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For the last couple of years (at least) I’ve been a Bitcoin BTC, 0.41% “permabull”, a term which stands for “that annoying dude that talks about Bitcoin to everyone he meets while constantly buying more for himself”. I realize that Bitcoin and its underlying technology have the potential to change the world as we know it and that getting some for your investment portfolio is certainly a good choice when comparing risk versus reward.

However, as we enter 2020, I am putting on my seatbelt. There is a big chance that the crypto space will start to get some heavy turbulence.  And while most of us have gone through those ups and downs before while HODLing firmly, I do regret not knowing how to sell Bitcoin the right way, at the right time.

For that reason, I am going to lay out the facts and help you learn how to sell Bitcoin. While you may not wish to sell your coins right now, it’s good to have the knowledge, so you can apply it when the time is right.

Why selling Bitcoin is sometimes actually a good idea

Why would anyone want to sell Bitcoin when all the exciting events and projects are coming up? Facebook is fighting to get permission for its own blockchain-based digital currency, the 3rd Bitcoin halving is much anticipated and the crypto world is more mature than ever before. However…

Do not forget that Bitcoin is a speculative investment, often associated with high risk and, thus, a high potential of YOU losing YOUR money.  Knowing how to recognize the best times to increase or decrease your position can make a huge difference in the long-term profitability of your investment. And that’s just for those of you that fancy trading.

There are many more reasons that one may want to sell their coins:
  • You may need money to pay the rent

  • You want to finally sleep without stress

  • Your significant other found out that you invested more than you should
And the list goes on… So, now that we pretty much covered the obvious, let’s take a look at the steps that will help you exchange Bitcoin to Fiat money.

How to sell Bitcoin - a guide for dummies

Selling Bitcoin is much easier than people tend to think. And yet, the first few times, you can expect a little bit of stress to jolt your body. After all, you are dealing with money and you are not really familiar with the selling process. So, let’s start with the basics.

Choose a cryptocurrency exchange

First and foremost, you will need to create an account at an exchange (if you haven’t got one already). Cryptocurrency exchanges come in all shapes and sizes and help you exchange your Bitcoin using different types of payout methods. 

There are a few important distinctions we need to make at this point, as there are three types of cryptocurrency exchanges.
  1. Centralized cryptocurrency exchanges - These are the most popular type of platforms as they have a great design and help users easily sell their coins after a short verification process.

  2. Decentralized exchanges - This relatively new concept entails that the exchange platform is open-source. No verification is needed but users can only exchange their Bitcoin for other cryptocurrencies.

  3. Peer-to-peer exchange platforms - This type of exchange connects users that wish to trade Bitcoin using different types of payment methods. 

  4. Bitcoin ATMs - The classic Bitcoin ATMs are growing in popularity all over the world. You can now find a local ATM almost everywhere.
If you need some more information for each of the above options keep reading, as we will explain each one further.

1. Centralized cryptocurrency exchanges: Coinbase, Binance, Kraken, etc…

Undoubtedly the most popular type of cryptocurrency exchanges, these platforms are built with great design and with a focus on user experience. They are responsible for most of the mainstream adoption most people hope to achieve. 

If you are totally new when it comes to selling Bitcoin, this is probably the best place to start. While in the past users had to wait for days if not weeks to get their accounts verified (due to the large influx of new customers), the whole process is automated nowadays.

Benefits of centralized exchanges:
  • Great design with intuitive navigation of the selling process

  • Access to a support team for any questions or doubts that may arise

  • Fast and efficient transactions
Drawbacks of centralized exchanges:
  • Your Bitcoin wallet address is whitelisted by going through ID verification

  • Limited payout methods, as most platforms’ only payout method is a bank transfer

  • You are not in full control of your coins since the platform holds your keys.
Best centralized exchanges:
  • Coinbase - The most popular platform with more than 30 million users. 

  • Paybis - The fastest way to sell Bitcoin with a large number of payout options

  • Binance - A massively popular crypto exchange that lists over 100 different cryptocurrencies

  • Kraken - Founded in 2011, Kraken is a great platform to sell Bitcoin in just a few clicks

2. Decentralized Exchanges - Binance DEX,, etc…

Decentralized exchanges are pretty similar to regular, centralized exchanges with the difference that they can only exchange Bitcoin with other cryptocurrencies. If you are not permanently cashing out, this shouldn’t be an issue.

