The number of persons and organizations using bitcoin has increased significantly over the last few years. This has enhanced the popularity of the digital currency leading to an increase in the number of people using it to make payments. The high usage means that the buying and selling of the cryptocurrency have also increased.
However, most people do not have a clear understanding of how to trade their bitcoins. This makes it difficult for them to sell in the market, but that should not be the case with you. There are many institutions and platforms that you can use to trade your bitcoins.
Exchanges such as Binance, Coinbase, and Coinmama are intermediaries that can help you trade your bitcoins more easily. They are responsible for selling the digital currency on your behalf after which they deposit the funds into your bank accounts.
Peer-to-peer trading platforms provide an alternative to exchanges. They connect the seller and the buyer. They also offer the necessary protection to the two trading parties. You can also use Bitcoin ATMs that connects you to a cryptocurrency exchange or opt to sell the digital currency in person.
There are factors that you should consider before selecting a platform or institution to help you sell bitcoin.
1. The Transaction Time
Platforms used to trade bitcoin require a different amount of time to sell the currency and deposit the fund to your bank account. An example is Bitcoin ATM, which is mostly faster than exchanges, selling through peer-to-peer platforms or in person.
Hence, if you need quick cash, you should opt for Bitcoin ATM. The other methods work best when you are not in a hurry to exchange the digital currency for money.
2. Exchange Rates and Fees
Each platform has a different exchange rate from the others, which at the end affect the amount you will receive. As a bitcoin owner, you should opt for a platform with a higher exchange rate as opposed to those with lower rates. This will allow you to receive a higher amount for a given number of bitcoin.
You also need to put into consideration the fees involved in the whole process. Some organizations can have additional fees such as charges for withdrawing from your linked bank account.
These additional costs can reduce the total amount you will receive at the end. This creates the need to select a platform with minimal or low fees.
You should select a platform with modern security features. This will ensure your safety and that of your cash or bitcoins. Exchanges and peer-to-peer marketplaces can be said to be safer than personal selling or bitcoin ATMs.
This is because, in exchanges and peer-to-peer platforms, the amount received after the sell is deposited into your bank account. This protects you from fraudsters and does not make you a target by criminals. To sum up, there are many platforms which you can use to sell bitcoin. However, they operate differently. That is why you need to put into consideration the transaction period, exchange rate and fees charged, and the safety of the process.