“Bitcoin sounds cool but can I sell it whenever I want?”
This is a surprisingly common question from newcomers to the crypto space. Perhaps it arises because greater emphasis is placed on buying and holding coins than on selling them.
To answer the question - yes, absolutely! Buying and selling are two sides of the same coin. While there are more options available for buying Bitcoins, there is certainly no shortage of ways to sell them.
In this article, we’re going to discuss 2 major topics:
The multiple ways in which you can sell your Bitcoins. We’ll focus on the three major payment types; cash, bank transfers, and other payment services.
How to get the best price for your coins when you decide to sell them.
We’ll also reveal a surprise for Coinmama users at the end of the article... We hope you’ll be as excited as we are about the latest and greatest way to sell your Bitcoins!
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Ways to Sell Your Bitcoins
Note on PayPal: If you’re accustomed to using PayPal, we have some bad news for you. The way PayPal works is a very poor fit for the trading of Bitcoin. Simply stated; PayPal payments are reversible whereas Bitcoin transactions aren’t. As PayPal’s general policy is to reverse a payment in the event of any dispute, you can see why this method could easily lead to losses if you encounter a dishonest buyer.
With that out of the way, let’s move on to some surefire ways to sell your Bitcoins:
Exchanging a small amount of virtual currency for tangible banknotes (and coins) is a recommended experience for new users. It’s the quickest way to cement the idea in your mind that, yes, these abstract digital numbers really do hold real-world value.
When selling Bitcoins for cash, you’ll have to do so in-person. This introduces certain physical security risks which aren’t present when selling coins online. By exercising common sense and thoroughly educating yourself on the trade process, you should be fairly safe.
There are two popular ways to sell your Bitcoins for cash:
Selling to People
If you know some trustworthy people who want to buy Bitcoin, then you’re all set. If not, you can try to meet such people by attending a Bitcoin Meetup or conference in your area. Otherwise, your best option will be to use a decentralized exchange (or “dex” for short).
A dex is a website or app that puts buyers and sellers in touch and then secures their trade. There are several examples, not all of which facilitate cash trades. The commonality between those that support cash trades is that they feature a mobile app used to complete the trade in-person.
To find a suitable buyer via a decentralized exchange, enter your location and preferred payment method; buyers will then be sorted accordingly. If you live in a remote region, you may find it difficult to find suitable buyers. Cash is likely to be a popular payment method just about everywhere, as it offers superior financial privacy for buyers (and sellers).
You should also pay attention to a buyer’s reputation; someone with a negative reputation is probably not worth doing business with. You should also be more cautious when dealing with a new buyer without any reputation.
Selling via Bitcoin ATM
Bitcoin ATMs (“BTMs”) are another option for cashing out your coins. Although there are over 4,300 such BTMs all around the world, most of them are for buying Bitcoins only. To locate those that will pay out in cash for Bitcoins, try this: visit the CoinATMradar site, deselect the “Buy” box, and ensure the “Sell” box is checked:
By zooming in and selecting those BTMs which are convenient to your location, you’ll be presented with further info, such as their rate and limit. Note that you’ll generally get a worse deal by using a BTM than selling to a person. The upside is that there’s no need to arrange a meeting at a mutually convenient time. Most BTMs are operational 24 hours a day, barring those inside locations which might close.
Bank transfers are the most common way of selling Bitcoins. Pretty much anyone with a bank account can sell Bitcoins this way, either through a private deal, decentralized exchange, or centralized exchange.
Be aware that if crypto transactions are restricted in your country, your bank account may be frozen if it’s discovered that you’re dealing in Bitcoins. This is most likely when using a centralized exchange, as their accounts are more likely to be flagged by a bank than the account of an individual.
Although it’s not necessary to be in the same country or banking region as your buyer or the exchange, in practice this will help to keep fees and delays to a minimum.
Other Payment Services
If cash or bank wires aren’t for you, then it’s also possible to receive payment via alternate payment services and methods, such as:
Amazon Gift Cards
Google Play Gift Cards
iTunes Gift Cards
Steam Gift Cards
The best way to sell your coins for these methods is to use a dex (or search for a centralized exchange which supports your preferred method; you may get lucky). In addition to those dex sites mentioned earlier which facilitate cash trades, there are further dexes which support these alternative payment services, and more.
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How to Get a Good Price When Selling Your Bitcoins
Now that you’re aware of the various methods available for selling your coins, it’s time to discuss how to get the best price!
Check the Current Bitcoin Price Internationally and Locally
You should first check the current price of Bitcoin on some popular exchanges or indexes. That will give you some idea of the international price. It’s common for decentralized exchanges to allow you to set a price equal to the current index or major exchange price, modified by a custom percentage. By using this method, your selling price will not be fixed but change in accordance with the live Bitcoin price, plus or minus your set percentage.