Some decentralized exchanges, such as Binance DEX, allow users to trade Bitcoin against fiat-pegged Stablecoins

These are cryptocurrencies that are tied to the different traditional currencies the exchange platform supports. For example, if you are planning to sell Bitcoin for USD, only to later re-enter the market, you could trade your BTC for TUSD and stand on the sidelines for a while.

Benefits of decentralized exchanges
  • Anonymity and privacy, as there is no need to pass any KYC/AML process

  • You are in full control of your funds. The platform does not keep a copy of your keys
Drawbacks of decentralized exchanges
  • They are not beginner-friendly

  • There is no emphasis on UX/UI

  • DEX platforms are not yet popular with the average investor
Best decentralized exchanges
  • - Most trading pairs in the market, easy to use compared to others. 

  • - Popular DEX that grew in popularity during the lastest bull market (2017)

  • StellarDEX - Popular cryptocurrency Stellar Lumens has also created an open-source exchange platform

3. Peer-to-peer exchange platforms - LocalBitcoins, Paxful, etc...

Peer-to-peer exchanges are very popular among individuals that want to sell Bitcoin using inconvenient payout methods. In essence, these platforms connect buyers with sellers allowing the two parties to create a trading pair that suits both. You will find practically hundreds of payment/payout options, ranging from e-money wallets to gift cards.

Benefits of peer-to-peer exchanges
  • $1000 annual limit for unverified transactions

  • Multiple payment/payout methods

  • Smooth transaction process
Drawbacks of peer-to-peer exchanges
  • High fees imposed by trading partners (3%-5% above market price)

  • Choosing the right trading partner is not always easy
Best Peer-to-peer exchange platforms
  • LocalBitcoins - Oldest and most popular p2p exchange for cryptocurrency traders

  • Paxful - Up and coming p2p exchange that recently announced a partnership with Binance.
Start by choosing one of the exchanges presented above, based on your unique interests. If you have never sold Bitcoin before, Coinbase is likely to be the best choice for you.  Not only is Coinbase the most popular exchange in the crypto market, but it also provides insurance for funds up to $250,000, if you happen to be a US citizen. 

Sell Bitcoin for credit/debit card funds

The easiest and most convenient way to exchange Bitcoin is by receiving the funds directly in your card. 

One of the few exchanges that support this convenient selling method is Paybis. We have thoroughly tested this platform and find it the easiest to use for beginners.

It is also a great option for people who want to use an exchange with a clean and simple interface.

So, let’s see how an order works in practice.

STEP 1: Start a transaction on Paybis

Paybis allows users to sell their Bitcoin in record time. You will only need five minutes to authorize your card and a total of ten minutes to complete the transaction.

To proceed with selling Bitcoin, create an account on Paybis and follow the steps below:

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  • From the left column, select “Bitcoin (BTC)” (1) 

  • From the right column, select “Credit/Debit Card” (2)

  • Type in the amount of BTC that you wish to sell (3)

  • Press on Start Transaction (4)
Note: Before you start here's the list of restricted countries.

STEP 2: Tick on the checkboxes to continue

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Next, you will be prompted to read and agree with the terms of service. All you need to do is click on the two checkboxes and click on “CONTINUE”.

STEP 3: Authorize your card

You will now need to authorize your bank card.

To see if your card is eligible for this transaction, check the list on the bottom of the page.

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To continue with the process, click on “CONTINUE TO AUTHORIZATION”.

STEP 4: Enter your card details

Next, enter your card’s details (1) and click on “Authorize” (2):

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The authorization process takes around a minute to complete and you will automatically proceed to the payment page.

STEP 5: Send Bitcoin to Paybis

Once your card is authorized, you will be able to send your coins to Paybis’s Bitcoin address (1). 

Click on “PAY NOW” and send the funds within the given timeframe.

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When Paybis receives your Bitcoin, the funds will be sent directly to your bank card.

STEP 6: Receive your funds

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And that’s it - you just sold your Bitcoin directly to your credit/debit card. 

In most cases, the funds will arrive in your account within 24 hours.

How to sell Bitcoin and receive funds in your bank account

Selling Bitcoin is much easier than people tend to think. And while Paybis also supports Bitcoin to bank account transactions, it might be a good idea to show you how it’s done on a different exchange. After all, diversity is a good thing in the world of crypto! So, let’s see how this process works on Coinbase.

