I would like to convert ethereum to bitcoin. What is the best option out there?

Once you’ve accumulated some Ether, either through buying the tokens or mining them, there will probably come a time when you’ll decide to sell. Indeed, as of now, Ether can only be used to pay for stuff on the Ethereum network, as there is a very limited number of businesses that accept cryptocurrencies as a form of payment and most of them accept exclusively Bitcoin.

So, if you don’t intend on being an active user of Ethereum, chances are you have purchased Ether as an investment with an intention to offload it at some point in the near future. This handy guide will cover the various ways of selling Ether and touch upon some trading strategies.

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Exchanges to sell Ether

The process of selling Ether on an exchange works similarly to buying it. First of all, you need to choose an exchange that operates within your jurisdiction and trades Ether and set up an account with it. In order to be able to sell, you will be required to connect your existing bank account and provide some additional information, e.g., your date of birth, country of residence and phone number.

Once you’re all set up, you will need to choose whether to sell your Ether for fiat currency or trade it for a different cryptocurrency.

Most major exchanges offer wallet services. Simply navigate the website in search of a ‘sell,’ ‘deposit’ or ‘deposit into exchange’ button. Here you will find your new wallet’s address. Simply send the required amount of Ether from where it’s kept in the new wallet, the transfer will happen almost instantaneously.

Peer-to-peer trading

Alternatively, if you’d prefer to skip the hassle of connecting your bank account and going through a lengthy process of identity verification, there’s an option to sell your Ether directly through a Localethereum peer-to-peer exchange. Unlike all other exchanges, this one is completely decentralized. The escrow services and arbitrage are achieved through the implementation of Ethereum smart contracts.

Localethereum is essentially a marketplace where users can place and respond to offers. When selling on the platform, you will typically be charged a 0.25 percent fee. It also has a messaging service, which allows users to set up an eye-to-eye meeting to exchange Ether for hard cash. Alternatively, you can use services such as MeetUp where you can find your local Ethereum or general cryptocurrency-related meet-up, where you can sell your Ether is a safe environment.

Ether Trading Strategies

Holding

Buy-and-hold trading is perhaps the most common trading strategy amongst the general investing population, as it is by far the easiest and least involved approach. It is also sometimes referred to as a long-term strategy, as it entails buying stocks and holding on to them for a long period of time before offloading them.

Buy-and-hold investors usually tend to choose a strong, reputable company, buy their stock and hold onto it regardless of market conditions. When it comes to cryptocurrencies, the two indisputable market leaders are Bitcoin and Ethereum. Even though their value still fluctuates quite a lot, it is not expected to plummet anytime soon. A huge amount of people who bought BTC or ETH early are now reaping the rewards, with many long-term investors still joining their ranks.

Active trading

Active trading is a strategy that entails a deeper immersion into the market and requires a lot more time, knowledge and experience than buy-and-hold. In the world of traditional securities trading, there are several different styles of active trading. However, we are dealing with cryptocurrencies, a completely new and largely unpredictable market, so applying traditional trading strategies might not work.

If you’re opting for active trading, you are essentially speculating on Ether price, which means you will need to monitor the market and Ether’s price fluctuation daily, if not hourly. Related news articles, announcements and opinions are also an essential read for an active trader, as those can influence the price quite a lot.

How to sell Ethereum mined from pool

When you join a mining pool, you provide the pool with an address to which your mining rewards will be sent. Many exchanges don’t recommend sending mining rewards directly to an exchange-based wallet, as it’s public address can change from time to time.

This doesn’t mean that you can’t sell Ether received as a reward for mining, it only means you need to take an extra step. One possible solution will be setting up a local wallet for receiving mining rewards and then simply transferring your tokens from their to your exchange’s wallet.