Fact! Buying bitcoins is easier than cashing it out. But Do not worry, there are multiple options for selling and cashing out Bitcoins. You can sell bitcoins online through direct trade, via an exchange or by carrying out a peer-to-peer transaction. Without considering the stress, you can use a bitcoin ATM for flat money withdrawals or selling your bitcoins yourself.
You will face so many issues when you Selling Bitcoins and Cash into to your bank account. There are majorly two ways to do this, you either cash out your Bitcoin through a traditional bank or through an exchange.
Here is our guide with multiple methods on how to sell Bitcoin to a bank account.
Sell Bitcoins through Exchanges
The easiest and most automated way to convert your Bitcoin into cash or a bank account is via an exchange platform. There are several platforms with which you can convert your Bitcoin to a bank account.
Select a right Bitcoin Exchange for you
These methods are highly volatile, the type of exchange you go for is determined by the type of holder you are i.e. institutional trader or small investor. Exchanges like Poloniex, Coinbase, Bitstamp, Kraken, etc. allow retail clients to sell Bitcoin. Each of these exchanges has various interfaces, and some provide related services like secure storage.
Sometimes, exchanges are not reliable and are not secure platforms to store your funds because they are very vulnerable to hackers and there are also cases of exchanges shutting down and scamming users.
There are some factors that needs consideration when selling your Bitcoin; it is necessary you know the type of currency you want to sell your Bitcoin for and the payment method you will accept. It is very vital to know that there are variations in prices because each exchange has its current market price.
Though there are disadvantages, trading Bitcoins has a one-stop solution which is through exchanges. When selling of crypto is involved, exchanges serve as the intermediary that holds both the buyer and the seller’s funds.
Setup an Account with the Exchange
Firstly, an account needs to be set up with an exchange of your choice. Most of the well-known exchanges need a full verification of identity as well as a connected bank account for cash withdrawal.
After this, you then place a sell offer, with the type of currency you want to trade, its quantity and the cost per unit. Once someone expresses interest in your offer, the exchange completes the transaction.
You can then withdraw the funds to your connected bank account after which it must have been credited. However, when the exchange is experiencing some challenges with its bank or facing liquidity issue, withdrawal of funds could take an unnecessary amount of time.
The Mt. Gox exchange was experiencing this same issue several months before its bankruptcy. For some exchanges likewise, it is very key to consider the fee you need to pay for it to be used. For example, CEX.io, one of the world’s biggest cryptocurrency exchanges charges a price of $50 for withdrawal through bank transfer, $3.80 withdrawing to a visa card and 1.2 percent of a transaction plus $3.80 when using MasterCard.
Therefore withdrawal fee depends largely on the type of exchange while transaction fees are always either small or not at all. Additionally, most exchanges limit the amount of money you’re allowed to store. If you stay loyal to a particular exchange, the limit will increase over time.
Nevertheless, exchanges are by no means a secure and reliable place to store your funds despite offering wallet services. They open doors for hacker attacks, and there have also been cases of exchanges shutting down and eloping with their user’s funds. You should, therefore, take full responsibility for your own funds and store any amount of money that is not needed immediately in an offline secure wallet.
Sell Bitcoins through Direct-Trades
Selling your bitcoin directly to another person is another way called direct trade. This facility is accessible on websites which are in relation to exchanges and involves an intermediary smoothing the connection.
At first, you will have to register as a seller. Setting up of your profile is not enough, your identity must be verified by you also. Once you’ve registered, you can advertise your interest in selling some bitcoins. You recieve notification from the service immediately when a buyer expresses the interest to trade with you. From there you can keep interacting with the Buyer. The platform needed to complete the trade is, of course, the website link.
The procedure for selling bitcoins on some of the sites are quite complicated and time-consuming. Therefore, it is very important to do thorough findings before concluding on a trading platform and you must make sure you have the necessary time and patience required.
The websites offering the direct trading option includes Bittylicious, BitBargin, Bitsquare, Coinbase, Openbitcoins, and LocalBitcoins.
Sell bitcoins through Online Peer-to-Peer trading
Another new development has surfaced in the Bitcoin world which is the peer-to-peer trading marketplaces. Direct exchange of funds does not take place in this case. The websites however critically work as an avenue which brings people with different but corresponding need together.
This service is designed for
- The communal benefit of people who will like to buy bitcoin with their credit card
- Those who want to spend their bitcoin to buy goods from places that refuse digital currencies as a form of payment.
As a result, the previous get their flat currency exchanged to BTC while the latter can buy reduced-price goods. The website enabling the service also provides users with an escrow service for the business and as a wallet to save bitcoins.
Here’s how it works:
- Bob posts his requirements including the reduced amount he wants to receive, going up to about 25%.
- Jack accepts the trade and he also pays for Bob’s goods through the marketplace including Bob’s delivery address.
