Do you think the time has come to retreat from the bitcoin craze or do you just want to be prepared when the time comes? In this guide, we will explain how to sell Bitcoins step by step, to ensure that you can walk away whenever you want and recover the investment you have made in this cryptocurrency.
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But before doing so, you should consider that, if you decide to sell at the same time as everyone else, you could have some delays. Fortunately, we are here to tell you about these problems so that you can sell your cryptocurrencies correctly.
If you still do not have your piece in the pie of bitcoins, which has already turned a decade, you can also read our guide on this cryptocurrency and how to make your first purchase.
Step 1: set up an exchange account
The simplest and most “automated” way to convert your Bitcoins into cash is through a exchange platform or exchange. These sites act as intermediaries, selling cryptocurrencies. As it is one of the most popular and well established, we recommend Coinbase. If you prefer to choose another, you have many alternatives.
Creating an account is easy, but you need to follow a few steps. Depending on the country in which you live, you will have to comply with different steps of the rules of «Know your customer«, So you may need to send identification or personal documentation. This information may take a few days to be processed. Although it is not strictly necessary, it is advisable to register at Coinbase Pro to have greater control of your sales.
When you have registered, link your exchange account with that of your banking institution so that, when the operation is finished, you can withdraw the money without problems and quickly.
Step 2: transfer your bitcoins to an exchange wallet
If you followed step by step the guide on how to buy bitcoins, you have probably kept your cryptocurrencies in a secure wallet. To carry out transactions on Coinbase, you must send your bitcoins to the exchange platform. Use the transfer function in your wallet to send the cryptocurrencies and wait for the confirmations when the process is complete. This can take a couple of hours or, if it is a high demand time, a couple of days.
With your exchange account set up, your linked bank account and your bitcoins deposited on the exchange platform, you are in a position to carry out a sale. The process is much simpler in the latest version of Coinbase. Choose Buy Sell in the top menu and go to the section Sell. Select bitcoin as your currency and make sure you choose the correct destination for your funds in the section Deposit to. If you have a linked bank account, you can choose it for a direct transfer.
Check your wallet to see how many bitcoins you have and choose the amount you want to sell. In 2018, Coinbase raised its default limits for transactions and allowed people to exchange cryptocurrencies immediately after purchasing them. You can see your weekly banking limit in the same section. Choose if you want to repeat this sale and, if so, how often. To finish select Sell bitcoin.
There will be a short retention period before the sale is completed. You can make as many sales as you want during that period, but transfers won’t take place until your retention period ends.
As for deciding when to sell, that’s getting into investment advice, and there are plenty of strategies based on your long-term plans and how much bitcoin you want to move. Bitcoin has gone through periods of devaluation and slight recoveries, although the current boom has changed the scene. You may need more research to decide when is the best time to sell.
If you prefer to have more control in the sales process, direct operations (peer-to-peer) are an alternative. You will need to register, which in some cases will imply the need to confirm your identity. For this, as with all sales methods, we recommend setting up your account well in advance. When you’re ready, you can sell your bitcoins in a much more direct way.
Unlike exchange platforms, where transactions are automated, in this case the business is carried out in direct contact with the buyer. You establish a sell order for a specific value and when someone seeks to buy at the agreed price, the site will notify you that you can continue with the process. When you give the go-ahead, the buyer pays you and you send them the amount in cryptocurrencies.
The method to make the payment will depend on the service you use for the exchange. Sites like BitQuick They work exclusively online, using bank transfers. However, platforms like LocalBitcoin or Paxful they have other options, like Moneygram, gift cards, money by mail, and even cash in person.
Although some of those methods are more time consuming, they are more anonymous and allow you to keep the transaction away from prying eyes, if that’s what you’re looking for. If you decide to trade in person, be sure to do it in a public place.