So, you downloaded and installed a Bitcoin wallet on your device. Also, you’ve received Bitcoin payments, meaning you have some digital coins in your crypto wallet. But how do you sell Bitcoin to receive fiat money? While the internet is awash with information about Bitcoin, you want to ensure you get fiat money after selling Bitcoin. And this can be straightforward if you know the steps to follow when selling Bitcoin.
For a beginner, you can sell Bitcoin via a Bitcoin wallet app or a centralized crypto exchange like matrixator.com. Such a platform lets you trade Bitcoin and receive the payment in fiat currencies. If you have a self-custodial crypto wallet, using a centralized crypto exchange is the safest option since it allows you to control your crypto assets.
The Best Ways to Sell Bitcoin
You may have a relative or friend that wants to buy your Bitcoin. In that case, you can transfer Bitcoins directly to their crypto wallet and receive payment in fiat money during a physical meeting. But what if you don’t have a Bitcoin buyer near you? Or, what do you do when you don’t know anybody you can trust to keep their part of the bargain when selling Bitcoin? Most crypto experts recommend selling Bitcoin in the following ways in such situations:
Centralized Exchanges
Centralized crypto exchanges are digital or online platforms that let individuals sign up and trade Bitcoin or other cryptocurrencies. For instance, you can register with a centralized crypto exchange and send the Bitcoins in your self-custody crypto wallet to your new account. Once you have Bitcoins in your crypto exchange account, you can sell them to a willing buyer on the platform. Centralized crypto exchanges serve as intermediaries, connecting Bitcoin buyers and sellers.
Bitcoin Wallet Apps
You can also use a reliable Bitcoin wallet application to sell Bitcoin. A Bitcoin wallet app lets you receive, store, and transfer cryptocurrencies. However, some wallet applications allow users to convert cryptocurrencies like Bitcoin into fiat currencies. Thus, you can convert the Bitcoins in your crypto wallet into Euros or US dollars.
Alternatives
Centralized crypto exchanges and Bitcoin wallet apps require users to complete identity verification when selling Bitcoin. That’s because they provide exchange services that authorities regulate. For instance, they must comply with AML and KYC regulations. Therefore, they collect and store customer information, such as identity documents and proof of address.
So, if you’re uncomfortable with these regulations, you may prefer alternatives like peer-to-peer platforms. Selling Bitcoin via matching services that help cryptocurrency sellers locate buyers enables you to bypass the identity verification process. Also, you avoid conventional service providers such as banks because you can take cash payments via PayPal or other payment methods. Nevertheless, you must be careful when selling Bitcoin to a stranger via a peer-to-peer platform. Only send your Bitcoin to the buyer after receiving the agreed payment.
How Much Does It Cost to Sell Bitcoin?
The cost of selling Bitcoin depends on your platform or payment method. For instance, you only incur the network fee when selling Bitcoin directly to a relative or friend since you will settle the transaction in cash. All Bitcoin transactions involve the network fee, even when paying for an item or service.
If you receive cash payment through bank transfer, you will cater to the associated fees. Also, crypto exchanges charge fees because they facilitate the trade. Nevertheless, they charge a small margin plus the operating costs.
Final Word
Bitcoin wallets and crypto exchanges are the best options for selling Bitcoin if you don’t know a friend or relative who may want to buy your Bitcoins. Nevertheless, you may consider alternatives like peer-to-peer platforms, though these require extra care to avoid sending your cryptocurrency to someone who will never pay you.
