In this article, we will look at the main points about how to sell bitcoins, as well as the criteria for choosing a method, which is better in accordance with a seller’s needs. It is also important to assess risks associated with the sale of bitcoin. Therefore, if you somehow have several million Satoshi, or even a couple of bitcoins and want to cash out your savings, read our advice.
Table of content:
– How to sell out a cryptocurrency: choosing a method
– Method of exchange with the help of individuals
– With such transactions, do people often deceive each other?
– How can I sell bitcoins if I do not have acquaintances interested in cryptocurrency?
– And what about exchangers?
– What does “traditional exchangers” mean? Are there any others?
– How to sell bitcoins on eBay
How to sell out a cryptocurrency: choosing a method
One owner of cryptocurrency is ready to get them quickly, and he is ready to sacrifice a part of the amount for the sake of speed – and another one can wait, just not to overpay.
In this way it is impossible to say about objectively the best way of transfer of cryptocurrency to cash money. But there are main conditions for the evaluation of pertinence of each method:
Profitability assumes receipt of the largest amount for unit of currency. Trustworthiness is method, which will provide safety of money during conversation and “delivery” to an owner. As to easement, a process of sale should be quick and simple.
Today four common ways of cryptocurrency sale exist:
- with the aid of individuals;
- by means of exchange;
- through exchangers service;
- through eBay.
Unfortunately, neither of them cannot guarantee a maximum benefit simultaneously. Every method has its own advantages and disadvantages.
What about the method of exchange with the help of individuals?
One of the way is that you can try to find a friend who wants to purchase bitcoins, and agree with him about an honest exchange rate. Plus such a deal can happen without intermediaries and does not involve anybody (except for the commission of the cryptocurrency network for the transaction itself). You will transfer your cryptocurrency to a certain bitcoin address of your friend, and he will give you cash or transfer fiats to the bank account you mentioned. If both sides value a good relationship above the immediate advantage, then the risk of deception is minimal.
With such transactions, do people often deceive each other?
There are a lot of cases are known for today. But we do not know what percentage of transactions fail. Authorities openly state that there are no mechanisms to protect consumers’ rights in such transactions. For example, some courts in Russia decided the next: since legally cryptocurrency is not considered to be cash, securities, or goods, “all operations involving the transferring of bitcoins are made by their owners at their own peril and risk”.
How can I sell bitcoins if I do not have acquaintances interested in cryptocurrency?
There are several options and best way to buy and sell bitcoins: for example, you can learn how to trade on the exchange, or find a suitable exchanger.
The exchange (like Bitstamp or Cex.io) opens accounts for customers inside the system (however you need to transfer your bitcoins to such exchange first), allows you to make transactions at the market price (including automatically using robots) and withdraw funds to your own accounts. But exchanges sometimes are hacked, and its owners can suddenly limit the withdrawal of funds. In addition, for a one-time operation this system is complicated: after the completion of the transaction you will still have to withdraw funds.
At once, a choice of the stock exchange should be approached very responsibly. There are the main criteria that need to be addressed:
- Reputation. Since the topic of cryptocurrency is now more relevant and popular than ever, scammers can create fake exchanges. In order not to be deceived, read reviews about this crypto sites.
- Security. Services for trading are constantly susceptible to hacker attacks. Therefore, choose reliable exchanges that are well invested in the security system.
- Trading pairs. Make sure that the exchange allows you to exchange cryptocurrency for Fiats. The fact is that, unfortunately, some Internet sites do not support transactions with traditional money.
And what about exchangers?
These are special sites that act as intermediaries in transactions on the purchase and sale of different cryptocurrencies. In addition, unlike at the exchange, you will receive your money immediately after the transaction is completed.
Traditional exchangers operate according to the following scheme:
- The marketer and the buyer find each other thanks to the site of the exchanger.
- Each of the party transfers funds (cryptocurrency and money) to the so-called exchanger’s escrow accounts.
- The staff of the exchanger are waiting for the fulfillment of obligations by both parties.
- If the marketer and the buyer have transferred the necessary amounts, the exchanger sends money to the marketer and bitcoins to the buyer. If one of the operations did not take place, the exchanger returns the funds to their owners.
What does “traditional exchangers” mean? Are there any others?
Also, there are decentralized or peer-to-peer (p2p) exchangers to answer the question how to exchange bitcoins for real money. They allow you to conduct transactions directly, without involving an intermediary and providing documents for mandatory identification, which is required by some companies. Decentralized exchangers offer different techniques for protecting against fraud and deceit. For example:
- LocalBitcoins allows the seller and the buyer, if desired, to meet in person (offline) to enter into a transaction. It should be noted that such meetings can be even more risky.
- Developers of Coinffeine have proposed a protocol in which the seller and the buyer must deposit a mandatory deposit on escrow accounts in a bank that returns only after the transaction is completed. At the same time, the transaction itself can be divided into several microtransactions, and each of them must be less than the deposit made. It is advantageous for the parties to complete the exchange in order not to lose the deposit.
- Bisq (formerly known as Bitsquare) allows the seller and the buyer to choose an arbitrator, who will intervene only if there are disagreements. In this system, the seller of cryptocurrency transfers funds to the so-called 2/3-multisig-address. This is the simplest form of a smart contract: the purchaser will be able to dispose of them only if the transaction is confirmed by another party – the seller or the arbitrator. If the transaction is not completed in a few days, the parties can apply to the arbitrator, demanding the transfer (buyer) or return (marketer) of the bitcoins. The arbitrator will require confirmation of the transfer and decide who to believe. But here the marketer can end up with nothing, if the purchaser contrives to challenge his bank transfer after he takes possession of the bitcoins.
How to sell bitcoins on eBay
There is one more way to merchandise bitcoins, bitcoin cash, litecoin and other cryptocurrencies for dollars. It is possible to use a popular service called eBay. Not long ago, on the official website of the company, a special section appeared, with its help you can exchange the crypt with other users.
In addition, for today, this service is quite in demand. All transactions are conducted through a centralized eBay service system, which provides protection against fraud. In addition, at an online auction you can sell your bitcoins at the exchange price.
However, eBay has certain drawbacks: a sale time. To exchange your crypt for real money you should wait a long time, because the sale is in the auction format.
So, what is the best way to buy and sell bitcoins? It all depends on the specific case. For example, if you do not have an acute need for money, and you want to get as much profit as possible from your cryptocurrency, then your choice is the cryptocurrency exchange or eBay website. If you urgently need money, it is best to sell the crypt through exchanger offices. Well, if you want to sell bitcoins to your good acquaintance, who will not deceive you, it’s best to conduct transactions directly.