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There are 2 ways to sell bitcoin, the first is to sell Bitcoin online through websites or exchanges, and the second way is to sell Bitcoin directly to buyers.
Method 1: Sell Bitcoin online
This is the most common way among your bitcoin business methods. There are 3 ways to sell bitcoin online.
1. The first method involves selling bitcoin directly to others, with intermediaries facilitating connections between buyers and sellers.
2. The second method is through online transactions, where you can conduct your transactions without the need for any other intermediaries.
3. The peer-to-peer trading market now allows bitcoin owners to sell their bitcoin to those who want to buy cryptocurrency using credit/debit cards. Two groups connect to each other to resolve the same peer-to-peer exchange issue.
- Direct trade: Some websites offering this type of bitcoin transaction include: in the US, there's Coinbase and LocalBitcoins, in the UK, there's BitBargain UK and Bittylicious.
On these websites, you'll need to register as a seller. Registration involves verifying your identity. After registration, you can post buy orders, announce that you want to sell bitcoin, and the website will notify you when a buyer wants to trade with you. Then you interact directly with the buyer, with these websites acting as intermediaries connecting you and the buyer.
The process of selling bitcoin on Bitbargain UK and Bittylicious requires patience. Bitcoin users with US bank accounts should consider using Coinbase or Circle, which are popular choices due to their simplicity.
Users should also pay attention to the latest Bitcoin prices on the market. By keeping an eye on Bitcoin prices, you'll be better positioned for buying and selling Bitcoin online today.
How to sell Bitcoin? Where and to whom?
- Exchange trade: Additionally, you can sell your bitcoin directly through online exchanges. Of course, you still need to verify your identity, but in this case, you won't have to do much when selling bitcoin.
Exchanges act as intermediaries, holding funds from both buyers and sellers. You simply place a 'sell order' (similar to a buy order), specifying the amount (quantity) and type of currency you want to sell (such as bitcoin), and the price per unit you want to sell.
As soon as someone's buy order matches your sell order, the exchange will complete the transaction process. The transaction amount will be transferred to your account.
The drawback of this type of transaction is that if you sell bitcoin for cash, you'll have to withdraw that money from your bank. If the transaction encounters liquidity issues or problems with the bank, you'll have to wait an indefinite period before receiving your money.
Mt. Gox exchange was once famous for this issue before it 'collapsed,' and recently BTC-e exchange also faced similar problems. Therefore, you should carefully research before committing to any exchange.
Additionally, you can use cryptocurrency exchanges to trade bitcoin for other cryptocurrencies. Few people want to make such transactions, mainly due to price differentials, and there are rarely any stores that only accept bitcoin.
Furthermore, when using exchanges, you'll have to pay a fee. BTC-e charges a 0.2% fee. To check the fees of other exchanges, you can search and refer to more information online.
Another note is that you will be limited in the amount of money allowed to store (which may change over time) in a transaction.
Advice for you is to be 'responsible' with your money, and store unnecessary amounts of money in a transaction on your device or offline, don't trust exchanges because they can be attacked at any time, and at some point no one can predict.
Mining Bitcoin is quite difficult, so you should also pay attention to the amount of Bitcoin you mine. If you have an efficient way to mine Bitcoin, bringing in more Bitcoin for yourself, then consider other options.
- Peer-to-peer market:
The emergence of websites like Brawker and Purse marks a new development in the bitcoin world. These websites aim to connect two groups of people: those with specific needs and those who can fulfill those needs.
The first group consists of people who want to use bitcoin to purchase items from websites that don't accept digital currency. The second group includes those who want to buy bitcoin with credit cards or debit cards.
The peer-to-peer market connects people who want to buy bitcoin with those who want to sell bitcoin to facilitate transactions.
This market also functions as an intermediary, providing users with platforms, bitcoin wallets, and contracts for transactions.
How does the peer-to-peer market work:
1. Alice lists the Amazon items she wants to purchase on the market, stating the discount she desires (usually up to 25%).
