How to Sell Bitcoin (BTC)

Bitcoin, the leading cryptocurrency, has seen exponential growth in recent times. It has repeatedly toppled its previous all-time highs and towers above other cryptocurrencies. Bitcoin remains a favorite choice for investors and brokers alike. It isn’t your average digital asset, it holds a market cap in the hundreds of billions of USD. As investors are consistently capitalizing on its growth, understanding how to maximize its growth is essential. 

Primarily, you use Bitcoin when you have units of it in your digital wallet. The first step to take is to buy Bitcoin. After that, you can decide to hold it for a while or sell it when you feel like in exchange for fiat. However, not everyone understands how to sell their Bitcoins and this is why we have created this guide to help you. 

Best Platforms to Sell or Short Bitcoin

Selling your Bitcoin requires a few tools, majorly consisting of a good broker integrated with a withdrawal channel. To ensure you make the right decisions on the appropriate broker to facilitate your Bitcoin withdrawals, we are highlighting these brokers below. Like we’ve always done, these brokers have been carefully examined by industry experts and have been handpicked as the most suitable for any trader, notwithstanding the level of experience. 

• eToro
• Capital 
• Libertex
• Plus500
• Coinbase 
• Binance 
• AvaTrade
• Revolut
• CryptoRocket
• Changelly

The above brokers share almost the same similarities. Analysts who have explored their functions have concluded that they comfortably satisfy the average requirements for any trader. Also, they comply with regulatory requirements and keep up the tempo with useful integrations that make trading crypto a joy ride. 

Some of the basic requirements that are to be considered before selecting a crypto broker include ease of trading, active customer support, conformity to local regulations, attention to security, suitable trading desks for both amateur and professional traders, diverse cryptocurrencies and so many more features. Judging from the above requirements, experts have pinpointed the above exchanges as some of the best amongst all. 

Aside from offering almost all the above requirements, these exchanges also incorporate impressive features peculiar to their platforms. They also provide stable liquidity and in some cases, leveraged trading. Their ratings are also exceptional with users attesting to their dedication to seamless trading and responsiveness to customer distress. A look into their history, one would discover that they are not frequently breached by hackers and can protect user identity to some extent. Therefore, the above brokers are your best bet to begin the process of buying and selling your Bitcoins as well as other digital assets. 

How to Sell Bitcoin in 2023 Step by Step

Just as we mentioned before, selling your Bitcoins might appear a complex process but it is quite easy. Of course, the ease of liquidating any digital asset depends on the flexibility of the broker used as well. The fundamental process is to own a crypto asset you wish to sell. In this case, we are focused on Bitcoin. Do ensure that you have specified an acceptable withdrawal channel, then go ahead to withdraw your crypto. 

You are open to using any of the brokers listed above to sell any amount of Bitcoin, so far you own some Bitcoin. However, for this tutorial, we’d be focusing on one of the most prominent crypto brokers – eToro. 

For quite a while, we’ve emphasized this broker and recommended it to investors as one of the most efficient out there. The reason for this advocacy is not far-fetched, eToro is no doubt one of the most suitable brokers that offers a wide range of integrations that simplifies crypto trading. With a befitting user interface and concise attention to speed and ease, there are little or no chances of plunging into errors due to complexities. 

Below are the five steps to sell your Bitcoin on eToro. If you carefully follow these steps you would easily get to sell your Bitcoins in exchange for fiat at any time. 

Step 1: Buy Bitcoin 

As you know, you can’t withdraw any digital assets if you don’t have them. Bitcoin is a cryptocurrency that is transferable from one wallet to another or can simply be purchased outrightly from a broker. 

To purchase Bitcoin on eToro, you need to be a verified user of the platform. After verification, you can go ahead to deposit funds into your account. eToro simplifies this process as you can deposit using several channels including your credit/debit cards, your local bank account, or a third-party payment service like PayPal, Neteller, or Skrill. 

After deposit, you can purchase your Bitcoin straight away on the platform – we’ve created a comprehensive guide on how to buy Bitcoin.

Buy Bitcoin on eToro

Step 2: Know When to Sell

Knowing when to sell is the main motive behind crypto trading. The game revolves around buying a crypto asset at a low range and selling at a higher value to make some profits. Unlike other physical services where you find it difficult to track their past and present price actions, eToro offers a firm historical chart pattern of Bitcoin and other cryptocurrencies. 

The chart patterns are divided into diverse time frames, making it easier to track your entry points and evaluate your intended profits. To explore the historic chart of Bitcoin, you can access it on eToro by simply clicking on Bitcoin on the cryptocurrency window. 

Step 3: Get an Overview of Your Crypto Holdings 

If you’re a trader, you would likely have other digital assets on your list. eToro offers users access to trade multiple cryptocurrencies whenever they wish. As regards this guide, we’re concerned about Bitcoin, you can find your assets by taking a look at your crypto portfolio. 

