The purpose of this guide is to introduce you to the different means available to you when you want to sell your bitcoins on the market in order to recover your investment on your bank account, Paypal or other means of payment.
If you decide to sell your Bitcoins online, you can do so via an exchange platform, a direct online exchange with a buyer, or it is even possible to carry out a physical transaction.
We will see in detail how to proceed based on the different ways of selling bitcoins available today.
Option 1: Sell bitcoin on an exchange platform
Trading platforms are a must-have solution for buying and selling bitcoin.
Step 1: Choose an exchange platform and create an account
First, you need to choose the trading platform of your choice. Your full registration will require verification of your identity and your bank account details in order to withdraw your funds.
Exchange platforms set up transaction fees which can be variable as you can see below:
- Bitfinex: transaction fees are between 0.1% for a standard bank transfer up to 1% for an express bank transfer in 24 hours
- Bitstamp: There is a charge of 0.1% to 0.25% for a bank transfer. It is also possible to make a transfer to a credit card for a fee of 1%.
- CEX.IO: the costs are 25 euros for any bank transfer and 1.2% for a transfer to a credit card.
- Coinbase: 1.49% transaction fee for a transfer to your bank account.
- Kraken: the platform offers transfer fees of around 0.19%.
- eToro: Free, but there is a minimum deposit amount.
Step 2: Place an offer to sell
Make sure you are in the bitcoin sale section of the platform. The basic section is most often the purchase section. Once this is verified, place an offer to sell bitcoins for the amount of your choice and indicate the currency in which you want to recover your funds, in euros for example. The platform will automatically take care of the transaction as soon as someone matches your offer.
Step 3: withdraw funds to your bank account
Once the sale has been made on the platform, you must indicate that you want to transfer the money for the sale to the bank account that you linked when you registered. This transaction can take several days.
Option 2: Sell bitcoin between individuals via a platform
This way of selling your bitcoins allows you to sell your bitcoins directly to another person through a dedicated website. It’s a process that can take longer to find the right buyer and complete the transaction.
Step 1: Choose a platform and register as a seller.
This first step is the same as on traditional exchange platforms. The difference is that you have to define your profile as a seller on the platform. You will also need to verify your identity and link your bank account in order to receive payment from the buyer.
The BitBargain, Coinbase, Bitsq and LocalBitcoins sites are some of the websites offering the possibility of selling your bitcoins directly to individuals.
Step 2: Post an ad to sell bitcoins
Post an ad, much like on Leboncoin, with the only exception that you are not selling your furniture or your car but your bitcoins. Indicate how many bitcoins you want to sell and at what price.
Step 3: Deposit your bitcoins on the platform account
The platform will then act as an intermediary agent between you (seller) and the buyer. For the transaction to be carried out with confidence for both parties, you will need to deposit your bitcoins for sale and the buyer will have to make the payment via the platform in order to unlock the payment of bitcoins in his account.
Step 4: Contact a buyer and complete the transaction
You will receive a notification when a buyer is interested in buying your bitcoins, then you can chat with them to agree on the terms of the trade. Once this is done, the transaction is carried out via the site and you will receive payment from the buyer directly to your bank account.
Option 3: Sell bitcoin via a physical exchange platform.
Although the majority of bitcoin exchanges are carried out online via the platforms that we presented with options 1 and 2, there are also physical platforms allowing you to sell your bitcoins. These can take 2 forms: the form of an exchange office or the form of a bitcoin ATM.
There is for example in Paris, a physical company called Coinhouse, former “House of bitcoin” which offers many services around cryptocurrencies and allows in particular to sell your bitcoins and leave with euros.
In order to carry out the transfer, you will need to have an identity document.
Bitcoin distributors with a put option
As far as vending machines are concerned, the steps are numerous and it is quite difficult to find such vending machines in France today, however there are quite a few in London and in Asian countries. If you are traveling, this may be an opportunity to sell a few bitcoins to finance your trip.
If you are transferring via a physical platform or a bitcoin exchange office, here are the classic steps you will need to:
Step 1: Identity verification
In most cases, you will need to provide: a valid phone number, ID, and take a picture at the time.
Step 2: Send your bitcoins to the machine wallet via a QR code
Once the verification of your identity is complete, take your smartphone to transfer your bitcoins from your wallet to that of the exchange office or the ATM.
Step 3: Receive the money
You will then receive the money directly in cash or by bank transfer.
Option 4: Sell bitcoin in person:
Nothing could be simpler than selling bitcoin to a natural person. All you have to do to sell your Bitcoins is to scan a QR code that will allow you to send the bitcoins sold to the buyer’s bitcoin wallet in seconds.
To do this, the buyer must have a bitcoin wallet. As in any type of physical transaction, you will also have to make sure that the exchange is made with confidence with the buyer, so that he will give you the financial consideration in exchange for your bitcoins. If this method of selling bitcoins is mainly used to make transactions with friends or with close members such as family members, you can also go through websites or forums to get in touch with individuals in the purpose of selling your bitcoins.
In this type of physical transaction, there is often a price negotiation session prior to the completion of the transaction. To facilitate these steps, there are many websites and forums that help sellers and buyers to organize one-on-one meetings to buy and sell Bitcoin, with the LocalBitcoins platform being the most used platform. One of its main advantages is the rating system, which means that you can assess the reliability of the people with whom you want to sell your bitcoins.
You can also sell your bitcoins at events organized by communities that meet around bitcoin and the subject of cryptocurrencies. It’s a good way to trade and trade bitcoins in a warm atmosphere.
What are the regulations in force to sell bitcoins?
The regulation is a major issue for the development of the use of cryptocurrencies, if this regulation remained unclear for a long time, it was clarified on April 26, 2018 in France. Since then, the Council of State has considered cryptocurrencies, with bitcoin in mind, as movable property.
Thus, the capital gains from the sale of bitcoin must be declared for tax purposes. If you are an individual, the declaration will be made in the “BNC” box relating to the income generated on an occasional basis.
Bitcoin regulations vary by country, so we recommend that you inquire based on the country in which you are selling.
What to remember to sell bitcoin
As you have seen in this guide to bitcoin sales, there are many options for making bitcoin sales transactions. The simplest and most used is the option which consists in going through a Coinbase type exchange platform and which will assure you a fast, simple and secure transaction. Consider studying all the platforms to benefit from the most suitable transaction costs and functionalities. If you are going through live transactions, consider taking precautions regarding potential buyers.
Guillaume has been passionate about Blockchain technologies and cryptocurrencies for 2 years now. He firmly believes in the massive adoption of these in the years to come. Eager for crisp news and always on the lookout for the latest trends in the cryptocurrency market, he enjoys sharing with you all their secrets!