A Secret Of Drama-Free Bitcoin Selling
Is it possible to trade Bitcoins in a stress-free way? Some people would say not. But if you know some tips and hints you will get a possibility to sell crypto coins without any problem. There are several ways to do it from home: by using a crypto exchange, particular trading platforms or peer-to-peer transactions. And if you are ready to go somewhere to sell cryptocurrency, you can use Bitcoin ATM or just meet a person who wants to buy your coins.
It is, perhaps, the most popular and workable way to make Bitcoin transactions – when you use exchange, it acts as a mediator. To utilize it, find the exchange that fully meets your requirements and create an account. And here comes an unpleasant part: as a rule, the exchanges, that are considered to be reliable, require your personal and financial information. That, on the one hand, will diminish all the preferences of anonymity that Bitcoin gives, and on the other hand, it is more convenient to transfer money.
Once the account is created, it is necessary to place an offer specifying:
- Offered sum.
- Price you want per unit.
After all the buyer requirements are clarified, the transaction will be completed immediately.
The funds received from the transaction can withdraw to your bank account. In some cases, the process may be time taking as exchange may have issues with the bank or with liquidity. More than that, long time of exchange-bank transactions can be considered as a sign that the trade is facing problems and may become a bankrupt soon. For example, infamous Mt Gox exchange that has lost more than 750,000 Bitcoins belonging to its users had that problem in the last months before bankruptcy.
Also, some banks do not process any transactions with cryptocurrencies.
Critical point: some exchanges charge their assistance. One of the most significant crypto exchanges CEX.io has a flat fee — $50 for the bank transaction, $3.80 for Visa or MasterCard transaction. Each purchase is also paid – the transfer takes 1.2% of trade. Still, there are many exchanges where fees are moderate or tiny. And, of course, some trades have no cost at all.
Another stumbling block: limited money storage. Do not expect that you will be able to store substantial sums on the exchange account as soon as you create it. Only loyal users have increased limits of money storage, so stick to particular exchange to be able to get the most out of it.
And last but not least: exchanges do not guarantee 100% protection of your accounts, and they cannot be considered to be perfect places to store funds. They are very vulnerable to hack attacks and the situations when a stock exchange closes down declaring itself bankrupt and users cannot withdraw their money from accounts. That is why, if you decide to use assistance provided by any exchange, it’s worth taking care of the security of your assets – store a certain amount of BTC on the account and let all the rest coins stay protected in a reliable offline wallet.
Direct trades are another popular way of trading Bitcoins. Usually, there is a scope to find a buyer for your hard-earned digital coins using specialized services on the crypto-themed websites. To take advantage of such services you will have to:
- Create a seller account.
- Post an offer.
- Receive a notification that there is a buyer.
- Complete the trade.
And once again, this method requires to disclose your personal and financial information. As soon as a buyer finds your offer acceptable, you will get an opportunity to carry out a transaction without intermediary. In this case, the website only offers a platform to process transactions. However, bring to notice, that you will have to conduct real research to find out what platforms are the best. Otherwise, be ready for challenging and time-taking procedures. The most popular services of direct trading are Coinbase, LocalBitcoins, and BitBargain.
P2P trading on the Internet
Such online marketplaces aimed to meet trading needs of Bitcoin owners are not that widespread on the Internet. Though, they sometimes become accommodating. They work unusually: there are no direct transactions of Bitcoins between members of such marketplaces; still, both participants of the trade will get what they want. How does it work? Imagine two people: one is willing to buy Bitcoin by using a credit card, another one wants to buy something in the online shop that does not accept BTC. And in this marketplace they combine their needs and get what they want: one can purchase cryptocurrency and the other purchases specific products at e-shop. The market, on its side, creates an escrow service and a Bitcoin wallet. Thus, in general, the process looks like that: you create a wish list with a list of desired products, with up to 25% discount. A buyer accepts your trade, purchases everything from the menu by using his credit cards and stating your address as the delivery one. When you receive all goods, the service will transfer your BTC to the buyer.
