Can Bitcoin be easily liquidated, and how fast?Franklin
If you’ve decided to sell your coins, it is important to understand how exactly to go about the process. Selling Bitcoin is easier now than it ever has been, and is likely to become even easier in the future.
Visit here to Transfer Bitcoin to PayPal
There are four main ways of going about this which will be discussed in some detail: exchanges, direct trades, selling BTC in-person, and online P2P platforms.
Selling Bitcoin on an Exchange
Selling via exchanges is potentially the simplest and most popular way of selling Bitcoin.
Exchanges effectively act as middle-men for the individual looking to sell and the one looking to buy Bitcoin. It doesn’t matter which exchange you choose for selling (regarding processes) because in effect they’re pretty much the same for all.
Once you’ve created an account and wallet with the exchange, you will link your bank account details. In order to send currency to another account, you will simply need the receiver’s public address, at which point you can freely send the Bitcoin to their account.
Once all these steps have been taken, you will be able to create a “Sell Order” and move the currency into someone else’s account. When making these transactions, it is worth remembering that you will be charged a minor fee by the exchange for the transaction. Certain exchanges even allow you to place limits on sales, in case the price of Bitcoin was to fall to secure your sale and ensure it goes through without a hitch.
It is important to remember that there are certain safety precautions one must undertake for this method to be effective. After all, there are some inherent vulnerabilities that exist within exchanges that may put off potential investors. For one, exchanges are vulnerable to being hacked, Coinbase being the more notable example of a successful attack on an exchange. As such, you should never look to store any of your coins on an exchange for a prolonged amount of time.
Selling Bitcoin via Direct Trades
Sometimes, you might want to be more involved in the trades you’re a part of and would prefer to make trades directly. This method gives you more control when making sales and lets you choose how much to sell at a given time.
To set up an account on this platform, you will need to register as a seller and go through an identity verification process similar to creating an account on an exchange.
After completing the registration process, you will need to indicate that you’re willing to sell some Bitcoins, at which point potential buyers may come into contact with you. Once you’ve received the notification to approve the interaction, you will only communicate with the buyer directly with no involvement from third parties.
It is worth noting that while you have full control over the interactions, the amount of time it takes to be able to undertake these trades can be rather lengthy and it is vital to do your own research so that you can be prepared for any potential hitches that may come your way. The site will only work as a trading platform and as such buyers and sellers will need to have a degree of trust and understanding between them in order for the platform to be a success.
Selling Bitcoins In-Person (Offline)
Another method which some may prefer for reasons of privacy would be by selling your Bitcoin directly in person. This method is actually one of the simplest ways of doing so and can be extremely useful for people who do not have as much time to go through the exchanges or trading platforms.
The only thing you would need to do is scan a QR code via a person’s phone whereupon you will receive cash immediately, being able to buy and sell Bitcoins instantaneously. This method is particularly useful if you’re looking to sell to your family members or friends.
When dealing with people you don’t know however, this method can be a little more complicated. For a start, you would be required to negotiate with strangers about the price of Bitcoin, where you will meet, and other factors that would need to be taken into account before the trade can take place.
P2P Trading Platforms
In p2p marketplaces, no funds are actually directly exchanged. Instead, this kind of exchange brings together people with different needs and manage them accordingly. In essence, p2p exchanges seek to mutually benefit individuals looking to either buy Bitcoin or use their Bitcoin to buy certain products but cannot if BTC is not accepted by a given platform.
The p2p marketplace looks to bring the needs of the two together by using the individuals who are looking to buy to send their Bitcoin to the former and create a trade that is functional for both simultaneously. In this sense, people who use Bitcoins for transactions benefit in the sense that they can buy goods at discounted prices whilst others are able to get better rates on Bitcoins.
A Final Word, and Good Luck!
Deciding when to sell Bitcoin and where best to sell it is the hardest question for any potential investor. There are many alternative methods and strategies for users out there and they all have their positives and negatives. Ultimately the key point to take away from this is that nothing ever replaces research and care when approaching certain transactions.
There are plenty of opportunities where selling Bitcoin can be highly beneficial for all but they require great care and attention to detail in order to be most effective.