How to Sell Bitcoin in 2020

10 min read
How to Sell Bitcoin in 2020

Cryptocurrencies appeared on the world market in 2009 and over the course of several years have become a popular and sought-after payment method. Trading volume on cryptocurrency exchanges is comparable to the average daily volume of the New York Trade Exchange, according to DigitalcoinPrice.

Bitcoin owners have a question, what are the ways to sell this cryptocurrency. This article discusses all the current sales methods for 2020.

Reasons for selling bitcoin

The main reasons why Bitcoin owners think about selling coins:

  1. Rate growth. They are preferred by market participants who receive income from the difference in rates and use it in the process of buying and selling currency. So, in 2009, 1.09 BTC could be purchased for 1 dollar. At the beginning of 2020, the exchange rate is 9.372.4 dollars per 1 bitcoin.
  2. Need for cash. Unforeseen expenses, large purchases, and other reasons encourage Bitcoin owners to sell existing assets.
  3. Drop in demand. The excitement around cryptocurrency, which occurred in 2016-2018, is gradually subsiding. Some Bitcoin owners fear a sharp depreciation and are selling at a high price.
  4. Lack of legislative regulation of the digital money market. This leads to the inability to use bitcoins in most outlets, the lack of guarantees in case of sudden changes in the exchange rate.
  5. Unwillingness to form large assets in cryptocurrency. Bitcoin owners who receive them from various sources (from wages, for example, freelancers, to mining), who do not plan to earn on the difference in rates, tend to quickly convert them into dollars.

Regardless of the reasons for selling Bitcoin, it is worth considering all the options available and choosing the one that suits your requirements. The article considers the options: centralized and offline exchangers, P2P exchangers, cryptocurrency exchanges, payment systems, bitcoin ATMs and banks.

Centralized exchangers

Centralized exchangers – services that offer exchange like standard currency exchangers that change dollars, dollars and euros. The principle of operation: bitcoins are purchased by the service at a cost less than the exchange rate, and sold at a higher price.

Advantages of exchangers : most often, the speed of transactions takes several seconds due to automation of the process, availability of payment systems, bonus programs and referral systems, ease of transaction.

The disadvantages are the high percentage of the commission, which amounts to 5% of the transaction amount, lack of guarantees, limited limits on daily transactions and the need to split large amounts into several days, lack of information about the size of the reserves and the place of their placement.

As of February 2019, there are 395 active exchangers, according to bestchange .

Exchanger aggregators monitor exchange offices. They automatically search all available electronic exchangers and provide the user with information about sites, rates, commissions, and show the current size of reserves.

Cryptocurrency exchanges

Cryptocurrency exchange – a platform on which traders make transactions on the sale and purchase of bitcoin price and other cryptocurrencies for dollars, dollars. Pricing is carried out based on the market situation, depending on the ratio of supply and demand.

Unlike exchangers, the exchange does not carry out operations on its own and does not regulate the value of currencies. Its main function: providing a platform and software for independent transactions between customers.

The first cryptocurrency exchange MtGox appeared in 2010. Currently, there are about 300 exchanges.

Disadvantages of selling bitcoins on exchanges:

  1. The need to study the rules for compiling applications, understanding the principle of electronic bidding.
  2. Payment of a commission for each transaction in the amount of 0.2-0.5%, as well as fees for replenishment or withdrawal of funds at some sites.
  3. The probability of bankruptcy of the site.

The advantages of transactions on exchanges are:

  1. The system of blocking funds in the deposit account until the transaction is completed, which ensures the reliability of each transaction.
  2. The ability to sell bitcoin at the most favorable rate for the user.

Algorithm for trading bitcoin on exchanges:

  1. Opening an account in the necessary cryptocurrency and its replenishment.
  2. Studying and analyzing the graph of changes in the value of the currency, the choice of entry price to the market.
  3. Choosing a currency pair, opening an order. An order can be created with immediate execution at the price at the time of creation, or with deferred execution when the required value is reached.
  4. Market analysis and anticipation of planned rate growth. For a successful transaction, the rate should grow enough to block the exchange commission and give the trader the necessary profit. Tracking information will help the so-called stock market – a table that reflects applications for the purchase and sale, allowing you to track the change in quotations in real time. Upon reaching the specified conditions, the transaction is closed, the financial result is fixed and the funds become available for withdrawal.

