To do so, you may have to carefully pick the crypto exchange you use to sell your Bitcoin or else you may end up losing a good portion of your profit in the form of fees paid to the exchange. Oct 26, · Some Bitcoin whales have been selling BTC over the past week, since October Getty Images. In crypto, the term “whale” refers to a high-net-worth investor who holds a . Bitcoin can be sold on exchanges (or markets for cryptocurrency), or peer to peer or even one on one in real life. Exchanges are the most popular methods because they guarantee the transaction, allow multiple payment methods, and act as a platform that brings traffic to the transaction.
Selling bitcoins for profitSelling Bitcoins - When Is The Best Time to Sell Bitcoins?
This is why Silk Road, the dark web marketplace for drugs and other illicit goods and services, was an early and ardent adopter of bitcoin. If privacy is important to you, buying bitcoin with cash is your best bet. There are many sites that connect buyers and sellers -- including Paxful and LocalBitcoins -- that will enable you to trade cash or even a gift card , in person or online , for bitcoin.
If you choose to go a more mainstream route, after all, the process can be rather invasive. The major exchanges require a good deal of identification and sensitive financial information to establish and fund an account.
Exchanges that are registered with regulators are required to verify your identify before doing business with you in an effort to protect against fraud and money laundering.
And there is risk whenever you provide personal and financial information to any entity, especially online. You can use virtually any funding source to buy bitcoin; other cryptocurrencies may offer less flexibility and fewer options. Most exchanges accept credit cards and debit cards, and those are generally the fastest ways to buy bitcoin. Other funding options include a bank account or wire transfer, which may require a longer time -- somewhere between a few minutes and a few days -- to clear.
PayPal, cash and other cryptocurrencies are also viable options. Even if you're sitting on piles of money, itching to buy bitcoin, there are limits. Some platforms and exchanges put a weekly or daily cap on how much bitcoin you can buy depending on which payment method you use, how long your account has been active and your purchase history.
Of course, you can purchase smaller amounts, too. Though there are no inherent transaction costs with bitcoin, buying and selling it usually involves fees. Coinbase's fees fall into two main categories -- conversion fees and exchange fees -- which can add up to 7. You may also be charged a fee to transfer money in and out of your bank account.
Check out Coinbase's explanation of its fees here. Bitcoin is still a niche currency, though an increasing number of companies, including Microsoft and Subway, now accept it. In , payment processor BitPay claimed that more than , merchants around the world accepted bitcoin. To put that in perspective, Apple Pay is accepted in more than 2 million stores and "tens of millions" of stores in more than countries accept Visa. Note that Coinbase offers a debit card that let you buy things with Coinbase anywhere Visa is accepted.
You can sell bitcoin on all of the same exchanges and services that you can buy it from. And though the sale transaction may take just a few seconds, it will likely take considerably more time to actually withdraw the proceeds of that sale from your bitcoin wallet into your bank account. As human beings unconsciously repeat their past behaviour, patterns get repeated on charts. By identifying those patterns, a trader can enter or exit the position before the break out actually happens.
Bitcoin has formed several continuation and reversal patterns in the past as illustrated below:. Pennants — it is drawn using two converging trendlines, which are moving in different directions up trendline and down trendline.
Flags — it is drawn using two parallel trendlines, which can stay flat, slope up or slope down. Wedges — it is drawn with two converging trendlines, which are angled either up or down. Unlike a pennant, both trendlines point to the same direction in a wedge pattern.
Head and Shoulders — it appears at market tops. The pattern is made up of an initial peak, followed by a bigger one. The final peak mimics the first. Price reversal is confirmed once the neckline is broken. Inverse head and shoulders results in a bullish break out. The pattern can last between seven weeks and roughly 65 weeks.
Ascending triangle — This pattern is seen during an upward trend and is regarded as a bullish continuation pattern. Rarely, it can be formed as a trend reversal pattern at the end of a downward trend. Irrespective of where they occur, the pattern indicates bullishness. Descending triangle — This pattern is seen during a downward trend and is regarded as a bearish continuation pattern.
