How To Sell Crypto

The growing popularity of crypto assets attracts more and more people to the field. And even though almost everyone knows how to get cryptocurrency, for the most it remains unclear how to sell it. Let’s investigate it in this article.

When Should You Sell Your Crypto Assets?

Whether you need to sell your crypto assets is a decision that should depend mainly on a combination of different factors such as market conditions and personal financial goals. We suggest some scenarios when selling crypto might be a good idea:

• Personal Financial Goals: When your investment in crypto has reached a specific profit targeted by your personal financial goals, it might be wise to sell your coins. Selling also could come in handy if you need funds for a significant purchase, paying off debt, or other important spendings. Furthermore, selling your assets is sometimes a good choice if holding them can reduce capital gains taxes and if you struggle with tax payments.

• Market Conditions: During a strong bull market (when prices rise), selling crypto can maximize your profits. This is difficult to time perfectly but can be guided by indicators like extreme market “euphoria” or technical analysis. If the market is turning bearish (when the economy weakens), selling before price drops can preserve your capital. Consider your currency volatility and learn the price forecast to make the right decision.

• Fundamental Changes in the regulatory framework: Selling might protect you from potential losses if there are new upcoming regulations on the sphere that are expected to impact a cryptocurrency negatively. The regulatory framework for cryptocurrencies depends on your region and may change in any direction at any time, so our advice is to keep an eye on these changes and plan your financial strategy, taking them into account. You may read more about the current situation in crypto legacy in different countries here.

How Long Does It Take To Sell Crypto?

The time it takes to sell crypto varies depending on several factors: the platform you’re using, the type of cryptocurrency itself, market conditions, and the method you’re using to withdraw funds. In general, your delivery could arrive between a few minutes and 3-5 business days. Let’s look into it a bit closer:

• Platform Used: Large exchanges are always on the radar and they are more trusted than smaller and younger ones.Different exchanges and platforms have varying processing times. For example, major exchanges like Coinbase or Binance process transactions more quickly than smaller ones.

• Type of Cryptocurrency: The cryptocurrency liquidity plays a significant role in transaction time. Highly liquid assets like Bitcoin or Ethereum are usually sold faster than less popular ones.

• Market Conditions: During high volatility periods, transactions can take longer due to network congestion or increased demand on the platform.

• Withdrawal Method: The time to receive fiat after selling crypto depends on the withdrawal method. Bank transfers may take several business days, while PayPal or other payment methods may process faster.

Each of these factors can influence the overall time it takes to complete a crypto sale and withdraw funds.

How Can You Sell Your Crypto?

Selling crypto takes several steps depending on the method you choose. Here are the most common ways to sell your crypto assets.

Directly From A Wallet

Crypto wallet apps are digital platforms that allow store, and sometimes sell various cryptocurrencies by directly changing it to fiat within the apps themselves. An example of those wallets are CashApp, Robinhood, PayPal, Revolut and others. To do this, read the terms and follow the instructions provided.

Using A Crypto Exchange

You can sell your crypto directly on the crypto exchange by converting it for fiat or another crypto. To do it, take the following steps:

1. Create an account on a cryptocurrency exchange like Cryptomus, Binance or Coinbase.
2. Verify your identity.
3. Transfer your crypto from your wallet to your exchange account.
4. Sell crypto whether through market order (at a market price) or limit order (at a price you set yourself).
5. Withdraw funds to your bank account or another payment method.

Using P2P Platforms

Peer-to-peer services (P2P) are platforms where two parties may connect directly to engage in a transaction. Selling time on P2P platforms depends on how quickly the seller and the buyer agree and complete the transaction and on the payment method agreed upon (bank transfer,payment services, etc.). It can take from minutes to a few days. To sell your crypto on a P2P platform, follow next steps:

1. Choose a P2P platform like LocalBitcoins, Paxful or Cryptomus P2P.
2. Register on the chosen platform, link your bank account or another payment service details as the method for accepting the payment.
3. Create an ad about the sale: specify the crypto, its amount to sell and the price.
4. Wait for a buyer to match your terms or search for him yourself.
5. Make the deal by transferring crypto to the buyer's wallet address and getting the payment from him.
6. Withdraw funds to your bank account.

Using Crypto ATMs

This method is ideal for those who want to exchange crypto directly into cash. That’s how it’s done:

1. Find a cryptocurrency ATM near you using a website like CoinATMRadar.
2. Verify your identity if it’s required.
3. Send your cryptocurrency to the address. The ATM will generate a QR code for you to scan. Use your crypto wallet app to scan the QR code and send the specified amount of cryptocurrency to the ATM’s address.
4. Wait for transaction confirmation.
5. Receive cash.

Selling Directly To Friends

It is similar to the P2P method but easier and faster due to personal connection with the buyer.

1. Decide on the price and payment method.
2. Send the agreed amount to the buyer’s wallet address.
3. Receive payment through bank transfer, cash or another method.