Note however that your local fair price may be significantly higher than the US Dollar or Euro price on a certain exchange or index. In some countries, Bitcoin is in short supply but high demand. To check for a local premium, get the asking prices from your local centralized and decentralized exchanges and then convert them (via a Forex conversion site) back to USD or EUR. If you see that people in your country are willing to pay above the international rate, you will shortchange yourself by charging them less.
Sell for Cash but only if You’re Able to Handle the Risks
Here’s another tip; as stated earlier, cash sales are popular as they afford greater financial privacy. For this reason, cash buyers are often willing to pay a price premium. You’ll likely notice this higher price when comparing cash sales to other payment methods.
If you have the time and inclination to do in-person trades, you could probably get a higher price for your coins this way. However, be aware of the extra risks of this method. For example, you will have to be on guard against counterfeit fiat and robbery attempts. By researching this topic, you can learn how to manage such risks. Meeting in a secure location (such as a bank lobby, police station, or courthouse), and taking along a counterfeit currency detector would be a good start.
Set the Appropriate Price and Check Maker / Taker Fees
Note that when you’re looking at the offers from buyers, whether on a centralized or decentralized exchange, you’re under no obligation to sell at their price. You can set your own price and wait for buyers to come to you.
Waiting for buyers to take your offer is an especially good practice on certain centralized exchanges. Many such exchanges charge higher fees for those taking an offer, and lower or even zero fees for those making offers. Speaking of fees, many exchanges also charge a flat withdrawal fee. If you’re making multiple coin sales, try to withdraw the combined proceeds to minimize such withdrawal fees.
Time the Market
Check what price other sellers are asking for and set your own accordingly. Try to manage your finances to minimize time pressure. Being in a hurry to sell virtually ensures you’ll get a lower price.
In a bull market, when prices are rising and excitement is high, it pays to be patient. If you have time, set a higher price and wait for buyers to come to you. Conversely, in a bear market, it’s probably better to sell sooner than later, as prices may fall further. In a sideways market, determine the range which price cycles through and set your sell price towards the upper range if you have time to spare.
Coinmama Now Lets You Sell Bitcoin
Coinmama makes it easy to sell your Bitcoins for Euros, sent to any SEPA bank accounts. If you have Bitcoins you're ready to sell, you can do so through Coinmama for up to €10500 (or $12,000) at a time.
At the moment this option is available for Bitcoin only and in European countries that support SEPA bank transfers, as well as holders of SEPA bank accounts worldwide:
However, we are constantly expanding our reach! In time, we hope to extend this feature to your country too.
Please have your bank details (including IBAN) at hand and your Bitcoin wallet ready for sending before initiating a sale. Once you’re prepared, here's how to sell your Bitcoin to Coinmama, in 6 easy steps:
Step 1 - Create Your Coinmama Account:
If you don’t already have a Coinmama account, head to the Coinmama website and select the blue “Sign Up” tab.
You’ll need to enter your email, password, first name, last name and your country of residence.
If you already have an account, just sign in via the “Log In” button with your existing login details.
Step 2 - Verify Your Account:
To sell Bitcoins (BTC), you first need to get approved for purchase by verifying your account.
You’ll have to upload your ID or passport, as well as other documents depending on the level of verification.
For further help with account verification, please click here.
Step 3 - Initiate the Sale:
Select the "Sell" tab on Coinmama's homepage option. You'll need to be logged into your account, and will have to have completed our verification process before creating your first order. If you’re not logged in when you click “Sell,” you’ll be prompted to do so.
Choose how the amount of coin you'd like to sell. Enter the Bitcoin quantity you'd like to sell and the Euro conversion rate will be displayed. Alternately, enter the desired amount of Euros you wish to receive and the correct Bitcoin quantity will be displayed.
Click the “Sell” button to proceed with the trade.
Step 4: Enter Your Bank Account Info
Next, please enter your bank details. Select your bank’s national location and enter your IBAN (International Bank Account Number). You can find your IBAN on your bank statement or by logging into your online banking system. (Caution: the bank account entered must be your own, and must match the name on your Coinmama account. We cannot send Euros to any third-parties or corporate accounts.)
For regulatory purposes, we need you to answer a few questions about yourself and the Bitcoins which you're selling.
Step 5: Send Your Bitcoins to Coinmama
Now it’s time to send us your coins. Please ensure that you do so within 30 minutes of providing us your bank information in Step 3, otherwise your order will expire.
From your personal Bitcoin wallet, send the agreed-upon amount of Bitcoin to the exact wallet address provided by Coinmama.
Copy and paste Coinmama’s receiving address from our site and into your wallet to avoid any errors. Alternately, you can scan the QR code on the checkout screen from any wallet app with scanning functionality.
Step 6: Wait for Your Euros to Arrive
Once your coins are confirmed on the Blockchain and received by Coinmama, we will transfer the Euro amount to your bank account using a SEPA bank transfer. Keep an eye on your email for a confirmation of the transaction, and expect the funds to arrive within 1 - 2 business days.