The previous year has seen massive growth in the use of virtual currency, with it being a potential hedge against inflation. The price of virtual currency has gone over $50,000, and investors are wondering when is the right time to sell. This question is challenging as it can be a lot of things. There are two available to sell your BTC holdings.
- Selling the digital currency for other types of money, such as Australian dollars.
- Selling for another cryptocurrency like Ethereum or any number of other altcoins.
Check out this simple guide to trade your Bitcoin, whether for AUD or another cryptocurrency.
1. Selling BTC for Australian dollars
Traders and investors can sell or exchange Bitcoin for other coins or convert it to a different currency. Below are the steps to convert bitcoins to cash in AUD:
- Register on the exchange and complete ID verification
- Deposit bitcoin into your chosen exchange method.
- Look for the deposit address for bitcoin and then select transfer BTC from your external wallet to that address.
- Look for BTC/AUD or crypto pair option.
- Then indicate the currency you want to trade on the exchange you’re using once your complete the transfer. For this case, BTC/AUD and display all the details of your transaction.
- The final step is to make a withdrawal from your bank account. You can look for the “Withdraw” link and follow the instructions, but make sure to check the limits and fees that apply before finalizing your transaction. Choose the “Withdraw AUD” link from your account dashboard to initiate the withdrawal process. There are options to withdraw:
- A bank transfer.
- Credit and debit card
- Payments through PayPal.
Make sure to consider the following when choosing your withdrawal method:
- The transaction may impose a withdrawal fee.
- There is a minimum or maximum limit on how much you can transfer.
- The processing timeline. Know how long it will take for the AUD to be deposited into your bank account. Cash withdrawals can be instantaneous, but bank transfers can take several days to arrive.
- There are other restrictions. You will have to use the same method for withdrawing funds when you deposit one of the exchanges.
2. Selling BTC for cryptocurrency
If you want to exchange your bitcoin for another cryptocurrency, here’s how you can do it:
- You can register on an exchange that lists BTC and copies it to exchange hundreds of altcoins on a wide range of platforms.
- Go to your wallet and look for the address you copied from for your transfer because it’s the location of the deposit you want to use.
- After navigating through the trading section of your platform, enter the full details of your sale.
- Click “sell BTC” to type in how much you want to sell, review the transaction, and then decide.
- You can then transfer your new digital currency into a secure wallet that supports it and gives you control of your private key.
The last step means that after you’ve sold your currency, you haven’t completed your transaction. The proceeds of your sale can be withdrawn from either your bank account or your cryptocurrencies wallet. Read more about cryptocurrency technical analysis to better understand the market.
How to Sell a Large amount of Bitcoin
If you want to sell a high amount of Bitcoins, such as $50,000 or more, you may want to look at a different way to conduct the transaction because there may not be enough volume on a traditional exchange. This can mean slower processing time, resulting in a price drop if a large market sell order eats through the available buy orders.
The transaction limits may be too low for your needs, so anyone who wants to sell a large amount of bitcoin should consider an over-the-counter trade. OTC trades are more cost-effective than a regulated exchange, and they allow buyers and sellers to trade significant amounts of Bitcoins at a lower price.
How to choose the best way to sell Bitcoin
There’s no single way to sell Bitcoins for everyone because it’s not always a good fit for each person. Instead, it’s all about figuring out which option is the best for you. You can ask yourself a few critical questions.
- Do you want to sell it in AUD or another currency?
- How quickly do you want to make a profit?
- Do you want to negotiate the best price possible, or do you want to accept a price below the market rate?
- How do you want to be paid for your sale?
The answers will help you figure out which platform has what you need, and then you can decide on a different way to sell your Bitcoins.
It is not advisable to store your currency in exchange for the long term. Exchanges can be used to control your wallet’s private keys, so if you want to stay safe, you should transfer your coins into a secure wallet. It’s a good idea to have this wallet set up before you sell your currency, and ensure that the wallet address is correct before you deposit any funds.
Timing is also crucial for maximizing the success of any trade, and it can be challenging to find the right time to sell. Several factors can affect whether or not you should sell your BTC, from the economic factors to your appetite for risk.
Decide whether to sell or hold by analyzing the market.