A Beginner’s Guide to Crypto: How to Sell Cryptocurrency
Cryptocurrency has taken the world by storm and built a brand new economy in the process. Nowadays you don’t have to rely on fiat alone to pay for your goods and services, but you’ll always be able to convert crypto back into fiat – that’s why it’s such a popular method of investment these days.
Whether you’re in love with blockchain technology or are all about the money, understanding how (and when) to sell your cryptocurrency is always going to be important. After all, how are you supposed to secure your profits when you have no idea how to sell?
Why Would I Want to Sell?
Many people look at crypto as an investment opportunity and nothing else, while others have been in the industry since the very beginning (and stand by the technology). At the heart of it all, being part of a decentralized economy is always going to be a talking point, but nothing beats cold hard cash in this world.
While crypto prices are sky-rocketing, you’re almost always going to be selling crypto for fiat. When you’ve taken a position in crypto and you notice the profits are becoming “astronomical”, it’s a matter of how risky you’re willing to be.
Do I Get the Money Right Away?
For the most part, yes! You’ll always see an updated fiat balance whenever you sell your crypto on a broker or exchange, and from there you just need to transfer the money back over to your bank account.
How It Works
Exchanges and Face-to-Face Sales
Using exchanges to sell your crypto is the easiest way, and I’ll use Coinbase as an example. When you want to sell crypto on Coinbase, you merely set up an order and receive the funds as soon as it’s executed!
In my case, I was able to withdraw the earnings to my PayPal immediately, but maybe that’s a “Canadian thing” and others can withdraw directly to their bank (using the ACH or SEPA banking process).
This means when you select bank transfer as the withdrawal method, the money will be directly deposited into your account within 1 to 5 business days (Coinbase shows the expected delivery date on your Trade Confirmation page).
Australians Are Out of Luck?
If you’re looking to use Coinbase and you’re based in Australia, you’re out of luck, as they currently don’t support that region. Thankfully, a reliable alternative in CoinSpot is just as viable as Coinbase and can be looked at as the Australian cousin of sorts.
Withdrawal Fees
You’ve got to take note of any fees that come out when you withdraw money, especially if you’re looking to withdraw massive amounts of it. Some exchanges also have a limit on the amount of money you can withdraw throughout a certain period, although that limit tends to increase over time (if you stay with a particular platform).
Sometimes you can upload additional documentation to verify your identity, which will also remove and withdrawal restrictions (these are often referred to as Anti-Money Laundering documents).
Selling Bitcoin for “Stablecoins”
As you may have noticed, there are several stablecoins that represent an underlying asset (like USDC, which essentially mimics the U.S. Dollar). You can choose to purchase the equivalent of these stablecoins using Bitcoin, or any of the other cryptocurrencies on the market right now – most exchanges will offer “Trades” where you buy other crypto using Bitcoin.
Face-to-Face Sales
There are times where you can just trade your Bitcoin over to someone’s wallet in return for goods or services, even if you’re just buddies in real life. You could basically accept a massive duffle bag full of money for Bitcoin if you wanted to, but that’s incredibly illegal (and also, you didn’t hear that from me!).
As long as you’re aware of the current Bitcoin price and have their private key, you can send them as much Bitcoin as you’d like. There are even places in the world like El Salvador where shops are starting to accept Bitcoin as payment for physical items!
Online Peer-to-Peer Selling
Online P2P selling is often done using one of several uniquely designed platforms, or even by purchasing products from more “reputable” crypto exchanges.
To keep things simple, these platforms allow you to sell Bitcoin for cash with another party online, but not necessarily as a regular exchange would. Think of it like Craigslist, except for Bitcoin!
Bitcoin ATMs
Much like a traditional ATM, these are machines set up all over the globe that allows you to scan your wallet QR code and sell BTC for cash. Of course, there are going to be ridiculously high transaction fees and they likely won’t offer the best price for Bitcoin in general.
Also, one thing to note is that not every ATM will offer both “buy” and “sell”. Some of them will be set up only to buy BTC, while others are there to sell it. There are also instances where you need a pre-authorized account to use a specific Bitcoin ATM, and that’s a thorough process that most people don’t want to go through (it includes having your palm scanned!).
Risking It All vs. Taking Profits
As I’ve said numerous times, I’m not a financial guru by any means, but I’m also a coward when it comes to investments. There are individuals out there who turned $10,000 into a million with the most recent Ethereum run, although you would have had to get in as soon as the project was introduced.
Take note of how much you paid for your crypto and how much you’re currently going to profit if a sale were to occur. If you’re dedicated to the crypto and money means nothing to you, you’re more than likely a “risk it all” type of individual!
Selling Crypto Has Never Been Easier
2021 is a year for crypto enthusiasts to rejoice because they can finally buy that nifty Lamborghini they’ve always wanted without a care in the world.
If you’re just starting your crypto journey now, no need to worry! At least now you know how to sell when your investments can buy you a mansion in 10 years.
