How to Sell Bitcoin For Cash, and Using a Bank Account - Step-by-Step Guide
How to Sell Bitcoin
As the popularity of Bitcoin continues to rise, there is an increasing demand for ways to convert bitcoins into cash. The most popular and globally available ways are through peer exchanges and P2P exchanges. First, you have to create an account with a crypto exchange or a P2P platform. Then, simply transfer your bitcoins to the address connected to your account. After that, choose a supported method to cash out your bitcoins, such as a bank card or e-wallet.
In this article, we will cover the main methods of selling bitcoins for cash, each one in simply steps.
Key Takeaways
- Bitcoins can be sold through an exchange, P2P platform, in person, or withdrawn via an ATM;
- Some methods of selling Bitcoins require downloading a Bitcoin wallet application;
- Depending on your residence country, different platforms for selling crypto may be available to you.
- Exchange rates, withdrawal limits, and transaction fees are important considerations when choosing a method to sell BTC.
Before You Sell Bitcoin
This section is primarily for those who have not decided on a preferred method of receiving bitcoins yet. If you already have a bitcoin wallet, you make go directly to the section about how to sell bitcoins!
Depending on what method of storing bitcoins you pick, they will require different amount of time and knowledge from you. Exchanges are one of the most convenient options. They provide not only an easy way of storing crypto, but also converting it into fiat.
Setting up an account with an exchange is as simple as with any online store. It involves entering your email and creating a strong password. However, you also need to check the exchange rate offered by the platform, as well as minimum withdrawal amounts and transaction fees.
Some exchanges allow users to remain anonymous, others require submitting personal information. There are also exchanges that come with P2P (peer-to-peer) trading services. They allow users to trade directly with each other, potentially offering more favorable rates and lower fees.
Having a lot of advantages, at the same time not all exchanges are designed for long-term cryptocurrency storage. The most preferred method of tech-savvy investors to store crypto is with a hardware wallet, like Ledger. Another option is a non-custodial online wallet, which is usually free, unlike a hardware wallet. You can read more about it in our in-depth article.
Overall, both hardware and non-custodial wallets typically do not allow converting crypto into fiat. Yet, they offer security and control over your assets.
Below, we will guide you step by step how to set up a non-custodial wallet.
Set Up a Bitcoin Wallet
There is a great variety of non-custodial desktop and mobile wallet applications out there. It is important to choose a wallet that suits your needs in terms of security and convenience. We will take Trust Wallet as an example. The setting up process of other non-custodial wallets will be more or less the same.
Download Digital Wallet
1. Download Trust Wallet from the official website. Then launch the app and select the “Create a new wallet” option. You will need to agree to the Terms of Usage to proceed with the passcode creation.
2. After you create a passcode, you will see a secret phrase consisting of 12 randomly generated words. This phrase This phrase acts as a recovery password. It is crucial to keep your secret phrase safe as it is the only way to recover your wallet in case you lose access to your device. Record it on a hard copy in exactly the same order as shown on the screen and keep it in a safe place.
3. After tapping “Continue”, you will be asked to select the words in the correct order. Click “Continue” when you are done. You will be redirected to the wallet screen, which means that your wallet has been successfully created!
Choose Address To Receive Bitcoin
- Once your wallet is set up, go to the main wallet screen and choose the “Tokens” tab and click on Bitcoin.
2. Tap on the “Receive” tab, which is under the asset balance.
3. You will see a QR code that the sender can scan directly on your mobile phone. Under the address, there is a string of letters and digits — that is your Bitcoin address. Tap on “Copy” or select “Share” to forward the address together with the QR code to the sender.
It is important to share your Bitcoin address carefully. Make sure to double-check the address before sharing it, as transactions in the Bitcoin network are irreversible.
How to Sell Bitcoin - Step-by-Step Guide
There are numerous ways to sell Bitcoin for cash, the most widely available are selling it from an exchange or through a P2P platform. These methods have different exchange rates, withdrawal limits, and fees, so it is important to choose the one that is most suitable for you. We will guide you through each of these options step-by-step.
Selling Bitcoin Through an Exchange
Centralized crypto exchanges are a popular and easy option to sell crypto for cash. Because centralized exchanges are often regulated, some of them require identity verification. We will take Redot as an example to show the process of converting Bitcoins. Our exchange does not require submitting personal documents in order to trade and withdraw cryptocurrency.
