Since you can buy Bitcoin, you can also sell Bitcoin. Some do it to make money while others sell at a loss. Whatever the reason for selling it, the opportunity is there.
But how do you do it and what are the options available today?
In this post, we'll cover everything you need to know in order to selling Bitcoin!
Best Options For Selling Bitcoin To Fiat
- Use a crypto exchange
Exchanges are a great way to exchange your cryptocurrency for fiat currencies, like USD or EUR. There's no need to sell at market price when you can get an exchange that gives the best rate and has all its trading features available on one platform - it will be just as good if not better than what regular exchanges offer!
- Sell person to person (Peer-to-peer)
Peer-to-peer trading is an effective way of buying or selling bitcoin on. It is both a quick and easy way. Using platforms like Coinbase, potential buyers can get in touch with sellers who have cash for their bitcoins (or vice versa). This is done while negotiating prices directly through these matchmaking services that act on behalf of both parties until everything is agreed terms wise.
Advantages and Disadvantages
Here are some points in favour and some points against these options:
Pros and Cons of Selling Bitcoin via a Crypto Exchange
A crypto exchange can be divided into two groups: 1) A regular exchange and 2) A perfected exchange.
- An ordinary stock exchange
- It is both user-friendly and fast
- You get a guaranteed price
- You can sell any amount
- You need to verify your personal data (KYC).
- Does not work everywhere in the world
- Bank transfers only
- Perfected Crypto Exchanges
- You can place buy orders at specific levels.
- You can sell any amount of money
- Not available in all areas
- You need to verify your identity (KYC).
- Payments by bank transfer only
- The crypto exchange holds your asset
- Relatively difficult to use
Selling Bitcoin Person to Person
- There is usually no need to verify your identity
- You can use any payment method (e.g. cash, payment apps).
- You have to manage your orders yourself
- Higher risk of fraud
- You cannot sell just any amount of money
You need to verify your identity to sell Bitcoin
You can be sure that when you sell bitcoin via a crypto exchange, you will need to identify your identity via 'Know Your Customer? (KYC). These regulations require them to store customer information including identity documents or sometimes proof of address to keep everything secure too!
Before you can make withdrawals and sometimes deposits, you need to be KYC verified by most crypto exchanges. The documents they require are usually the following:
- Copy of national ID, driving licence or passport.
- Proof of home address
- Valid phone number (verified by SMS or call)
Once this is done, you usually don't need to think about it anymore. It is important to be prepared for the fact that in the future you will often need to redo your KYC. This is because a company wants to make sure that all clients are still allowed to use their services.
What are the fees for selling Bitcoin?
There are many different fees that you need to consider when selling Bitcoin. This also applies to the type of payment method you choose to use. If your friend buying from someone else via an online marketplace such as Coinbase or LocalBitcoins, there may be other fees. involved depending on how they settle their purchase (i.e. via bank transfer vs. cash).
Fees vary depending on whether you want an immediate deposit when the sale takes place. You might pay immediately, which in turn can lead to additional expenses later.
There are many fees for receiving money by bank transfer. Firstly, you need to factor in any fees for international ATM withdrawals and conversion rates when converting from other currencies to euros or pounds sterling. Then there is usually an additional fee charged by your financial institution just for handling these transactions too!
The exchange fee at a crypto exchange is a small margin to cover operating costs and other expenses.