Charging your bitcoins is not as easy as buying. If you decide to sell your bitcoins online, you can do so through an exchange office, direct trade, or by conducting a transaction without an intermediary (peer-to-peer).
Out of the comfort of your own home, you can withdraw money using bitcoin machines or sell your bitcoins in person.
Exchange offices:
Despite several shortcomings, exchange offices are a one-time solution when it comes to bitcoin trading. In the case of cryptocurrency sales, exchange offices act as intermediaries who keep the funds of both the seller and the buyer.
First, you must open an account at the exchange office of your choice. Most reputable exchange offices will require full identity verification and a linked bank account so you can withdraw your funds.
Then simply set a bid for the sale, stating the type of currency you want to trade, its quantity, and the price you are looking for per unit. The exchange office will automatically complete the transaction when someone agrees to your offer.
Once the funds reach your account, you must withdraw them to a linked bank account. This can sometimes take quite a while, especially if the exchange office has problems with its banks or is facing liquidity problems. A few months before the bankruptcy, Mt. Gox had this problem. Moreover, some banks simply refuse to process transactions with funds obtained through cryptocurrency trading.
It is also important to consider the fee you will have to pay to use some exchange offices. For example, one of the largest cryptocurrency exchanges in the world, CEX.io, charges $ 50 for withdrawals via Bank Transfer, $ 3.80 if you withdraw your funds to a Visa card, and 1.2 percent of a transaction + $ 3.80 if you use a MasterCard. Withdrawal fees can vary drastically depending on the exchange office, but transaction fees are almost always either small or non-existent.
In addition, most exchange offices will have a limit on the amount of money you are allowed to keep. The limit will increase over time if you remain loyal to a particular exchange office.
Finally, it is important to remember that exchange offices, whether or not they offer wallet services, are not a safe and reliable place to store your funds. They are very prone to hacker attacks, and there are also cases of exchange offices that are shut down and leave with the user's funds. Therefore, you should take full responsibility for your funds and put aside the amount you do not need immediately in your offline wallet.
Direct shops
Another way to sell bitcoin is to trade directly with another person. This service is available on sites often linked to exchange offices and includes an intermediary who facilitates the connection.
First, you must register as a feeder. In addition to setting up your profile, you need to fully verify your identity. Once you have registered, you can place an offer indicating your intention to sell bitcoins. When a customer wants to trade with you, you get a notification from the service, and since then you are only interacting with the customer. The website only serves as a platform to complete the trade.
The process of selling bitcoin on some of these sites can be quite complicated and time-consuming. So, it is necessary to do research before you decide on a trading platform and be sure that you have the necessary time and patience.
Online store without intermediaries (peer-to-peer)
Intermediary markets are a relatively new invention in the world of bitcoin. There is no direct exchange of funds. Instead, these websites basically function as a platform that connects people with different but complementary needs.
The service is designed for the mutual benefit of people who want to buy bitcoins with their credit cards and for those who want to spend their bitcoins to buy goods from places that do not accept digital currencies as a form of payment. As a result, the former have exchanged their fixed currency in the BTC, while the latter can buy goods at a lower price.
Websites that facilitate the service provide users with an escrow transaction service as well as a bitcoin storage wallet.
Here's how it works:
Bob publishes his wish list, including the amount of discount he wants to get, which is usually up to 25 percent. Jack then accepts the trade and pays for Bob's goods through the market, stating Bob's delivery address. When the goods are delivered, the market releases Jack's money from the escrow and transfers the funds to Jack's wallet.
Although this system allows Jack to buy bitcoins relatively easily using only his bank card, he also charges him a fairly high service fee.
Some of the websites that provide this service are Purse, Brawler, and OpenBazaar.
All the mentioned services are centralized online platforms. In order to be able to sell bitcoins using these services, you will usually need to fully verify your identity, which obviously deprives the bitcoin trade of anonymity. Moreover, once you manage to sell your BTCs, you have to withdraw them to your bank account or bank card. This process will usually take a long time and will include a commission.
That is why many people opt for offline trading.
ATMs
Although they look like traditional ATMs, bitcoin ATMs are not ATMs in the traditional sense. Instead of connecting to a user's bank account, they are connected to the Internet so that they can facilitate bitcoin transactions.
Bitcoin ATMs can accept money in cash and exchange it for bitcoin, for which a confirmation with a QR code or transfer of funds to the wallet on the blockchain network is obtained. In both cases, very high transaction fees are usually charged - there are media reports that list fees of up to seven percent.
