Selling Bitcoin online
There are many ways to sell bitcoin via online sources - the most popular being via a dedicated Bitcoin broker or a cryptocurrency exchange such as Coinbase. Each method has a different sell process, with pros and cons for each, often depending on the type of crypto for sale, the required fees and the speed with which cash can be received into a bitcoin friendly bank account.
Additionally, there are multiple factors to consider such as:
- The amount you wish to sell? Big sell orders are often far far cheaper via a bitcoin broker rather than a mainstream exchange.
- How frequently? Are you looking at many daily orders or only a few times a month?
- Fees involved? There will be network transaction fees, selling fees (for the broker or the exchange) and withdrawl/bank settlement fees.
- Escrow? Having a 3rd party hold the fiat funds for you until you need it.
- Security? Making sure both the Bitcoin and the fiat payments are safe and secure.
- Whether you wish to sell BTC to fiat (EUR, GBP, USD etc) or switch to another crypto? Often up to 28 international currencies are available with additional FX fees.
- How you will handle your cryptocurrency tax accounting? You will need to be able to export and download transaction details.
- Trading hours? and more.
In this article we explain the process of how to sell bitcoin via a dedicated crypto broker.
Crypto broker services
Generally, the process is simple and hassle free when using a crypto broker and gone are the days of having to call your account manager in office hours and negotiate the terms (this isn't 1990 and the Wolf of Wall Street era after all.)
If selling, a broker will be able to facilitate the trade for you, take custody of your crypto and sell it for a price agreed with you in advance, usually via a platform, Bitcoin broker app or even secure messaging applications like WhatsApp. If buying, the same process can occur, with the price agreed upfront, the funds sent, and the BTC transferred back to you.
This avoids the need for you to sign up with a crypto exchange and process the trade yourself, which can require basic knowledge of how the exchange works with their often poor user experience while complicating the fee structure and more than likely having no way to send to a bank account.
The primary benefit of using a broker over any other service is the ability for them to settle the trade in fiat to your local currency. Certain exchanges that can liquidate to fiat can charge very high fees in comparison to a broker. Of course, there is the instant sale option, which is very popular (more on this below).
Before attempting to sell Bitcoin via a Broker into fiat, it is essential you have a bank account that will facilitate this transaction. High street banks are almost certain to shut you down, so you will need to find a suitable alternative. At Harvex, we're able to provide leading accounts for the entire crypto industry, currently managing some of the biggest accounts trading in Bitcoin. Apply for an account with Harvex.
Sell bitcoin in the UK
In the UK, selling bitcoin via a brokerage is relatively simple. Customers sign up, pass the necessary KYC & AML checks and are ready to buy or sell same day.
As mentioned above, in a lot of cases a price can be agreed prior to sending the BTC to the Broker, using the current market price with a fixed fee. This varies broker by broker, with some requiring at least a deposit on account, some will fix the order without receiving any of your cryptocurrency but often come with higher fees - there will always be a trade off to choose what suits your needs. It's more beneficial to have fast settlement to a fiat bank account than anything else.
It is also worth noting some brokers may have minimum buy or sell amounts, though having said that, it will become clear when signing up the thresholds the brokerage has. There are various reasons for this but it is likely due to fixed fees the broker is required to pay to facilitate the order on your behalf.
Buying and selling bitcoin
For those wishing to buy and sell bitcoin on an adhoc basis, again broker would be a good option, particularly if these rare transactions are also of a very high value.
Cryptocurrencies can be liquidated to fiat (GBP, USD, EUR etc) and paid into your bank. For those wishing to buy and sell multiple times a day, such as day traders, a broker is not likely to be the preferred choice and it's extremely unlikely sending multiple fiat payments to a non-crypto bank account would be wise.
Most day traders tend to sell via exchanges do to ease of use and speed and having buy and sell orders matched and sold instantly. These traders do not generally liquidate to fiat on a regular basis so issues with transferring to a bank account are not as prominent.
This trend is changing with the ability for some brokers to fill instant buy and sell orders of Bitcoin via their own applications with speedy settlement to fiat, becoming more like exchanges with a greater emphasis on customer care and user experience.
Instantly buy and sell bitcoin yourself
The most effective way to sell bitcoin is via a live broker platform. This can be done via a web login or dedicated app. You deposit your cryptocurrency with the broker, using a dedicated wallet just for you. The BTC shows within your account usually within 30 mins, or when the blockchain validates.
You have complete control on when to sell, 24/7.
The platform continuously updates the price, day or night. When you wish to sell you click one button and the trade is done. The fiat is then settled into your bank account.
A frequent question is around security – in fact, it is a very safe option to leave your crypto in a brokers wallet, due to the fact most brokers wallets are insured up to $100m, something not available to personal wallets. Plus, these days, brokers spend a huge amount of time and money on cyber security around their operations.
Sell Bitcoin to a Bank Account
Next step is getting the liquidated cryptocurrency in fiat. Most brokers will be able to provide the fiat for you in your local currency. Popular currencies in crypto brokerage are EUR, USD, GBP. If you require the payment in a less well-known currency, most brokers can also arrange the foreign exchange as well.
The important aspect with regards to receiving the fiat payment is whether your bank is crypto friendly, with almost all mainstream banks not. The last thing you want is your payment to be delayed, or worse, rejected by your bank. Although you will likely not lose the money, it will cause unnecessary inconvenience.
Cryptocurrency brokers uk & faster payments network
Specifically in the UK, brokers are able to make payments to you via the faster payment network. This means, once the sell order is confirmed, with some brokers you can expect to receive your money into your bank account within a few hours during normal bank hours.
This method is not only quick, but it attracts £0 bank fees – something not all international brokers can offer.
Crypto broker London
When it comes to the financial capital of Europe, there are no surprises that there are multiple brokers in London who can facilitate buying or selling of Crypto.
During early 2020, the UK’s FCA (Financial Conduct Authority) are beginning to regulate the services of crypto brokerage. In London, as with the rest of the UK, ensuring you have a broker who has applied for this licence would be recommended, due to the additional checks and screening conducted by the FCA.