Selling bitcoin online is the most common way of bitcoin trading. There are many ways to sell bitcoin online easily and securely. We will present in this article 3 methods of selling bitcoin.
1 – Direct Trade
Direct trade method is a direct deal with another individual. This deal is executed by an intermediary party facilitating and securing the trade. This intermediary could be a company or a legal website. Websites which offer this type of selling structure are LocalBitcons and Paxful, these websites offer wallets for their users.
The main purpose of these web wallet is to store bitcoins for trading. Every account in LocalBitcoins or paxful has access to a free Bitcoin wallet to send out transactions. Verified accounts for at least Tier 1, also have their own wallet addresses to credit transactions into their own wallet. Once the bitcoin are transferred to these wallets, you can contact people who wants to buy Bitcoin. Once both parties agree on a price, then the buyer sends the seller the money and the seller send buyer the Bitcoin.
2 – Online Exchangers
The second way is through an online exchanger, where your trading account is with an online exchanger rather than individuals. Selling bitcoins with online exchangers requires you to register and verify your identity. Exchangers act as an intermediary who holds your funds. You place a sell order (just as you would place a buy order. You can check sell and buy orders examples at this link), stating the volume (amount) and type of currency you wish to sell (eg BTC/EUR), and the price per unit you wish to sell for.
As soon as someone places a matching buy order, the exchanger will complete the transaction. The currency will then be credited to your account. The cons of the use of this method is, if you are selling bitcoin for fiat currencies, you will need then to withdraw the funds to your bank. If the exchanger is facing liquidity problems or issues with banks, it can take an enormous amount of time to receive your funds. Some of these online exchangers are, coinbase and Kraken.
3 – Peer to Peer
Peer-to-peer trading marketplaces, is a profitable method for the bitcoin owners to obtain discounted goods with their bitcoin and for the individuals who want to obtain cryptocurrency with credit/debit cards. The two parties are brought together to solve both problems in a kind of peer-to-peer exchange.
Such Peer to Peer sites are Brawker and Purse, which bring together two groups of people with specific and different needs. The first group are individuals who want to use bitcoin to buy goods from sites which do not accept digital currencies. The second group comprises of people who would like to buy bitcoin with a credit or debit card. The marketplace brings together individuals with matching requirements, to effectively sell bitcoin to one and provide discounted goods for the other. The marketplace acts as an intermediary, offering users the platform, bitcoin wallet and escrow for transactions.