Selling bitcoins is a good way to earn cash, get desired goods or services, or receive a different digital currency. But it’s not as easy or as simple as buying bitcoins. Depending on where you live and how your local government supports digital currency, you might encounter some issues when trying to sell your bitcoins.
Here’s a short guide on ensuring that your transaction runs as smoothly as possible.
When is a good time to sell bitcoins?
Selling bitcoins will depend largely on your personal decision.
If you were one of the lucky few who bought bitcoins years ago, you could already be sitting at thousands of dollars worth of digital currency. A $100 investment in bitcoins back in 2014 would cost about $5,000 or more today. But what do you do with it?
Some people end up selling their bitcoins because they have urgent financial needs, like a house they want to buy or utilities they need to pay for. Others like to think about cashing in on their investment early on because they fear huge losses in the future.
Whatever your reason, experts advise:
- NOT selling ALL your bitcoins. Use the 20 to 30 percent rule as your guide.
- Sell if you’re sure you don’t want to wait years for a possible huge payout.
- Selling if you want to get back the amount you originally invested in.
Now that you’ve decided to sell your bitcoins, here are a couple of ways to go about it.
3 Main Ways To Sell Bitcoins
For those who wish to convert bitcoins to cash, you can sell your bitcoins or ‘cash’ them out. Do this through:
- Online platforms or exchanges, such as Coinbase;
- Bitcoin ATMs in your country; or
- through personal exchanges.
Selling Bitcoins Online
Perhaps one of the easiest and most popular ways of selling bitcoins is through online platforms and exchanges.
Coinbase for instance, lets users cash out bitcoins by simply entering the amount you want to sell, selecting your wallet and bank account for cash deposit, and confirming your transaction. Circle, on the other hand, allows transfers to debit or credit card.
Localbitcoins.com is an online exchange platform where buyers and sellers can exchange bitcoins using their preferred payment method. Sellers have options such as wire transfers, bank deposits, or even through PayPal.
There are a few considerations for using online platforms and exchanges for selling bitcoins though.
- If your bitcoin values are tied to your bank account, it might take a while before the funds get transferred.
- If the platforms are not secure, hackers could intercept the exchange.
- Depending on the platform you’re using, and/or the country you’re in, there might be limitations with how much you can sell or cash out.
- There could also be fees when using some online exchanges, especially when cashing out large amounts of bitcoin.
- Some services will require identity verification before withdrawing cash from a bitcoin exchange. This might make some bitcoin sellers uncomfortable, especially those who wish to remain anonymous.
Keep these in mind BEFORE selling your bitcoins online.
Selling Bitcoins Through ATMs
Believe it or not, bitcoin ATMs are growing in number. From the United States (with more than 1,200 locations) to Japan (with 12 locations), it’s getting easier to find a bitcoin ATM anywhere around the world. Use websites like Coinatmradar.com to find one in near you.
This is a convenient and quick option for those who only want to sell a small amount of bitcoins (less than $1,000 – any more than that and it will require verification).
Once you’ve found a bitcoin ATM in your area, simply choose how much bitcoins you wish to sell, select the amount of cash for withdrawal, use your bitcoin wallet to send in the right amount, and wait for a few minutes to redeem your cash.
It usually doesn’t take very long for this transaction. As long as you make sure that you enter the correct details, you should be able to cash out your bitcoins quickly and safely.
Selling Bitcoins in Person
If you want to remain anonymous or have the ability to cash out large amounts of bitcoin easily, then selling bitcoin in person might be right for you.
Just keep a few tips in mind when meeting a stranger from the Internet:
- Always meet in a public place.
- Agree beforehand on a set price. There will be buyers who would be willing to pay a premium for convenience – and simply because bitcoins are a great investment nowadays.
- Bring your smartphone and/or laptop to compare prices and verify the transfer.
- You can also stay safe by bringing a trusted friend or family member.
Be aware that large exchanges may arouse suspicion of local authorities. Review rules and regulations in your local area for bitcoin exchanges so you don’t get into trouble.
Also, as more and more people become aware of bitcoin’s potential, there are people who organize friendly bitcoin meet-ups. Keep an eye out for these local events so you don’t miss out!
Selling bitcoins can be trickier than buying it, that’s why it’s important to read a lot and also seek out advice from trusted experts in the field. But once you get the hang of it, it can be a creative way to earn cash.