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How to Sell Cryptocurrency: The Most Common Methods

Want to know one of the best ways to get rich in 2022? Buy and hold as much cryptocurrency as you can, for as long as you can.

Had you picked up coins like Bitcoin, Ether, Solana, Cardano, and many others at the beginning of 2021 and held them to the end, you would’ve been sitting on some nice profits. And if you continue holding them for years to come, you may become very wealthy.

But there comes a time when you inevitably need to sell. Wondering how to sell cryptocurrency?

It’s not something you should do too often unless you have a well-thought-out plan. You never know when the next big pump can take place.

If you need to know when it’s a good time to sell crypto, and how to do so the easy way, then keep reading below to find out now.

When to Sell Cryptocurrency

So when is a good time to sell cryptocurrency? For the most part, you should avoid it if you can, unless you have some terrible altcoins that are going to hit zero.

But if you invested in quality coins, you can expect continued growth for years to come. However, there are a few instances when it makes sense to sell.

Ready to Realize Gains

Sometimes you need to cash out some of your winning coins and realize some gains. After all, if you never actually take any gains, what’s the point of investing?

It helps to have a goal for realizing gains. For example, when a coin makes you a predetermined amount of profit, you can sell and buy a TV, take a vacation, or even get a new car.

Or you might just want some extra cash in the bank, and that’s okay too.

Put Into a New Investment

A smarter way to utilize your gains is to reinvest them into other asset classes. Maybe you want to take some of your profit from crypto and diversify. Or you might want to try getting into real estate and put a down payment on a rental property.

How about stocking up on more Tesla stock, because it may be heading to the moon? Always think like an investor.

Buy More Crypto

An even better way to invest your profits is to just buy more crypto. Maybe you have a lot of money in one coin. If growth is slow, you can cash in on some of it and pick up some other coins that are likely to grow in the near future.

Emergency Funds

Selling assets like crypto to pay for bills, however serious, should be a last resort. But if it comes to it, using your investment to cover medical bills after an accident can save your finances from a complete derailment.

How to Sell Cryptocurrency

So you’ve got a fair reason to sell your crypto. Here’s how to sell Bitcoin and other coins with ease.

Centralized Cryptocurrency Exchange

When buying and selling crypto, most people use a centralized exchange. These are the platforms like Coinbase, Binance, and Gemini that facilitate transactions between crypt buyers and crypto sellers.

Cryptocurrency trading on an exchange is fast, easy, and efficient. And if you already have crypto to your name, there’s a good chance you bought it on an exchange.

But that’s not always the case. Some banks and other financial services like Paypal allow you to buy crypto. But most of the selling takes place on a centralized exchange.

Centralized exchanges are regulated by the government and have to meet strict standards to provide the services that they do. When using an exchange to buy or sell, you need to verify your identity with the platform by providing a photocopy of your ID and your social security number.

How to Sell on a Crypto Exchange

If you are opening an account for the first time, you’ll need to transfer your crypto from wherever you are storing it. From your exchange dashboard, find the option to deposit funds.

Rather than depositing cash from your bank, you’ll choose the option to deposit crypto. Select which crypto you plan to send to the exchange, and ensure the correct blockchain is chosen to record the transaction.

Certain coins may require you to add a memo when creating a transaction. A memo will be provided by the receiving wallet, which you need to enter when creating the transaction from the sending wallet. This adds additional security.

Sometimes deposits are instant, and sometimes they can take a few minutes or even hours. It depends on the coin you are sending, the blockchain you are sending through, and how many people are currently making transactions on the blockchain.

Transactions need to be recorded on the blockchain before they are completed. But with more people making transactions, you essentially need to get in line and wait for your transaction to claim its place on the blockchain.

Once your crypto arrives, you should receive a notification. From there, you can perform a market sell order, to sell for the current market price.

Or if you want to try locking in a better price, you can perform a limit order, where you set the minimum price you’d accept for your crypto. The only problem is that the price may never go in the direction you want it to.

Decentralized Crypto Exchange

Decentralized crypto exchanges (DEX) allow you to sell crypto, but in a very different way from their centralized cousins. A decentralized exchange is unregulated by governing authorities. Instead, it operates on blockchain technology and smart contracts.

You won’t need to create an account or verify your identity when using one. However, you can’t buy crypto with cash or sell for cash on these exchanges. You can only transfer crypto and stable coins in or out.

So you can sell crypto for a stable coin, like USDT or BUSD. Then, you can use that to purchase more crypto, stake them to earn interest or send them to a centralized exchange, and eventually cash them out into your bank account.

The benefit of a DEX is that you can buy and sell niche altcoins that aren’t listed on primary exchanges. So if you are chasing serious gains with brand new altcoins, you may need to perform a few extra steps to buy in or cash out.

Crypto ATM

One of the most straightforward ways of selling the main cryptocurrencies is with an ATM. No, not a standard ATM. Today, you can find a Bitcoin ATM near your location to exchange your digital Bitcoin for physical cash on the spot.

They are super convenient if you need cash for any reason. Byte Federal offers one of the most expansive networks of Bitcoin ATMs across the country. Check their website to see if there’s an ATM near you.

To sell, you’ll need to provide the ATMs wallet address to your personal wallet address, so you can send your crypto to the ATM. It’s easy to do if you have a smartphone and can just scan the QR code provided by the ATM.

Peer to Peer

One of the biggest benefits of cryptocurrency is the ability to send crypto directly to another user. You don’t need to perform a bank transfer, send a check, or pay for expensive money transfer services.

All you need is the wallet address of whoever you want to send crypto to, add it to your wallet, and click send. Within a few minutes, most of the time, the crypto will arrive directly in their wallet.

As with any crypto transaction, there will be some type of blockchain gas fee. Some cryptocurrencies will be more expensive to send than others. Ethereum is known as one of the most expensive since the network is so heavily congested these days.

Luckily, there are blockchains and altcoins specifically designed to make sending crypto to others fast and cheap. To take advantage of this, you may need to exchange a coin for one like Stellar, and send Stellar to your friend or family member.

Then, once they receive the Stellar, they can just exchange it for the coin of their choosing, or sell it for cash themselves.

Make a Purchase

Are you selling crypto so that you can make a purchase? You might be able to skip a step.

Many retailers, both physical and digital, accept crypto as a form of payment. Whether you want to buy a new Tesla, or just want to order some new shoes online, you just might be able to pay with crypto, avoiding the process of selling and cashing out.

Reputable retailers accepting Bitcoin and crypto payments include Microsoft, AT&T, Overstock, NewEgg, and many more. Lots of companies are experimenting with crypto payment solutions, and some accept it for a limited time as part of various marketing campaigns.

Even some major sports teams and sporting venues across the US and the globe accept crypto payments for tickets.

Reap Your Rewards

Now that you know where and how to sell cryptocurrency, you can reap the rewards of your investment in any way that sounds easy to you. If you want cash directly, head to an ATM.

Or if you just want to put that cash into your bank account or buy another crypto, then use an online exchange. But if you want to experiment with higher-risk, higher-reward altcoins, head to your nearest DEX.

Looking for other helpful crypto tips? You can find many other articles up on our website now.

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