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We are aware of fraudulent individuals impersonating Leather on a number of accounts. Please note that there is no official Leather Telegram group or Leather token.

We are aware of fraudulent individuals impersonating Leather on a number of accounts. Please note that there is no official Leather Telegram group or Leather token.

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How to Sell Bitcoin

Rena Shah
&
Annie Pei

General Wallet Use

15 min

Last Updated 10/25/24

Last Updated 10/25/24

The most common methods include using cryptocurrency exchanges, peer-to-peer (P2P) trading, Bitcoin ATMs, OTC trading desks and decentralized wallets and DEXs. Selling Bitcoin can be simple if you know your options. It can be done in a variety of ways, each with its own advantages and potential drawbacks. 


To sell Bitcoin, you typically buy in or transfer your BTC to the platform of choice, set the amount to sell, and decide whether to sell at market price or set your own price. Once the sale is complete, you can withdraw the funds to your bank account or hold them for future trades.

How to Sell Bitcoin: 6 Methods to Consider

How To Sell Bitcoin


If you're wondering how to sell Bitcoin, these are the six most common methods depending on your needs, experience level, and how quickly you want to complete the transaction. 

1. Cryptocurrency Exchanges


Cryptocurrency exchanges, such as Coinbase, Binance, and Kraken, are among the most popular ways to sell Bitcoin. These platforms allow you to sell Bitcoin at the current market price or set a custom price with a limit order.

How to sell Bitcoin on an exchange:


  • Transfer to or buy your Bitcoin through the exchange wallet.

  • Choose the sell option and select either a market or limit order.

  • Once the sale is complete, you can withdraw the fiat currency to your bank account or a payment service like PayPal, or you can hold it for future trades.

Benefits:


  • User-friendly interface, especially for beginners.

  • Fast transactions when using market orders.

  • Often offers multiple withdrawal options (bank transfers, PayPal, transfer to decentralized wallets, etc.).

Potential drawbacks:


  • Fees can be higher compared to other methods.

  • Requires identity verification.

  • May not offer the best exchange rate depending on market volatility.

2. Peer-to-Peer (P2P) Trading


P2P trading allows you to sell Bitcoin directly to another person, either through dedicated P2P platforms, centralized exchanges that offer P2P services, or even privately without using any platform at all. You set your price and payment method and the transaction is negotiated directly with the buyer.

How to sell Bitcoin via P2P:


  • Use a centralized exchange with P2P features like Binance or KuCoin.

  • Trade on dedicated P2P platforms such as Paxful or Hodl Hodl, which offer escrow services to protect both parties.

  • Or, arrange a direct sale with someone you trust, handling the transaction without an intermediary.

Benefits:


  • Flexibility to set your own price and payment terms.

  • Lower fees compared to traditional exchanges.

  • Can avoid centralized platforms entirely if you wish.

Potential drawbacks:


  • Higher risk when trading directly with individuals without a platform's protection.

  • Transactions can take longer to finalize and will incur Bitcoin network fees.

  • Requires extra caution to avoid scams, especially without using escrow.

3. Bitcoin ATMs


Bitcoin ATMs offer a quick and easy way to sell Bitcoin for cash. These machines are available in many cities and allow you to convert your Bitcoin into fiat currency on the spot. Simply transfer your Bitcoin to the ATM’s wallet, and the machine dispenses cash based on the current exchange rate.

How to sell Bitcoin through a Bitcoin ATM:


  • Locate a Bitcoin ATM near you using websites or apps like CoinATMRadar.

  • Scan the ATM’s QR code and transfer your Bitcoin to the provided wallet address.

  • Once the transaction is confirmed, the ATM will dispense your cash.

Benefits:


  • Fast and convenient, especially for small transactions.

  • No need to set up an account or provide personal details in most cases.

  • Ideal for converting Bitcoin directly into cash.

Potential drawbacks:


  • Higher fees compared to exchanges or P2P trading.

  • Limited availability in some regions.

  • May have lower daily transaction limits.

4. OTC (Over-The-Counter) Trading


OTC trading desks are designed for private, direct, and large Bitcoin transactions, offering a more personalized service that connects buyers and sellers directly. These desks allow you to trade significant amounts of Bitcoin without impacting the market price, which is ideal for high-volume sellers or institutional investors.

How to sell Bitcoin via OTC trading:


  • Find a reputable OTC desk (many major exchanges, like Kraken and Binance, offer OTC services).

  • Contact the desk to negotiate your deal, specifying the amount of Bitcoin and the desired price.

  • The OTC desk acts as an intermediary, ensuring both parties fulfill the agreement without affecting market liquidity.

Benefits:


  • Avoids slippage and market volatility for large trades.

  • More personalized and confidential service.

  • Suitable for high-volume transactions.

Potential drawbacks:


  • Typically reserved for larger transactions, often with a minimum trade size.

  • Fees can be higher than standard exchanges due to the personalized service.

  • May require more time to negotiate and finalize trades.

5. Decentralized Wallets and DEXs


Decentralized wallets, such as Leather, allow you to sell Bitcoin without relying on a centralized exchange. You can store, manage, and sell your Bitcoin directly within the wallet app or by connection to decentralized marketplaces, giving you complete control over your funds and the transaction process. 