Selling Through A Bot

Selling crypto through a trading bot is a more difficult strategy which surely has its pros. There’s how to create such a bot:

1. Choose your preferred exchange.
2. Select a bot like 3Commas, Cryptohopper, or Gunbot that supports your exchange.
3. Sign up on the bot’s platform and complete verification.
4. Go to your exchange’s API settings, create an API key, and copy the key and API secret.
5. Log in to your bot and paste the API key and secret to link your exchange account.
6. Configure your trading strategy (e.g., sell triggers, stop-loss levels) on the bot.
7. Use a demo account or simulate trades to ensure your strategy works as intended.
8. Activate the bot to execute sell orders based on your strategy.
9. Regularly monitor and adjust as needed.
10. Manually withdraw funds from your exchange if you wish to transfer them.

Each of these selling methods has its pros and cons. It’s best to investigate the characteristics of each method before choosing the one based on your personal needs. Moreover, it's essential to think about your security: be aware of phishing by only using official websites and apps, and avoid clicking on links from emails or messages. Also don’t forget to always double-check the wallet addresses when transferring funds to avoid mistakes.

There are many ways to sell the cryptocurrency, and the choice of the method should depend only on your priorities. The main thing in this case is to observe security measures and study the issue of a specific algorithm of actions in detail in order to avoid losses. And to know even more about selling your crypto, read the answers to frequently asked questions that may be useful to you.

FAQ

What Happens When You Sell Crypto?

The process of selling crypto may seem quite complicated, but it’s not so difficult if you follow the instructions. The convenience is that cryptocurrency itself never physically moves but always remains in the network being immutable and tamper-proof.

It's common to hear people refer to cryptocurrencies as being "in a wallet" or "on an exchange", although these descriptions can be deceptive: thinking of a wallet as a password keeper instead of a coin container is a more realistic parallel.

Thus, when you sell your cryptocurrency sending it from one wallet to another, you are handing over control of the private keys to the buyer, thereby giving them ownership of the asset. You give up the ownership of the cryptocurrency after the transaction is validated on the network.

How To Sell Crypto Without Paying Taxes?

Selling crypto without paying taxes is generally illegal, but there are some allowing ways to reduce or defer taxes:

• Hold Long-Term: If you hold your crypto for more than a year, you can claim for lower long-term capital gains tax rates.

• Use Tax-Fee Thresholds: If your gains are below the taxable limit in your jurisdiction, utilize tax-free thresholds.

• Relocate: Consider moving to a tax-friendly jurisdiction that has favorable crypto tax laws.

• Spend Instead of Converting: Spend your crypto directly on goods and services where taxes do not apply.

To know more details, we suggest consulting a specialist to stay informed and compliant with evolving tax laws.

How To Sell Crypto Anonymously?

If you value privacy and want to stay anonymous when selling your crypto, consider the following methods:

• P2P Exchanges: Some platforms like LocalBitcoins or Paxful allow you to choose anonymous payment methods like cash or gift cards.

• Сrypto exchanges without KYC: Some exchanges like CoinEx, dYdX or PrimeXBT do not require verification.

• Crypto ATMs: Some of them allow selling crypto for cash without ID.

• Private Sales: Sell directly to trusted individuals like family members or friends.

• Mixing Services: Use crypto mixers like Wasabi Wallet to obscure transaction trails.

• Use VPN and Tor: Reach anonymity by masking your IP when performing transactions.

Remember that anonymous crypto transactions are possible when there are weak security measures, as a rule. Be aware of potential legal issues and scams, and balance privacy with security.

How To Sell Crypto On MetaMask?

MetaMask is a self-custodial wallet which allows you to sell your crypto by following steps:

1. Create an account at MetaMask.
2. Connect your MetaMask wallet to your portfolio.
3. Click the “Sell” tab or use the “Buy & Sell” button on the MetaMask Extension and choose your region from the available options.
4. Select the token you want to sell.
5. Pick a cash account destination.
6. Enter the amount of crypto you wish to sell.
7. Click “Send Crypto” to transfer the crypto from your wallet to your cash account.
8. Confirm the transaction in your MetaMask wallet.
9. Monitor your order by clicking on the “Sell” tab to track its progress.

How To Sell Crypto On Trust Wallet?

1. Download Trust Wallet and create an account.
2. Choose the crypto asset you'd like to convert to fiat money.
3. Select “More” and “Sell”.
4. Input the amount of crypto you’d like to sell.
5. Enter your email address and bank account details.
6. Create your sell order.
7. Deposit your crypto.
8. Receive your funds in fiat currency.

How To Sell Crypto From Cold Wallet

1. Choose a Crypto exchange and create an account.
2. Transfer Crypto from Cold Wallet to Exchange and confirm the transaction.
3. Sell your cryptocurrency by placing an order and making a deal with the buyer.
4. Withdraw your funds whether directly to your bank account, through payment service or the crypto ATM.