The best ways of selling cryptocurrencies

[TL; DR]

- Crypto holders can sell their cryptocurrencies to get funds to invest in other projects, pay their bills or repay their debts.

- Selling cryptocurrencies means converting them to fiat currency.

- One can sell cryptocurrencies through exchanges, peer-to-peer platforms or through face to face.

- At Gate.io users can sell their cryptocurrencies using the P2P trading section.






Introduction

---

The truth is that we can get cryptocurrencies through different ways including buying them, donations, playing games or participating in contests. However, if someone gets them he/she should know how to convert them into cash or use them to make payments. If you have invested in cryptocurrencies you can as well earn profit or rewards from that. In this post, we cover how you can sell cryptocurrencies.


Why does someone sell cryptocurrencies?

---

There are different reasons why individuals sell their cryptocurrencies. First off, selling cryptocurrencies involves converting them into fiat currency. Basically, you can convert cryptocurrencies into fiat money of your choice such as the United States dollar, British Pound or Chinese Yuan.

When you sell cryptocurrency you do the opposite of what you do when you buy them. This is because when you buy cryptocurrencies you pay for them using fiat currency such as the US dollar. This process of purchasing cryptocurrencies and other digital assets is called off-ramping or cashing out. Now, let’s look at the reason why you should sell your cryptocurrencies and other digital currencies.


Reasons for selling your cryptocurrencies

---

Some of the reasons for selling your cryptocurrencies are obvious such as to pay for your bills, to invest the money in other projects or cashing out your profits.

Taking the profit
As a result of the risks that are inherent in crypto trading, traders should know the best time to cash out their profits. If a trader has amassed a reasonable level of profit he/she should sell the cryptocurrencies in order to use the money for other purposes such as paying bills.

It is important to note that investors prefer different levels of profit to cash out. For example, some target 50% profit while others prefer 100% or more. The best way to deal with this is to set a profit level when you make the investment. Therefore, once you attain your target profit you sell your cryptocurrency. By doing this you hedge against future losses, thereby protecting the investment.

Raising funds to invest in other opportunities
New investment opportunities arise in the blockchain sector due to the advancement of technology. For example, new cryptocurrencies with better fundamentals come on the market. In this case, an investor may need to pursue another crypto investment opportunity.

A case in point is that of new metaverse –based digital assets and fan tokens which offer better returns on investment. If an investor is attracted by the new opportunity he/she can sell his/her existing cryptocurrency and invest in such projects.

Of course, there are other crypto investment opportunities such as mining, liquidity provision and yield farming. In some cases, the investor may choose to invest in commodities, stocks or real estate.

Opting out of a poor performing crypto project
There are times when the cryptocurrency you have invested in is performing poorly and there is no sign of long term success. This can happen when the project is no longer developing, the team is always making wrong decisions or the community support is dwindling. All these force investors to sell their cryptocurrencies.

Cashing out as pre-emptive action
In most cases, crypto holders sell their cryptocurrencies when they anticipate the prices to drop. For instance, if there is a possibility of a bear run investors may sell their holdings. They can also sell them if there are signs that a certain exchange may experience liquidity problems or if a cryptocurrency is about to implode.

As an example, there were several crypto implosions in 2022 which forced some investors to sell their holdings. The impending collapse of Terra USD and Terra Luna as well as FTT forced many investors to sell them.

Selling cryptocurrency to pay bills
This is one of the main reasons for investors to sell their cryptocurrencies. There are circumstances that force them to sell their cryptocurrencies to pay their bills such as medical expenses or tuition fees.


How to sell your cryptocurrencies

---

Now, let’s focus our attention on how you can sell your cryptocurrencies. Investors have several options to sell their holdings such as peer-to-peer transactions.

Cryptocurrency exchange
Many crypto holders sell their cryptocurrencies on both decentralized and centralized crypto exchanges. To do so, an individual should have a verified account on the exchange. Furthermore, the account holder should link his/her bank account to the exchange. However, exchanges charge a fee for processing transactions.

If you have the cryptocurrency in your exchange account, you simply place a sell order for a specific coin such as bitcoin or USDT. If the transaction is successful, you will withdraw the cash through your bank.

Using automated teller machines (ATMs)
Cryptocurrency holders can also cash out using ATMs. At present, there are BTC ATMs. It is also important to note that these ATMs are connected to the internet enabling the bitcoin wallet holders to scan their QR codes to cash out.

More specifically, the bitcoin holders use their wallets to scan the bitcoin ATMs. However, the ATM registration takes much time and there are various requirements including submissions of personal IDs and telephone numbers.

Direct trades
This entails the crypto holders to sell directly to another person through online or face to face transactions. As such, a crypto seller can set up a direct meeting with the buyer. Nevertheless, when you sell your cryptocurrency through the face to face method you need to know how to send them to the buyers’ wallet addresses. Also, note that the seller may exchange the cryptocurrency for physical cash.

Peer-to-peer transaction
Another popular means of selling cryptocurrency is through peer-to-peer transactions on designated platforms. In this case, the seller sets a price and the platform helps to find a buyer for the cryptocurrency. However, the seller and the buyer agree on the means of payment to use.

For example, the buyer can send the money through wire transfer, Paypal or Western Union. In most cases, the platform that provides the peer-to-peer service offers escrow service and assists in dispute resolution.

Some centralized exchanges such as Gate.io offer peer-to-peer (P2P) transaction services for both buying and selling purposes. The crypto exchange releases the cryptocurrency once the buyer makes the payment and the seller acknowledges receipt of the funds.


How to sell cryptocurrencies at Gate.io

---

As we mentioned above, crypto holders can use the peer-to-peer (P2P) section on Gate.io to sell their cryptocurrencies.

The starting point is to login to your Gate.io web platform account and go to the “Buy Crypto” section. Click on “P2P Trading” as indicated below.


On the page that opens click on “Sell” as shown in the next diagram.


The next thing you do is to select the currency that you want as well as the amount.


On the same page, you should identify the means of payment that you want which include Western Union, PayPal, Bank Card or SWIFT as you can see in the following image. Once you do that, click “Withdraw USDT.” However, the quoted cryptocurrency depends on the one you are selling.



Conclusion

---

We have discussed ways in which you can sell your cryptocurrencies which include crypto exchanges, peer-to-peer transactions, crypto ATMs and face to face transactions. At Gate.io, you can use the peer-to-peer (P2P) section to sell your cryptocurrencies.




Author: Mashell C., Gate.io Researcher
This article represents only the views of the researcher and does not constitute any investment suggestions.
Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.