There are other options, though, that you might want to consider when selling bitcoin, and we are listing them here, along with a step-by-step guide on how to go through the process and the requirements needed.
Hopefully, the bitcoin you want to sell is secured in a cold storage wallet. In that case, the first step is to transfer the asset to your chosen service provider.
1. P2P
There’s no second best for personal privacy and security. Decentralized, peer-to-peer, and KYC-free marketplaces are the future of Bitcoin transactions which the Bitcoiner community is trying to create worldwide and, due to the fundamental nature of the cryptocurrency, should be the preferred choice of Bitcoiners and privacy advocates.
Such marketplaces match a buyer and a seller and offer different types of payments, including wire transfers, gift cards to use at online stores, and even cash in person. You can refer to our “How To Buy Bitcoin Anonymously” article to learn more about it.
Step 1: Download the service app on your mobile phone or install it on your computer;
Step 2: Transfer your bitcoin funds from your wallet to the p2p provider if your BTC is not there already;
Step 3: Create an offer and select the method of payment you will accept from your buyer, and specify the amount of bitcoin you want to sell; you can also go through buyers’ listings to see if you can match a buyer’s offer;
Step 4: Once a buyer accepts your offer, your bitcoin is automatically transferred from your wallet to the temporary deposit provided by the marketplace’s escrow service;
Step 5: Wait for the buyer’s payment to be processed, and your transaction will be resolved. You can now withdraw your funds to your bank account.
2. Exchanges:
Exchanges are intermediaries in the buying and selling transaction, holding the assets from both sides so there cannot be any dispute once the transaction is executed. If you’re looking for convenience over privacy, exchanges might be ideal, and the good news is that there is usually no – or minor – KYC required to transfer cryptocurrency.
However, you’ll have to go through identity verification and link your bank account to withdraw the funds (in local currency) obtained with your sale.
Step 1: Unless you already have one, you’ll need to open an account with the exchange you want to use and transfer your bitcoin there;
Step 2: Most exchanges provide a dedicated trading account, different from the main account, and you’ll need to transfer your bitcoin there to be able to sell it. However, it usually only takes one click, and is often a free and instant transfer;
Step 3: The trading account will offer you the chance to execute a market, a limit, or a stop order; pick the one that is more suitable to your trading strategy, the amount, and the fiat currency you want to use for the trade;
Step 4: Click “sell” and once your order is executed, you can transfer it back to the main exchange account if required;
Step 5: Withdraw your funds to your bank account.
3. ATMs/BTMs
The quickest and most straightforward way to sell BTC is to use a Bitcoin ATM , assuming there is one nearby. Some will require little or no KYC; however, their fees are much higher than other exchange providers. It might be worth considering that you can only receive the sale’s funds in cash from an ATM, so this should probably be a preferred method for trading smaller amounts.
Step 1: Find a Bitcoin ATM near you on CoinATMRadar.com . Keep in mind that most ATMs only provide a buying service, so make sure you’ll be able to sell at your selected machine;
Step 2: Most ATMs will require you to verify your identity, so take an ID document with you;
Step 3: Pick “sell bitcoin” when prompted with the option;
Step 4: Scan the QR code provided on your screen as it contains the address where to send your bitcoin;
Step 5: You will likely have to wait for one confirmation only before you can cash out the funds from your sale. This could be almost instant, or at worst take a few minutes.
4. Brokers
Bitcoin broker marketplaces are growing worldwide due to their diversified offerings, including futures contracts and assets beyond digital currencies. Some even let you trade your bitcoin directly, 24/7, and with competitive fees. You should choose this third-party service if you are interested in trading derivatives and multiple assets.
Step 1: Pick your broker and open an account with them;
Step 2: Transfer your bitcoin from your personal wallet to the provider’s wallet;
Step 3: Since brokers provide trading of different assets and commodities, you’ll have to choose the proper account that lets you sell bitcoin;
Step 4: Set up your trade by selecting the type of order you’d like;
Step 5: Once the sale is executed, you can withdraw your funds to your linked bank account.
5. Payment Apps
Payment apps are the quickest and more straightforward way to buy and sell bitcoin, and an increasing number are emerging as peer-to-peer services. You pay for convenience with usually higher fees than exchanges, but they have onboarded millions worldwide due to their broad user base.
You may already have an account with one of the popular payment apps like Strike or Revolut that you use for your daily financial activities. If you don’t, you may find it handy to open one.
Some apps are geographically limited to specific countries; therefore, check their terms beforehand, as you may be refused access if your jurisdiction is not included in their service.
Step 1: Download the preferred app on your mobile phone and go through usually soft-KYC verification that requires basic information only;
Step 2: Link your bank account;
Step 3: Transfer BTC from your wallet unless you have already bought some through the same app;
Step 4: Select the “bitcoin” tab displayed in the app, and select “sell” plus the amount to be sold;
Step 5: Once the transaction is executed, you can cash out to your bank account.
Conclusion
Once you buy bitcoin , it’s easy to sell it from a practical level. To get started, you simply need an account with the particular exchange you want to use and some bitcoin in the exchange wallet to sell. Choose your order type and click sell after considering trading and withdrawal fees.
The tricky aspect of the selling process is to part from sound money in exchange for fiat currencies that have gone through a financial and systematic crisis for a long time now.
As Satoshi Nakamoto once suggested, ”It might make sense just to get some in case it catches on,” which 14 years later revealed to be a mind-blowing prophecy. However, circumstances in life might prevail over the personal belief that bitcoin is the natural evolution of money and there should never be judgment for people that want or need to sell it.
