Even Bitcoin HODLers Have to Sell Some of Their Stack for Fiat Every Now and Then

Even Bitcoin HODLers have to sell some of their stack for fiat every now and then. People who want to sell their Bitcoin

If you’re looking to convert your Bitcoin back to “normal” aka fiat money, you’ll need to do the following:

If Coinmama doesn’t work out for you, here are some additional exchanges recommended for selling Bitcoin.

That’s how to sell Bitcoin in a nutshell. If you want a more detailed explanation about how to sell Bitcoin and to know about a variety of other methods available, keep on reading. Here’s what I’ll cover.

How Do You Sell Bitcoin?

When you feel like it’s time to trade your precious Bitcoin back to fiat money, there are a few things you’ll need to think about.

First, how do you want to get paid?

Do you want to receive money in your PayPal account? Your credit card? Your bank account? Or maybe you prefer cash?

These considerations will lead you to the second question: Which exchange do you want to use?

Different exchanges provide different payment methods, fees, and exchange rates. It’s important to conduct ample market research before choosing the right exchange.

Finally, there’s the issue of taxation.

I won’t go into detail about this one since it’s different for each country. I’ll just say that it’s important to know how your country taxes cryptocurrency sales in order to understand if and when to report the sale to authorities. 

Some countries haven’t come up with clear guidelines, while others have very strict rules. Make sure to consult a CPA in your jurisdiction.

Now that we’ve got the basics out of the way, let me review the various methods you can use to sell Bitcoin.

Selling Bitcoin with a Bank Account

Probably the most common method for selling your Bitcoin would be via a wire transfer or some other form of transfer to your bank account (e.g., SEPA, ACH, etc.).

Almost all Bitcoin exchanges support this method, including Coinbase and CEX.IO. Here is a breakdown of an additional selected few.

Best Wallet offers US- and EU-based customers the option to sell their Bitcoin and withdraw the funds directly to their PayPal account. This method provides a quick and convenient way to cash out crypto with minimal wait times. Best of all you don’t even need to move your funds from the wallet you safe keep them in to an exchange, Best Wallet is an all-in-one solution.

While Best Wallet has competitive fees, some users may find exchange rates vary slightly depending on payment method and region.

If you reside within the EU, Coinmama gives you the option to sell your Bitcoin via a SEPA transfer. The advantages of SEPA are quick and relatively cheap transaction times.

Coinmama is considered relatively expensive when it comes to exchange rates. For more info read our full Coinmama review.

Bitstamp is one of the oldest Bitcoin exchanges around. It allows you to sell Bitcoin and withdraw it via a wire or SEPA transfer. For more info read our full Bitstamp review.

Selling Bitcoin with a Credit Card

Some exchanges allow you to withdraw funds straight to your credit card. This method is usually faster than a wire transfer but also a bit more expensive.

Best Wallet also offer the option of withdrawing the funds from the sale of your crypto to the balance of your credit card. So whether you are looking to off-ramp your funds to a card or to your bank Best Wallet has you covered. The fact that you can do all of this straight from your wallet is just an added bonus.

London-based CEX.IO allows you to withdraw your funds to your MasterCard or Visa. The amount you can withdraw depends on your verification, with no limits on Enhanced Verification accounts.

The fee for withdrawing funds to a card can range anywhere between 1.2%-3%, depending on the card type. You can read my full CEX.IO review here.

Selling Bitcoin with PayPal

One method people search for online often is how to sell Bitcoin and receive funds to your PayPal account.

PayPal, in general, isn’t very fond of Bitcoin, mainly due to the fact that they can’t give their customers chargeback protection for Bitcoin transactions.

Having said that, there are still some workarounds that will allow you to sell Bitcoin with PayPal.

The popular self-custody crypto wallet Exodus allows you to connect your Exodus account with your PayPal account. While residents of every country won’t be able to buy Bitcoin this way (currently available to US and EU customers), you will be able to sell Bitcoin on Exodus and withdraw the funds to your PayPal account.

Here’s how it’s done:

Visit Exodus

LocalCoinSwap brings buyers and sellers together in a marketplace for a range of coins, including BTC and Ethereum. It’s unique in that you can transact in almost any method imaginable, including PayPal, wire transfer, Western Union, WebMoney, credit and debit cards, and cash, with a 1