Table of Contents
How to sell your Bitcoins
What to watch out for when selling Bitcoin
The bottom line
Jun 21, 2022
·
5 min read
There are many ways to sell and use Bitcoin, and each has its pros and cons. Before selling, spending, or transferring Bitcoin, consider the costs and risks.
Knowing how to buy and sell Bitcoin can be important for casual and professional investors alike. Whether it’s time to cut one’s losses, recognize big gains, or take money out of Bitcoin to invest elsewhere, there are several ways to sell Bitcoin.
As Bitcoin’s popularity increases, the options for selling and using Bitcoin have also expanded. Bitcoin holders can now easily convert their Bitcoin into dollars, exchange their Bitcoin for other cryptocurrencies, or use their Bitcoin to buy products and services. Here are five ways to sell Bitcoin:
are platforms that investors can use to buy, sell, and trade cryptos. Popular exchanges–including Coinbase, Crypto.com, and Gemini–support Bitcoin and let investors transfer money from the platform to a linked bank account.
Investors who bought and keep their Bitcoin with an exchange account may be able to easily sell the crypto on the same platform. Additionally, crypto exchanges are an option for Bitcoin holders who buy and keep their coins elsewhere.
But before they can sell their Bitcoin on an exchange, investors need to create an account and transfer the Bitcoin from their crypto wallet to the exchange account. To sell the Bitcoin for a fiat currency such as dollars, investors need to link a bank account, and request a withdrawal.
Rather than selling the Bitcoin on an exchange, investors may be able to sell their Bitcoin directly to another individual using a peer-to-peer (P2P) crypto platforms like Bisq, HodlHodl, or Paxful.
Investors can list their Bitcoin and the desired sale price and then wait for a buyer. Or, they can review buyers’ listings to see if there’s a trade they’re willing to accept.
The platforms may support different types of payment, including dollars, other types of crypto, and gift cards. Additionally, users may be able to specify a payment method—such as PayPal or Zelle—with their listing.
Unlike crypto exchanges, some of these platforms don’t require users to create an account or go through an identity verification process. However, they may use an escrow service that allows sellers to verify that they’ve received a payment before releasing the Bitcoin to the buyer.
Bitcoin holders who want to quickly exchange their Bitcoin for cash could look for a nearby Bitcoin ATM. These look like bank ATMs, but aren’t linked to a bank. Instead, they let people buy Bitcoin and other cryptos, and some of the machines (but not all) also let people exchange Bitcoin for cash.
The process can depend on the type of Bitcoin ATM, but the ATM will generally print out or show a QR code with a Bitcoin address. Sellers send the Bitcoin to the address, wait for the transaction to be completed (which may take up to an hour), and then receive the cash from the ATM.
Crypto exchanges let users easily swap between supported cryptocurrencies. But swapping Bitcoin isn’t as simple for someone who keeps coins in their own Bitcoin wallet instead of an exchange’s custodial wallet.
That’s because each crypto blockchain (the underlying database or system) is isolated, meaning, for example, the Bitcoin blockchain is separate from the Ethereum blockchain. A blockchain bridge connects two or more blockchains to let users transfer their digital assets between blockchains. And it works by locking up the Bitcoin and releasing a new type of coin or token on a different blockchain.
After bridging Bitcoin, you can use a decentralized exchange to swap the new Bitcoin for other types of cryptos. Additionally, transferring Bitcoin to other blockchains opens up new investment opportunities such as lending crypto and earning interest.
Rather than selling Bitcoin for dollars that will be spent elsewhere, investors can turn to merchants that accept Bitcoin as a payment method.
For example, some popular websites—including discounter Overstock.com, electronics retailer Newegg, and video streaming service Twitch—let shoppers pay with Bitcoin. It’s even possible to add funds to the Starbucks app with Bitcoin using a linked service from Bakkt.
Investors can also use Bitcoin to fund debit cards, such as the BitPay and Wirex cards, which can be used at thousands of shops around the world. The former converts the Bitcoin to dollars when the funds are loaded, while the latter converts the Bitcoin to dollars when the card is used.
No matter the method, a few things are worth considering before selling Bitcoin:
There may be fees to sell or trade Bitcoin and to withdraw dollars from a crypto exchange account. The amount can vary depending on the platform and method. For example, some crypto exchanges offer free withdrawals but charge a fee for a wire transfer. Banks might also charge a fee to receive a wire transfer.
Services may make money by giving users less favorable exchange rates and pocketing the difference. For instance, some Bitcoin ATMs charge fees of 5% or more of the amount sold, plus a transaction fee. While the price for Bitcoin can be hard to determine, sites like CoinMarketCap can be helpful for estimating current prices.
Be mindful of the risks involved with different platforms. For example, there might not be any way to get Bitcoin back from a scammer on a P2P platform. Blockchain bridges can also be risky because hackers target the bridges knowing that they may be holding millions of dollars worth of locked crypto.
Whether someone sells Bitcoin for cash, uses it to buy a product or service, or exchanges it for a different type of crypto, the transaction could be a taxable event. Investors may then need to pay capital gains taxes if the price of their Bitcoin has increased since it was acquired, or potentially claim a loss if the price has decreased.
There are many ways to sell and use Bitcoin, and each has its pros and cons. Before selling, spending, or transferring Bitcoin, consider the costs and risks.
At Titan, we are value investors: we aim to manage our portfolios with a steady focus on fundamentals and an eye on massive long-term growth potential. Investing with Titan is easy, transparent, and effective.
Get started today.
Disclosures
Certain information contained in here has been obtained from third-party sources. While taken from sources believed to be reliable, Titan has not independently verified such information and makes no representations about the accuracy of the information or its appropriateness for a given situation. In addition, this content may include third-party advertisements; Titan has not reviewed such advertisements and does not endorse any advertising content contained therein.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any strategy managed by Titan. Any investments referred to, or described are not representative of all investments in strategies managed by Titan, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see Titan’s Legal Page for additional important information.
You might also like
Who Is Satoshi Nakamoto? Exploring the Mystery Behind the Bitcoin’s Founder
Given the mystery around Nakamoto’s identity, people have speculated about who is behind the name. Some claims are more outlandish, while others are based on research.
Read More
How to Earn Bitcoin
While investors can buy Bitcoin or swap other cryptos into Bitcoin, there are also ways to earn a lot of Bitcoin, but they tend to require a larger up-front investment.
Read More
How to Store Bitcoin Safely
When someone buys Bitcoin, they’re linking the funds to a crypto wallet. Keeping the wallet secure is vital to storing Bitcoin safely and protecting the investment.
Read More
What Is Bitcoin Mining and How Does It Work?
Bitcoin mining is the process of using computer power to mint unique digital tokens that can be transmitted across the internet and used as currency to buy goods.
Read More
© Copyright 2023 Titan Global Capital Management USA LLC. All Rights Reserved.
Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.
Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.
Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.
The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.
Cryptocurrency advisory services are provided by Titan. Cryptocurrency trading is provided by Bakkt Crypto Solutions LLC ("Bakkt Crypto"). Bakkt Crypto is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not securities and are not FDIC or SIPC insured. Bakkt Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency execution services are provided by Bakkt Crypto (NMLS ID 1828849) through a software licensing agreement between Bakkt Crypto and Titan. Please ensure that you fully understand the risks involved before trading: bakkt.com/disclosures.
Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
Contact Titan at support@titan.com. 508 LaGuardia Place NY, NY 10012.