WikiCoin: Selling Bitcoin

  • Katya Michaels
    📚 WikiCoin

    Once you have acquired Bitcoin and chosen a place to store it, you may want to sell your cryptocurrency for cash or to get a start in trading.


WikiCoin: Selling Bitcoin

Now that we have discussed buying Bitcoin and setting up a wallet, it is time to address the sale of Bitcoin and other cryptocurrencies.

There can be many reasons for selling cryptocurrency: maybe you’re converting the salary you receive in Bitcoin to fiat, maybe you are exchanging funds for other coin investments. If you are selling with the intention to make a profit you should consider doing your research first. Sometimes, fraudsters take advantage of inexperienced consumers and the cryptocurrency market is very volatile.

Price evaluation

Numerous tools are available online for monitoring the changes in the cryptocurrency market. One tool you might use to evaluate the condition of the market is price reviews. A price review analyzes the price movements of different coins on the cryptocurrency market, offering possible explanations and predictions for price changes based on the market’s history.

Options

Nearly any platform that allows you to buy Bitcoin will allow you to sell Bitcoin — this includes all exchanges and some Bitcoin ATMs. Just like storing different cryptocurrencies in different wallets, you might want to use different exchanges to sell cryptocurrency depending on your needs. Different platforms may have different advantages for different types of investors. Platforms like GDAX and Gemini are intended for large volume trading by institutional investors; on the other hand, exchanges like Coinbase, Kraken, Bitstamp and Poloniex are more convenient for retail investors because they provide additional services like secure storage.

Some things to remember

There are a couple of things to keep in mind when selling cryptocurrency.

First, while the market coin price is locked in at the time of sale, the time until the transaction is completed and you receive your funds may differ, so plan ahead. The standard exchange procedure is that a transaction needs to go through six verifications before it is considered complete.

Second, some exchanges will require identity verification for all transactions while others are less stringent. You may want to consider this before signing up for an exchange.

And lastly, make sure to declare any profits you make on cryptocurrency sales to the appropriate tax authorities. Although one of the greatest advantages of using Bitcoin and other cryptocurrencies is the ability to complete transactions without a third party, not declaring your crypto profits is illegal. The transparency of the public ledger and the government’s heightened attention to cryptocurrency industry could result in punitive measures.

Cover image via u.today
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