Bitcoin is, without a doubt, the most popular form of cryptocurrency. This is a digital currency that uses the security of blockchain, which functions like a series of digital combination locks, making it nearly impossible to steal the information or track it. This makes bitcoin a desirable form of payment. If you own cryptocurrency and would like to trade it, all you need to know is how to sell bitcoin. It is a straightforward process that, once you have set up, you shouldn’t have any issue selling the digital currency to an interested party.
Beginner’s Guide to Coinbase Pro
Coinbase Pro is a cryptocurrency exchange service. Think of it as a currency exchange service but for cryptocurrency. Instead of exchanging one national currency for another you’re selling one digital currency for either another or for cash (in the form of a digital transfer). Coinbase Pro makes learning how to sell bitcoin easy and with no real issue. All you need to do is sign up for an account, from there it’s an easy step-by-step process.
However, you should not store your money in an exchange service if you’re not planning on selling it (or using it) in the immediate future. This is because when stored in an exchange service it’s open to an Internet connection. Someone may attempt to hack your exchange account and siphon off your money. If this happens the money is gone and there’s nothing you can do about it (it isn’t FDA insured at all).
Instead, it is always best to transfer money into your digital wallet and then take it offline. This way, it is protected until you’re ready to do something with it. Once you’re ready to sell, you should only then transfer the funds to an exchange service like Coinbase or Coinbase Pro.a
Benefits and Risks of Trading Bitcoin
There are several benefits and risks associated with trading bitcoin and any other cryptocurrency, really.
The main benefit of bitcoin is that the process is secure, and it is easy to cover your tracks. If you don’t want someone to see what you’re buying, bitcoin is one of the best options for this. Some may also argue that bitcoin is an investment, due to how quickly the value of bitcoin has increased in recent years.
On the flip side, any kind of cryptocurrency is dangerous. For one, it is not FDA insured. This means if someone hacks into your computer and steals the bitcoin information it is gone forever. There is no real way to get it back because it can’t be tracked or traced. Another issue is bitcoin is basically nothing. It’s a series of digital number combinations that make up a blockchain (think of a block as a combination lock that unlocks a chain leading to another combination lock and the only way you access the bitcoin is if you have the combination to all the locks). It is all digital numbers that realistically have no physical value.
Because bitcoin is just a digital creation, if people decide they no longer need bitcoin, or they have no use for bitcoin, they can stop buying it. This makes it worthless. And while investments will fluctuate in value, bitcoin has the potential to drop to zero overnight. If this happens you’re completely out of whatever you put into it. It’s not like a stock that might bounce back or real estate that will come around eventually. When bitcoin or any other cryptocurrency dies, your money goes up in a cloud of smoke.
This is why knowing how to sell bitcoin quickly, should you want to (or need to), is so important. With this article instructing how to sell bitcoin, you’ll have what you need.
How to Sell Bitcoin
If you are interested in learning how to sell bitcoin you’ll find it is far easier than even you thought it could be. It’s no different from creating an account on another profile. Chances are, if you have the bitcoin cryptocurrency you have experience using it (or at least receiving it), so this shouldn’t be all that much different from when you created the digital wallet to safeguard your currency.
Creating Your Exchange Account
First, you want to create your exchange account. Coinbase is probably the best one out there, although there are dozens of alternatives, so if you look around the Internet and find a different service provider that works better for you, feel free to go with the other service provider. However, you should look into user reviews of the service before making your selection. This way, you know if there are hidden fees or other problems that might pop up along the way.
You can sign up for the standard Coinbase version or you can sign up for Coinbase Pro. The only real difference is you have heightened control over the sale, but outside of this, the two services are more or less the same.
To create an account, head over to the Coinbase website and choose whether you want Coinbase or Coinbase Pro. Select the “Sign Up” option, then enter your name, email, password and the state you live in. Check off the box to certify that you are over 18 years of age and agree to the user agreement. Then click “Create an Account” and complete the account creation process.
Once logged into your account, you will need to include other information such as your banking information. This way, when someone buys the bitcoin to complete the selling process, the money will transfer into your account.
Transfer the Bitcoin
Now that you have your exchange account all set up it’s time to transfer the bitcoin into the exchange. Open the digital wallet where your bitcoin is stored. Now choose the “Transfer” feature within your digital wallet. The exact location of this transfer feature will differ based on the service you use. However, it should be relatively easy to spot as transferring your bitcoin is a common request.
When you select the transfer feature enter your exchange service user information. When you perform the transfer it could take a couple of hours to complete. In some busier times of the year, such as around holidays or weekends, it might take a couple of days. So if you’re expecting to make a sale of your bitcoin you’ll want to do this in advance.
Create the Sell Order
Once your money arrives, you’ll need to place a sell order. Log onto your Coinbase account and then choose the “Trading” option. As you have checked off you are interested to sell, you will then choose to “sell order.” This will put your bitcoin up for sale at the current market rate. You can also perform something that is a “sell limit.” This puts your cryptocurrency up for sale, but only when the market rate hits the limit you have selected. This way, you might sell the bitcoin for more, without sitting around in front of the computer waiting on the value to increase.
When an interested party comes about and wants to purchase the bitcoin, they will make the trade. You do not need to enter any other information. Once the sale is complete, your money will transfer over to the buyer and your selected form of currency will transfer in. If you live in the United States, you will probably want the transfer in USD, although you can request other forms of payment, such as the euro or yen, if you so choose.
Transfer To Your Bank Account
You now have the funds from selling the bitcoin in your account. All you need to do now to finish your sell is to transfer it over to your bank account. You have already entered your banking information, so this is a straightforward process.
Click on the “Withdraw” option within the program, then choose the “Bank Wire” option. Enter the amount of money you want to transfer into your bank account. Conversely, if you don’t want to store your banking information within the Exchange platform you don’t need to enter in the banking information when you create the account. You can enter it every time you make a withdraw here. If you’re only using the platform once this might be your best option.
Read over everything to make sure your banking and routing numbers are correct, then click “Withdraw” to complete the money transfer. Unlike with transferring the bitcoin to your account, the withdraw of cash back to your bank account should be almost immediate, although occasionally there is a slight delay.
If you currently own cryptocurrency and are interested in learning how to sell bitcoin, the process is straightforward. All you need to do is follow this how to sell bitcoin guide and you’ll be able to move your bitcoin, sell it to an interested buyer, and then transfer the money back into your bank account. If you already have bitcoin you likely understand just how easy it is to obtain, and likewise, it’s easy to sell. So by following these steps, you shouldn’t have any issue selling the cryptocurrency.