Step 1: Create an account on Coinbase

Upon visiting the main page of the platform, all you need to do is enter your email address and click on the green “Get started” button.


How to buy Bitcoin on Coinbase

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From that point on, the process is very easy to follow and it may be a good idea to keep your passport or ID at hand. You will need it shortly after in order to verify your identity.

1. Start the verification process

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Head to the verification page and, to begin the process, click on Upload ID.

2. Select your preferred ID document

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Coinbase allows users to verify their identity using one of the following options:
  • Passport

  • Driver's license

  • Photo ID
Select the document that you wish to use by clicking on the image that depicts it.

3. Upload a photo of your official document

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Make high-quality photos of your identification document and upload them to Coinbase. Once the pictures are uploaded, click on “Upload”.

4. Get verified

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Once you submit the documents to Coinbase, you will have to wait for a few minutes before your ID is successfully verified. Once the process is completed, check your inbox as you will receive a verification email.

Now that you are a verified member of Coinbase, it’s time to add your financial information.

Step 2: Connect your bank account to Coinbase

When using Coinbase, you are only able to exchange your coins for bank account funds. While that is inherently what most people want to do when selling their coins, especially beginners, you might be different.

There are several exchanges that support alternative payout methods such as Paypal or direct transfers to your credit card. If you are interested in those, feel free to revisit some of the options we shared above.
Having said that, let’s see how we can link a bank account on Coinbase.

1. Connect your bank account 

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Here is the process you need to follow to connect your bank account to Coinbase:
  • Click on Settings

  • Then, click on Linked Accounts

  • Select Bank Account (you can add more bank accounts through this window)

2. Add your bank information

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Once you select the “Bank Account” option, you will need to provide the following details:
  • The name of your bank

  • Your IBAN number

  • Your SWIFT/BIC
When you submit this information, a new window will pop up, stating that Coinbase now has to verify your bank account.

3. Bank account verification

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You will now need to send a small payment to Coinbase to finalize the process. And here is how you do this:
  • Open a new tab and log in to your online banking (of the bank account you previously added)

  • Start a new international payment, unless you live in Estonia

  • Enter all the information Coinbase has provided you with (recipient name, bank account number, reference number, etc.)

  • Transfer a small amount of money (you will get this back later)

  • After your payment has been processed, Coinbase will inform you that your bank account will be verified within 2 business days
Once your bank account is verified, you will be able to withdraw your funds anytime you choose to sell Bitcoin.

Step 3: Sell BTC on Coinbase

So, the time has come. Your account is verified and you can now enjoy the perks of Coinbase. Let’s create a sell order in practice to see how the selling process works. To do this, you will need to follow 3 simple steps:

1. Head over to the Buy/Sell tab and click on Sell

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2. Enter the amount of Bitcoin you wish to sell and click on “Sell Bitcoin”

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3. Review your order and complete your purchase

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The process is as simple as that! Depending on your bank’s processing times, the funds may require 1-3 business days to become visible in your bank account.

Selling Bitcoin for Cash (with ATMs)

You can also exchange your BTC at ATM machines. This is a great way to skip ID verification for small purchases. It is also a convenient way to get cash for your crypto.

First, you will have to search in your local area to find Bitcoin ATMs. Then, you will need to visit the location and sell Bitcoin.

Once you get to the ATM itself, follow the instructions on the screen and make a transaction. Within a few minutes, you will receive the cash. It’s that easy! You can find all the ATMs in your location by checking CoinATMradar
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With the help of this website, you can check the limits and verification details for each available machine. This should give you a good overview when deciding which ATM to choose.

Wrapping up

With the recent developments in the cryptocurrency world, selling Bitcoin may be a smart move and every investor should know how to go through the process.

Having said that, Paybis and Coinbase are a great platform if you are new to Bitcoin and cryptocurrencies in general. As time goes by, however, you may realize that you are looking for additional features, some of which are not supported by Coinbase.

In this case, check out all the available platforms and learn how to sell Bitcoin on each one. Chances are that this knowledge will come in really handy in 2020 and beyond.

If you're interested in buying Bitcoin instead you should check out our article on 7 different ways to buy Bitcoin.

by Aaron Watts
A lot of people prefer to go for buy/sell but I feel it’s more beneficial to go for Trading and that’s what I do. I work with FreshForex, where they have 130+ instruments including Cryptos. So I can easily do Crypto trading and benefit through. There is also lovely Rebate Program, which further boosts the way I work.

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