Perhaps unsurprisingly, you can sell Bitcoins in all the same places as you can buy Bitcoins. The main ways in which people buy and sell cryptocurrencies are:
- Trading on exchanges
- Using peer-to-peer platforms
- Using Bitcoin ATMs
- Meeting face-to-face
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There are around 500 cryptocurrency exchanges open for business around the world. You can open an account and start trading in a matter of minutes.
Follow these steps to sell Bitcoin on cryptocurrency exchanges:
#1 – Create a Bitcoin exchange account
You will first have to provide your email address and set a password. Once you’ve confirmed your email, you will be able to set up two-factor authentication. Most exchanges will ask you to verify your identity. How much documentation you need to provide depends on the rules of the exchange and the laws of your country. You will often be asked to provide a government-issued ID and a proof of address. Once your account is created, you will automatically be given a Bitcoin wallet.
#2 – Send Bitcoin to your exchange wallet
The next step is to send the desired amount of Bitcoins from your wallet to your exchange wallet. The transfer can take anywhere from a minute to several hours if the exchange is busy.
#3 – Place a sell order on the exchange
Once your Bitcoins have arrived, it’s time to sell them. You can sell Bitcoins instantly if you’re happy with the current market rates. You also have the option to place a limit order, which only sells once it’s reached a certain price.
#4 – Withdraw your funds
You can withdraw the funds once you’ve successfully sold your Bitcoins. There are several ways you can withdraw money depending on the exchange. Some exchanges only allow bank transfers, while others allow transfers to other platforms like PayPal.
P2P Bitcoin trading
Peer-to-peer (P2P) trading is another popular method to sell Bitcoins. Rather than relying on exchanges to sell your Bitcoins, you can cut out the middleman. P2P trading allows you to sell Bitcoins and receive payments in bank transfers, PayPal transfers, or cash.
A popular P2P Bitcoin trading platform is LocalBitcoins.
The market for Bitcoin ATMs is growing at a steady pace. You’ll be able to spot them in most major cities, and in some suburbs. Bitcoin ATMs are effectively stationary cryptocurrency exchanges. The advantage of them is that you don’t need to create an account. In other words, you can buy and sell Bitcoin anonymously.
Bitcoin debit cards
Quite a few companies have formed partnerships with Visa and Mastercard to issue Bitcoin debit cards. These cards are typically preloaded Visa/Mastercards you can spend in-store or at regular ATMs. Most Bitcoin debit cards come with an app that easily allows you to sell your Bitcoin for cash, which you can then spend with the card.
As with anything else, you’re able to trade Bitcoins face-to-face. Meet up with an interested party, scan a QR code on their phone, and receive cash in hand. It should go without saying that you need to take precautions when meeting strangers in person. Stay safe, and use a direct Bitcoin trading mediator if you don’t feel 100% comfortable.