How to Sell Cryptocurrency: a Step-by-Step Guide

Published: April 16, 2024 | Last Updated: April 17, 2024

Hudson Kisia

Hudson Kisia has been researching and writing content for ElementalCrypto since 2022. He has been writing about crypto, blockchains, and mining for more than 5 years now.

In this guide I will walk you through how to sell your cryptocurrency step by step.

Many reasons exist that would make you want to sell your cryptocurrency. Whichever the reason, you need to choose your selling method carefully.

Also, various methods exist for you to sell cryptocurrency. In this step-by-step guide, I am going to show you how to choose the right method. In addition, as an example, I am going to show you how to sell your Bitcoins.

How to choose your selling method

buy and sell crypto

The reason for selling your crypto assets will determine the method you will use to do so.

The following main reasons will guide your choice:

1. Selling for trade

Buying and selling crypto assets is a normal routine for crypto traders. In this case, you want to sell your crypto for profit and then buy others as part of your normal crypto trading operations.

2. Selling for crypto holding

A typical crypto holder holds crypto assets for investment purposes. Crypto investors normally sell crypto when they need to restructure their crypto investment portfolio. The main reason for selling could be disposing of non-performing crypto digital assets so that you can buy those that are performing.

As an investor, you want to optimize returns on your crypto investments by restructuring and diversifying your portfolio.

3. Selling for crypto withdrawal

This happens when you want to use your crypto for non-trading and non-investing purposes. For example, you want to use your crypto for shopping. It is more convenient to sell the crypto and withdraw the crypto amounts into a convenient means for shopping. Such convenient means include:

(a) Crypto cards

In this case, you simply load your crypto card with the withdrawn amount of crypto. You can then use the crypto card just as you would use a normal Visa card – Visa debit card or Visa credit card. The only rider is that crypto cards can only be used for shopping in those places that accept cryptos as a payment method.

Crypto Cards
Sell via crypto cards

The following are the major crypto cards:

  • Crypto debit card
  • Crypto credit card
  • Crypto gift cards

(b) Offline crypto wallets

This is ideal if you are planning to be offline for a while. For example, you are going to places where internet access doesn’t exist or is limited. It can also be because you want to use cryptos in a risky place and you don’t want to compromise your online crypto wallet.

Offline cold wallets can be in the form of:

  • Software wallet – such as Exodus wallet
  • Hardware wallet – such as Ledger wallet.
  • Paper wallet – such as QR Code printout wallet

4. Selling for cash withdrawal

Whether you are a trader, investor, or holder of cryptos, you may need to sell them so that you can receive cash for consumption or other purposes. In this case, you will need to convert your crypto assets into fiat money through selling.

Main selling methods

Now, depending on the mentioned reasons for selling your crypto, the following are the main methods by which you can sell your crypto assets:

1. Sell via cryptocurrency exchanges

If the reason for selling your crypto is for trading purposes, then selling via cryptocurrency exchanges is the best option.

This is also ideal if you are selling your crypto as part of your portfolio restructuring.

2. Sell via peer-to-peer exchanges

Peer-to-peer (P2P) exchanges are ideal if you are selling your crypto for withdrawal purposes. Maybe you want to withdraw into another cryptocurrency or fiat currency.

Nonetheless, provided that transaction fees are low, you can also sell via P2P exchanges as part of crypto trading operations.  The biggest advantage of P2P exchanges is that they are available in different regions, have a wide array of fiat currencies, and thus it is possible to get your preferred fiat currency. They also tend to have better rates than most other online platforms.

3. Sell via cryptocurrency wallet apps

Sell Bitcoin via Mobile Wallet App
Sell crypto via mobile wallet app

Some wallet apps, such as Trust Wallet and MetaMask wallet, are advanced in terms of trading and swapping mechanisms. With such cryptocurrency wallet apps, you do not need to go to cryptocurrency trading platforms to sell your crypto.

Even offline hardware wallets like Ledger Nano wallet have a swapping mechanism that can allow you to sell one type of crypto for another.

Most popular platforms have a mobile app linked to their custodial wallet. Many crypto enthusiasts prefer using these apps because of their user-friendly interface and accessibility.

4. Sell via third-party intermediaries

Third-party intermediaries operate beside ordinary cryptocurrency exchanges. For reasons of privacy and anonymity, a third-party intermediary may be preferred over a centralized exchange.

The following are the main types of third-party intermediaries:

(a) Crypto brokerage firms

Brokerage services are highly personalized. Those seeking privacy and customized service would opt for crypto brokerage firms instead of ordinary crypto exchanges.

In addition to customized cryptocurrency services, these firms can afford the much-needed privacy and anonymity that keeps your personal information safe.

(b) Crypto Swapping apps

The crypto-swapping apps have hybrid features that blend features of both decentralized exchanges and brokerage firms.

