Can you exchange Bitcoin for real money?
Henry If you’ve taken the leap and bought some Bitcoin, it’s equally important that you know how (and when) to cash out and sell.
In this guide we’ll walk you through the different ways you can sell Bitcoin in Singapore, as well as the ins and outs of converting your BTC to Singapore dollars or another cryptocurrency.
How to sell a large amount of Bitcoin
If you’re looking to sell a large amount of bitcoin to paypal , such as $50,000 or more, conducting the transaction through an ordinary crypto exchange may not be the best way to go about it, because there may not be sufficient liquidity on a traditional exchange. This can result in slower processing times or “slippage” – which is when a large market sell order eats through the available buy orders, resulting in a price drop.
The transaction limits on these exchanges may also be too low for your needs, so anyone looking to sell a large amount of Bitcoin should consider an over-the-counter (OTC) trade. OTC trades are those that take place away from a conventional, regulated exchange, and they offer a simpler and more cost-effective way to buy and sell large amounts of Bitcoin.
Withdrawing cryptocurrency
Storing your cryptocurrency on an exchange for the long-term is not recommended. Exchanges control the private keys to these wallets and are also popular targets for hackers, so the safest option is to transfer your crypto into a secure wallet which lets you retain ownership of your private keys. It’s a good idea to set this wallet up well in advance of selling your Bitcoin, and make sure you double-check your wallet address before depositing any funds.
Once again, check whether there are any limits on the amount of crypto you can withdraw per-transaction or in any 24-hour period. You’ll also need to factor any withdrawal fee into the total cost of the transaction.
When is the right time to sell Bitcoin?
Timing is crucial to maximising the success of any trade – anyone who sold Bitcoin at or near its ~US$20,000 peak in December 2017 can attest to this fact – but working out the right time to sell can be a tricky task. From crypto regulatory developments and broader economic factors to Bitcoin hype levels and even your own appetite for risk, there are many factors that can affect whether you should or shouldn’t sell your BTC.