The total cryptocurrency market cap is above $2.3 trillion, based on CoinMarketCap’s statistics, highlighting the popularity of digital assets. Depending on your entry price, you may decide to sell your crypto. But how would you do it? Knowing how to sell Bitcoin and other cryptocurrencies may seem daunting, but it’s simpler than you might think. This guide breaks down everything you need to know about how to sell crypto. We’ll cover various methods, from using centralized exchanges to Bitcoin ATMs.
A great resource to also consider is our guide on cryptocurrency trading platforms. Let’s get into it.
There are several ways to sell crypto for fiat currency. The overall steps remain similar whether using a centralized exchange (CEX), a broker, or a peer-to-peer (P2P) platform.
First, decide where you want to sell your crypto. Options include centralized exchanges (like Coinbase or Binance), brokers, or P2P platforms like Binance.
Most platforms require you to complete a Know Your Customer (KYC) process, an important compliance requirement. It involves verifying your identity with documents like a passport or driver’s license.
Next, provide the platform with your bank details. Once you sell your crypto, you’ll receive your fiat currency in this account. Link your bank account correctly to avoid any delays or issues with the withdrawal.
Transfer the crypto amount you wish to sell to the platform’s wallet. Generate a deposit address on the platform and send your crypto from your wallet to the recipient’s address.
Once you sell your crypto, the platform will convert it to fiat currency and transfer it to your linked bank account. Depending on the platform and your bank, the process takes a few minutes to several days.
You can also use a Bitcoin ATM to sell Bitcoin. The Bitcoin withdrawal process is different,t but simple. You’ll find a Bitcoin ATM, scan a QR code and receive cash on the spot.
Ever used a stock exchange app like Robinhood? A CEX is the cryptocurrency equivalent. It’s a platform run by a company where you can buy, sell and trade cryptocurrencies with other users. Examples include popular CEX platforms like Binance, Coinbase or eToro.
The following steps outline how to sell crypto on a CEX.
Signing up for a CEX is like opening a digital bank for your crypto. When you create an account on a CEX, you provide personal information and go through a verification process, similar to opening a traditional bank account. Once your account is set up, you can deposit your crypto assets.
To sell your crypto, you can choose a quick sale at market price or set a specific price you want. The CEX finds a buyer and handles the trade, leaving your money in the account until you withdraw it.
CEXs use the order book system to manage cryptocurrency trades. It lists all buy and sell orders with their quantities and prices. When you place an order, it’s added to the order book. When the system finds a matching order, it executes your trade. The order book model ensures liquidity by aggregating orders, making buying and selling cryptocurrency efficient. Liquidity in CEXs comes from buyers and sellers providing enough volume or orders for trades.
Crypto off-ramping apps like Moon Pay provide a convenient way to sell Bitcoin and other cryptocurrencies. The platforms integrate with traditional financial systems, making it easy to convert your digital assets to fiat currency and withdraw to your bank account.
How to sell crypto for cash with off-ramping apps
Using an off-ramping app is straightforward: simply download the app, create an account, and link your bank account. Once that’s done, you can transfer your crypto to the app’s wallet and then sell it within its interface. From here, you can easily sell crypto and receive the fiat straight to your bank.
Peer-to-peer (P2P) trading – sometimes known as crypto fiat swapping – allows you to sell Bitcoin directly to other users without intermediaries. Platforms like the Peach Bitcoin facilitate these transactions by connecting buyers and sellers. Peer-to-peer trading offers more privacy and often better rates compared to centralized exchanges.
Below are the steps for peer-to-peer trading:
P2P trading begins by creating an account on a trading platform. Once registered, you can list your Bitcoin for sale, setting your price and preferred payment method. Interested buyers will contact you, and you can choose the most suitable one.
You and the buyer settle on payment terms. To ensure a secure trade, you’ll use an escrow service. Here’s how it works: you transfer your Bitcoin to a temporary holding account controlled by the escrow service. Once the buyer’s payment clears, the escrow releases the Bitcoin to them. This safeguard protects you and the buyer throughout the transaction.
Crypto brokerages offer personalized services for buying and selling large amounts of cryptocurrency. An example is Coinbase, which provides advanced trading features and dedicated support.
Here’s how to cash out Bitcoin using a crypto brokerage:
Using a crypto brokerage involves contacting the brokerage and setting up an account. You’ll need to complete KYC verification, negotiate sale terms with a broker and then transfer your Bitcoin to the brokerage’s wallet. After transaction processing, you’ll receive the fiat deposit in your bank account.
Bitcoin ATMs are physical kiosks that allow you to buy and sell Bitcoin for cash. You can find them in various locations, like malls and convenience stores. CoinFlip is a popular Bitcoin ATM withdrawal service provider.
Here’s how to withdraw Bitcoin from a Bitcoin ATM:
Using a Bitcoin ATM is straightforward. Find a nearby ATM and choose the option to sell Bitcoin. Scan the QR code provided by the machine and transfer the desired Bitcoin amount to the specified address. After completing the transaction, the ATM dispenses cash.
KYC is essential for crypto exchanges to verify your identity. This involves submitting documents like government IDs to comply with AML regulations and prevent illegal activities.
Verifying your ID helps exchanges fight fraud, secure your account, operate legally and build trust within the crypto community.
If you want more information, this Notabene guide is a great source.
Whether to sell your Bitcoin depends on your financial goals, market conditions, and personal circumstances. Evaluate factors like current Bitcoin prices, potential future growth, and your investment strategy. Selling during a market dip might lead to losses, while holding for long-term gains could be more profitable.
Deciding to sell cryptocurrency involves weighing the pros and cons. On the positive side, cryptocurrencies have a history of high returns and are highly liquid, allowing for quick selling. Additionally, they operate on decentralized networks, free from government control. However, these advantages come with significant drawbacks. Prices can swing wildly, leading to potential losses. Regulations surrounding crypto are also changing. The market itself carries high risk.
Ultimately, the decision to sell depends on your individual circumstances, risk tolerance and market understanding.
Disclaimer: The content in this article is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.
Verifying your ID (KYC) is required to sell crypto for fiat (traditional currency) for two main reasons:
The fees for selling Bitcoin and other cryptocurrencies vary based on the platform used. Common fee structures include a percentage of the transaction amount or a flat fee per trade. Additionally, exchanges may charge network fees for blockchain transactions.
Fees can fluctuate based on market conditions and exchange policies. Before conducting transactions, it’s advisable to review the fee schedule of the specific platform you intend to use.
Select a reputable cryptocurrency exchange like Coinbase, Kraken, Binance, or Bitstamp to withdraw Bitcoin to a bank account. Create an account and complete the KYC process. Transfer your Bitcoin from your personal wallet to your exchange wallet. Sell the Bitcoin for fiat currency (e.g., USD, EUR) through the platform’s Sell or Trade function.
Once converted, initiate a withdrawal by selecting the fiat currency, entering your bank account details, specifying the amount, and confirming the transaction. Be mindful of associated fees, withdrawal limits, and the time it takes for the transfer to complete, which can vary by exchange and bank.