If you just want to sell your crypto for another crypto or fiat currency for non-trading purposes, then crypto swappers are ideal as they are simple and fast.  Most crypto swappers don’t require you to submit personal information.

5. Sell via Cryptocurrency ATMs

Crypto ATMs are similar to conventional bank ATMs except that they deal with cryptocurrencies. The most common Crypto ATMs are the Bitcoin ATMs (BTMs).

Crypto ATMs connect directly to your cryptocurrency wallet on your online cryptocurrency exchange platform.

You can use either a crypto debit card or crypto wallet QR Code to feed the required data for blockchain transaction processing.

How to sell your Bitcoin

How to Sell Bitcoin

Bitcoin is the most popular and most widely accepted cryptocurrency. Thus, most other cryptocurrencies are modeled to be exchanged like Bitcoins. Hence, the process of selling bitcoins can be adopted, albeit with slight modifications, to selling other similar cryptocurrencies.

To sell Bitcoin, take the following steps:

1. Choose your selling method

Select one of the main selling methods described above.

2. Prep your cryptocurrency account

If you’ve not yet opened a crypto account, do it. Otherwise, make it ready for a sell transaction.

Making it ready for a sell transaction may include:

  • Linking your external wallet – do this if you want to transfer your bitcoins from the exchange wallet to another wallet.
  • Linking your bank account – do this if you want to withdraw your bitcoins into cash via bank transfer.
  • Verify your linking details – this may include verifying your external wallet details (if required) and/or your bank details.

3. Load your Bitcoin wallet

Transfer to your wallet the amount of bitcoin that you would like to sell. This may be necessary if you are:

  • swapping your other crypto assets into bitcoins
  • selling bitcoins via another crypto wallet other than your current wallet

4. Sell your Bitcoin

Once your exchange wallet is loaded with bitcoins, you can now place a sell order from the crypto exchange section.

The selling process may differ slightly depending on your selling method and your crypto exchange platform.

Nonetheless, let’s consider how to sell Bitcoin via the two most popular methods – cryptocurrency exchanges and cryptocurrency wallet apps.

(a) Sell via cryptocurrency exchanges

The following steps will enable you to complete a Sell Order via a cryptocurrency exchange. The sell process and terminology may vary slightly from one crypto exchange platform to another.

The steps are:

(i) Navigate to your crypto exchange page

The crypto exchange page is where the crypto assets are listed for exchange.

(ii) Click/Tap the ‘Sell’ button

On a typical crypto exchange page, there will be ‘Buy’ and ‘Sell’ buttons. Choose the Sell button. On most exchanges, these buttons are revealed once you click on a matching pair.

(iii) Select your Sell Order type

Once you click on the Sell button, a list of Sell Orders will pop up for you to choose the type of Sell Order that you want.

There are three types of Sell orders:

  • Instant Sell Order – This order gets executed immediately at the prevailing market price.
  • Market Order – This order gets executed on a specified date at the prevailing market prices. Thus, it doesn’t have to be instant.
  • Limit Order – This Order specifies the specific price at which your bitcoins will have to be sold.
(iv) Execute the Sell Order

The Sell Order will be executed based on the type of Order that you have placed.

(b) Sell via cryptocurrency wallet apps

Smartphones make it easy to carry out crypto transactions while on the go. The use of a cryptocurrency wallet app is the easiest way to sell your cryptos.

To sell bitcoin using a cryptocurrency wallet app, do the following:

(i) Open your digital wallet

You may have to download and install the digital wallet, if not yet. If already installed, tap on the wallet app to open it.

(ii) Tap on the ‘Sell’ button

Once opened, tap on the ‘Sell’ button.

(iii) Set the sell options

On the ‘Sell’ dropdown list, choose ‘Sell Bitcoin’ as the first option

On the ‘Deposit to’ dropdown list, choose the wallet in which you want to deposit your sell proceeds.

(iv) Execute the sell transaction

Click on ‘Preview sell’ to verify the sell details. Once confirmed, tap on the ‘Sell now’ to execute the sell transaction.

5. Use your sale proceeds

After a successful sale, you can use your proceeds the way you intended to. For example, if you intend to withdraw into cash, you can send your sale proceeds to your bank account. If you want to use your sale proceeds for purposes of trading or investing, you can do so.

Up next

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how to sell dogecoin on robinhood

Ah, Dogecoin. The Shiba Inu meme coin that’s taken the crypto market by storm in recent years, capturing the hearts of new investors and Tesla CEO Elon Musk alike. It turns out Robinhood, the popular stock trading app for Gen Z, has evolved into a go-to trading platform for digital assets like Dogecoin. In this article, I will guide you through the process of selling Dogecoin on the Robinhood platform. So, buckle up, and let’s dive in! Continue reading the guide.

Hudson Kisia has been researching and writing content for ElementalCrypto since 2022. He has been writing about crypto, blockchains, and mining for more than 5 years now.

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