Make an Account on A Crypto Exchange
The registration process at Redot is very easy. All you need to do is to click "Sign In" on the home page. Then, in the new pop-up window, click "Create account".
Next, you will need to enter your email address and password, as well as accept the Terms & Conditions and Privacy Policy. You will receive an email with a link, which you must click on to confirm your registration on the platform. Done!
It is also recommendable to enable two-factor authentication to ensure the security of your account.
Deposit Bitcoins From Your Wallet
In order to transfer Bitcoins from your wallet to an exchange, you need the Bitcoin address of the exchange wallet. To find the address, go to the wallet on the exchange’s left-side menu (the wallet icon). Then, select Bitcoin and hover your cursor over the "Deposit" button. Then click "Address" in the drop-down menu.
On the new page, click "Copy Address" and then paste the copied address into your wallet (for example, Trust Wallet) to send coins. If you are using a mobile wallet, you can scan the QR code to automatically paste the destination address into your wallet.
Make sure to double-check the address before sending your bitcoins. Also, be aware of the minimum withdrawal amount and transaction fees associated with your wallet.
Place a Sell Order
Typically, exchanges offer various types of orders for trading: market, limit, stop-limit, and other more advanced types. Depending on your trading skills, you can choose the order type which suits your needs best.
There are two types of orders on the Redot exchange — market orders and limit orders. Market orders allow you to immediately sell an asset at the current market price.
If you want to place a market order, choose a trading pair (for example, BTC/USDT), select a market order on the right-side menu, and specify the desired amount of BTC to sell. After you press the "Sell" button, the order will be executed at the current market price, and you will receive the corresponding amount of USDT in your account.
Be aware of the exchange rate and transaction fees associated with your chosen trading pair. Also, make sure to check the withdrawal limits of the exchange.
Selling Bitcoin Through P2P Trading
Users who prefer a direct connection with the counterparty often lean toward peer-to-peer or, as it is commonly referred to, P2P trading. This method of trading allows buyers and sellers to interact directly, without intermediaries. P2P exchanges often have no fees and withdrawal limits, but the exchange rate may not be as favorable as on centralized exchanges. One of the most popular P2P platforms is Binance P2P, which we will use as an example to illustrate the process of selling Bitcoin.
Go to the P2P Trading Page
To start trading on Binance P2P, you must have a verified account on the Binance exchange. The verification process includes submitting an ID document and facial verification. If you already have a verified account, click "Buy Cryptocurrency" - "P2P Trading" on the Binance homepage to go to the P2P platform.
Choose to Sell and Set Your Currencies
The P2P trading page has a filter that allows you to sort ads from buyers by different parameters: amount, currency, payment methods, and region. Select the cryptocurrency to sell (in our case it's BTC), the transaction amount, the fiat currency you want to get in return, the payment method, and your region.
Find a Buyer
Each buyer's ad contains information about price, available trading volume, minimum and maximum amount per transaction, and trader's statistics. It is important to choose an ideal buyer with a good reputation and positive reviews. If their terms do not suit you, you can always find another ad. Once you have decided on a buyer, click the "Sell BTC" button.
Choose How Much You Want to Sell
In the new window, specify the amount of BTC you wish to sell. The "I will receive" window will automatically reflect the amount of fiat currency you will receive from the buyer.
Send the Offer
After specifying the desired amount, click "Sell BTC" to place an order. When you open an order, you automatically accept the buyer's terms and conditions. Make sure to read and understand them before sending the offer.
In case you didn’t set a payment method, the system will remind you to do it, otherwise, you won't be able to make an order.
Confirm The Trade
After you open an order, your crypto will be transferred to the Binance escrow account, which is used to safeguard P2P transactions. Your Bitcoin will be held in the deposit guarantee until the transaction is successfully completed by both parties.
As soon as the buyer sends money to your specified payment account, you will see a yellow button “Confirm release” glowing. Check your payment account and if you received the transfer, click “Confirm release”. If there is no transfer from the buyer yet, you can contact her or him through the chat. In case you do not receive any reply from the buyer, you may click on “Appeal” and Binance customer service will help you with the order.
Where To Sell Bitcoins
Since BTC is the most popular cryptocurrency in the world, the number of ways to sell Bitcoins is huge. Let’s go over the most popular ways that stand out among all. We will go over as already discussed methods, as well as additional ones. This way you can compare all methods and choose the most suitable one.