How to sell Bitcoin through a decentralized wallet:


  • Ensure your wallet is set up and funded with Bitcoin.

  • Connect your wallet to a decentralized marketplace, such as Alex or Velar, or directly sell through the wallet app.

  • Select the ‘sell’ option and choose the amount of Bitcoin you wish to sell.

  • Confirm the transaction. You can hold the swapped coins or transfer them to an exchange or a Bitcoin ATM.

Benefits:


  • Complete control over your funds without intermediaries.

  • No need for centralized exchanges or KYC (Know Your Customer) processes.

  • Greater privacy and access to the greater Bitcoin ecosystem.

Potential drawbacks:


  • If not timed correctly, network fees can be very high.

  • Limited liquidity and buyer availability compared to centralized platforms.

  • Higher risk if not careful, especially when connecting the wallet to unknown parties.

6. Selling Bitcoin for Goods and Services


You can also “sell" Bitcoin by using it as a direct payment for goods and services. Many businesses and online platforms now accept Bitcoin as a form of payment. In this case, you’re effectively exchanging your Bitcoin for goods or services, avoiding the need for traditional currency conversion.

How to sell Bitcoin for goods and services:


  • Find businesses or service providers that accept Bitcoin as a payment method.

  • During checkout, choose Bitcoin as the payment option to transfer the required amount.

  • Complete the transaction by confirming the transfer of Bitcoin.

Benefits:


  • Avoids transaction fees or conversion costs associated with traditional sales.

  • Instant transaction without the need for intermediaries.

  • Ideal for those who regularly spend Bitcoin and don’t want to convert it to fiat.

Potential drawbacks:


  • Limited availability—Bitcoin isn’t universally accepted by all merchants.

  • The value of Bitcoin may fluctuate between the time of purchase and confirmation.

  • May not be suitable for larger purchases if the merchant doesn't accept Bitcoin.

Fees and Profits When Selling Bitcoin

When selling Bitcoin, the fees you pay and the profits you make can vary significantly depending on the method you choose. Each platform or service has its own fee structure, and it's essential to understand these costs to maximize your returns.


  • Exchanges: Most cryptocurrency exchanges charge a fee for each transaction, as well as for transferring funds to and from your bank account. These fees can range from 0.1% to 5% of the total sale or withdrawal, depending on the platform and the volume of your trade. Some exchanges also offer discounted fees for higher volume traders or for those using the platform’s native token.

  • P2P platforms: Fees on P2P platforms tend to be lower than centralized exchanges, but you may still encounter service fees or escrow fees. Additionally, payment method fees (such as bank transfer fees) can apply, as well as network fees, also known as blockchain fees or gas fees.

  • Bitcoin ATMs: Bitcoin ATMs typically charge the highest fees, often between 7% and 12% of the transaction value, making them less ideal for large trades but convenient for fast cash conversions.

  • OTC desks: OTC trades usually involve larger sums, and while they can avoid impacting market prices, they may come with various service fees, including spreads, commissions, and additional service charges.

  • Decentralized wallets: Selling through decentralized wallets can have varying fees depending on the platform or network you use. Gas fees for Bitcoin network transactions will apply, and some wallet apps may charge for fiat withdrawals too.

  • Goods and services: When selling Bitcoin for goods or services, fees are generally absent, but you might face additional transaction costs depending on the merchant's payment processor.

When Is a Good Time to Sell Bitcoin?

Deciding when to sell Bitcoin can significantly impact your profits, but determining the right moment can be tricky. In many cases, it’s better to monitor long-term trends and set price alerts for significant shifts. 


External factors like new regulations or major economic and political news can also influence the market, so staying informed about global events can provide helpful insights.


Setting clear profit goals before selling is essential. By deciding in advance what price aligns with your objectives, you can avoid the temptation to hold out for more and risk missing the market peak. Additionally, it’s important to avoid panic selling when prices drop suddenly. Taking a moment to assess the bigger picture and sticking to your strategy can help you make more confident decisions and avoid regrets. 


Finally, keep an eye on network fees. When the Bitcoin network is congested, transaction fees can spike, cutting into your profits. If possible, consider timing your sale when fees are lower, especially if you’re dealing with a large transaction.

Where Is the Best Place to Sell Bitcoin?

When it comes to selling Bitcoin, using a wallet that offers flexibility, security, and access to the broader Bitcoin ecosystem is key. Leather provides all of this and more, making it the ideal platform for not only selling Bitcoin but also tapping into the multilayered Bitcoin economy.

Leather allows you to:


  • Connect to Web3 apps for seamless interaction with decentralized platforms.

  • Buying Bitcoin and other tokens to expand your cryptocurrency portfolio.

  • Trading on decentralized marketplaces for peer-to-peer transactions without intermediaries.

  • Securing assets with Ledger’s Hardware Wallet, providing enhanced security for your digital holdings.


Leather offers a simple, secure, and comprehensive way to manage and sell your Bitcoin, all from one user-friendly app.

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Selling Bitcoin FAQs

Why do I need to verify my identity to sell Bitcoin?

Why do I need to verify my identity to sell Bitcoin?

Why do I need to verify my identity to sell Bitcoin?

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How do I cash out Bitcoin to my bank account?

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Is it difficult to sell Bitcoin?

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Is it difficult to sell Bitcoin?