On the territory of the Russian Federation, cryptocurrency is not an official means of payment. This is what the Federal Law “On Digital Financial Assets” says. Therefore, you must know how to sell cryptocurrency to spend your bitcoins or other coins. Since cryptocurrency does not have a physical form, almost all ways to sell and buy it are localized online. Today, currencies can be traded on crypto exchanges, find a buyer on a peer-to-peer platform, or turn to online exchangers. Let’s consider each of these options in more detail.
How to sell cryptocurrency on the stock exchange?
A cryptocurrency exchange, by analogy with a stock exchange, is a platform with many offers. It is used by both sellers and buyers themselves, as well as intermediaries.
Exchanges have several advantages:
- a large number of offers
- wide choice of currencies,
- a large trading volume, since you can buy and sell cryptocurrency on the trade in almost unlimited quantities,
- high speed of transactions.
Along with this, of course, there are also disadvantages:
- complex interface, a large number of tools, most of which can only confuse a beginner,
- the need for verification and lack of anonymity,
- the process of withdrawing money from the exchange may be complicated by limits or additional verification,
- the course changes every second; you need to be very careful,
- due to many intermediaries, the commissions for the sale and withdrawal of cryptocurrency can be pretty high; it is better to read all the conditions in advance to avoid unpleasant surprises and not lose money.
Examples of the largest crypto exchanges: are Huobi, Binance, EXMO, Coinbase, and Kraken. Choosing a site with a well-developed Russian-language interface and minimal withdrawal restrictions is better.
The scheme for selling cryptocurrencies through the exchange is as follows.
1. The user registers and transfers his coins to the exchange account.
2. The seller places an order or finds a proper order from those already published. An order is an offer to buy or sell a cryptocurrency. Orders can be market – tied to the currency’s price at the time of its sale or limit – providing for the price set by the seller.
3. The buyer purchases a cryptocurrency, coins are transferred to his account through the exchange, and fiat money is transferred from his report to the seller’s account.
4. The seller withdraws the received fiat money from his exchange account to a bank card or electronic wallet.
How to sell cryptocurrency for rubles or other money in an exchanger?
Exchangers, unlike stock exchanges, are centralized. This is not a platform for other sellers but a service that provides you with fiat money in exchange for cryptocurrency at a known rate.
Exchangers have several advantages over exchanges.
You do not need to register and pass verification.
Simple interface, understandable even for a beginner.
The course is known in advance.
The whole process will take a few minutes.
Commissions are lower than on exchanges.
There are also disadvantages:
The choice of currencies is noticeably smaller than on the stock exchange. As a rule, these are the largest and most popular currencies, such as bitcoin and ether.
You need to choose the exchanger carefully. There are thousands of them; it is easy to stumble upon scammers and lose your money. You can find an exchanger on aggregators like BestChange. When choosing an exchanger, be guided by old proven services. If the site has been operating for over three years, it values its reputation. For example, Shakhtar has been on the market for over six years and processes thousands of exchange requests daily. Service reviews are another important indicator of reliability. At Mine, they are positive.
Let’s analyze how to buy and sell cryptocurrency in an exchanger, using the example of Mine.
Choose a pair of currencies to exchange.
Enter the desired amount, payment details, and email address and click “Exchange.”
You will receive the details of the crypto wallet to which you need to send the number of coins you have chosen for sale.
The money will be transferred to you as soon as the exchange request is paid. The whole procedure takes several minutes.
How to sell cryptocurrency and withdraw money through a peer-to-peer platform
Peer-to-peer platforms or p2p-platforms (peer-to-peer) are arranged by analogy with classified sites. The venue itself acts as an intermediary. It blocks the funds and does not transfer them to the seller until the buyer confirms a successful transaction.
Advantages of peer-to-peer platforms:
No minimum fees
The ability to find deals for cash or publish your offer with a convenient payment type.
Minuses:
Few offers
The inability to verify the buyer and the legality of the funds that will be transferred to you.
It is enough to sell cryptocurrency through a peer-to-peer platform to publish an offer, wait for responses, or find a suitable ad and contact its author. It is essential to communicate through the site and not directly, as it ensures the security of the operation.
Peer-to-peer interface using Paxful as an example
Other ways to sell cryptocurrencies
In addition to the listed popular methods, you can exchange your crypto for cash:
Directly, having received money from a personally familiar buyer. You transfer coins from your wallet to the buyer’s wallet, and in return, you receive fiat by transfer to your account or cash. This method was popular at the dawn of the development of cryptocurrencies, but now it is practically not used.
Through crypto maps. In 2022, Coin ATM Radar will have more than 36 thousand crypto ATMs in 76 countries worldwide. Crypto ATMs have relatively high commissions, but this disadvantage pays off since you can sell cryptocurrency and withdraw cash through them as quickly as possible.
Summary
In 2022, there are three most popular ways to sell cryptocurrencies: cryptocurrency exchanges, peer-to-peer platforms, and exchangers.
Exchanges require authorization and verification and may also limit fiat withdrawals. However, despite the high commissions and complex interface, they are indispensable for selling rare cryptocurrencies and transactions with a large volume.
Peer-to-peer sites have a limited number of offers and are suitable for those who already have familiar sellers and do not want to pay a commission. The advantage is that you can find a deal for cash or designate your method of accepting payment that is convenient for you.
Cryptocurrency exchanges have many payment methods but only work with popular coins. Unlike the other two types of sites, you do not need to register on them; just enter your payment and contact information. The exchanger allows you to remain anonymous and quickly receive money at a known rate. The main thing is to choose a familiar and popular service that has been operating on the market for a long time. An example of this is the Mine.
One can single out crypto maps and exchange by personal agreement among the less popular ways to sell cryptocurrencies.
