Bitcoin is the hot potato of the investment world today. With unbelievable returns and high risk, Bitcoin proved its value as the most cryptocurrency time and again. What started at the very bottom of the economic spectrum is now in a position to control the economy of numerous countries.
Considered one of the safest crypto investments, bitcoin still holds the throne of cryptocurrencies in the long run. Many investors are favoring crypto as their first investment. The first question any investor thinks of is where to sell bitcoin.
Since bitcoin is not like fiat coins, there are some special methods to sell or even buy them. In this article, let us explore the best way to sell bitcoin.
Where to Sell Bitcoin?
There are more than a few places to sell your bitcoin. Selecting the right platform can save you a lot of time and transaction fees. Various factors like the price you want to sell your bitcoin for, the time you are willing to wait are also crucial in determining the best place to sell your bitcoin.
Thankfully, Bitcoin gained enough popularity to be accepted in some retail websites. You can exploit this opportunity and buy everyday stuff with BTC as well.
Exchanges are the best and the easiest way to sell bitcoin online. You can use the exchanges to sell your bitcoin for other crypto or fiat currencies. Various exchanges offer various services such as low transaction fees, quick selling, selling BTC for other cryptos, etc.
Since bitcoin’s popularity is going through the roof, it is essential to identify the best exchanges to sell bitcoin. Selling bitcoin with an exchange without enough information can cost you hundreds of dollars as transaction fees.
If you want to exchange bitcoin quickly and right from your bed, exchanges are the best place to sell bitcoins.
Before selling bitcoin on exchanges, you need to have a bank account and sometimes even a card. Some exchanges will ask you for additional documents to verify. You also need to have a wallet on the exchange platform if you want to transfer your BTC from an external source.
CEX.IO is a popular crypto selling platform from London. One of the major factors why users prefer this exchange is its simplicity. Anyone can easily sell their bitcoin on this platform with just a few simple clicks. It is no wonder that CEX.IO has more than a million active traders.
Security is another critical factor at CEX.IO. The exchange is known to take all the necessary steps to ensure user data protection. You don’t have to worry about security breaches with CEX.IO. Another great thing about the exchange is that it has a level 2 PCI DSS clearance. The PCI DSS clearance or the Payment Card Industry Data Security Standard is a set of guidelines and rules to ensure user data safety when it comes to financial information.
A level two clearance makes CEX.IO one of the most trustable exchanges in the world. Today, we see more security breaches per day, unlike ever before. It is quite reassuring to know that a crypto exchange is doing all it can to protect your financial data.
As with any other exchange, CEX.IO also has a minor disadvantage. The transaction fee is a tad higher on CEX.IO. However, the price seems pretty worthy considering the safety the platform offers.
Binance is one of the most used and trusted cryptocurrency exchange platforms in the world. It is considered the best place to sell not just BTC but also many other cryptocurrencies such as Ether, Carano Ada, Chainlink, etc.
Binance is so successful that they have their own smart link chain with multiple successful projects on it. Binance also has a token called Binance token. Purchases with Binance tokens are pretty rewarding for the investors.
Binance supports a lot of fiat currencies. You can exchange your BTC into any of these currencies. Along with this, you can also exchange your BTC with a Binance token to buy other cryptocurrencies for a reasonable price.
Binance is considered one of the biggest cryptocurrency exchange platforms in the world. The only disadvantage with Binance is that not every US state resident can create an account in Binance. The limited support for Binance in America is one of the reasons people use other exchanges.
Despite its shortcomings, Binance is still one of the most used and trusted cryptocurrency exchange platforms. If you are looking to trade daily or just liquidate your assets, Binance is the best place to sell bitcoin.
Coinbase is one of the most popular and secure cryptocurrency exchange platforms in the world. Coinbase is known for its ridiculously high user base. The Coinbase user base is loyal to it for a reason. Coinbase is easily accessible and is available in most countries.
You can directly transfer the money you get when you sell BTC to your bank account. You can also use Coinbase to buy other cryptocurrencies along with bitcoin.
Coinbase is not just an exchange platform. You can add Lao use Coinbase as a digital wallet. Since you can easily take out money from exchanges, many people choose to use Coinbase for quick trading and hodling.
One of the major advantages of Coinbase over Binance is that almost all the US states support Coinbase. This is a massive game-changer since most of the crypto investments are usually from the United States.
There are more exchanges like Kraken, Voyager, Robin Hood, etc. The exchanges mentioned above are deemed the best places to sell bitcoin by the users and investors. The low transaction fee and good security should be the two main factors you need to look for in any cryptocurrency exchange platform you want to sell your BTC in.
2. P2P Exchanges – Eliminate the Middleman
P2P Exchanges are a great way to exchange cryptocurrency without going through the whole process. In a P2P exchange, both the buyer and the seller will interact directly with each other. If you want to sell your bitcoin for a certain price and a buyer is looking to buy it at the same price, the transaction will proceed further.
One of the main disadvantages of P2P exchanges is that there won’t be any middleman in the process. As a result, you will be responsible for securing your financial details. Sometimes, you may not be able to find a buyer if the asking price is too high.
Remember to ask for not more than 2.5-5% of the coin’s value in a P2P exchange. Even though it is pretty rare, you may have to sell your bitcoin for a lesser price than the market value if you’re in urgent need of money.
Another major disadvantage of direct trading is that it is a manual process. With exchanges, you will be able to set up a sell limit or a buy limit. However, with P2P trading, you will have to do everything manually at the time.
This may be a bit disappointing for those living outside the US since most of the altcoins see a rise when the US market wakes up. Usually, in a P2P exchange, the buyer directly sends the amount to your bank account. However, you can also choose to get the money in your wallet instead.
