Cryptocurrencies have sparked a new craze among investors. Not only promising gains but also the long-term growth they bring are undeniably appealing. Many investors have even considered this currency as a new source of income, and in turn, those digital assets have made many holders become super-wealthy.
In our last post, we shared with you the easy steps to buy a cryptocurrency, for selling it, is also simple. There are several ways you can choose. You can opt to sell directly either online or in person, through Bitcoin ATMs, a brokerage, or cryptocurrency exchanges. Let’s walk through this article for more details.
Steps to Sell a Cryptocurrency
1. Have a crypto wallet
A crypto wallet is needed to store your digital currencies. They are vital tools for buying, trading bitcoin, and selling cryptocurrencies. These wallets not only store your assets securely, but also are vital tools for buying, trading bitcoin, and selling cryptocurrencies.
There are 2 types of crypto wallets, the ọnes that can store only specific crypto and the ones that can multiple cryptos. Make sure you choose the second type if you want to capitalize on cryptocurrency trading.
Don’t forget to connect your bank account with your wallet so that you can withdraw money after completing transactions.
2. Add cryptocurrency to wallet
Once finished open a crypto wallet, store your cryptos in it to start speculating the market.
3. Choose a suitable channel for your cryptocurrency transanctions
– Through crypto exchanges: Function as marketplaces for cryptocurrencies trading. They offer many tools to enhance your transaction such as advanced analytics, robust security, user-friendly features, support and offer relatively lower fees.
– Through Bitcoin ATMs: These are kiosks that allow a person to purchase Bitcoin and other cryptocurrencies by using a cash or debit card. Some Bitcoin ATMs offer bi-directional functionality enabling both the purchase of Bitcoin as well as the sale of Bitcoin for cash. All you have to do is log in to your account, indicate how much crypto you want to sell, and which crypto wallet address you stored your asset. Once the verification process is done, you will receive a notification and can withdraw your cash.
– Through Peer to Peer (P2P) Exchanges: These exchanges are cryptocurrency platforms where users can privately trade crypto with others without going through any intermediary.
To start a business on a P2P exchange, users will need to create an account and verify their identity.
– Through Brokerages: These facilitate act as intermediaries between buyers and sellers. They provide easy-to-use and interactive interfaces. However, the downside is they often charge higher commission fees compared to crypto exchanges.
– Through Face-to-face Transactions: Opt to sell your cryptocurrency in-person location through the use of online platforms. All you have to do is conduct a meeting up with a buyer by creating an account on the crypto website that is connected to your bank account, then send the crypto you’d like to sell to a buyer’s address. After the sale is processed, you’ll receive cash in your account. You can also scan a QR code on the buyer’s phone and conduct transactions as well.
4. Build a selling strategy
Don’t forget to formulate a concrete strategy before trading any digital coin. Your strategy should answer these questions: what to sell; when to sell; how much to sell. You also need to check for taxes for your transactions. Read this TOPIC to know more about crypto taxes.
5. Complete the transaction
Use your private key provided on your transaction channel to transfer cryptocurrency to the new owner. Not every channel is free, some of those may require an added fee to complete the deal.
6. Withdraw the funds to your bank account
It’s time to take your profit. As mentioned, with a digital wallet linked to a bank account you can opt to transfer funds to that account. Another option is to keep that money in your wallet and use it to buy more cryptos.
You can also use an exchange, broker, or third parties that include bitcoin ATMs and debit cards to exchange your cryptos for cash at a given rate.