Moreover, they can be very difficult to locate. The most famous bitcoin ATMs are marked on the Bitcoin ATM map.
Only a few special bitcoin ATMs offer two-way functionality, which means that users can buy and sell bitcoins using them. Such machines include Robocoin, Genesis1, and Satoshi2 from Genesis Coin, BitAccess, and the BATMThree model from General Bites. However, some operators may disable the put option.
Sometimes, bitcoin ATM providers require users to have an existing account to perform sales operations, and the registration process often involves a lot of time, energy, and effort. For example, new Robocoin ATM users need an activation phone number and notifications, a government-issued ID, a palm scan, and a current photo taken by an ATM webcam. The identification process varies depending on the machine, but some authentication will always be needed if you want to sell.
Once your identity is verified, you will receive a QR code with the wallet address to which you must send your bitcoins. Depending on the machine you are using, you will receive money from the machine immediately or you will receive a redemption code and you must wait for confirmation of the transaction. Usually, one certificate is enough, but sometimes six certificates are needed before the user withdraws money.
So, despite the growing number of bitcoin ATMs around the world, they are still primarily used to buy bitcoin. In addition, bitcoin ATM operators must adjust the settings on their machines in accordance with anti-money laundering protocols and know their customers that apply in the jurisdiction where their ATMs are located. In some countries, this requires a money transmitter license, while existing provisions in other countries prevent the installation of any bitcoin ATMs.
Personal bitcoin sales
In many ways, trading digital currency personally is quite easy. All you need to do to sell your bitcoins is scan the QR code on someone's phone and receive the money on the spot. If you are selling to friends or relatives, all you have to do is link them to a bitcoin wallet, send them the required amount and collect the money.
However, if you are trading with a random person, you will most likely go through lengthy negotiations about the price, meeting place, etc. Moreover, you need to consider a few things to ensure your safety and the security of your assets.
How to negotiate a price
There are numerous websites and forums that help traders organize a one-on-one meeting to buy and sell bitcoin, with LOCALBITCOINS being the most commonly used platform. One of its main advantages is the valuation system, which means that you can assess the reliability of the people you want to trade with.
As the value of bitcoin fluctuates constantly, the final exchange rate is usually agreed upon during the meeting. Most traders use the exchange rate from prominent exchange offices. Alternatively, services such as the Bitcoin Price Index can be used. Sometimes sellers will charge a commission on the current bitcoin exchange rate due to confidentiality, anonymity, and covering their costs. The choice of the stated fee is entirely up to you, but it usually ranges from 5 to 10 percent.
Moreover, it is important to be aware of local fluctuations in bitcoin prices. The exchange rate may vary depending on the country. This is related to the difficulties in obtaining bitcoin in the local national currency.
Alternatively, instead of setting up a one-on-one meeting in advance, you can visit a local bitcoin gathering. There are numerous such meetings around the world, during which those present are eager to buy and sell bitcoin and other digital currencies. It is probably the safest environment for face-to-face trading. Of course, when selling at gatherings, you must be prepared to negotiate the price on the spot. You can find information about your local bitcoin gatherings using services such as meetup.com.
Tips on how to insure
Selling bitcoin face to face is the perfect trading option for those who value anonymity and convenience. However, security considerations, especially when trading with a complete foreigner from the internet, are of the utmost importance.
First of all, you should carefully choose a meeting place. It must be a public place with active internet access because you will both have to access your online banknotes. Bringing friends to a meeting is also very common in a face-to-face trade, but it is important to inform the customer before the meeting.
Basically, take the same precautions as if you were carrying a large amount of money. Avoid public transportation and never meet in private homes.
Withdrawal of funds
If you sell bitcoins online, you will inevitably face the problem of withdrawing funds. The most common way to transfer money is an international electronic transfer, and the most prominent exchange offices support this method of transfer. However, recently some exchange offices have started accepting credit and debit card withdrawals.
Alternatively, money can be transferred via SEPA (Single European Payments Area). It is a system designed to make international transfers between EU members more efficient. Some European cryptocurrency exchanges accept this method of transmission.
However, both of these systems are far from perfect. Transfers usually take a very long time, depending on the country, and the amount transferred processing can take up to four days. Moreover, both of these systems involve additional costs. For example, Barclays Bank charges ? 25 to ? 40, depending on how fast you want the transfer to take place, for SEPA payments. In contrast, HSBC charges only € 4 for SEPA payments made through online banking, but HSBC is known for refusing to work with bitcoin and any other means related to digital currencies.