The exchange rate on exchanges depends on several factors: on a given moment of entry into the market, the rate of dynamics of quotations, the amount of profit planned for profit.

With the possibility of selling for fiat

This type of exchange allows you to sell bitcoins for dollars, dollars, euros and withdraw funds to a card.

The presence of such an opportunity implies mandatory registration on the site, as well as passing verification of the account with all the required information: user name, date of birth, address of residence, passport data or data of another identity document, utility bills or tax return to confirm the address of residence .

The fact is that financial regulation is carried out at the legislative level. Each site associated with cash is required, according to current legislation, to identify the identity of payers.

The site was created in 2013, the place of registration is the United Kingdom. The main players of the exchange are American-speaking customers, the most popular currencies are dollars and yuan.

It is not necessary to create an account to trade on EXMO , but having a registered account makes it more secure and increases the number of payment systems available.

The main fiat currencies: dollars, dollars, euros, hryvnias, yuan. Bitcoin and another 14 cryptocurrencies are offered for exchange. The number of currency pairs is 171. The average monthly trading volume is over $ 1.5 billion.

A standard deal is available on the site, a quick exchange. The trading commission is 0.2%. For large customers, special conditions are provided.

More than 26 thousand active traders are registered on the site. According to the referral program, users receive 25% of the commission withheld from attracted customers. The terms for withdrawing funds to the card after the transaction are from 10 minutes to 3 business days. A limit of 3 to 140 thousand has been established for the withdrawal of American dollars; the total withdrawal amount for a month cannot exceed 600 thousand dollars.

Without the possibility of selling for fiat

Exchanges that do not provide the services of selling bitcoin and other cryptocurrencies for fiat are often anonymous. To register for them, only email is required, no other user information is required.

Anonymous exchanges have several advantages:

  1. They cannot transfer information about users to government bodies.
  2. It is impossible to leak information, including payment, in the event of an exchange hack.
  3. Users are protected from using their personal data by unscrupulous employees of the site.

A significant drawback is the inability to sell or buy bitcoin for currency.

The exchange is registered in the USA. It carries out trading operations with 60 cryptocurrencies, 90 trading pairs are available. There is no sale of bitcoins for fiat money on the site.

The service interface is presented in English only. Easy navigation: buttons for switching between trading modes, all controls are presented compactly and do not require a trader to search for them, smooth and high-quality scaling of charts, search form and sorting by trading volume, price, alphabetical order and price dynamics.

Users are provided with detailed statistics, the function of automatic trading according to the specified parameters, the support service is working quickly.

Three-level account verification is available, but is performed at the request of the client:

  1. Verification of the first level requires an indication of the name and country of residence, as well as confirmation of the email address. With such an account, you can withdraw cryptocurrency in the equivalent of 2 thousand dollars.
  2. The second level of verification requires filling in personal data: residential address, phone number, providing a scan copy of the passport and the user’s photo. Owners of such an account can withdraw cryptocurrency up to 25 thousand in dollar terms.
  3. The third level of verification allows you to increase the limits even more. To pass the verification of the third level, you must contact the technical support of the exchange. The specific conditions that need to be fulfilled are not reflected on the site.

There is no affiliate program on this site, the commission for conducting operations varies from 0 to 0.25%.

Payment systems

Payment system – a tool for financial transactions, in which the main means are a bank card or a virtual card tied to an electronic wallet.

The first Diners Club payment system appeared in the USA in 1950. At that time, issued the first plastic cards for settlements. In the 21st century, this is one of the basic services of any bank and other financial institutions.

Using payment systems allows you to replace the calculation in cash and simplify the process of making payments (both domestic and international).

Both national (MIR, Zolotaya Korona) and international payment systems (VISA, MasterCard, American Express, Diners Club) are represented in America, within which banks issue plastic cards of the same name. Also, the main electronic payment systems are available to the residents of our country: Yandex.Money, WebMoney, QIWI. Some of them support transactions involving bitcoins.

Epayments payment system was created in 2011. The system user can get both an electronic wallet and a plastic card. Please note that currently the delivery of plastic cards in the American Federation is stopped, previously issued cards are supported and can be used.

