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How to sell Bitcoin in 4 steps
Learn how to sell Bitcoin (BTC) easily by following a step-by-step guide and compare 10+ crypto exchanges. Get started today.
Where to sell Bitcoin in South Africa
So long as you have access to your private keys (the seed phrase given by your wallet) you can sell Bitcoin at any exchange you like. Compare exchanges for deposit methods, the fiat currencies supported and the cryptocurrencies listed to find the most suitable match for your needs.
Step by step guide to selling Bitcoin
- Register on an exchange that lists your chosen cryptocurrency/USD trading pair. To satisfy government regulations, most exchanges will require your name, address and proof of ID before you can begin selling.
- Deposit Bitcoin into your account. Before selling any Bitcoin through the exchange you will need to transfer it across from your cryptocurrency wallet. Find the Bitcoin deposit address in your exchange, copy it, and use that to transfer funds across from your cryptocurrency wallet.
- Sell Bitcoin for fiat. Once Bitcoin has been transferred into your cryptocurrency exchange account you are ready to begin selling it for fiat currency. Select the cryptocurrency/fiat pair you wish to use and enter the details of your transaction.
- . Sell Bitcoin for another cryptocurrency. For those that wish to sell Bitcoin for an altcoin, find an exchange that lists the cryptocurrency pairing of your choice. If it is a different exchange to that used in the above steps, repeat steps 1-2 above. Find the cryptocurrency pairing and enter the details of your transaction. Once your Bitcoin has been sold, transfer your new cryptocurrency into a secure wallet. Consider finding a wallet that allows you to remain in control of your private keys at all times.
Withdrawing your funds after you sell Bitcoin
If you've sold Bitcoin through a platform that permits fiat currency withdrawals, check to see what withdrawal methods are supported. Options may include:
- Bank transfer
- Credit/debit card
When choosing your withdrawal method, make sure you consider:
- Fees. Many (but not all) platforms impose a withdrawal fee, and the fee charged usually varies depending on the withdrawal method selected.
- Limits. Are there any minimum or maximum limits on how much you can transfer? How do they differ between withdrawal methods? Can you increase these limits by providing additional verification or ID?
- Processing times. How long will it take for ZAR to arrive in your wallet or bank account? For example, while cash withdrawals are instant, bank transfers can take several days to arrive.
- Any other restrictions. For example, some exchanges will require you to withdraw funds using the same payment method with which you made your deposit.
Storing your cryptocurrency on an exchange for the long-term is not recommended. Exchanges control the private keys to these wallets and are also popular targets for hackers. The safest option is to transfer your cryptocurrency into your own secure wallet that lets you retain ownership of your private keys. It's a good idea to set this wallet up well in advance of selling your Bitcoin and make sure you double check your wallet address before depositing any funds.
Once again, check whether there are any limits on the amount of cryptocurrency you can withdraw per transaction or in any 24-hour period. You'll also need to factor any withdrawal fee into the total cost of the transaction.
How to choose the best way to sell Bitcoin
The best way to sell Bitcoin is very subjective and will vary based on an investor's circumstances. What works well for one person might not necessarily be a good fit for the next. Instead, it's all about working out which option is the right choice for you. You can do this by asking yourself a few important questions:
- Do you want to sell Bitcoin for fiat or another cryptocurrency?
- How quickly do you want to sell your Bitcoin?
- Are you willing to accept a price well below the market rate, or do you want to negotiate the best price possible?
- If selling for fiat, how do you want to receive payment?
These questions should help you decide how you want to sell your Bitcoin, and you can then figure out which platform has all the features you need. When comparing different cryptocurrency exchanges, make sure you consider:
- Price. How does the exchange rate compare to those offered by other platforms?
- Fees. Compare any trading fees that apply and whether there's a fee for withdrawing funds into your bank account or cryptocurrency wallet.
- Trading and withdrawal limits. Is there any limit on the amount of Bitcoin you can sell, or on how much fiat currency you can withdraw from your account?