2. Bob has a credit/debit card and wants to buy bitcoin matching Alice's Amazon purchase price. Bob agrees to the transaction, purchases the Amazon goods through the market, and requests they be sent to Alice's address.
3. Once the goods are delivered, Alice notifies the market, and Bob's bitcoin is 'released' from the contract for the transaction and sent to Bob's Bitcoin wallet, minus Alice's discount and a small fee for the trading market.
This means Bob will pay a relatively high fee for the service, but in return, Bob can easily receive bitcoin through his bank card.
Concerns about withdrawal issues
How to sell Bitcoin? Where and to whom?
International bank transfer is a common way to transfer money worldwide. Most (if not all) online bitcoin markets support this transfer method.
Alternatively, another way to transfer money to your bank account after selling bitcoin is through the Single European Payments Area (SEPA) system. SEPA is designed to facilitate international money transfers between European Union member states more efficiently. Some exchanges (such as Kraken and BTC-e) support this payment method.
However, money transfers take quite some time (about 4 days) and you may incur significant fees. For example, HSBC charges £4 for each SEPA payment through online banking and £9 for each WorldPay transaction. Barclays charges £15 for a SEPA payment and £25 for other international transactions.
If you intend to open an account for the purpose of receiving money from bitcoin transactions, major banks with multiple branches may refuse to do business with you. HSBC is one such example.
Additionally, you can also use third-party payment processors to withdraw and receive funds. However, the number of these services is gradually decreasing. OKPAY recently ceased its bitcoin business operations.
Identity Verification
How to Trade Bitcoin?
Although many bitcoin markets listed above require less verification of identity from buyers, they instead require more identity verification from sellers.
Bitcoin markets set very few rules for their users, but most (if not all) collect user identity data before implementing further rules.
To become a seller more easily, at least in your first time joining the website, you should complete the identity verification process. Take this step to eliminate barriers in future transaction processes.
Markets may require you to upload a scanned bill with your name and address along with an ID photo (such as a passport or driver's license). Some markets (such as BitBargain UK) may require you to take a photo of the market's ID and name on a piece of paper.
Method 2: Sell bitcoin directly to buyers
Online Bitcoin Trading Method
There are many ways to sell bitcoin directly to buyers, and this is the simplest way to conduct cryptocurrency transactions. It's as easy as scanning a QR code on someone else's phone and accepting cash directly when conducting bitcoin transactions.
If you have friends or family members who want to buy bitcoin, this transaction process is very straightforward. Set up a bitcoin wallet for them, then transfer the bitcoin to that wallet and receive cash.
There are a few things to keep in mind when selling bitcoin directly to buyers.
Price Agreement: Decide Your Selling Price
- Many use prices from other bitcoin transactions, or the CoinDesk Bitcoin Price Index.
- Some sellers apply percentage rates to calculate costs as well as insurance/anonymity fees based on price levels.
- You can use mobile apps to calculate prices. Some popular apps include Zeroblock and BTCreport.
- Be aware of price fluctuations locally. Prices may vary by country, often due to difficulties in converting bitcoin to local currency.
Keep Safe
- Remember to accompany a trusted person when carrying a large amount of money to conduct bitcoin transactions in public places.
LocalBitcoins
- Additionally, you can advertise yourself as a bitcoin seller to a broader audience. LocalBitcoins facilitates this. The platform allows users to rate each other, thus, others can assess the reliability of a potential trading partner. Once 'established' as trustworthy, you can sell your bitcoin with an insurance fee.
- You don't need to verify your identity like on other websites.
- Always remember general safety rules when meeting a stranger online.
- LocalBitcoins also supports trade agreements, however, this is an online transaction, not a face-to-face one. Therefore, there's no need to comply with requirements for the counterparty requesting a direct transaction.
You can explore the comprehensive guide for newcomersjoining LocalBitcoins to better understand this exchange platform.
Above are all the details on how to sell bitcoin? Where, for whom? provided by Mytour. Don't forget to check out various types of charts and learn how to read Bitcoin charts to understand the current market, investing effectively. Hopefully, the article provides readers with useful information about this cryptocurrency bitcoin.
