Do’s and Don’ts of Selling Bitcoin to Cash
In this article, we show what can go right and wrong when it comes to selling your Bitcoin to cash. We hope you can learn the right ways for this after reading this blog.
As more people become interested in Bitcoin and other cryptocurrencies, there are a lot more buyers this time around. Whenever you bought and stashed your Bitcoin away, whether during the hype of 2017 or the lull periods before and after that, now seems to be a good time to take advantage of recent record highs for Bitcoin this year.
If you are constantly in-the-know when it comes to crypto, selling Bitcoin the right way might be a basic thing for you to do. But for many who have had a casual encounter with Bitcoin before, a refresher might be needed to know for sure if you are doing it right when it comes to Bitcoin selling.
In this article, we identify fine steps to selling Bitcoin into cash. For each step, we point out the best and worst practices when it comes to.
1. Finding an Exchange to Send Your Bitcoin To
DO: Pick a high-volume exchange with high security.
There are two components to this tip: volume and security. A high-volume exchange will likely have more competitive rates and more buyers for the Bitcoin that you want to sell. On the other hand, a high-security exchange ensures that the Bitcoin you send there will be kept safe, regardless of when you actually intend to sell your crypto. One great example of such exchange is Binance, which is not only the largest exchange in terms of trade volume, but also top-notch when it comes to security measures due to its regular handling of millions of accounts.
DON’T: Pick exchanges with high fees or dubious track records.
Exchanges around the world vary when it comes to ease of use and other factors. But there are red flags when it comes to picking your platform. When you choose exchanges with high fees, you end up earning less than optimal on your Bitcoin sale. On the other end of the spectrum, there are other exchanges that may look flashy or come up with too-good-to-be-true offers but have suspect trading volumes or other characteristics that make you uneasy when it comes to dealing with them.
2. Send your Bitcoins to Your Selected Exchange
DO: Send your Bitcoin in a secure manner.
Once you create an account on your preferred exchange (hopefully with Binance of course), be aware of the security features and risks inherent in both the source of your funds and the receiving address. Check and double-check the involved addresses before sending (or better yet, scan the QR of your exchange account’s deposit account). For more details, here’s the step-by-step procedure in depositing Bitcoin on Binance.
DON’T: Share your details with just anyone.
You might be tempted to seek help from other people so that you can easily complete your transaction. But just in the same way that you won’t give your credit card or your passwords to others, you shouldn’t share your Bitcoin-related info. We’re talking about money here. If you really need assistance, seek help from the official customer service of the exchange you’re using. And beware of anyone claiming to be customer service people. At Binance, our legitimate customer service representatives only reach out through official channels, like email and the live chat on the website and app.
3. Trade your Bitcoin for Your Local Currency
DO: Set your preferred rate on Binance Spot exchange
Binance has several fiat-to-crypto trading pairs, including nine pairs with fiat currencies. So if you want to sell your BTC for Euros (EUR), British pounds (GBP), Australian dollars (AUD), or other currencies, you can set the price you want to sell your Bitcoin for in Spot trading. You just have to be patient for the price to rise to your liking. And if your preferred local currency is not included in the trading pairs for BTC, you can always sell your Bitcoin for stablecoins like BUSD.
DON’T: Rush into selling crypto, unless you really need to
There are other ways to sell Bitcoin into local currencies, but you may not end up making the most out of your sale. For instance, while you can easily swap BTC to fiat currencies on the Convert feature or via the various offers on Binance P2P, you may be subject to prevailing rates that may yield you slightly lower earnings than what you expect due to market conditions. Of course, if you need the money right now, you can choose to forgo some of the earnings for the guarantee that you’ll get your local currency right now.
4. Withdraw Your Local Currency
DO: Choose the withdrawal option that fits you best.
On your Binance account’s Fiat wallet, you have 14 local currencies to choose from when it comes to withdrawing your funds. Each local currency has at least one option for your withdrawal needs. Be aware of the options available for your currency by exploring the Fiat Withdrawal page of your account.
DON’T: Forget to complete account verification
Binance has several security measures in place, including account verification, to make your withdrawal process safer and more secure. If you haven’t verified your account, you might not be able to withdraw using your preferred local currency, whether using the Fiat wallet or by other means. (For instance, you can’t sell on Binance P2P without a verified account)