Selling bitcoin isn’t quite the same process as buying bitcoin, and there some things that you should decide before actually doing it. The first important thing to consider is which method would be the best for you: selling bitcoin online or selling bitcoin in person. Each chosen option has its own advantages and disadvantages.
Selling bitcoin online
Selling bitcoin online is the most common way of trading the bitcoin. There are now three different ways to sell bitcoins online.
Direct trades – This one involves a direct trade with another person, an intermediary facilitating the connection.
Exchange trades – The second way is through some online exchange, where you trade with the exchange rather than with another individual.
Peer-to-peer trades – There are some peer-to-peer trading marketplaces that allow bitcoin owners to obtain discounted goods with their bitcoin via others that want to obtain the cryptocurrency with credit or debit cards.
Direct trades
Websites that offer this selling method include Coinbase and LocalBitcoins in the US, and BitBargain and Bittylicious in the UK.
Coinbase – https://www.coinbase.com/home
LocalBitcoins – https://localbitcoins.com/
BitBargain – https://bitbargain.co.uk/
Bittylicious – https://bittylicious.com/
On these websites, people usually have to register as a seller. This also means verifying your identity. Once you have registered, you can easily post an offer, letting others know that you wish to sell, and the website will alert you automatically when a buyer is interested in trading with you. After this, your interaction is with the buyer is the only thing you should be cocnentrated on. However, you have to use the website to complete the trade.
The process of selling on Bitbargain UK and Bittylicious can be a little lengthy and requires some patience as well. For bitcoin users who have bank accounts in the United States, it is best to consider using Coinbase or Circle, which are very user-friendly and simple.
Circle – https://www.circle.com/en
Exchange trades
The other way to sell bitcoins is to register with an online exchange, where you have to verify your identity. It’s important to know that trading this way doesn’t need much work when it comes to organizing the bitcoin sale.
Exchanges act as an intermediary who holds everyone’s funds. You just need to place a “sell order”, determine the amount, determine the type of currency you wish to sell (eg bitcoin), and the price per unit you wish to sell for. As soon as some buyer places a matching buy order, the exchange will complete the transaction and the currency will soon be credited to your own account.
It is important to know that if you are selling bitcoin for fiat currencies, you have to withdraw those funds to your bank. If the exchange is facing liquidity problems or issues with its banks, be sure that it can take some amount of time to receive your funds. It is crucial to carefully research the exchange you plan to use before committing funds. Some examples of crypto-to-fiat currency exchanges include BTC-e, Circle, Kraken and Bitstamp.
Circle – https://www.circle.com/en
BTC-e – https://btc-e.com/
Kraken – https://www.kraken.com/
Bitstamp – https://www.bitstamp.net/
There is always the alternative. This means that you can use a pure cryptocurrency exchange to change bitcoin for another cryptocurrency. However, it’s not so common among the users, but there are reasons such as arbitrage, or the rare occasion if a shop accepts something other than bitcoin. For example, Bitcoin Shop accepts litecoin and dogeoin too, for a wide range of goods available. Good examples of these types of websites are BTER, CoinCorner and Cryptsy.
BTER – https://bter.com/
CoinCorner – https://www.coincorner.com/
When choosing this option, be aware that you’ll have to pay a fee to use some exchanges. BTC-e charges a flat 0.2%. For overviews of what fees are charged by the various cyrptocurrency markets and what volumes are being traded, it’s best to visit CoinCompare and Bitcoin Charts pages for up-to-date information.
CoinCompare – http://coincompare.com/cryptocurrencies/
BitcoinCharts – http://www.bitcoincharts.com/markets/
Peer-to-peer trading
In recent period, there are some new types of websites like Brawker and Purse, which serve to bring together two groups of people with specific and complementary needs, making the link between those two groups much faster.
Purse – https://purse.io/
The first group includes people who want to be able to use bitcoin to buy goods from websites which do not yet accept digital currencies. The second one includes people who would like to buy bitcoin with a credit or debit card. The marketplace brings together people with matching requirements in order to effectively sell bitcoin to one and provide discounted goods for the other user.
Identity verification
While many bitcoin markets require very little identification from buyers, they require a lot of proof of identity from sellers. There are very few legal requirements from bitcoin markets to know who their users actually are, but most of them are still collecting identity data in anticipation of forthcoming regulations. So, to make becoming a seller easier, it is worth considering completing the identity verification process when you join the site for the first time.
Selling bitcoin in person
Selling bitcoin in person is considered to be the easiest way to transfer the digital currency. It is enough to simply scan a QR code on another person’s phone and accept cash-in-hand is easy. If you have friends or family who wish to buy bitcoin, the process is also simple. You just need to set them up with a bitcoin wallet, send them the bitcoins and collect the cash.
Agreeing on a price
You should decide on a rate that works best for you. Many people use a price from a prominent bitcoin exchange, or the CoinDesk Bitcoin Price Index.
Bitcoin Price Index – http://www.coindesk.com/price/
Some sellers tend to apply a percentage on top of these rates in order to cover costs. Users can also use a mobile app to calculate prices easily. Most popular apps include Zeroblock and BTCreport. It helps users to be aware of local fluctuations in price, which is common. Price can vary from country to country, often due to difficulties in obtaining bitcoin with the local national currency.
Local Bitcoins
For those who prefer anonymity or don’t want bank hassles, it is the best to acquire bitcoin by making a face-to-face trade with a local seller. LocalBitcoins is the well-known site where these transactions are arranged and prices negotiated as well. The site also has an escrow service as an added layer of protection for both parties.
LocalBitcoins – https://localbitcoins.com/
MeetUp
For those who don’t feel comfortable in these one-on-one trades, it is best to check out Meetup.com to see if the local area has a bitcoin meetup group. This is where people can do it all in a group setting and learn a lot from the other members.
Meetup.com – http://www.meetup.com
