Guide How to sell crypto

[Illusion]

How to sell bitcoin​

Get setup to sell bitcoin in minutes

1. Download the Bitcoin.com Wallet app.
2. Connect your bank account.
3. Tap the sell button and follow the instructions.

Overview of the two main options for selling bitcoin into cash​

Your two main options for selling bitcoin into local currency are:

1. Using an exchange service
   An exchange service is a regulated business that interacts with the traditional banking system. An exchange service may take the form of a simple website with limited exchange functionality, a digital wallet with banking connections, or a full-service cryptocurrency exchange with order book, market makers, etc.
2. Selling peer-to-peer
   When you sell peer-to-peer, you can bypass the traditional banking system to a certain extent by, for example, taking payment in cash, using a payment app like PayPal, or settling the transaction with goods or services. If you know someone who wants to sell bitcoin, you can buy directly from that person. Alternatively, there are a number of platforms that act as a matchmaking service, helping sellers find buyers and vice versa. Buyers and sellers then negotiate trades on a peer-to-peer basis.
   

Pros and cons​

Here's a rundown of the pros and cons for each option:

Pros and cons of selling bitcoin using an exchange service​

Exchange services can be divided into two groups: 1) simple exchange, and 2) full-service exchange.

1. Simple exchange services

(eg. the Bitcoin.com Wallet, the Bitcoin.com Sell website).

Advantages

• Fast, easy, and convenient
• Guaranteed at or close-to market rates for sells
• Can sell any amount

Disadvantages

• Requires identity verification
• Not available in all regions
• Payments made to bank accounts only

1. Full-service cryptocurrency exchanges

Advantages

• Can set 'limit' sells, thereby guaranteeing your specified rate
• Can sell any amount

Disadvantages

• Not available in all regions
• Requires identity verification
• Payments made to bank accounts only
• Custodial (the exchange holds your bitcoin, not you)
• Relatively difficult to use (for example, requires setting sell orders and understanding order books)

Pros and cons of selling bitcoin peer-to-peer​

(eg. your friend or a match-making service like Hodlhodl)

Advantages

• Identity verification is often not required
• Any payment method is possible (including cash, payment app, barter, etc.)

Disadvantages

• Less convenient (you must manually create and negotiate sell orders)
• Higher risk of fraud
• Generally only legal to sell small amounts

Why do I need to verify my identity to sell bitcoin?​

When you sell bitcoin through an exchange service, you're interacting with a regulated business. Such businesses must comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. These regulations require the collection and storage of customer information, including identity documents and sometimes proof of address.

What are the fees for selling bitcoin?​

Fees for selling bitcoin depend on the payment method and platform/venue used. For example, if you're selling directly to a friend and settling in cash, you'll only need to consider the 'network fee' for sending the bitcoin from your digital wallet to your friend's digital wallet.
If you're receiving cash via bank transfer, you'll of course need to factor in the associated fees.
Exchange services also charge fees for facilitating trades. These fees cover the exchanges' operating costs plus a small margin.

 

[Kenneth]

The way I sell my cryptocurrency is by making use of binance peer-to-peer feature which allows you to sell your cryptocurrency without any charge to those who are into the same system.

 

[Thomas]

Peer to Peer is the best way to buy and sell your cryptocurrency. You don't have to pay any fees or charges to make use of Peer to Peer when selling your cryptocurrency.

 

[Henry]

Peer to Peer is the best way to buy and sell your cryptocurrency. You don't have to pay any fees or charges to make use of Peer to Peer when selling your cryptocurrency.

I slightly disagree with this point as there are risks involved with making use of P2P to sell your cryptocurrencies such as trade disputes involving a buyer and a seller. So, as long as you can sell via the bank, it is a safer option.

 

[Frank]

Peer to Peer is the best way to buy and sell your cryptocurrency. You don't have to pay any fees or charges to make use of Peer to Peer when selling your cryptocurrency.

Selling via p2p on major platforms such as Binance, Bybit, and Mexc have been the way for me. I like how easy it is to sell on those platforms, but one would need to be careful.