How to Sell Bitcoin and Cryptocurrencies?
If you’re buying and selling bitcoin and other cryptocurrencies, it’s critical that you consider the risks and take precautions to keep yourself and your finances safe.
- .As with any online account, keep your passwords safe. If someone can access the password to your crypto wallet or a cryptocurrency exchange, they can potentially steal your coins.
- .Consider using a virtual private network like ExpressVPN or NordVPN to add an extra layer of protection when accessing your accounts.
- .Next, consider what wallet you’ll use for your cryptocurrency. The wallet holds the private keys necessary to access your coins. A digital wallet increases the likelihood of hacking, while a cold wallet keeps your coins the safest.
- .You should also know the security measures on the platform you’re using. Cryptocurrency exchanges require traders to provide identification to sign up, and these transactions are often public. But other marketplaces may not collect information about traders. Bitcoin ATMs also have their own security concerns, since they don’t have all of the safety features you might expect.
- .Finally, be cautious of direct trades. With this type of trade, you’re skipping the intermediary and working directly with a person, either online or in-person. Be careful of your personal and financial safety when meeting another individual in person. And with these trades, consider collecting payment upfront to avoid a situation where someone steals your cryptocurrency and doesn’t pay you as promised.
Common Fees When Selling Bitcoin
When you use a cryptocurrency exchange to sell your bitcoin and other cryptocurrencies, you may be subject to trading fees. The fee you pay could be based on a percentage of your transaction amount or simply a flat fee per trade.
Any exchange should make you aware of their fees upfront, so traders aren’t surprised with them during the transaction. Many publish a list of fees on their website, so you can see them before even signing up for the exchange.
How to Sell Bitcoin- Step by Step
Using an exchange is the simplest and most common way to sell cryptocurrencies. Here’s how to sell your bitcoin on an online exchange:
- Set Up an Exchange Account — First, sign up for an account on the exchange of your choice. There are many to choose from, with some of the most popular being Coinbase, eToro, and Gemini. Information needed to sign up will include your name, email address, password, and more.
- Verify Your Identity — Once you sign up, you’ll have to provide proof of identification and verify your identity. Proof of identity can include a passport or driver’s license and Social Security number. For some exchanges, you may also have to submit a selfie of you holding your government-issued ID.
- Transfer Coins to Your Exchange Wallet– To sell your cryptocurrency, you’ll have to transfer your coins from your current wallet to your exchange account. If you currently store your cryptocurrency on the exchange where you plan to sell them, then this step will be easy.
Otherwise, you’ll have to transfer your coins from your current wallet to the exchange before you can sell them. Keep in mind that this step can take several days, so be sure to make the transfer before you want to sell. - Place a Sell Order — To sell your cryptocurrency, you’ll ultimately have to place what’s called a sell order. Simply indicate the cryptocurrency you want to sell, how much you want to sell, and where you want your payment deposited. Some platforms may have limits on the amount you can sell, and there will be a short holding period before the sale is complete.
The Bottom Line
Ready to sell your bitcoin or another cryptocurrency? We’ve covered the most popular methods, and now it’s up to you to choose which makes the most sense for you. Each method has its own advantages, but each one also has downsides. When considering which is the right method, consider the fees you’ll pay, the safety measures in place, and which is most accessible for you.
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