Buying and selling of bitcoin is very straightforward and requires the use of a bitcoin currency exchange or trade website, although it can be done in person too. We are not huge advocates of the latter, so we’re going to delve into selling bitcoins online.
Selling bitcoin imposes a little more administration than buying bitcoin, but it’s still a simple process that can be completed fairly quickly. No matter where you are located, you will be able to sell your bitcoins online in exchange for other cryptocurrencies or national currencies, provided you already have an existing account with an exchange.
If you are already signed up with a provider, then you simply need to act on the sale of your bitcoins. Once the sale is complete, the funds received for your bitcoin will be deposited into your account. On a currency exchange, they will remain on the exchange until you decide what to do with them, ie: withdraw or reinvest.
Let’s go into more detail.
There are three ways that you can sell bitcoins easily online:
- Exchanging bitcoin for another currency
- Cryptocurrency exchange
- Making use of bitcoin trading marketplaces
1. Trading Bitcoins Directly
By trading directly, you are trading your bitcoins with another person through a service that acts as the middleman.
Once your identity has been verified and you’re ready to sell, you notify your intention to sell by posting an offer. You will, in turn, be notified when someone wants to accept your offer and trade with you and then the transaction takes place between the two parties.
Registering as a seller will involve verifying your identity, so it’s important to get this administrative task out of the way before you are ready to sell. If you’re hoping to take advantage of fluctuations in price, this could cause a setback.
2. Exchanging Bitcoin For Another Currency
Making use of a bitcoin currency exchange is another way you can sell your bitcoins online. You create a sell order for an amount and specific currency, and wait for someone to post a matching buy order. This can often be immediate. You can post sell orders that fit into two categories:
- A limit order that is more than the going asking price for bitcoin
- A market order which is the current going rate
Once a match has been found for your sell order, the transaction can take place and the currency will be deposited into your account and the bitcoin will be transferred to the buyer’s account.
3. Making Use Of A Cryptocurrency Exchange
Making use of a cryptocurrency exchange to sell your bitcoins works in the same way as exchanging on a currency exchange, except you will be trading your bitcoin for another cryptocurrency.
You’d publicise your intent to sell your bitcoin in exchange for your other chosen cryptocurrency and once a match is found, the trade can be executed.
4. Making Use Of Bitcoin Trading Marketplaces
Bitcoin trading marketplaces are known as peer-to-peer trading spaces and are not as common as the other methods of trade or selling bitcoin online. They offer a trade of bitcoins for other items, such as Amazon merchandise. If you want to sell your bitcoins in exchange for a particular product that is supported by the peer-to-peer network, you post your request and then wait for someone to honour it.
By using your bitcoin to pay for the merchandise, you receive a discount on your shopping too. Examples of such a trade exchange are OpenBazaar and Purse.