It is not good to have Bitcoin as an investment if you don't know how to move it one day for a profit. Digital Trends doesn't issue investment advice, that's not our forte, but we can break down the technical basics for you, such as selling Bitcoin.
There are several ways to do this, depending on whether you want to sell on an exchange or directly. However, here are some steps to help you sell your Bitcoin quickly and easily.
Step 1: Set up an Exchange account
The easiest and most "automated" way to convert your Bitcoin into cash is through an exchange platform. They act as an intermediary for the cryptocurrency known to be decentralized by selling your Bitcoin for you. Since it is one of the most popular and established exchanges, we recommend Coinbase. If you'd rather choose your own, there are many others to choose from, including popular international options like Bitstamp and Bitfinex.
Signing up for an account with Coinbase is easy, but there are a few frames to jump through. Depending on which country you are in, you have to follow different rules in order to know your customer. This may mean sending certain types of badges to the website. Processing can take a few days. Signing up with Coinbase Pro is also recommended, but is not essential to give you better control over your sales.
Once your account is created, link your bank account so that you can withdraw funds with the least possible hassle after your trade is complete.
Step 2: transfer your bitcoin to your wallet
If you've followed our guide on how to buy Bitcoin, you will have kept your Bitcoin in a secure – perhaps even cold – wallet. To trade with Coinbase, you should send your Bitcoin to a wallet and have it ready for sale there.
Beginners can always use the Coinbase Wallet app, which makes connecting the wallet very easy as it works automatically with Coinbase trades. Just open the app and wait for the "Connect Now" notification. Then enter your Coinbase credentials. If you don't see the notification, you can always go to "Settings" and select "Connect to Coinbase" to get started. The Coinbase wallet also offers some other useful features, including the ability to pay merchants directly from the wallet when they are part of the Coinbase Commerce program.
Coinbase security is good, with support for biometrics and advanced authentication technology. However, if you'd rather use a different digital wallet, go to their settings and look for ways to connect to a wallet. You should be able to enter your Coinbase login into the most popular digital wallets and start an authentication process to connect. However, this can take several days so it is definitely not a last minute step.
Step 3: Place a sales order
With your exchange account set up, your bank account linked, and your Bitcoin on deposit at the exchange point, it's time to actually make a sale. The latest version of Coinbase makes this very easy. Simply select Buy / Sell from the top menu and go to the Sell section. Choose Bitcoin as the currency of your choice and make sure that the correct destination for your money is selected in the Deposit to section. If you have a bank account linked to your account, you can select it here for a direct transfer.
Check your connected wallet to see how much Bitcoin you have and select the amount you want to sell. In 2018, Coinbase increased its standard trading limits and allowed people to trade their cryptocurrency immediately after purchasing them. This is one reason we are fans of the service. You can see your weekly bank limit in the same section. Finally, choose whether and how often you want to repeat this sale. Then select Sell Bitcoin. That's it!
There will be a short holding period before the sale is completed. You can make as many sales as you want during that time. However, the transfers will only be completed after the holding period has expired.
Deciding when to sell is part of the investment advice genre. There are many strategies out there based on your long term plans and the amount of Bitcoin that you want to move. Bitcoin has been going through a long period of depreciation and correction recently, mixed with slight rallies. Serious research may be needed to decide when is the best time for you to sell.
If you prefer to be involved in the actual sales process, direct trades (or peer-to-peer trades) are a possible alternative. You need to register, which in some cases means confirming your identity. As with all sales methods, we recommend setting up your account well in advance of actually selling. However, once you are set up, you can sell your bitcoins much more directly.
Unlike the exchanges where the transactions are automated, you have to conduct the transaction in direct contact with the buyer. You set up a sell order for a specific value. When someone comes by to buy at the agreed price, the website will alert you that you can proceed with the transaction. Once you give your thumbs up, the buyer pays you and you send them back the cryptocurrency.
The actual payment method depends heavily on which platform you are using to trade. Sites like BitQuick only keep things online and use bank transfers. However, sites like LocalBitcoin or Paxful offer far more options, including Moneygram, gift cards, cash in the mail, and even cash in person.
While some of these methods are much more time consuming, many are much more anonymous and allow you to keep your transaction safe from prying eyes if you prioritize it. If you do decide to do business in person, make sure you do so in a public setting.