Bitcoin, the main digital currency, has been around for ten years and has attracted the attention of many investors, including traders with significant financial resources. Investing in Bitcoin (usually long-term) is primarily an opportunity to invest in a fairly reliable and in-demand currency. Investors with the stamina not to get rid of their assets during short-term Bitcoin demand are paid good dividends.
Bitcoin investors can be divided into two types: those who buy and hold cryptocurrency and those who speculate. The first type believes in Bitcoin’s growth and sees investing in BTC as a long-term investment. The second type tends to buy Bitcoin on a decline in value and immediately get rid of it as soon as it rises in price. In both cases, the Bitcoin holder will sooner or later need to cash it out. Nowadays, there are both online and offline ways to do this.
In this article, you will learn about what factors are the signal to sell Bitcoins for cash and how to do it. In addition, we will show in detail the process of selling Bitcoins for cash using the example of one of the most popular crypto exchanges. Ultimately, you will learn whether you should sell Bitcoin at the moment or whether it is better to think about holding it for a longer period.
The crypto market is experiencing hard times — the most well-known cryptocurrencies have fallen in price two or three times since the beginning of the year and continue their rapid decline. Large blockchain projects are collapsing or downsizing.
The decrease in Bitcoin’s dominance in the crypto market to 43% from 70% at the beginning of the year suggests that investors may start to think in a different direction and invest in other tokens. For investors now entering the market, the “Bitcoin equals cryptocurrency” statement is no longer so obvious. Bitcoin’s advantages are a thing of the past except for one — it is a digital asset available to institutional investors.
Over time, more technological, larger, and less volatile tokens will attract more and more funds. This already gives reason to think about selling Bitcoin for cash. Furthermore, all other things being equal, technological sophistication offers significant potential for expansion in scope, entrenchment in the economy, and, as a consequence, price growth. Formal adoption by the authorities will follow the choice of big investors, as Bitcoin has already paved that path.
Now that you know the reason to sell your digital gold holdings, it’s time to answer the big question, “how to sell Bitcoin?” Since Bitcoin is currently the most popular cryptocurrency in the world, there are several ways to sell it.
In most cases, Bitcoins are sold through a cryptocurrency exchange. With the help of the crypto exchange, you can convert your Bitcoin into fiat and withdraw the money to your bank account. This is a fairly convenient way, especially for those who purchased Bitcoin on the exchange, because, in this case, you do not need to recreate an account and understand the nuances.
Selling Bitcoin through an exchange is especially appropriate if it is a large transaction. When placing an order to sell, the user deposits an agreed amount of Bitcoin into the exchange account, and the buyer deposits the cash needed to buy them. The transaction is done automatically when the buyer agrees to the seller’s price, so fraud is eliminated.
The exchanger services are suitable for those who want to sell a small number of Bitcoin. This is a quick, easy, and relatively safe way to sell — the exchange service guarantees the transfer of money to the seller for his Bitcoin. However, you should choose the exchanger carefully because many fraudulent resources try to steal cryptocurrency from unsuspecting users.
The exchangers are the best option for small transactions when the difference in the rate is not reflected in the profitability. However, the fees of exchange services can be quite significant, and the rate is less profitable than on the exchange.
Bitcoin ATMs are analogous to regular ATMs because you can also withdraw money from them. You need to scan a QR code to get cash from a Bitcoin ATM and then sell BTC from your wallet for fiat money. Specialized Bitcoin ATMs are available worldwide, so this method of selling cryptocurrency is one of the most affordable and easiest. However, this option has a significant drawback: as a rule, bitcoin ATM transaction fees are significantly higher than some cryptocurrency exchanges.
The process of selling Bitcoin is quite simple and does not take much time. Regardless of which crypto exchange you trade on, the algorithm of actions will be the same. Here are the necessary steps to sell Bitcoin.
To sell Bitcoin, first log in to your account on your cryptocurrency exchange. After that, click on “Wallet” and select the section called “Fiat and Spot” from the drop-down list.
You can sell Bitcoin and convert it into fiat currency in two ways. The first option is to sell BTC on an exchange and get fiat currency for it. We are talking about spot trading, which allows traders to buy and sell assets at the current market rate at the time of placing an order. The second method is the conversion of Bitcoin into the selected fiat currency, that is, an instant exchange.
The fiat currency will go to your wallet after you sell Bitcoin. In order for the money to appear in your bank account, you need to withdraw it from the wallet on the crypto exchange website.
To withdraw money, click “Wallet” on the toolbar and then “Fiat and Spot.” Afterward, select the “Withdrawal” tab on the page that opens.
If you haven’t previously linked a bank account, debit, or credit card, do that first. Then go to the “Fiat” tab and select the fiat currency you want to withdraw and the payment method. Specify the amount you want to withdraw and click “Continue.”
After pressing the “Continue” button, the system will ask you to enter a confirmation code from SMS and email. The withdrawal process is completed only if all digits of the received code are entered correctly.
This question is of interest to many investors. They would like to know: when is the best time to sell cryptocurrency? Unfortunately, there is no definite answer. Bitcoin is unpredictable and volatile, so predicting its movement is difficult even for professional crypto-traders. However, several signs indicate a possible drop in the exchange rate.
An economically unstable market situation causes crypto-investors to panic, which will be followed by mass sales of crypto-assets, especially when currencies are rising. The growing pressure of sellers and the accumulation of closed and short positions in the markets with weakening buyers may indicate an impending decline in the rate. Money flows from one market to another at this time. Should you sell Bitcoin in this case? Let’s put it this way: if you’re not planning to keep them long-term, you can sell them. On the other hand, if a strong drop has already happened, there is an opportunity to buy Bitcoin at a bargain price.
In any case, today, the crypto market is still bearish. With a greater degree of probability, we can expect that Bitcoin and altcoins in the near future will be trading even lower, testing new local support levels. In this regard, it is necessary to adapt your trading strategy to buy Bitcoin further before a serious market trend reversal to bullish.
It is hard to say when the bearish trend will end and the crypto market will recover. The current economic situation does not inspire confidence in investors, who sell their assets en masse amid news of various unfavorable events in the world of crypto industry. Selling Bitcoin now could be a good reason to buy it even cheaper and get a good profit in the future.
There is no universal way to sell Bitcoin — each of them has its pros and cons. Familiarizing yourself with them will make it easier to choose the best option in your particular case. Selling coins online often involves significant delays, while selling them offline in person requires more effort and attention to security.