Bitcoins are much more than mere digital tokens. With more and more traders investing in Bitcoins, they have evolved to become an excellent alternative to the fiat currency. Anyone who has an insight into the market and can analyse the economic trends can invest in Bitcoins. So, if you have a few Euros to spare, you can try your luck with Bitcoins. However, selling off these cryptoassets can be quite tricky. Not sure how to cash out your cryptocurrency? Don’t worry. This guide will walk you through the essential steps for selling your Bitcoins.
Before you make up your mind about selling Bitcoins, you must be aware of the options that are available to you. You can sell your cryptoassets in two different ways – online or in person. Both of the methods have distinct advantages and drawbacks; find out what works for you and invest wisely.
Modes of Selling Bitcoins on the Internet
Most people cash out their cryptoassets only; it is by far the most common method of trading Bitcoins. The three different ways of selling Bitcoins online are listed below:
- Direct Trades: The first method of selling involves a direct trade, where you sell your Bitcoins to a trader, the process aided by an intermediary. There are many websites available that allow direct trading; Coinbase, BitBargain, Bittylicious are only to name a few. If you wish to sell your cryptoassets on these, you need to register yourself as a seller.
An important aspect of registration includes verification of your identity. After you have registered with the platform, advertise your offer. Subsequently, the website will update you if a buyer wants to trade with you.
- Exchange Platforms: The second alternative which is available to you is cashing out through an exchange platform, where transactions are carried on with the exchange platform and not with another trader/investor. To register with an exchange platform, you need to verify your identity. However, you don’t need to bother about regulating the sales here.
The role of these exchanges is that of an intermediary that safeguards different sorts of funds. Whether you want to put a ‘sell order’ or a ‘buy order’, you need to mention the type, amount, and value of your currency. When a trader accepts your order, the exchange will perform the transaction.
On the flipside, when a trader is cashing out Bitcoin for fiat counterparts, they will have to withdraw the amount to his account. So, in case your chosen platform has some issues with your bank, it will take an incredible amount of time to transfer the money.
- Peer-to-Peer Marketplaces: Peer-to-peer marketplaces are a relatively new phenomenon in the digital currency market. Conveniently enough, these platforms strive to bring different types of people together to cater to their complementary requirements. In peer-to-peer marketplaces, people who want to buy products from restricted websites which don’t accept Bitcoins are connected to individuals who are interested to buy Bitcoin with a credit or debit card. This kind of marketplace brings together these two groups of people to exchange Bitcoins to fulfil their complementary needs.
How to Sell Bitcoins in Person?
Selling Bitcoins in person is the easiest mode of digital currency transaction. All you need to do is scan a QR code on someone’s device and the funds will get transferred to your account. To buy/sell these Bitcoins, you need to set up an e-wallet. Once your account is set up, you can send/receive Bitcoins conveniently. Before you opt for this method of transaction, consider the following things:
- Always decide on a fixed price before you proceed. Some people add a certain percentage on their amount, a premium.
- The value of Bitcoin is not the same everywhere. Since the price differs from place to place, it is essential to find out about the local rates before doing a transaction.
- If you are going to transfer a big amount, consult your acquaintances to carry out the transaction safely.
- Since there is no question of verifying the identity of the user, it is important to be a little cautious when it comes to selecting your buyer.
A Few Important Tips for Exchanging Bitcoins
Selling Bitcoins is far more challenging than it appears. Here are some important tips that will help you cash out your assets judiciously.
- Track the Cryptoassets: In order to make right decisions, you have to know about the trends of the market. Track the notable digital currencies and take calculated risks.
- Scale Out: Why do most traders and analysts think scaling out is a good option? Discernibly, scaling out is advantageous because you only sell out small portions of your shares while the prices are still high. It is essential to sell off your cryptoassets while the prices are still rising – you will be content with the outcome.
- Buy the Dip: If you are new to Bitcoins, it is important to be aware of the fact that the best time to invest on cryptovalute is just after a decline in the prices. Cash out while the value of your Bitcoins is still hiking. If you wish to continue trading your earnings, return right after the dip.
- Say no to Over-trade: It is important to know when to stop your exchanges. Lock your coins when you have earned a reasonable amount profit. Over-trading can exhaust all your resources.
- Plan Investments: It is silly to proceed with your transactions without an investment plan. Often traders make investments in haste, without proper planning. This could create serious losses. It is always better to plan your investment in advance.
- Leverage your Currencies Cautiously: Many traders leverage their cryptoassets to get better ROI. This can go wrong if you miscalculate the trends. You are likely to lose your fund when margin calls hit the cryptomarket. If you want to leverage your funds, consult with other traders and make informed decisions.
Bitcoins is powered by a decentralized public ledger system, also known as Blockchain. Free from hassles like broker fees, and middleman intervention, carrying out Bitcoins transactions is convenient and highly secure. So, read all that you can about Bitcoin transactions and cash out your assets wisely.