In celebration of Coinmama’s brand new sell feature, our recent articles have been dedicated to the topic of selling Bitcoins. If you’d like to sell Bitcoins, feel free to check out the previous articles in our series for some helpful advice.
How to Sell Bitcoin covers the three main methods for selling. It also provides some useful tips on achieving an optimal sales price.
How to Sell Bitcoin for Cash covers the more common forms of cash sales, describing their pros, cons, and risks, relative to online sales.
This article covers the same topic of coin selling, with an eye to the special conditions which exist in the United Kingdom. If you’re interested in selling your Bitcoins for Pounds inside the UK, you might also be interested in our previous articles; “Bitcoin Taxes in the UK” and “How to Buy Bitcoin in the UK.”
Remember that taxes will apply to profits made on any coins you sell. If selling for cash, particularly via private trades, it will be entirely your own responsibility to maintain accurate records of all transactions.
Bitcoin Cash Sales in the UK
If you look at peer-to-peer trade stats for sales locations within the UK, you’ll see that London is by far the most popular venue for in-person cash sales, as might be expected from the capital’s size. Other major cities also enjoy healthy transactional volume but if you live somewhere quieter, you may need to travel to the nearest big city to arrange a trade within a reasonable timeframe. A buyer may be willing to travel to you if you offer a lower price.
Bitcoin Sales on Local and International Exchanges
If you don’t fancy the hassle and risk of selling your coins for cash, then there are plenty of ways to sell your coins online. The usual way to receive payment will be via bank transfer. Many exchanges will allow you to keep your Pounds in an exchange account. However, unless you intend to actively trade in the immediate future, storing fiat or crypto funds on an exchange is not recommended. There are many reported cases of such funds being lost.
A recurring problem with crypto exchanges is that they represent rewarding but low-risk targets to hackers. If a hacker penetrates an exchange’s systems or someone within the exchange decides to steal client funds, they can often escape with their ill-gotten gains. This is less true if fiat funds are stolen, as regular money is far more traceable and reversible than crypto, nevertheless it’s still a tangible risk.
If you intend to sell your Bitcoins via an exchange, which is probably the best option if you want to convert them as rapidly as possible into another type of cryptocurrency, we’d advise you to perform your due diligence when selecting a secure exchange.
Besides researching each exchange in depth, check out user reviews and comments across as many discussion platforms as possible. Reddit is a good starting point, as it has dedicated subreddits for crypto exchanges. If you encounter frequent complaints about delayed withdrawals, lost deposits, or other serious issues, play it safe and consider a different option.
Selling Bitcoin via a Broker
Coinmama is a broker rather than an exchange, so instead of facilitating trading between a large number of clients and maintaining account balances on their behalf, our clients trade crypto directly with us. This approach greatly simplifies our operations, thus reducing our attack surface.
Being a brokerage service also means that Coinmama never holds your funds. As soon as you sell Bitcoins to us, we release your Pounds to your bank account. The same applies if you buy Bitcoins (or altcoins) from us; your crypto is released immediately. As a result, we don’t need to keep a large pool of funds on-hand for client trades and withdrawals, and this makes us far less interesting to hackers.
We’d like to recommend our new selling feature as a safe, reliable, and convenient way for you to sell Bitcoin in the UK.
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 sell up to $12,000 (or EUR or GBP equivalent) at a time through Coinmama.
At the moment this option is available for Bitcoin only and for users with bank accounts that support SEPA bank transfers. 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.