Have you started trading by getting involved in the world of cryptocurrencies? After a few simple and practical steps, you can buy, store and trade Bitcoin. You can invest millions of dollars or buy cryptocurrencies with small balances. The volatility of the market is still quite high, so your investment can have high losses as well as returns. Since Bitcoin is the first, most known and most valuable cryptocurrency in the market, we will give examples through it. If you have some BTC in a wallet and want to cash out, this article will teach you how to sell Bitcoin.
Cryptocurrency exchanges have several types of orders to sell Bitcoin. Some exchanges have a “buy” and a “sell” button, using these buttons you can trade with the current value of BTC. Other order types are the same as those on traditional exchanges. How to sell cryptocurrency? With orders such as Market Order, Stop Order and Limit Order, you can buy and sell cryptocurrencies in the classic stock market order.
Cryptocurrency exchanges require you to log in via SMS OTP. Thus, you cannot log into your account without using a one-time password. In other words, even if someone has stolen your e-mail address and password, they cannot log into your account. In addition, 2FA confirmation code and e-mail confirmation code are requested from you in your cryptocurrency and cash withdrawal transactions from the exchange. Many exchanges allow you to set anti-phishing codes. Thus, you can confirm that the e-mails you receive are actually coming from the e-mail address of the exchange.
Cryptocurrency exchange orders
Market order
A market order is an order to buy Bitcoin for the amount you specify at the current market price or to sell Bitcoin for cash. If you are the seller, you can sell any amount of BTC to the highest priced buy order. If you are on the buyer side, you can buy the amount of BTC you specify from the order that sells BTC at the lowest price.
Stop order
Stop order allows you to set the price at which you want to buy or sell Bitcoin. This order, which is likely to last longer than the market order, can be used if you want to sell Bitcoin at a high price before the price drops.
Limit order
A limit order is an order that a person who wants to sell or buy Bitcoin gives to the exchange to buy or sell Bitcoin at a better price for him. For example, if you are waiting for the price to drop to buy some BTC, but you will not be available to place a buy order when the price drops, you can use this order. The order you entered will appear in the order book.
Stop-loss and take-profit
Since orders such as stop-loss and take-profit are not directly related to how to cash out Bitcoin, we can explain them under another title. Those who understand the logic of the above three types of orders are those who have learned how to trade Bitcoin and can trade consciously. Investors who spend some time trading on crypto currency exchanges such as Binance, Coinbase Exchange, KuCoin are users who know that they can have many different opportunities in this market, not only by buying and selling cryptocurrencies.
Can you sell crypto for cash?
The upside of cryptocurrencies over traditional funds and stocks is that they are instantly sellable. Can you sell crypto for cash? You can convert your cryptocurrency to cash at any time, 24 hours a day, 7 days a week. However, local exchanges are only active on business days and during working hours. When there is an urgent need, you may have to wait for the weekend to pass.
Other ways to convert cryptocurrency to cash
Around the world, people often trade Bitcoin and altcoins using centralized cryptocurrency exchanges. Apart from that, you can sell Bitcoin in a few more ways. One of these ways is to sell directly to someone who wants to buy Bitcoin. You can agree on the price and get cash from him and send as many BTC as you determine to his wallet. This method is one of the least common and you are more likely to get scammed, especially if you are a buyer.
You can also get BTC using Bitcoin ATMs. Various cryptocurrency exchanges are placing cryptocurrency ATMs in various places, and this phenomenon is becoming more and more common. These ATMs help you easily convert your Bitcoins into cash using your debit card. For this, you may first need to become a member of the stock exchange that owns the ATM and use a suitable card. It is even possible to shop with your cryptocurrencies thanks to the cards released by various exchanges.
However, most Bitcoin ATMs still ask for your phone number to verify your identity, and while it offers some anonymity, it’s far from completely private. When it comes to selling cryptocurrencies, Bitcoin ATMs are one of the most convenient ways to exchange your digital assets for fiat currency.
Selling through a peer-to-peer platform requires being a member of a platform that connects people who want to buy and sell Bitcoin. These platforms are generally not preferred because they are less developed than cryptocurrency exchanges.
Decentralized Cryptocurrency Exchanges
Some cryptocurrencies are listed on one or more exchanges. When you do not want to be a member of an exchange, you can buy a crypto currency listed there from different platforms. These platforms are called decentralized cryptocurrency exchanges.