Rarely, it can be formed as a trend reversal pattern at the end of an upward trend. Irrespective of where they occur, the pattern indicates bearishness. Triple bottom — This pattern is formed after a long downward trend and indicates trend reversal.
Bullish symmetrical triangle — The symmetrical triangle pattern is made up of a unique shape created by convergence of two trend lines. Bearish symmetrical triangle — It is similar to bullish symmetrical triangle, but the lower trend line is broken by selling pressure. By learning to identify a price pattern, a trader will be able to exit a Bitcoin trade without any dilemma. Harmonic price patterns are a better way of identifying trend reversals by applying Fibonacci ratios to geometric price patterns.
Most importantly, harmonic patterns enable a trader to forecast future price movements. Calculated from the Fibonacci number series :. Option V: Exit based on unique price history For a variety of reasons, Bitcoin tends to remain in a downtrend or uptrend on specific months of a year. Even though there is no guarantee that it will happen again next year, still, it allows a trader to exit before the cryptocurrency drops sharply. For the past several years, Bitcoin either trades flat or falls sharply in January of every year.
In and , the crypto lost Using an excel sheet, a trader can identify such characteristics and use it for selling at the right time. The researchers arrived at the conclusion after studying nearly a year data in several financial markets across the world.
So, a trader can use the conclusions to make an exit at the right time. It is impossible to accurately predict a rally or price correction in Bitcoin, as there are several factors which influences its rise and fall. Thus, it is necessary to act quickly after deciding to buy or sell Bitcoin, as the price may not remain near the desired levels for a long time. The fees charged by a crypto currency exchange also determine the final yield from a Bitcoin trade.
There is much more to Bitcoin than simply knowing the best time to buy or sell it. Therefore, I will now move onto answering some of the questions you may have about using that cryptocurrency.
However, if you are considering it as an investment, then is certainly an element of risk associated with Bitcoin and other digital currencies. As long as you are willing to accept the risk, you can seriously consider investing in Bitcoin. Volatility — Profit from wild swings in prices by planning ahead and crafting your trading skills. This is a risky practice so make sure you educate yourself before taking the leap.
Sit on the sidelines temporarily — If the market is experiencing large amounts of fluctuation, it might be best to sell Bitcoin for FIAT and wait for a confirmation to re-enter. Selling assets with high potential during positive market conditions is a practice you should avoid, especially if you do not directly need the money at the time of this writing. Sell based on logic, and avoid making decisions when feeling emotionally unstable. Bitcoin has the potential to see a large appreciation in value over the next few months, and it would therefore be smart to wait and see how the market behaves.
If, however, you really need to make a sale, try to avoid options that will cost you a lot in fees. Or do you send bitcoin from exchanges to Coinbase and sell from there? Save my name, email, and website in this browser for the next time I comment. How to sell Bitcoin and profit: The ultimate guide There is no one best way to sell Bitcoin. In short, here are the different methods we will talk about: Cash-out through cryptocurrency exchanges Use a Bitcoin ATM Exchange Bitcoin in a peer-to-peer fashion Make a transaction within your wallet How to sell Bitcoin through a crypto exchange Bitcoin can be sold on exchanges or markets for cryptocurrency , or peer to peer or even one on one in real life.
Brokerage services: Exchange like Coinbase do not connect two different parties to make an equal trade. Instead, they are your counter-trader. This is, by far, the fastest way to cash out Bitcoin depending on your payout option. Trading platforms: Exchanges like Binance or Huobi are more commonly known as trading platforms. They connect users within the platform to exchange cryptocurrency in real-time. In our opinion, selling to unseen third parties is better and safer than selling Bitcoin in person.
How to sell bitcoin for cash — Use a Bitcoin ATM Bitcoin ATMs grew in popularity during the latest bull market when non-tech-savvy individuals used them to acquire their first coins. Where to sell bitcoin peer-to-peer — Using escrow services There are many platforms that help users cash out Bitcoin without using traditional exchange solutions. Here is how the process works: A person who wishes to sell Bitcoin visits the escrow platform and browses through all the different buying orders.