Cryptocurrency Exchanges
Selling Bitcoins on cryptocurrency exchanges is a fairly simple and quick procedure. You can withdraw funds directly to your bank card or via a third-party payment service. The fee rates range from 2 to 5%, depending on the exchange and the withdrawal method.
See the step-by-step guide how to sell bitcoins on the Redot exchange in the section above.
Direct trades (person-to-person)
P2P transactions are made directly between two individuals, without exchanges acting as an intermediary. The terms of P2P trades are defined by the counterparties.
Online P2P Trading
Online P2P trading takes place on specialized online payment platforms. They provide a certain degree of protection for both parties in the transaction through a feedback or rating system and escrow service. These platforms offer a variety of filters for searching the available offers by their location, payment methods, rating, and even by verification status.
Typically, one party posts an ad on the platform, stating specific terms for buying or selling cryptocurrencies, such as price, payment methods, and limits. And the other party browses the ads and, after finding the ad with suitable terms, places an order. Thus, P2P platforms serve as an online meeting point for buyers and sellers, allowing them to make a deal beneficial to both parties.
The instruction on how to sell BTC on the P2P platform is in the section above.
In Person
Another way to sell Bitcoin is to do it offline by directly negotiating with an individual and meeting him or her in person. Such transactions are made without intermediaries and are free of charge. However, by saving on commissions, you risk becoming a victim of bad actors.
It is recommended that you choose a buyer who you are familiar with or conduct the transaction in a public place. Alternatively, you can reduce the risks by finding the buyer on reputable platforms, such as online P2P or regular exchange venues.
Bitcoin ATM
Bitcoin ATMs work similarly to regular ATMs. First, you need to set up an account with an ATM operator. Then enter the required information on the ATM’s screen (account ID, password, etc.), select BTC, and scan the QR code from the receipt. When the BTC transaction is verified, you will receive a notification and will be able to withdraw cash.
It is important to note that Bitcoin ATMs usually have higher transaction fees and lower withdrawal limits compared to online exchanges. Also, not all Bitcoin ATMs offer the option to sell bitcoins, some only allow you to buy them.
Additional Methods for selling Bitcoins
In addition to the methods mentioned above, you can also sell BTC through physical gift cards or pre-paid cards. If you want to convert your BTC to cash, you just need to fund the account with BTC. The card is then linked to your account and works as a debit or credit card. At the moment of purchase, BTC is converted into fiat currency.
This method is convenient for those who frequently make conversions into fiat currency. However, be aware of the fees associated with the card usage and the exchange rate applied when converting bitcoins into cash.
LocalBitcoins
LocalBitcoins is one of the most popular peer-to-peer Bitcoin exchanges. Its services are now available in over 240 countries and the platform supports over 120 fiat currencies.
The platform offers a wide range of payment methods, including Paypal, Bank Transfer, SEPA, and others. The commission is 1% of the total transaction amount.
Paxful
Another popular peer-to-peer (P2P) Bitcoin trading platform is Paxful. Among the payment methods available on Paxful are a bank transfer, credit/debit card, PayPal, Skrill, Neteller, Amazon, Steam, and iTunes trading certificates. Paxful charges sellers a commission of 1% of the total transaction amount.
Ways to Sell Bitcoin in Different Countries
Depending on the country of your residence, some specific options for selling BTC may be more available for you than others. Also, you need to check the regional cryptocurrency regulations before selling it.
How To Sell Bitcoins in the United States
The U.S. is home to many popular services and trading platforms, including Coinbase, Kraken, Gemini, and others. Due to the strict regulatory requirements in the country, exchanges are required to register with the Financial Crimes Enforcement Network (FinCEN). Also, they are required to comply with anti-money laundering (AML) and combating the financing of terrorism (CFT) obligations.
Some international crypto exchanges create separate platforms to operate in the States. For example, Binance has a second entity — Binance.US.
How To Sell Bitcoins in Canada
Popular cryptocurrency exchanges such as Crypto.com, Coinbase, and a number of local ones such as Coinmama are available in Canada. Most Canadian Bitcoin services also support Interac e-Transfer service, which makes it very easy to fund an exchange wallet for anyone with a Canadian bank account.
How To Sell Bitcoins in Europe
One of the largest exchanges supporting European SEPA bank transfers are Binance, Coinbase, and Huobi. There are also a number of exchanges supporting deposits and withdrawals in EUR, such as eToro, Bittrex, and Kraken.
How To Sell Bitcoin in the UK
One of the most notable UK-based cryptocurrency exchanges is Paybis.com. This exchange is regulated by Financial Conduct Authority, making it a relatively reliable option.
