Technology has altered the way in which people communicate, work, shop, manage their finances, and pay for goods and services. With the emergence of cryptocurrencies, a new world for spending money, investing, and trading has opened up.
Cryptocurrencies are a form of digital currency created and protected with strong cryptographic algorithms. Their underlying technology is known as blockchain, which allows the payment network to operate in a decentralized manner. That’s why cryptocurrencies aren’t controlled by governments or other central authorities, such as central banks.
On the digital asset market, there are over 6,700 various cryptocurrencies that you can buy and sell, as the market research website CoinMarketCap tells us. Some of the most popular cryptocurrencies are Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).
In this article, we’ll explain the methods that you can use to sell Bitcoin and other cryptocurrencies for fiat currencies, such as USD, EUR, and GBP, and give you a list of the best crypto exchanges that you can use to sell them.
How to Sell Bitcoin and Other Cryptocurrencies for USD
Selling your cryptocurrencies means converting them into fiat currencies, like US dollars, Euros, UK Pounds, Yens, etc. There are four methods that you can use to sell cryptos for fiat money:
- Sell crypto through a cryptocurrency exchange;
- Sell them through a peer-to-peer exchange;
- Sell cryptocurrency via cryptocurrency (Bitcoin) ATM;
- Sell digital currencies in person.
Selling Crypto Using a Cryptocurrency Exchange
Cryptocurrency exchanges are probably the best and the easiest way to convert Bitcoin and other digital currencies into fiat money. They’re very convenient for new users, as the process is rather simple.
The exchanges play the role of intermediaries, meaning that both the buyer and the seller (in this case, you) have to entrust their assets to the selected exchange. In return, the exchange will charge you for those services.
In order to start using crypto exchanges, you need to go through these simple steps:
- Create an account on a crypto exchange that lists the trading pair you want to use, for example, BTC/USD.
- Link the exchange account either with your bank account, credit, or debit card. Most of the crypto exchanges will ask for your full name, address, and proof of ID in order to verify your identity and let you sell your assets.
- Transfer the amount of cryptocurrencies that you want to sell from your wallet address into your exchange account and complete the exchange.
- Sell your cryptocurrency for fiat money using ACH, SEPA, or SWIFT bank transfer.
This process will take anywhere between several minutes to a few business days, as it depends on the crypto exchange that you’ve chosen and the bank that holds your bank account. In any case, there are various cryptocurrency exchanges that you can choose from. Some of the most popular ones are Coinbase, Kraken, Bitstamp, and CEX.io.
Coinbase was developed in 2012, and by now it has more than 30 million users. It offers users to sell the most popular digital currencies, such as BTC, ETH, LTC, and BCH. Coinbase has a great, easy-to-use interface, with quick deposits and various payment options such as wire transfer, credit card, and debit card.
However, the withdrawal fees are a bit higher compared to other cryptocurrency exchanges. They cost 1.49% of the amount of cryptocurrency that you want to sell for USD. On the bright side, there are no maximum withdrawal limits and you can withdraw your assets at any point.
Kraken is a cryptocurrency trading platform that was launched in 2011. It offers fast bank withdrawals and is available all around the world. This cryptocurrency exchange has low withdrawal fees, ranging from 0.2-0.9 %, depending on the type of trade that you want to make and your trading volume in the past 30 days. If you make the calculations, this scaled approach rewards users who trade more with lower trading fees.
Another thing that this crypto exchange is known for is its dark pool trading feature, i.e. a type of alternative trading system (ATS) which gives you a chance to place larger orders and trade without publicly revealing your intention as you search for suitable sellers or buyers.
On top of that, Kraken provides excellent customer support.
Bitstamp has been operating since 2011, and it’s based in Luxemburg. This exchange has become a cryptocurrency exchange where all the users with large amounts of Bitcoin or other cryptocurrencies go.
However, you should know that compared to some other exchanges, Bitstamp requires submitting a lot of personal data for verification before you can purchase crypto with fiat (or the other way around). Bitstamp supports USD, EUR, GBP, BTC, ETH, LTC, BCH, and PAX deposits and withdrawals, among others. The most important thing for you here is that this crypto exchange doesn’t have a withdrawal fee when you sell cryptocurrency for USD.
CEX.io is one of the most popular exchanges for buying and selling Bitcoin and a few altcoins. This London-based crypto exchange allows you to cash out your assets to your bank account via SEPA (Single Euro Payment Area) transfer.
