When you are the owner of Bitcoins you have to know exactly how to go about selling these if the need arises. There are various ways to sell Bitcoins depending on if you wish to sell these directly or on a crypto exchange website. Here are some steps to sell off your Bitcoins in the least complicated manner:
- You have to create an exchange account for buying and selling Bitcoins. This is the simplest way to convert Bitcoins into cash. The exchange is the middleman that will conduct the sale for you. Exchanges that do this are Coinbase, Bitfinex and BitStamp etc. To sign up on such exchanges you will have to abide by specific KYC rules and submit ID verification documents for approval.
- When you have bought and stored Bitcoins in a digital wallet you can keep it here for future sales. Most people prefer to choose Coinbase wallets as these work best with Coinbase conducted trades. When you use any digital wallets like Coinbase you must find ways to link to a reliable currency exchange.
- You can then place the sell order once the exchange account is created and linked to your bank account. You can select the “buy” or “sell” options as required from the menus and select “bitcoins”. When a bank account exists, it can be typed in at this juncture for a direct transfer.
Bitcoin Selling Strategies:
There are multiple Bitcoin selling strategies depending on how much Bitcoins you want to move and your long-term goals. It is advisable to do research before making a sale. If you wish to sell directly to a buyer you can set a sell order at a specific value. When a buyer agrees to this price, the exchange can alert you and you can proceed with the transaction.
- When you are day-trading you are learning to survive in a highly volatile environment. For instance, when there is a 40% surge in value within 24 hours, you get a glorious opportunity to buy at low prices and sell at high prices. For the high-risk takers, the higher the volatility, the better are the chances of selling Bitcoins. But, this is a move which can backfire, particularly if you are an amateur lacking much trading experience.
- There are fun and interesting ways of selling bitcoins. Lorenzo Jovanotti is an Italian song writer and singer who rose popular during 90s. By adding bitcoin to his name like Jovanotti Bitcoin some people were trying to sell bitcoins though it was found out to be fake news later. The names of automated trading bots were also added next to his name to attract a huge amount of web traffic.
- For people not keen to take too many risks the HODLing strategy works best. Here, you can hold onto your Bitcoins for the long term and sell these when you are prepared to retire. This approach too has its share of risks even though the trend has been upwards in the previous decade. It is not possible to predict Bitcoin prices during the next 10 years and the asset continues to be in a nascent stage. So, prices will keep oscillating and regulations are still unclear.
Finally, there is a middle-of-the-road approach where you combine HODLing with day-trading strategies and decide to sell part of your Bitcoins and hold onto the remaining. This way you can take advantage of price volatility and sell at a high price also without putting your entire savings at a risk.