Bitcoin owners have a few options when it comes to selling their cryptocurrency. Here we will discuss those options to make it easy for the owners to decide.
- Use of Cryptocurrency Exchange Service
Cryptocurrency Exchanges are online transaction platforms for Bitcoin investors. They act as a third party between the buyer and the seller making the trading process easy and convenient for the user. These are centralized cryptocurrency exchanges as they are regulated by a company. The majority of crypto trading is enabled through centralized exchanges as they are reliable. If you want to grow your money through Bitcoin you need to just create a trading account on a safe crypto exchange.
As you are buying Bitcoins, you need to set up an account with a reputed cryptocurrency exchange. Since they are regulated businesses that interact with financial institutions like banks, they need to adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) rules. For this, you are required to submit documents verifying your identity.
Once you transfer your Bitcoins to your account in that exchange or if your account already exists that has your cryptocurrency, the selling process can be initiated. A sell order is issued that specifies your preferred currency type, the number of crypto-currency you want to sell, and your price. If there is a match for your offer, the exchange automatically executes the transaction. The money is then credited to your account and can be transferred to your bank account.
With each transaction, these platforms earn a commission.
- Peer-to-Peer Service
A peer-to-peer transaction was the original motto behind the creation of Bitcoin. These transactions ideally occur between individual entities in the complete absence of a central authority. They can be conducted online via a specialized platform or through a direct face-to-face interaction between the seller and the prospective buyer.
For online peer-to-peer selling, you can post your specific requirements regarding the currency of your choice, your expected price, and your payment option on one such platform. Interested buyers can complete the sale transaction once they follow the guidelines set up by the online platform. The money in exchange for the crypto-currency can be deposited in the bank or can be received through a wire transfer.
Direct interaction between you with your friend, family, or acquaintance to sell your cryptocurrency for cash is also a way you can opt to sell your Bitcoins. Few online platforms also enable the seller to meet prospective buyers in person and carry out the transactions. However, before executing the deal, you must be well-informed about how to transfer your Bitcoins; either from your crypto wallet or the crypto-currency exchange where you have an account. As in other financial transactions, there are risks involved when direct trading is done with a person not known to you and for this, all precautions must be taken that minimize your chances of being defrauded.
There are some shops too, that provide exchange facility services for cryptocurrency users. They may offer cash, products, or services in exchange for your Bitcoins.
- Bitcoin ATMs
Bitcoin ATMs are connected to the internet instead of a financial institution. Their location in your vicinity can be accessed through various apps. One needs to take note of the fact that not all of them offer the selling of Bitcoins option. Also, some necessitate the user to open an account before executing any sale transaction. As in cryptocurrency exchange platforms, the registration procedure entails the identity verification of the user. An account once activated, the ATM provides a QR code along with a wallet address. You then deposit your bitcoins in that wallet. This may result in either you getting cash in exchange for your cryptocurrency instantly or you may be provided a redemption code. This code can be encashed only after your sale transaction is ratified and confirmed on the blockchain.
The transaction fee charged by the ATMs is considerably high in comparison to the other options and this proves to be a deterrent in some cases for sellers.
Before selling your Bitcoins, an extensive study of the processes through which the sale transaction can be done is a must. Each of them has its pros and cons. Your aim is to gain maximum profit from the transaction and this must be the criterion that determines your choice.