How do I sell Cryptocurrency?
There are all kinds of options when it comes to selling cryptocurrency. The most common options that allow people to sell or trade one cyrpto coin for another are known as exchange platforms. Other options include peer-to-peer transfer, cryptocurrency specific debit cards that convert cryptocurrency to fiat currencies (£$E), or Bitcoin ATM’s.
Fiat is another name for government-issued currencies, this covers almost all ‘physical’ currency you’ll be familiar with like the U.S dollar, the euro, yen, and other major global currencies.
We’ll go into more detail of the advantages and disadvantages for each of the main options available to sell cryptocurrency.
Selling on a Cryptocurrency Exchange
The most simple, secure and usually quickest way to cash your cryptocurrency is to deposit your cryptocurrency on an exchange platform and place a ‘sell order’.
Online exchanges are convenient, running 24 hours a day and capable of transferring the cryptocoins you sold into ‘fiat’ currency which can arrive in your bank account as quickly as 24/48 hours. These transactions tend to have associated fees from both the exchange and your bank, so it’s best to find out what a transaction will cost you. In the UK it’s generally very cost effective.
You should be careful as not all exchanges operate with all fiat currencies. It’s worth checking your exchange platform depending on the fiat currency you want to withdraw and the availability of the platform in your region.
Cryptocurrency Debit Cards
Cryptocurrency debit cards are one of the popular choices to cash out or spend your crypto if you’d like to use your cryptocoins to buy things online or in shops.
Rather than being linked to your bank account, a cryptocurrency debit card is linked to your crypto wallet, when you add cyrptocoins to your debit card, your cryptocurrency is immediately converted into fiat currency for you to spend.
You can also withdraw cash at regular ATM’s using your cryptocurrency debit card, however unlike other debit cards, a small transaction fee is charged when you make payments using your cryptocurrency debit card. They also usually require monthly account fees.
Bitcoin ATM
You can cash in your crypto at Bitcoin ATMs. The Bitcoin ATM will ask you to transfer the crypto to a specified wallet address within a time limit, say 30 minutes. After the transfer is validated the ATM will release your cash. This is really convenient if you’ve got Bitcoin or Ethereum, but if you’re holding other cryptocurrencies the chances are you won’t find an ATM to help you cash out.
Wallet transfer may take 30 minutes or even some hours depending on your wallet service, blockchain, etc.
There are over 9000 bitcoin ATMs across the globe – so if you live in a major city and you’re in a rush they could be convenient, however another major drawback the ATM’s is a high transaction fee of approx.. 7-12%.
Peer-to-Peer Transaction (P2P)
Unlike exchange platforms, where the transaction is automated, the peer-to-peer transaction involves direct contact with the buyer.
The process for selling your coins is to first set up an account on a P2P platform like LocalBitcoin, Bisquick, or Paxful and offering your chosen coins at a price you’re happy with. When a buyer mutually agrees with your asking price, you will be notified and after your green signal, the transaction will be initiated.
Platforms like LocalBitcoins act as an escrow service that prevents fraud. Escrow services keep your cryptocurrency locked away safely until you confirm you’ve received payment. Once you’ve confirmed a payment the cryptocurrency is automatically transferred to the buyer’s account.
P2P platforms offer various payment methods including bank transfer, PayPal, Western Union, Moneygram, gift cards, cash in the mail, and even cash in hand.
This means you can also trade more anonymously or with other parties that may provide a more favourable price if for example, they pay in cash.
Summary
You can sell your cryptocurrency against fiat currencies using exchange platforms, peer-to-peer platforms, bitcoin ATM, and cryptocurrency debit cards.
With so many options available, you should choose your platform based on the things most important to you; this might be ease of cash out methods, transaction fees, withdrawal options, security, and their availability in your region.
It’s just a case of finding the best option for you at any given time.
