If you take the leap and purchased a cryptocurrency, it’s just as important that you know how (and when) to cash out and sell.
In this article, we’re going to take you through the various ways that you can sell Bitcoin in Canada, as well as the ins and outs of converting your BTC to Canadian dollars or any cryptocurrency.
QUICK GUIDE: HOW TO SELL BITCOIN IN CANADA
- Go to the site with an exchange that allows you to sell Bitcoin like Bitcoinscashout.
- Go to the “Exchange” section.
- Find your Bitcoin wallet address.
- Transfer your Bitcoin to your Bitcoinscashout wallet address.
- Go to the Bitcoin section and select the sell Bitcoin.
- Enter the amount you want to sell and check the price.
- Check the transaction details and confirm the sale if everything is in order.
- Withdraw funds from Bitcoinscashout to your bank account.
A step-by-step guide to selling Bitcoin
There are two key choices available for selling the BTC holdings:
- Bitcoin transactions for fiat currencies, such as Canadian Dollars (CAD)
- Selling Bitcoin for another cryptocurrency, e.g. Ethereum, XRP or any variety of other altcoins
For many people, the main target when selling Bitcoin is to cash out for CAD, so you can find instructions on how to do it below.
However, if you want to trade your BTC for another crypt, we’ve included a step-by-step guide on how to do it.
How to choose the best way to sell Bitcoin
There is no such thing as the perfect way to sell Bitcoin to anyone, and what works well for one user may not actually be a good match for the next. Instead, it’s just about figuring out which method is the best one for you. You will do this by asking yourself a couple of important questions:
- Would you like to sell Bitcoin for CAD or another cryptocurrency?
- How quick would you like to sell your bitcoin?
- Are you able to consider any offer far below the average rate, or do you want to negotiate the highest possible price?
- If you’re selling for CAD, how would you like to receive payment?
This can help you determine how you want to sell your bitcoin, and then you can find out which site has all the functionality you need. When comparing your choices, make sure that you consider:
- Price. How’s the exchange rate you’re going to get relative to that given by other platforms?
- Fees. Compare the exchange costs that exist and whether there is a cash withdrawal charge in your bank account or your crypto wallet.
- Trading and withdrawal limits. Is there a limit to how much bitcoin you can sell, or how much CAD you can withdraw from your account?
- Security features. Are there any security mechanisms in place to help secure your funds and your private data, such as 2-factor verification or a reputation framework for buyers and sellers?
- Customer support. When something goes wrong with your transaction, how are you going to be able to contact customer support? At what hours of support is available?
- Reputation and reviews. Seek online feedback and search crypto forum posts from other users to find out whether they can recommend a specific exchange, trading site or Bitcoin ATM provider.
There are some other crucial features to remember, such as where exchanges are regulated and payment methods approved by peer-to-peer trading platforms, so check out our cryptocurrency exchange guide for more tips about how to pick the best platform.
Withdrawing your funds after the sale
Although after you sold the cryptocurrency, the trade wasn’t entirely done. The final move is to withdraw the proceeds from your transaction to either your bank account or your cryptocurrency wallet.
If you’ve sold Bitcoin via a site that enables CAD withdrawals, verify which withdrawal methods are allowed. The following choices can include:
- Bank transfer
- Credit/debit card
When choosing your withdrawal method, make sure you consider:
- Fees. Many (but not all) platforms charge a withdrawal fee, and the fee typically varies based on the withdrawal option chosen. But Bitcoinscashout doesn't charge any withdrawal fee.
- Limits. Is there a minimal or absolute limit on how much you can transfer? How are they different between withdrawal methods? May you increase these thresholds by offering extra verification or identification? So there is no need for verification or prove your identity on bitcoinscashout.com, you can exchange your currency anonymously
- Processing times. How long will it take for the CAD to arrive in your wallet or bank account? For example, while cash withdrawals are instant, bank transfers can take several days to arrive but this site (mention above) doesn’t take too much time, maximum in 2 to 3 minutes you will get your payment into your bank or Paypal account.
- Any other restrictions. For example, many exchanges would ask you to withdraw funds using the same method of payment as you made your deposit but there are no restrictions on bitcoinscashout.
It is not suggested to store the cryptocurrencies in a long-term exchange. Exchanges manage private keys to these wallets and are also common targets for hackers, so the best choice is to move your crypto to a secure wallet using the secure BTC to CAD exchange that helps you to keep possession of your private keys. It’s a smart idea to set up this wallet well in advance of selling your Bitcoin and make sure you double-check your wallet address before depositing any cash.
When is the right time to sell Bitcoin?
Unfortunately, there’s no easy answer to this question.
Timing is crucial to maximizing the success of any trade — anyone who sold Bitcoin at or near its ~US$20,000 peak in December 2017 can attest to this fact — but working out the right time to sell can be a tricky task. From crypto regulatory developments and broader economic factors to Bitcoin hype levels and even your own appetite for risk, there are many factors that can affect whether you should or shouldn’t sell your BTC.
Analyze the market carefully to decide whether you want to sell or hold. Our guide to cryptocurrency technical analysis is a useful tool to help you better understand and read the crypto market.
If you want to withdraw your bitcoins or buy bitcoins by using a bitcoin ATM then visit https://bit.ly/3jvPKgF
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