Whether you’ve bought Ether (ETH) on an exchange or earned ETH from mining, the time may come when you want to sell some or all of your holdings. As Ethereum is one of the world’s largest digital currencies, selling ETH is easy, and can quickly be exchanged for South African rands (ZAR) or used to buy other cryptocurrencies like Bitcoin or USDT (Tether).
A step-by-step guide to selling Ethereum
There are two options available when selling Ethereum:
- Selling ETH for fiat currency, such as ZAR
- Selling ETH for another cryptocurrency, for example, bitcoin (BTC) or XRP (XRP)
Selling your Ethereum tokens for fiat currency is generally the quicker and more convenient of these options, particularly if you’re not an experienced trader. That said, you can find simple step-by-step instructions below, to sell ETH for either fiat or cryptocurrency.
Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific
provider, service or offering. It is not a recommendation to trade.
Where to sell Ethereum in SA
Selling ETH for fiat currency
Step 1. Register on an exchange that lists ETH alongside ZAR.
Find an exchange that lists ETH in a trading pair with ZAR. Review and compare the features of a range of crypto exchanges before deciding which one is right for your needs.
You can then sign up for an account by providing your email address and creating a password, and some exchanges will require your full personal details and proof of ID to satisfy Know Your Customer and Anti-Money Laundering (KYC/AML) regulations.
Don’t forget to also enable 2-factor authentication on your account before proceeding any further.
Step 2. Deposit ETH into your account
The next thing you need to do is transfer your ETH holdings into your exchange wallet. To do this, you’ll have to log into your account. Find the relevant wallet address for Ethereum tokens, and then use that address when transferring tokens from your external wallet.
For example, if you’re using Coinbase, you’ll need to click on the “Wallets” tab at the top of the screen and select your Ethereum wallet. After clicking “Generate Deposit Address”, you’ll be given the address to which you can transfer ETH.
Step 3. Sell ETH
Once the ETH tokens have arrived into your exchange wallet, you’ll need to navigate to the trading page and search for your desired currency pair, such as ETH/ZAR. You can then enter the amount of ETH you want to sell to place your order.
For example, on Coinbase, you can click the “Sell” tab and select the wallet you want to sell from (such as your ETH wallet). Click “Sell ETH” and then enter the amount of ETH you’d like to sell in the box provided. You can then select the currency you want to sell ETH for (eg ZAR) and click “Sell”.
No matter which exchange you’re using, make sure you take a moment to review the full details of the transaction before submitting.
Step 4. Withdraw ZAR
The final step is to withdraw the fiat currency that you’ve acquired and put it into your linked bank account. This is usually quite easy to do from your exchange account, but make sure you’re aware of any fees or limits that apply to the transaction.
Selling ETH for cryptocurrency
If you want to exchange your ETH tokens for another digital currency, here’s what you need to do:
Step 1. Register on an exchange that lists ETH
If you plan on selling your ETH tokens on the same exchange where you purchased them, skip ahead to step 2.
If you need to use a new exchange to complete your transaction, you’ll need to compare the features of a variety of crypto exchanges before deciding on one that’s right for your needs. The good news is that because Ethereum is the world’s second-largest cryptocurrency, it’s widely traded on an extensive range of exchanges.
Once you’ve chosen an exchange, sign up for an account by providing your email address and creating a password. Some platforms will also request your full personal details and a valid form of photo ID in line with Know Your Customer and Anti-Money Laundering (KYC/AML) requirements.
Make sure you also enable 2-factor authentication on your account before depositing any funds.
Step 2. Deposit ETH into your account
Now it’s time to transfer the ETH tokens you want to sell into your exchange wallet. To do this, you’ll need to find out the ETH address of your exchange wallet and then use this to transfer the tokens over from the wallet where you’ve been holding them.
Step 3. Sell ETH
Once the ETH tokens have arrived in your exchange wallet, you can click through to the trading section of your chosen platform. Then, it’s a matter of searching for the pair you want to trade, such as ETH/BTC, and then entering how much ETH you want to sell or how much BTC you want to buy.Make sure to take a moment to review the full details of your transaction before finalizing the sale.
Step 4. Transfer your new digital currency to a secure wallet
Now that you’ve acquired a new digital currency, remember that storing your coins or tokens on an exchange for the long-term isn’t recommended. For enhanced security, it’s a good idea to transfer those tokens to a private wallet that allows you to retain control of your private key.
Check out our cryptocurrency wallets guide for more information.
What to consider if you plan to sell Ethereum
Before you sell your ETH tokens, remember that every cryptocurrency trade comes with a certain level of risk attached. Cryptocurrencies are volatile and complicated assets, so it’s important to do your research before selling any coins or tokens.
If you’re thinking of selling ETH, factors you need to consider include:
- Trading fees. Compare trading fees across a variety of exchanges to find out how much it’ll cost you to sell your ETH. Check to see if fees are different for market makers and takers or if they’re the same across the board. These may be especially high if using a Decentralised Exchange, depending on Ethereum gas prices at the time.
- Withdrawal fees and methods. When choosing a platform, don’t forget about the fee charged to withdraw funds from your exchange account. It’s also a good idea to check what withdrawal methods are available and how long it’ll take for your transaction to be completed.
- Transaction limits. Does the exchange impose any minimum or maximum limits on how much ETH you can sell? Is there a per-transaction or daily withdrawal limit you need to worry about?
- Type of platform used. Will you be using a centralized exchange (easy to use) or a decentralized exchange (usually have better security)? Will you need to entrust your funds to a third party, such as the exchange operator, or can you trade in a peer-to-peer setting that allows you to connect directly with another user who wants to buy ETH?
- ID verification required. Consider the personal details and ID you’ll need to provide in order to sell ETH on any exchange and how long it’ll take to become a verified member. Some platforms don’t require any verification, which is useful for those who value their privacy, while others have a rigorous signup process in place and you may have to endure a wait while your account is verified.
- Customer support. Don’t forget to check how you can get in touch with the exchange’s customer support team and research whether they have a good reputation for responding quickly to requests for help. This will ensure that you can get the assistance you need if your funds are slow to arrive or something else goes wrong with your transaction.
Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly
volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of
future performance. Consider your own circumstances, and obtain your own advice, before relying on this information.
You should also verify the nature of any product or service (including its legal status and relevant regulatory
requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may
have holdings in the cryptocurrencies discussed.
Disclosure: At the time of this writing, the author holds ADA, ICX, IOTA and XLM.