Epayments differs in commissions from 0 to 2.9% depending on the operation performed, internal and bank transfers, withdrawals to bank cards, to WebMoney, the ability to purchase bitcoin and ethereum. The company is registered in the UK and is not a tax agent of the American Federation. Information about transactions with an account is not provided to the tax authorities of America.

This payment system supports the withdrawal and withdrawal of funds in cryptocurrency. The exchange is carried out at the internal rate of the company.

Replenishment of the account is carried out without commission, the fee may be deducted by the operator performing the dispatch.

In this payment system, a user can sell bitcoins according to the following algorithm:

  1. Go to the “Replenish” tab, select the “Cryptocurrency” item.
  2. Indicate the number of bitcoins to transfer.
  3. Check commission information, directly transfer.
  4. Wait for confirmation.
  5. Sell ​​bitcoins for the necessary currency and transfer the funds received or use them from your wallet.

Webmoney

Webmoney platform was created in 1998. It has been working with bitcoins since November 2016, for this, users can create a WMX wallet.

To sell bitcoins on the site, the owner of a WMX wallet needs:

  1. Link WMX-wallet to your bitcoin-wallet through the site wmx.wmtransfer.com. Only authenticated users can do this.
  2. Top up WMX wallet.
  3. Perform an exchange on the internal service of the site, which is an analogue of the crypto-exchange.
  4. Withdraw money to the wallet through the exchanger.

The size of the commission for each transaction is 0.8% of the payment amount, but not more than 5 WMX. When confirming operations using SMS or push-code, an additional 0.01 WMX will be charged.

Advantages of using Webmoney:

  1. Online exchange within the system. Transactions are carried out immediately, which saves time.
  2. The special values ​​used on this site (WMX) are not bitcoin. This is one thousandth of Bitcoin. Special denominations are units of account that are equivalent to currencies and are used only within the WebMoney payment system. Working with WMX allows you to cancel previously started transactions, which cannot be done on any cryptocurrency platform.
  3. Instant transfers both when depositing funds and withdrawing funds.

Disadvantages:

  1. The need to pay a commission.
  2. A high difference in the rates of buying and selling.
  3. Inability to maintain anonymity. Verification of identity and the provision of documents is a prerequisite for using the payment system.

Bitcoin ATMs

Bitcoin ATM – a device with which they buy and sell bitcoins for cash. The first device appeared in 2013 in Canadian Vancouver, in America in 2017. As of 2020, the number of such ATMs in the world exceeded 5 thousand, they are installed in 90 countries. More than 50% of them are located in the United States.

There are 2 types of bitcoin ATMs:

  1. Only for the purchase of cryptocurrency. It makes it possible to buy bitcoins for cash. Client verification consists in providing a QR code of a bitcoin wallet, to which the acquired cryptocurrency will be credited. The commission in them is 7% of the purchase amount.
  2. For the purchase and sale of cryptocurrency. The verification process in these devices involves specifying a phone number, scanning the user’s palm, photographing the face. Such bitcoin ATMs allow the user to send cryptocurrency transfers by phone number, buy and sell bitcoins. The size of the commission does not exceed 5%.

Expensive operations are caused by the need to purchase the device itself, its maintenance, support of funds transfer operations.

Conclusion

Based on all of the above – quite a lot of options are offered to sell bitcoins in 2020, it is profitable. Owners of this cryptocurrency can simply transfer it to cash, as well as receive additional income from the difference in rates.

In centralized exchangers, you can exchange currency quickly, but with a high percentage of the commission. Finding the best conditions will help the aggregators of exchangers.

Bitcoin owners use the services of an offline exchanger, most of which are located on the territory of Washington  City.

On P2P exchangers there is no third party and no commission is charged.

Cryptocurrency exchanges will allow you to earn on the difference in rates. This method requires knowledge of the principles of exchange trading, the term of sale can reach several weeks.

Payment systems allow you to sell bitcoin with a small commission. With their help, you can either purchase bitcoin or transfer it to fiat money.

Bitcoin ATMs are installed in 90 countries, including America. Most often, these are devices for buying cryptocurrency for cash. Due to gaps in legislative regulation, most American banks do not recognize cryptocurrency transactions. In foreign countries where bitcoins are recognized as a means of payment, transactions are carried out using them. Existing banks that specialize in bitcoin offer their customers a range of services: from issuing cards to providing loans.

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