- The marketplace releases Jack’s money from escrow and transfers the funds into Jack’s wallet.
- The system allows Jack to withdraw using his bank card and charging him a high fee.
The website providing this service are OpenBazaar, Brawker, and Purse. The services above are an online-based centralized platform. When you have managed to sell your BTCs you will have to transfer it to your bank card or bank account. This obviously will attract a fee and also consume time. Which causes a lot of people to opt-in for offline trading.
Sell Bitcoins through Cryptocurrency Converters
With cryptocurrency converters, you can transfer crypto to a bank account. You can directly convert your digital currency into euros, dollars or other currencies. With the use of a prepaid debit card, cash can be withdrawn when at ATMs.
Cryptocurrency converters can be just a small part of the larger opportunity. It can be an inbuilt feature of web/mobile app like TRASTRA. TRASTRA connects cryptocurrency wallets, Instant Crypto to Fiat Exchange and Debit Card. Thus, you can store Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Dash, Zcash and Ripple in TRASTRA internal wallets. You can then exchange it to EUR or USD currency, and load your TRASTRA Debit Card. Then, you’ll be also able to cash out crypto via ATM from TRASTRA Debit Card.
How to Sell Bitcoins to a bank account in UK
There are several ways you can sell Bitcoin for cash or a bank account in the UK. Revolut is an application on a smart phone which enables you to make an exchange between currencies at the exact exchange rate. Clients need to receive Euros from GDAX and convert their euros to sterling at the exact exchange rate. You need to activate Your EUR account to get EUR funds from GDAX.
Also, you can sell Bitcoin to a bank account in the UK via Coinbase, this platform allows you to sell Bitcoin for cash which can later be withdrawn to your bank account. Open an account with Coinbase, make a deposit, and then send your Bitcoin to your Coinbase Bitcoin address. This platform enables you to buy and sell Bitcoin.
Sell Bitcoins in person
In many instances, digital currency trading in person has been easy. To sell your Bitcoin you need to scan a QR-code on someone’s phone and receive your money on the spot. Peradventure you are selling to your relatives or friends, all you need to do is to set them up with a Bitcoin wallet and send them the necessary amount to collect your cash. If you are dealing with any random person, you will definitely go through a lot of process of negotiation, meeting place and other relevant conditions. You have to make sure your safety and the safety of your cash.
How to negotiate the price for your Bitcoins
Numerous website and forums are in existence which helps traders arrange their one-on-one meeting to transact their bitcoin with LocalBitcoins as the most widely used platform. Of its main advantage, is the rating system that allows you to check the level of trustworthiness of people you wish to trade with. During the meetings, both of you agree the last rate of the exchange because Bitcoin value fluctuates constantly. Most traders use the projected exchange rate. They also use Bitcoin Price Index services alternatively. Sellers sometimes do charge their customers on the Bitcoin’s current exchange to cover their cost, for convenience and anonymity. The amount for the fee charged depends on the seller but must be within five to ten percent.
It is of necessity to be aware of local Bitcoin’s fluctuation in price. The Price differs from country to country due to the difficulty in obtaining Bitcoin with the local national currency. Instead of fixing a one-to-one meet up with your client, you could visit the person. There has been a lot of meet-up of such that has made the clients happy and ready to transact with the user. This might probably be the safest environment to conduct a person-to-person trade. Users must be always ready at this stage to negotiate the price on the spot. You can use Meetup.com to find information about your local bitcoin clients.
Good words of advice to keep you safe
For people who value anonymity and convenience, selling bitcoin person to person is the perfect option for trading. Security considerations when dealing with strangers from the internet are also very important.
Firstly, choose carefully a place for your meetings, public place with access to the internet, as you both will have to use your online wallet. You are also advised to go with a friend while going for business but make sure your client is aware before the meeting up.
Take precautions as well when you have a large amount of cash on you. Stay at alert, never meet in private homes and do well to avoid public transport.
The problem of withdrawing funds is inevitable if you sell your bitcoin online. The most common way of moving money is through the international wire transfer that most of the prominent exchanges support. You can also transfer Money through SEPA (Single European Payments Area). The system is designed to carry out international transfers between European Union countries more efficient. European cryptocurrency exchanges accept this way of transferal.
These two systems are however not perfect. Depending on the country and the amount of money, processing can take up to about 4 days. Both system, however, incurs other charges. For instance, for SEPA payments, Barclays charges £25 to £40, depending on how quick you want the transfer. HSBC on the other hand for a SEPA payment done through online banking charges £4. HSBC is famous for their refusal to work with Bitcoin and as well as other digital currency-related funds.
Therefore if you want to open a bank account especially for withdrawal of funds made on the sale of Bitcoin, you need to make good research to help you choose the most suitable bank that meets your needs.