Step 1: Find an Exchange with P2P Marketplace to Save on Fees
P2P is a great option for investors if they believe that purchasing cryptocurrencies is something they should do on their own time.
There are a few key considerations when investors decide on where to sell cryptocurrency. Although different cryptocurrency exchanges have varying deposit costs, depositing
crypto should be free other than the network fee.
Many have heard stories about how hackers steal millions of dollars from exchanges, such as when Bitfinex was hacked for 119,756 BTC. When buying off a P2P exchange, investors keep the cryptocurrency in their private wallets.
Additionally, when deciding where to sell, investors should also take trading fees into mind. Trading commissions that are reasonable range from 0% to 0.5% per trade.
Step 2: Create an Account
Investors must sign up for an account with the cryptocurrency exchange they have decided to use to sell their coins. On the homepage, users can find the sign-up or register button. Then, they can proceed as follows:
1. Enter their phone number or email address.
2. Set up a password.
3. Enter the verification code sent to the provided email address or phone number to confirm it.
4. Accept the rules and regulations.
5. Click “Register” or “Sign Up”.
The KYC procedure will, thereafter, need to be completed to confirm the user’s identity.
Step 3: Deposit Crypto
Furthermore, the next step in selling BTC is for a user to deposit it on the exchange. To achieve
this, they must perform the following steps:
Go to the exchange’s wallets or balances page.
– Find “Bitcoin”.
– Select “Deposit”.
– Copy the BTC deposit address that the exchange offers.
– Into the user’s external Bitcoin wallet, they must paste the address.
– Check the address again!
– Users can also send a tiny test amount first, based on their comfort level. They will pay an additional transaction fee.
– Users must choose the network fee (a higher fee results in faster processing).
– Users can leave their wallet once the transaction has been reported.
Step 4: Sell Crypto
Users can now sell their cryptocurrency since it is in their exchange account. The market order, limit order, and immediate sell are three different ways that users can sell cryptocurrency through an exchange. It’s crucial for users to keep in mind that they can exchange their cryptocurrency for fiat or for other cryptocurrencies.
Don’t Forget Taxes
The year 2021 was a significant one for cryptocurrencies, as many new investors began to invest. According to a recent analysis by Grayscale Investments, more than half of existing Bitcoin investors started investing over the past 12 months. Throughout the year, the cryptocurrency market experienced numerous record highs and lows, which resulted in significant gains and losses for many investors.
As soon as investors start exchanging using cryptocurrency, things start to get taxed. This includes investors exchanging cryptocurrency for dollars, purchasing another cryptocurrency, such as Ethereum with Bitcoin, or making purchases using cryptocurrencies.
Take Advantage of Bonuses and Promotions Exchanges Offered to New Clients
Ideally, users should register with a platform that not only satisfies their demands but also pays them for doing so. Below are the top cryptocurrency bonus offers currently available.
KuCoin – $500 or More
When a user creates a new account as a new customer with KuCoin, they can receive up to $500 in USDT. To qualify, users must finish the KYC and AML processes and make their initial deposit.
BlockFi – Up to $250
Users could be able to get a significant bonus when they open a BlockFi Wallet. In order to do this, they should keep an account balance of at least $100 for two and a half months.
Payments are made on the 15 th day of the month. Therefore, if an investor started their account, for instance, in June, they would get their bonus on September 15.
TradeStation – $150 or $10
TradeStation is a full-service brokerage that facilitates trading in cryptocurrencies. They are a relatively new player in the cryptocurrency industry, and they are now giving new customers a fantastic bonus.
Currently, TradeStation is offering two bonuses, one of which is a really good deal:
- New users who register and have their accounts authorized will receive a $10 incentive.
- If users open an account, deposit $500 in Bitcoins (or buy $500 in Bitcoins), then keep that amount for two months, they’ll get a bonus of $150 in Bitcoins!
There is no regulation of cryptocurrencies in the UK, and neither the Financial Ombudsman nor the Financial Services Compensation Scheme offers any protection. An investor’s money is at risk. Capital gains tax on profits may apply.
Cryptocurrencies are speculative, and users investing in them involves significant risks due to their volatility, hacker vulnerability, and secondary activity susceptibility. Investment values can go down as well as up, and investors might not earn back as much as they put in.