How To Sell Bitcoins in Australia
While selling BTC in Australia, the most secure way is to choose one of the exchanges registered with AUSTRAC, for example, the local Australian exchange CoinSpot.
How To Sell Bitcoins around the World
Selling Bitcoins across borders can be done through online P2P services mainly, such as Binance P2P or Huobi P2P.
How To Withdraw Your Money
After figuring out how to sell your Bitcoins via an exchange, you might face the question of withdrawing the money to your personal bank account or a debit/credit card. Trading platforms offer a wide range of withdrawal channels, depending mainly on the location of the user.
Keep in mind that some platforms charge a withdrawal fee, and take the fee amount into account when planning on the withdrawal.
Bank Account
Most often, users want to withdraw their fiat money to a bank account. Usually, you need to find the "Withdrawal" button in the interface of the platform, select the desired currency and specify the amount. After that, the platform will show the available withdrawal channels. Then simply choose the bank transfer method and enter your bank account details.
Keep in mind that some platforms charge a withdrawal fee and take the fee amount into account when planning on the withdrawal.
PayPal & Other Payment Services
Online payment services like PayPal or Advcash are also very popular. The process of withdrawal from an exchange to a payment service account is not fundamentally different from withdrawal to a bank account.
It is important to note that some platforms may have higher fees for withdrawals to payment services like PayPal. Also, check the withdrawal limits and minimum withdrawal amount required by the platform.
Cash
Bitcoin ATMs are becoming an integral part of the urban infrastructure. They allow individuals to directly buy and/or sell Bitcoins for cash. Most machines accept only cash, but you can find ones accepting credit and debit cards, too.
The process of selling crypto for cash is quite straightforward. Typically, you click "Sell" on the screen, enter the amount, enter your phone number, scan the QR code and send BTC. Then, you return to the machine, click "Redeem", and receive cash.
Final Thoughts
Selling Bitcoin in 2023 involves various methods, each with its own advantages, fees, limits, and exchange rates. Whether you choose to sell through a centralized crypto exchange, a P2P platform, an ATM, or an in-person transaction, it is crucial to consider all associated fees, the exchange rate, and the convenience of the withdrawal method.
Additionally, the safety of the deal is paramount, so using reputable platforms, securing wallet private keys, and considering the reputation of the buyer in peer transactions are essential practices.
Moreover, it is important to consider the minimum withdrawal amounts and the time it takes for the order to complete. Some methods, like using a crypto debit card or converting bitcoins into cash, may have higher fees but offer more convenience. Others, like online P2P exchanges or finding an ideal buyer for an in-person exchange, may require more effort but offer lower fees. Also, consider the options for converting bitcoins for PayPal, as this is a popular payment method.
Ultimately, the best method for selling Bitcoin will depend on your individual needs, financial situation, and goals. It is recommended to thoroughly research all available options, consider the associated fees and limits, and choose the method that best suits your needs.
FAQ
How can you sell Bitcoin for cash?
In general, the process of selling BTC is not complicated. First, decide how to sell your Bitcoins: through a centralized crypto exchange, on a P2P platform, through an ATM, or by making an in-person transaction. Then, choose a platform where you will exchange BTC into fiat currency. Finally, withdraw the fiat currency to your bank account, card, or get cash in hand.
What fees do I need to pay when selling Bitcoin?
The fee rates for selling BTC depend on the specific platform, but most often they range from 0% to 1.5%.
Should I sell my Bitcoin now?
There is no one-size-fits-all answer to this question. It all depends on your trading strategy, your BTC purchase price, and your current needs for cash. It also makes sense to find out Bitcoin price prediction to make a decision about selling it.
How do you sell Bitcoins safely?
It is generally recommended to use reputable platforms with high ratings and positive user reviews. If you keep coins in a wallet, the procedure of securing the wallet private keys is instrumental to protecting your holdings. Make sure you follow best crypto practices when setting up and maintaining your wallet.
*This communication is intended as strictly informational, and nothing herein constitutes an offer or a recommendation to buy, sell, or retain any specific product, security or investment, or to utilise or refrain from utilising any particular service. The use of the products and services referred to herein may be subject to certain limitations in specific jurisdictions. This communication does not constitute and shall under no circumstances be deemed to constitute investment advice. This communication is not intended to constitute a public offering of securities within the meaning of any applicable legislation.