Numerous sites support P2P exchanges. LocalBitcoins and Paxful are just two of the countless examples. If cryptocurrency trading is put on hold in your area or country, then P2P exchange may be the best way to sell bitcoins.
3. Bitcoin ATMs
Bitcoin ATMs are just like regular ATMs. However, every bitcoin ATM is connected to the internet. Bitcoin ATMs are one of the safest ways to exchange bitcoin. This is because the ATMs don’t connect to the bank account. Instead, they take cash and send you some bitcoins. If you want to keep your financial details hidden from prying eyes, Bitcoin ATMs can be an option.
Bitcoin ATMs are available in many countries such as the United States, United Kingdom, Australia, etc. The disadvantage with this method is that you have to go out to sell your bitcoin or purchase more.
Even though they are quickly catching on, bitcoin ATMs are still limited in number. You may have to spend quite some time traveling to the ATM to sell your bitcoin. Unlike other exchange methods, Bitcoin ATMs are not as easily accessible for all.
4. Bitcoin Gift Cards for Loved Ones
Bitcoin gift cards are a way to tell someone that you care about them. The recipient can not only liquidate the currency immediately, but they can also hold it as a long-term investment, which is a fantastic idea seeing the price projections of bitcoin. Bitcoin gift cards are not only thoughtful but are ridiculously easy as well.
Normally, you will need to go out, get a card and a gift envelope to give some cash. However, with bitcoin, you can just send them a gift card online. Bitcoin gift cards are available on various websites like bit4coin.
The best thing about sending bitcoin gift cards is that the person doesn’t need to know anything about bitcoin. The platforms explain everything from how to redeem their gift card to how to open a wallet and store the received bitcoin.
5. Deposit Bitcoin in your Retirement Account
Bitcoin has many uses and a limited supply. Many investors believe that bitcoin’s value will increase much more in the future. Transferring bitcoin to your retirement account can be a pretty massive investment. You may see some potentially huge returns in the future. The custodians or other investors often manage retirement accounts, also called individual retirement accounts.
Apart from these, you can invest in much more stuff like gold, land, and of course, bitcoin. To transfer bitcoin to your retirement account, first you have to open a self-directed individual retirement account. You can do this through a secure e-sign application.
You can then transfer the bitcoin to the account. The only disadvantage with this method is that you cannot immediately use bitcoin. You have to wait till you are 59 and a half years old. If you want to withdraw your bitcoin earlier than that, you will have to pay some penalty.
Best way to Cash out Bitcoins
Selling bitcoin for cash can be a little different since most of the exchanges transfer the amount digitally. There are a few services that have the cash option. This method is the best way to cash out if you need some urgent cash in your hand.
Localbitcoins is a popular BTC selling service. It has a P2P trading option that you can use to get some cash. Localbitcoins is one of the best P2P exchange sites in the crypto space. The transactions are mostly instant if the buyer has enough money in his account and all the details are provided correctly.
Localbitcoins allows you to directly contact the person that’s willing to buy your bitcoin. If everything feels okay, you can then set up a face-to-face exchange with the person and get some much-required cash.
Localcryptos is an established P2P platform with multiple ways to sell bitcoin. Based on your location, you will also find an in-person cash option if there is a seller in your country. We tested the option for a few countries and we found a decent number of sellers.
Paxful is another great cryptocurrency connecting platform. Buyers and sellers can connect and exchange bitcoin. Paxful changes just 1% of the transaction value as a fee.
Paxful servers are protected with high-level encryption algorithms, along with multiple additional security features like two-factor authentication, security questions, etc. Paxful is a direct competitor to Localbitcoin. Both the services have similar features and offer almost the same security and transaction fees.
Please opt for this option only if you are okay with face to face meet-up. Ensure the place is neutral and there is commercial activity. The last thing we would want is you to lose your savings/ investment because there can be instances of theft.
Selling Your Bitcoin for PayPal
PayPal is one of the first retailers to accept bitcoin. PayPal started accepting bitcoins initially in 2016. Some. Exchange platforms have this feature through which you can directly convert and deposit your bitcoin in PayPal.
Through Coinbase, you can deposit your BTC in the wallet and directly withdraw USD to your PayPal account. Coinbase also has several other features, as we discussed above. You can also exchange BTC with other cryptocurrencies with Coinbase.
Using Coinbase to get money in your PayPal is quite simple. First, you need to have a Coinbase account. Then, move all the Bitcoin you want to liquidate to your Coinbase account.
Now, you can just choose PayPal as your payment method when selling the BTC to get the amount deposited in your PayPal account.
Bitpanda is an Austrian cryptocurrency exchange platform with a decent user base. Using Bitpanda to sell BTC for PayPal is quite simple as well. First, you need to have an account on Bitpanda. Just like Coinbase, when selling, choose PayPal as the payment method and enter your PayPal address to deposit the money in your PayPal account.
Conclusion – Choose the Best way to Sell Bitcoin!
Bitcoin is one of the hottest investment opportunities of this decade. Its value is projected to increase much more in the coming years. With the bitcoin market cap closing in, many people are buying bitcoin, which is causing higher lows and lower highs pretty often. Moreover, It is important to know how and where to sell your bitcoin. There are cases where people lost their bitcoin to shady exchange platforms. Before using a platform, ensure that you completely trust the platform and thoroughly read the privacy agreements and usage terms.
Selling bitcoin may seem like a pretty complicated task,, especially P2P trading, Paypal exchange, and all. Rest assured that you will get used to it after a couple of times. Sometimes, cryptocurrency exchange platforms take some time to process your payments. Ensure that you wait for a sufficient amount of time (usually mentioned on the exchange platform’s website) before calling customer care.