Bitcoin entered the digital scene as a decentralised alternative to traditional currencies in 2009. Its popularity grew over the years to the point of becoming a legal tender in El Salvador and Central African Republic, and being named one of the best-performing assets in the past decade.
Bitcoin paved the way for the crypto market and opened new possibilities in finance, technology, and other industries. And with over 400 million crypto users worldwide as of early 2023, some experts believe that global crypto adoption is not a matter of if but when.
That said, if you’re a crypto beginner who wants to learn how to sell Bitcoin or other tokens, this article is for you.
6 Ways to Sell Bitcoin
Let’s discuss how to sell Bitcoin in six different ways:
1. Crypto Payment Platform
Aside from being able to send crypto payments easily, some crypto apps for beginners allow you to cash out Bitcoin through a bank account.
Once you’ve decided which platform to use, you need to set up an account on that platform, deposit your Bitcoins from an external wallet, connect your bank account to the app, convert crypto to cash, and initiate the withdrawal.
2. Bitcoin ATM
Bitcoin ATMs allow you to sell Bitcoin by linking your wallet to the machine (usually via a QR code) or by using a crypto debit card. Just like how you do it in traditional ATMs, the Bitcoin ATM will ask you to enter the withdrawal amount and confirm the transaction with a passcode.
3. Crypto Card
Certain crypto companies provide cards that automatically swap crypto for cash when used. Functioning like a traditional debit card, this card utilises your cryptocurrency balance instead of a bank account, and you can also use them to withdraw funds at a crypto ATM.
4. Peer-to-Peer (P2P) Trading
P2P trading involves directly selling cryptocurrencies to another person. This method offers great flexibility as you can tailor the selling terms based on a mutual agreement.
To begin, you need to find a platform that supports P2P trading; create a sell offer; find a buyer; discuss your terms; accept their payment; and finally transfer Bitcoins to the buyer.
5. Crypto Exchange
Although they’re mainly designed for trading, you can also use a crypto exchange to sell Bitcoin and other crypto. To withdraw funds, you need to swap your crypto for cash, connect your bank account to the exchange, and then transfer the funds to your bank account. Some exchanges also provide the option to transfer funds directly to e-wallets such as apps like Cash App.
6. Over-the-Counter (OTC) Trading
OTC trading is ideal for large crypto withdrawals because it can help you avoid huge price changes due to costly "slippage.” Through a broker, you can sell Bitcoins by directly selling them to high-volume traders or institutions.
To sell Bitcoin through OTC trading, you need to find a broker, set up an OTC trading account, place a sell order for Bitcoin, receive a quote from a potential buyer, confirm the trade, and then receive the payment in cash.
How to Sell Bitcoin and Move Them to Your Bank Account
The process of selling Bitcoin and moving it to your bank account may vary based on the platform you will use. To give you an example, here’s how you can sell crypto and move it to your bank account using Ka.app:
a. Sell Your Bitcoin for Cash
- Log in to Ka.app.
- Go to the home screen, and tap Bitcoin (BTC).
- Tap the swap crypto icon.
- Select Euro (EUR).
- Enter the amount of BTC you want to convert to EUR.
- Confirm the conversion.
b. Move Cash to Your Bank Account
- Go back to the home screen, and tap EUR.
- Tap the withdraw icon.
- Enter your bank details: your name, IBAN, bank code, and reference code, if applicable.
- Enter the amount of EUR that you want to withdraw.
- Review the information and confirm the withdrawal by entering your passcode.
- Wait for the money to arrive in your bank account.
What Is the Best Way to Sell Crypto?
Each method of selling crypto has pros and cons so it’s hard to decide which is the best option. At the end of the day, it will depend on your unique circumstances and needs. Some factors you need to consider when choosing what method to use include the speed of transaction, security, convenience, and fees involved in selling crypto.
What Are the Fees for Selling Bitcoin?
The fees of selling Bitcoin may vary depending on which platform or method of selling crypto you will use. Most crypto platforms charge a certain percentage of the transaction value, which usually ranges from 0.1% to 3%.
Final Thoughts
Crypto users sell Bitcoin for various reasons: to take profits, exit the crypto market during a bear season, pay bills with crypto, diversify assets, or have extra cash, among others.
Whatever your reason may be, the good thing is, selling crypto is easier now than ever. You can choose from different ways to sell your holdings, and many of them require just a few steps.
Just remember that in selling Bitcoin, your safety and security should be a priority. Always take a second look at your transaction details; keep your passwords safe; beware of phishing scams; and only use platforms that prioritise security.
FAQ
Do you pay taxes when you sell crypto?
This depends on the crypto regulations in your country. If your country requires users to declare profitable crypto transactions, including crypto sales and conversions, taxes are most likely required as well.
Why do I need to verify my identity to sell Bitcoin?
Many crypto platforms require identity verification, also known as Know Your Customer (KYC) checks, for security, trust, and regulatory compliance purposes. KYC helps prevent fraud, money laundering, and other illegal financial activities.
Is it difficult to sell cryptocurrency?
No. Most of the abovementioned ways to sell Bitcoin are easy to follow and understand. If you want the easiest way, you can use a crypto platform or exchange, and connect your bank account to the platform.
