How to sell crypto

Get setup to sell crypto in minutes

1. Download the multi-chain Bitcoin.com Wallet app.
2. Connect your bank account.
3. Tap the sell button and follow the instructions.

This article focuses on selling crypto into local currency. For options on selling crypto into other cryptoassets, please see our article How does crypto exchange work?

Table of Contents

  1. Overview of the two main options for selling crypto
  2. Pros and cons
  3. Selling crypto using an exchange service
  4. Selling crypto peer-to-peer
  5. Why do I need to verify my identity to sell crypto?
  6. What are the fees for selling crypto?
  7. Selling crypto using an exchange service
  8. Selling crypto with the multi-chain Bitcoin.com Wallet
  9. Selling crypto on our website
  10. Selling crypto on a crypto exchange
  11. Selling crypto peer-to-peer

Overview of the two main options for selling crypto

Your two main options for selling crypto into local currency are:

  1. Using an exchange service

    An exchange service is a regulated business that interacts with the traditional banking system. An exchange service may take the form of a simple website with limited exchange functionality, a digital wallet with banking connections, or a full-service cryptocurrency exchange with order book, market makers, etc.

  2. Selling peer-to-peer

    When you sell peer-to-peer, you can bypass the traditional banking system to a certain extent by, for example, taking payment in cash, using a payment app like PayPal, or settling the transaction with goods or services. If you know someone who wants to sell bitcoin, you can buy directly from that person. Alternatively, there are a number of platforms that act as a matchmaking service, helping sellers find buyers and vice versa. Buyers and sellers then negotiate trades on a peer-to-peer basis.

Pros and cons

Here's a rundown of the pros and cons for each option:

Selling crypto using an exchange service

Exchange services can be divided into two groups: 1) simple exchange, and 2) full-service exchange.

  1. Simple exchange services

(eg. the multi-chain Bitcoin.com Wallet, the Bitcoin.com Sell website).

Advantages

  • Fast, easy, and convenient
  • Guaranteed at or close-to market rates for sells
  • Can sell any amount

Disadvantages

  • Requires identity verification
  • Not available in all regions
  • Payments made to bank accounts only
  • Full-service cryptocurrency exchanges

Advantages

  • Can set 'limit' sells, thereby guaranteeing your specified rate
  • Can sell any amount

Disadvantages

  • Not available in all regions
  • Requires identity verification
  • Payments made to bank accounts only
  • Custodial (the exchange holds your crypto, not you)
  • Relatively difficult to use (for example, requires setting sell orders and understanding order books)

Selling crypto peer-to-peer

(eg. your friend or a match-making service like Hodlhodl)

Advantages

  • Identity verification is often not required
  • Any payment method is possible (including cash, payment app, barter, etc.)

Disadvantages

  • Less convenient (you must manually create and negotiate sell orders)
  • Generally only legal to sell small amounts

Why do I need to verify my identity to sell crypto?

When you sell cryptoassets through an exchange service, you're interacting with a regulated business. Such businesses must comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. These regulations require the collection and storage of customer information, including identity documents and sometimes proof of address.

What are the fees for selling crypto?

Fees for selling cryptoassets depend on the payment method and platform/venue used. For example, if you're selling directly to a friend and settling in cash, you'll only need to consider the 'network fee' for sending the crypto from your digital wallet to your friend's digital wallet.

Read more: Learn about sending crypto, including information of network fees and more.

If you're receiving cash via bank transfer, you'll of course need to factor in the associated fees.

Exchange services also charge fees for facilitating trades. These fees cover the exchanges' operating costs plus a small margin.

Read more: How crypto exchange works.

Selling crypto using an exchange service

Bitcoin.com's recommended options for selling crypto using an exchange service are:

Selling crypto with the multi-chain Bitcoin.com Wallet

Selling crypto on at Sell.bitcoin.com

Selling crypto on a full-service crypto exchange

Selling crypto with the multi-chain Bitcoin.com Wallet

With this method, you can sell any amount of crypto in your digital wallet directly to cash, which will then be deposited in your bank account. Here's how it works:

  1. Open the Bitcoin.com Wallet app on your device.
  2. Select the cryptoasset you wish to purchase. For example, Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and tap the "SELL" button.
  3. If you haven't done so already, follow the instructions to connect your bank account.
  4. Select the amount you'd like to sell. You can input the amount in either local currency terms or that cryptoassets terms.
  5. Confirm the transaction.

Note: it typically takes between 1-3 working days to receive the funds in your bank account.

Selling crypto on our website

With this method, you'll need to create an account, verify your identity and connect your bank account, then send the cryptoasset you'd like to sell to an appropriate address of that cryptoasset.

For example, a Bitcoin address looks something like this:

3J57t1XpEZ73CZmQvfksriyiWrnqLhGTLy

An Ethereum address looks like this:

0xb794f5ea0ba39494ce839613fffba74279579268

After the sale is processed, you'll receive cash in your bank account. Here's how it works:

  1. Visit our official Sell Bitcoin page
  2. Select the appropriate cryptoasset.
  3. Choose the currency you'd like to receive and enter the amount (either in local currency terms or bitcoin terms)
  4. Carefully review the order, then add your wallet address and click Continue The wallet address you provide will be used as the return address in the (very unlikely) event the transaction doesn't go through
  5. Complete the sale process by entering your bank details and sending your cryptoasset to the address we provide

Note: it typically takes between 1-3 working days to receive the funds in your bank account.

Selling crypto on a crypto exchange

With this method, you'll need to create an account, verify your identity, and connect your bank account. Once you've sold your crypto into local currency, you can withdraw that currency to your bank account. The typical flow is as follows:

  1. Visit a crypto exchange.
  2. Create an account and verify your identity as required.
  3. Follow the website’s instructions to sell your cryptoasset.
  4. Withdraw the funds to your bank account.

Selling crypto peer-to-peer

A variety of platforms facilitate the trading of cryptoassets by offering 1) a venue for buyers and sellers to post their buy and sell orders, and 2) an escrow and dispute resolution service.

Since these platforms principally help people find each other, in many jurisdictions they aren't technically classified as exchanges or 'money transmitters,' so in some cases they don't require you to reveal your identity in order to use them. For privacy-conscious buyers, therefore, P2P platforms can be an attractive method for obtaining crypto. This means that such platforms typically have no shortage of buyers.

When selling cryptoassets peer-to-peer, it's important to consider the laws in your region. In many regions, if you sell above a defined daily and/or yearly limit, you may find yourself on the wrong side of the law.

The process for selling cryptoassets using a P2P platform is typically as follows:

  1. Either create a listing for the amount of a certain cryptoasset you'd like to sell or browse through the listings of people looking to buy.
  2. Initiate a trade. Doing so locks up the cryptoasset you'll be selling into an escrow account.
  3. Confirm that the agreed payment amount has been received via the agreed payment method. Note that this could potentially even mean meeting the buyer and accepting cash in person. When you've confirmed payment, the platform will release your cryptoasset to the buyer's wallet

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