- Security features. Are there any security measures in place to help protect your funds and your private data, for example, 2-factor authentication or a reputation system for buyers and sellers?
- Customer support. If something goes wrong with your transaction, how can you contact customer support? During what hours is support available?
- Reputation and reviews. Seek out online reviews and check crypto forum posts from other users to find out whether they recommend a particular exchange, trading platform or Bitcoin ATM provider.
There are several other important factors, such as where an exchange is regulated and the payment methods accepted by peer-to-peer trading sites. For a full breakdown of the features to look out for check out our cryptocurrency exchange guide and discover tips on how to choose the right platform.
How to sell Bitcoin without using an exchange
The step-by-step guide above takes you through the process of selling Bitcoin on an exchange. However, this is just one of several options available when you want to cash out your Bitcoin, so let's take a closer look at what other options you have.
Selling through a peer-to-peer platform
Why might you choose this option? If you want to set your own price and enjoy greater control over the sale process.
- Pros: Provides flexibility and control over the sale process, while offering a better price than an exchange and increased privacy.
- Cons: With competition from other sellers, it can take much longer to find a buyer.
Peer-to-peer trades, which are sometimes also referred to as direct trades, provide the option of selling your Bitcoin to another person. Online peer-to-peer marketplaces give a user more freedom and control over the specifics of the transaction. You can set your price, nominate how you want to receive payment, and then wait for the right buyer to come along.
The way the sale actually takes place will vary depending on the peer-to-peer platform you're using. For example, while some platforms only accept online bank transfers, sites like LocalBitcoins accept everything from cash and credit cards to PayPal and Western Union transfers.
The registration process varies from platform to platform, but some peer-to-peer marketplaces allow you to trade with a certain level of anonymity. Although offering extra flexibility, a user will need to be willing to accept that selling may take longer than some other options. A user will also need to compete with other sellers to get the attention of a suitable buyer.
Selling via a Bitcoin ATM
Why might you choose this option? If you want a quick and easy way to turn your Bitcoin into cold, hard cash.
- Pros: Quick and easy, a fast way to cash out your Bitcoin when you need fiat currency.
- Cons: Bitcoin ATMs (particularly those that let you sell BTC) can be difficult to find, and have high transaction fees.
The main advantage of this approach is that it offers fast access to cash, providing an instant way to turn your digital coins into real-world money. Unfortunately, Bitcoin ATMs can be hard to find, and even if you stumble across one there is no guarantee that it will support the sale of Bitcoin. You'll typically also need to provide some form of ID before you can complete a transaction, and be willing to accept high fees compared to other selling options.
Selling in person
Why might you choose this option? If you're selling to a friend or relative, or if you want to negotiate a better sale price and avoid middleman fees.
- Pros: Dealing direct means there are no middleman fees, you can negotiate the price you want.
- Cons: Very risky if dealing with a stranger and it can be more time-consuming than selling online.
Want to sell some BTC to a friend or family member? If they already have a Bitcoin wallet set up, the process is easy. All you have to do is scan their wallet QR code or copy their Bitcoin address, transfer the BTC to them, and either accept payment from them in cash or as a bank transfer.
However, you may also be considering selling your Bitcoin to a random person, perhaps someone who contacted you through a peer-to-peer marketplace or who you arranged to meet via an online forum. It doesn't take a rocket scientist to work out that this can be a risky move, so it's a good idea to arrange your meeting through a site that has some sort of rating system to help you gauge the legitimacy of the other party.
Taking normal safety precautions, such as arranging to meet in a public place, is also a must.
When is the right time to sell Bitcoin?
Before selling Bitcoin it is important to analyze the market carefully. Is it really the most optimum time to sell? Of course, you will never truly know the answer to this question but there is Bitcoin price prediction analysis that can be performed to help you decide whether to sell or hold. Our guide to cryptocurrency technical analysis is another useful tool to help you better understand and read the cryptocurrency market.
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