The listed assets can be sold on the platform. Any amount of Bitcoin can be sold on eToro but you need at least $30 to successfully withdraw to your local bank. 

To access your crypto portfolio, you would find “portfolio” at the top left. When you click it, you’d be brought into a full view of your active positions. There you can click on the asset you want to sell and then proceed to close the active position. 

Bitcoin Overview Source eToro

Step 4: Close Active Positions 

Before you can sell your Bitcoin, you should have closed all your active trade which is another way of saying “selling your positions”. When you have a cryptocurrency like Bitcoin in your portfolio, they are still volatile and susceptible to varying actions in prices. 

Withdrawals are not taken straight from the active crypto. You have to close out the position to convert the value of your Bitcoin to a dollar equivalent or any other currency pair of choice. The value reflects on your available balance where you get to withdraw to your local bank. 

To close your active positions, click portfolio and then the crypto asset you want to sell. You would be propped with a box detailing your active positions and their values. There you can indicate the amount you wish to sell, whether a part or all of it. Click on “close trade” and the liquidated value reflects in your available balance, ready for withdrawal. 

Bitcoin Closing Trade. Source: eToro

Withdrawal Requirements and Exchange Rates 

Withdrawal of funds might not pose a challenge if you are using eToro. Users who have explored the process have all testified of the simplicity. However, there might be certain limitations that could deter one from withdrawing especially if your location is not covered by the platform. Being a verified user is often a presiding requirement for any user to withdraw. Secondly, you have to link an acceptable withdrawal channel that corresponds with your details on the platform. 

eToro is focused on offering a useful trading platform and an easy means to sell your Bitcoin and convert them to fiat. However, direct withdrawals from exchanges aren’t always a joy ride especially when some exchanges have lofty requirements that might not favor small investors.

For merely $30, you can withdraw your funds on eToro with a fee of $5 notwithstanding the withdrawal amount. For withdrawals in USD, there are no conversion fees whatsoever aside from the initial withdrawal charge. Other currency pairs might have to pay conversion fees for a high-level exchange rate. This reemphasizes the reason this broker is a favorite of many crypto traders.

Storing Bitcoin with the Best Wallets 

Just like other cryptocurrencies, Bitcoin is an asset. This implies that it is valuable and deserves to be protected and kept safe. To keep your Bitcoins safe and personal you don’t need to store them in a bank, you need a Bitcoin wallet. You can store your Bitcoins in a cold or hot wallet. The cold wallet is the physical equipment used to keep your Bitcoins while the hot wallet is virtually-based. 

The advantage of using digital wallets to secure your Bitcoins is the flexibility that comes with them as you’re able to move them easily. We emphasize security, ease, confidentiality, and simplicity when choosing a Bitcoin wallet. To aid you in making the best choice, we’ve documented a professional guide for you to access the best crypto wallets here. 

Crypto Taxation in the US 

The United States in particular imposes tax returns on crypto trading and related activities. Although Bitcoin is also considered a “currency” by its proponents, the US Internal Revenue Service (IRS) classifies it as a property or an asset. In other words, it is a taxable concept and those who fail to file their tax returns might be sanctioned by the authorities. 

To avoid such a scenario, it is necessary that you understand the fundamentals of crypto taxation in the United States. The regulatory body majorly divides crypto taxes into two as short-term capital gains and long-term capital gains. The former is in view when an individual holds an amount of crypto under a year while the latter refers to crypto holdings of more than a year. The ratio is split into a wide range of activities and even includes the accumulation of crypto through airdrops, mining, DeFi rewards, and transactions fees. In the case of using cryptocurrencies to purchase commodities, swapping, or converting them to fiat, these actions are taxable under capital gains tax events.

To have a better grasp of crypto taxation in the United States, it is suggested that you peep into the IRS crypto tax changes to make more informed decisions. 

Best Crypto Exchanges to Sell Bitcoin

Crypto exchanges are the platforms that traders leverage to effectively buy and sell digital currencies. These exchanges are also equipped with a good number of tools and programs that ensure the average trader isn’t stuck on the way while trying to perform a job. While there are hundreds of exchanges out there, some of them are not yet clear enough to offer all that is needed to their users. 

Majorly, an exchange is required to trade crypto, swap them or withdraw. They also include safe wallets for the storage of cryptocurrencies. Nevertheless, some of these exchanges go out of their way to integrate other cool features like copy trading or even offering trading bots. Trading with exchanges demands an exchange with a great level of security, support, and efficiency. Due to this, the exchanges below are considered some of the best in the industry as they offer the required integrations and also feature other native functions. 

• eToro
• Capital 
• Libertex
• Plus500
• Coinbase 
• Binance 
• AvaTrade
• Revolut
• CryptoRocket
• Changelly

Compare Platforms to Sell or Short Cryptocurrency