CEX.io provides numerous trading tools and allows you to sell digital assets in exchange for USD, EUR, or GBP. There are no withdrawal fees for ACH and Advcash transfers, but if you withdraw assets to a VISA or Mastercard, you need to pay service charges of up to 3% and a commission fee of 3.80 USD.
Selling Crypto Via Peer-to-Peer Exchanges
Peer-to-peer exchanges, known as direct trades, offer you the option to sell/buy bitcoins to/from another person. This online exchange gives you more control and freedom, meaning you are allowed to set your own price, choose the payment method, and afterward only wait for the right buyer to appear.
Most peer-to-peer exchanges have different registration processes. However, they all allow you to sell/buy with a higher level of anonymity. You can submit your registration application by providing your email address and password, without any additional verification of your identity.
The only caveat with these types of platforms is that the selling can take a little bit longer compared to regular exchanges, as you won’t be the only one trying to attract a suitable buyer – there will be other sellers too. The most popular P2P exchanges are LocalBitcoins and Paxful.
Exchanges such as LocalBitcoins facilitate direct trading between potential sellers and buyers. The platform was founded in 2012 in Finland, and today it’s serving over 1.35 million people from over 250 countries. LocalBitcoins is based on escrow, a legal arrangement in which a third party temporarily keeps the assets that are part of the trade until the buyer completes the payment. Because of the transparent trading fees, the security issues of LocalBitcoins are close to non-existent.
The buyer and seller can choose the payment method they prefer, and if the buyer pays in cash, they would meet in person. You can also sell crypto through gift cards, PayPal, or regular bank transfers.
Paxful is one of the most popular P2P exchanges that you can find on the market today, due to the fact that they offer more than 300 various payment options. Some of these options are PayPal, gift cards, Western Union, reward points, or even physical goods, like cars. It should be emphasized that even though these methods are possible, they aren’t available at all times, as it all depends on the mutual agreement between the two parties. Paxful was released in 2015, and since then, it has accrued over 4.8 million users. The fee for the seller is around 1% per transaction.
Selling Crypto via Cryptocurrency ATM
Crypto ATMs can be used for buying and selling cryptocurrencies for US dollars. Even though they look like traditional fiat ATMs, cryptocurrency ATMs aren’t ATMs in the traditional sense. Traditional ATMs are connected to your bank account, unlike crypto ATMs which have to be connected online in order to make the transaction. Bitcoin ATMs are the most popular type, and at the moment there are over 2,000 Bitcoin ATMs worldwide.
Bitcoin ATMs are secure and easy to use. You can withdraw cash or cryptocurrencies without the involvement of third parties. Its downside are the huge withdrawal fees that can go up to about 10%. Plus, these ATMs can be quite difficult to find unless you can find one in your area using a Bitcoin ATM map like CoinAtmRadar. However, there is something you have to know: not all Bitcoin ATMs have bi-directional functionality, which means not all ATMs offer you the option to both buy and sell crypto.
Simply put, here is how you can sell crypto via an ATM:
- Find the closest crypto ATM;
- Select the option for cash withdrawal;
- Then choose the cryptocurrency that you want to sell, like Bitcoin or Ether;
- Enter the amount that you want to sell;
- Send Bitcoin from your mobile Bitcoin wallet to the QR code that you got from the ATM;
- And finally, don’t forget to collect your USD.
Selling Crypto Face to Face
You can sell cryptocurrency in person if you have a family member or a friend that wants to buy it from you. The only thing that they have to own is a cryptocurrency wallet, and then all you need to do is copy the wallet address or scan the suitable QR code of the wallet. Then you can transfer the cryptocurrency, and after that, they can pay you with USD or via bank transfer.
Conversely, you can also sell bitcoins or altcoins to a random person that you found through peer-to-peer exchange or on some social networks, such as Facebook, Twitter, etc. However, this can be dangerous because you’re meeting with strangers, so you must take some safety precautions, like for example arranging the meeting in a public place.
A Few Words Before You Go…
Hopefully, you now have a clearer picture of what cryptocurrencies are and how you can buy and sell them using four different methods. Seeing your options for selling cryptocurrencies in exchange for USD should have helped you figure out what suits your needs and preferences best. In the end, maybe one of these cryptocurrency and peer-to-peer exchanges caught your eye, and you’re now ready to start trading.