal.

    After the money has been credited to your account, you must withdraw them to your linked bank account. This can take a long time, especially if the exchange is having difficulty with its banks or is experiencing liquidity challenges. This similar issue plagued the Mt. Gox exchange for months before its demise. Furthermore, some banks flatly refuse to accept transactions involving monies earned through crypto trading.

    It is also critical to be aware of any withdrawal fees that may apply to your preferred platform. Furthermore, exchanges may impose a limit on the quantity of money you can withdraw in a given time period. If you remain loyal to a specific platform or submit new evidence to meet Know Your Customer (KYC) and Anti-Money Laundering (AML) verification procedures, the restriction may increase over time.

    Also Read: What is Bitcoin Rainbow Chart? Explained

    Sell Bitcoin Via Online P2P Trading

    A peer-to-peer (P2P) exchange, rather than performing the job for you, allows you to set your own price and the platform will help you locate a buyer prepared to pay it. The two parties then agree on how to split the bill. This is sometimes possible on the site — known as direct trades — but it is usually done through a separate bank transfer.

    P2P trading allows you to sell cryptocurrencies without being constrained by the constraints of an exchange. This means you might send a wire transfer, gift cards for major online retailers, cash in the real world, or even pricey art if both sides agree and you're in a P2P marketplace that doesn't prohibit payment methods.

    Sell Bitcoin by Over-the-Counter Method

    Selling Bitcoin P2P in a physical location is another option. Some online sites assist in selling BTC in person for cash, while others may just choose to meet up with friends or relatives and sell Bitcoin for cash on their own. To sell Bitcoin in person, you must first grasp how to send Bitcoin and deal with a crypto wallet, or the platform where you keep your funds (such as if you hold your funds on an exchange, for example).

    Bitcoin's value swings regularly, so knowing its price at the moment of an in-person sale is critical. Most traders rely on rates from major exchanges.

    Physical locations or stores exist in various regions of the world where people can go to trade Bitcoin for physical currency or physical currency for Bitcoin.

    It is crucial to note, however, that Bitcoin can trade at different prices across exchanges and in different countries around the world. This difference is referred to as a "premium." A Bitcoin price premium is the amount by which an asset trades above or below the rest of the market or the price of an underlying item.

    It is critical to exercise caution while organizing an in-person Bitcoin sale with a stranger, whether through a platform or otherwise. When exchanging Bitcoin in person with strangers, the risks are similar to those associated with conventional in-person financial transactions.

    Sell Bitcoin by Bitcoin ATM

    A fair transaction is OK, but if you want to avoid prying eyes, cash is the way to go. Obviously, you can't just withdraw cash from your computer, but there are some gadgets known as bitcoin ATMs that allow you to do just that.

    These devices, similar to traditional ATMs, allow you to enter your bitcoin wallet address and withdraw cash. Although not impossible, this is far more difficult to trace than a bank transfer. These ATMs can also be used to purchase bitcoin. So, if one is nearby, you can make it more difficult for someone to discover what you're purchasing.

    However, you are extremely reliant on there is one nearby. This makes it difficult for many individuals to utilize bitcoin ATMs, and because you can't count on there always being one nearby if you relocate, your transactions will lag significantly behind the market's quick moves.

    Conclusion

    Buying and trading bitcoin has become lot easier in the few years it has been available. This is also true for selling bitcoin, which you can now do instantly for market value. So, whether you want to pay out your bitcoins right now or in the future, you now know how to sell bitcoin and withdraw your money.

    However, no amount of trading knowledge can protect you from the losses caused by cybercrime. That is why you should always use a trustworthy antivirus to protect your computer and the best VPN for crypto trading to keep you safe online.

    Bitcoin FAQs

    Can I convert Bitcoin to cash?

    There are two basic ways to convert bitcoin to cash and eventually transfer it to a bank account. To begin, you can use a third-party currency exchange broker. Third parties (such as bitcoin ATMs and debit cards) will convert your bitcoins for cash at a set rate. It's simple and safe.

    Can I sell my Bitcoin to a bank?

    There are various methods for converting bitcoin to cash and eventually transferring it to a bank account: Sell bitcoin using a cryptocurrency exchange like Coinbase or Kraken. If you wish to sell bitcoin and withdraw the proceeds directly to a bank account, this is the simplest method.

    Is Bitcoin a good investment?

    Bitcoin's high liquidity makes it a potentially ideal investment vehicle if you're searching for short-term profit. Because of their great market demand, digital currencies may potentially be a long-term investment. Reduce the risk of inflation.