You can use dYdX or Uniswap when you want to buy or sell an ERC-20 based cryptocurrency traded on the Ethereum network. You can use PancakeSwap to trade BEP-20-based cryptocurrencies traded on the Binance Smart Chain network. Dexes like SushiSwap and 1inch allow you to transact with multiple blockchains.
Cryptocurrencies may not require a centralized third party, but there are still fees associated with validating transactions. When a user manages a smart contract, code is distributed to the blockchain, forcing miners to perform calculations and compile in a decentralized environment.
To cover the data costs, users have to pay a “gas fee” that the network pays for its computing power. Gas fees are usually very low, making transactions relatively affordable compared to cash transfers. However, gas fees can be very expensive, especially during periods of network congestion.
Gas fees encourage miners, and if you pay more for gas, sometimes the transaction can be validated faster. A fantastic resource for tracking live gas prices is the ETH gas station. When selling digital assets on point-to-point or decentralized exchanges, it is important to take this surcharge into account and ensure that you do not spend too much on sales.
Selling Bitcoin for USD
To cash out your cryptocurrencies with minimal commissions and low transaction fees, you should choose exchanges operating in local currency. You can trade on any centralized or decentralized exchange worldwide. However, when you want to withdraw money, you should send your cryptocurrency to a cryptocurrency exchange that operates in USD parity. Although there are USD-indexed stablecoins such as USDT, USDC, BUSD, you must sell your cryptocurrency in USD parity to have a cashable coin. With this transaction, you can take advantage of cheap bank deals using locally operating cryptocurrency platforms, or even withdraw cash without paying any transaction fees.
If you do not want to use your Bitcoins to withdraw cash, if you want to buy a different cryptocurrency or stablecoin, you do not have to use a local platform. You can buy thousands of cryptocurrencies listed on tens of proven crypto currency exchanges around the world for BTC. Most countries have stablecoins indexed to their currencies, gold, silver, stocks on exchanges. By purchasing them in exchange for BTC, you can have different types of investments within the blockchain.
What is a Bitcoin Wallet Address?
Bitcoin (and other cryptocurrencies) have wallet addresses. If you want to receive BTC from a platform or someone to your own wallet, you must know your Bitcoin wallet address. Most cryptocurrencies are traded in more than one network. Bitcoin is also traded on the Bitcoin network, the SegWit network, the Ethereum network, and the Binance Smart Chain network. You can think of the wallet address defined for you on the platform you use as the IBAN address of your bank account. There is no harm in sharing this address. Remember, every cryptocurrency has a different wallet address, and any cryptocurrency sent to the wrong address is most likely unrecoverable.
The private key is used to send Bitcoin from your wallet to another wallet or sign smart contracts. You should not share your private key with anyone. If this key falls into the hands of someone else, all the funds in your wallet are at risk.
If you’re a long-term cryptocurrency investor, you might want to consider keeping your cryptocurrencies in a hardware wallet or software wallet rather than in exchange wallets. Because no matter how much the cryptocurrencies on the exchanges seem to be yours, they are actually stored in the cold wallets of the exchanges. And as we have witnessed many times before, cryptocurrency exchanges can be hacked… If you keep the private keys of your cryptocurrencies in a wallet that belongs to you, they can stay safe forever.
Software wallets are very easy to use and free wallets. When installing such wallets, you will be given a starting sentence to back up. This key, usually consisting of 12 words, is required to delete the software from your computer or to access your wallet on a different computer. The order of these words, of which we will give a random example below, is also important.
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Software wallets such as Trust Wallet can run as a program on a computer, as a browser plug-in, or as an app on your phone. It is an application that supports tens of blockchains and hundreds of thousands of cryptocurrencies, allowing you to store, send, receive and even earn interest on them.
Conclusion
You can sell Bitcoin and crypto to convert to your country’s local currency (US Dollar, Euro, Chinese Yuan, Japanese Yen, Pound & Sterling etc.). While you can have multiple options for selling Bitcoin, the most common is to use cryptocurrency exchanges. If you have accumulated bills or debts, you can sell some of your Bitcoins. Currently, you cannot pay bills, taxes or other debts directly with BTC, although it will be possible in the future.
You can also sell your Bitcoins if you think you have made enough profit. Thus, you will get a return on your investment and you will be able to use it for your different requests & needs. Another reason to sell Bitcoin for cash is to think that the price of Bitcoin will drop. If you have such an idea, you can buy stablecoins by selling Bitcoin or withdraw cash by converting them to fiat currency. Be aware of deposit and withdrawal fees when buying or selling fiat currencies.
