Did you know that over the past four years Bitcoin has increased in value by almost 6,000 percent?
If you have an excess of Bitcoin that you’re looking to sell then you might be curious about how to go about selling Bitcoin. There are multiple paths that you’re able to take when you decide to sell your Bitcoin.
But who is buying Bitcoin? What is Bitcoin worth? And can you sell Bitcoin for cash? These are all great questions that are important if you’ve made the decision that you want to sell your Bitcoin.
Continue reading to learn more about finding a buyer for Bitcoin as well as how to sell Bitcoin.
How to Go About Selling Bitcoin
There are multiple things to consider when you decide that you want to sell your Bitcoin. It is important to know who is buying Bitcoin as well as how you would like to be paid.
Do you want to sell your Bitcoin in exchange for cash? Would you rather receive payment through PayPal? There are multiple options and multiple exchanges that you have access to in order to complete the transaction.
It is important to know that different exchanges come with different fees and exchange rates. You’ll also need to consider the taxes that will come with selling Bitcoin.
Understanding your country’s tax laws when it comes to cryptocurrency is important because you’ll need to report the sale to the government. Consulting a CPA in your area is a great idea to make sure you’re obeying the law.
Here is a closer look at the different ways to sell your Bitcoin.
Selling Through PayPal
A common method for people selling Bitcoin is to use PayPal. PayPal isn’t the fondest of Bitcoin transactions because they’re unable to give their customers protection from chargeback protection.
There are workarounds on PayPal that will still allow you to sell your Bitcoin and receive payment from your buyer through PayPal.
There are a few exchanges that you can choose from to facilitate the transaction. Coinbase is a popular choice for selling Bitcoin because it is available in 103 countries and it allows you to connect your PayPal account.
You aren’t able to purchase Bitcoins through this route, you can sell your Bitcoin and withdraw the money from the purchaser via PayPal. Start by making a Coinbase account and completing your account verification.
From there, go to the settings and then choose linked accounts. It will let you link your PayPal account to your Coinbase account. Once you’ve done that you’ll be able to log into your PayPal account.
This is one of the fastest and most convenient options for selling Bitcoin.
If you’re not able to use Coinbase, there is the option of LocalBitcoins. LocalBitcoins allows you to sell your Bitcoin to buyers and receive your funds through your PayPal account.
Coinbase is popular because it allows buyers and sellers to meet and sell Bitcoin. You also have the option of trading Bitcoin for other forms of cryptocurrency.
There are risks with this method as the buyer can scam you and report you to PayPal by saying that you never paid them the Bitcoin that you owe them even if you did.
Selling Bitcoin Through Credit Card
If you choose not to use your PayPal account, another solid option is using your credit card. Some exchanges allow you to take your payment for your Bitcoin and transfer it directly to your credit card.
A great exchanger to use for this method is CEX.io which allows you to withdraw funds directly to your Visa or MasterCard credit card. There are limits that you can withdraw based on your level of verification, but there are no limits if you have advanced verification.
There is a fee associated with withdrawing money this way. The normal fee is somewhere between 1.2 percent and 3 percent. The percentage of the fee is different depending on the type of credit card that is used.
Selling Bitcoin Through Your Bank Account
The most common method for selling Bitcoin is through a wire transfer or another type of transfer to your bank account.
The majority of exchanges allow this type of transaction. Coinbase, CEX.io, and LocalBitcoins all allow you to sell Bitcoins and receive your payment directly to your bank account.
Another exchange that is used for selling Bitcoin through your bank account is Coinmama. This is used by residents of the European Union and lets you sell your Bitcoin via a SEPA. These are quick and cheap transactions.
Bitpanda is another popular exchanger for use with a bank account. It is based in Vienna, Austria, and lets you withdraw funds via a SEPA transfer.
Bitstamp is one of the oldest Bitcoin exchanges and it gives you the option of selling Bitcoins and withdrawing your payment either through wire or a SEPA transfer.
How to Sell Bitcoin for Cash
Whether you’re selling your Bitcoin for cash due to anonymity or convenience, there are a couple of routes you can take.
One of those routes is the use of Bitcoin ATMs. These machines accept Bitcoins and will spit out cash in exchange. It is important to note that not all Bitcoin ATMs will let you sell Bitcoin. Some only allow you to purchase it.
It is normal for Bitcoin ATMs to have a strict limit on how much money you’re allowed to withdraw. They’re a good option if you’re not selling large amounts of Bitcoin.
You can also use Paxful to sell your Bitcoin. It is great for use to find a buyer or seller of Bitcoin and lets you choose from a variety of options for payment, including cash. Paxful can even help you locate buyers who will pay with cash in your area.
It is recommended that you trade Bitcoin through Paxful with escrow enabled. It is also wise to handle the transaction in person in a secure location.
Now You’re Ready for Selling Bitcoin
If you’ve decided that the time is right for you for selling Bitcoin, you have a variety of routes you’re able to take. It is up to you to decide if you want to sell your Bitcoin and receive payment through PayPal, your bank account, or cash.
It is also important to choose the right exchanger for your area and the type of transaction you’re wanting to pursue. These exchangers will help you find the perfect buyer to sell your Bitcoin to.
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