There is a fly in the ointment, of course. The simplicity of the service usage is compensating by relatively high fee for the service. More than that, you will have to share your sensitive information — both personal and financial — to register there. Add here a fee for the transaction gained from your BTC disposal to your bank account, and the picture is no more acutely optimistic. Besides, the very process of money withdrawal to the bank account can be extraordinarily protracted, so be patient. Taking to consideration the fact that every action of the described above methods has a specific fee, no wonder, that many BTC owners prefer offline deals.
This relatively new but rapidly evolving way of trading Bitcoins helps people to buy cryptocurrency with ease. Still, when it comes to selling, nothing is that simple. The buying procedure is understandable: insert cash, receive QR code or check with systems. But how to sell BTC? First and foremost, the method will require access to the wallet and the registration process will be daunting and time-consuming. More than that, it cancels out all advantages of anonymity that Bitcoin provides: excellent information required to complete registration may call for a phone number, photo taken by the ATM’s webcam and palm scan.
One of the main disadvantages of such ATMs is a high fee – up to 7% per transaction. Also, there are not that many ATMs at the moment, and, surprise! Not all of them support selling feature. It is possible to find maps with the locations of Bitcoin ATMs. However, there you won’t find information whether particular ATM supports selling feature or not. Still, no difference what operator provides services through a specific device, as in any case, the registration procedure will require disclosure of personal information.
As soon as the registration is over, you will receive a QR code with an address of the Bitcoin wallet to send your digital coins to. After that, you either accept cash or the system that you will activate after the transaction is complete. Take to consideration that the procedure may require more than one confirmation before you get your cash.
With all this in mind it is possible to conclude that ATMs are more convenient for buying purposes rather than for selling. Besides, in some countries, such ATMs can be considered illegal so you will highly unlikely find them there.
Perhaps, the easiest way to sell Bitcoins. Here all you have to do is to scan a QR code on the screen of someone’s handheld device and get your money. Well, at least, it works when you trade with a person you trust. And if you have to sell your BTC to an unknown person, the process may become time-consuming, as right off the bat you will start negotiations, then agree on the place to meet, etc. Also, there are some things you have to remember when deciding to sell Bitcoins to a stranger.
Arranging the trade
When browsing the Internet, you may find many websites and forums that assist Bitcoin owners to find buyers for their crypto money. LocalBitcoins is considered to be one of the most popular platforms for arranging such trades for a reason. This platform rates reliability of users that want to make trades with its help. Thus, it is possible to decide at once whether you want to negotiate with certain person. Another important feature is the negotiation process – the price for Bitcoins is regularly changing, so it is necessary to agree on the rate at once rather than discuss it during the meeting. For the most part, traders use the current price at the moment of the trade plus additional fee to the seller – usually around 5-10%.
Location of the trade also plays an important role because in some countries the exchange rate may vastly differ. That can be explained by a different attitude to BTC from the government’s side that may complicate the process of obtaining Bitcoins for local currency.
Many countries have Bitcoin meetups: group meetings of cryptocurrency owners where you can sell or buy all kinds of cryptocurrency. Perhaps, this is the most convenient, safe and fast way to sell cryptocoins.
Boosting your protection
Face-to-face trading is the most desired way of buying/selling cryptocurrencies for those who want to keep everything in anonymity. Still, it won’t be superfluous to consider some protective measures aimed to increase your security in case you are going to negotiate with a stranger.
1. Always choose a public place with access to the web.
2. Bring a friend with you.
3. Do not settle for a meeting in a private house.
4. Do not use public transport.
How to withdraw funds
The issue of removing your hard earned money received from the Bitcoin disposal is standard for each and everyone who had at least once sold Bitcoins. Recently, the very few exchanges have started to accept plastic cards for withdrawals. Back then, the primary way to transfer money was international wire transfer. The other way to move money is the use of SEPA – Single European Payments Area. This system of international transfers is widespread among members of the crypto community.
Still, neither wire transfer nor SEPA can offer flawless and well-timed transfers. Such operations are time-consuming, and сan take up to four days. In addition, both these methods have charged – and their amount differs depending on the urgency of the transaction. For example, Barclays takes from £25 to £40 for each sale, while HSBC takes no more than £4 for SEPA transaction. Unfortunately, Barclays works with BTC and HSBC does not. That is why it is essential to make sure that the chosen bank accepts cryptocurrency transfers before creating an account for BTC withdrawal.