Being a crypto investor means both buying and selling your holdings as per how your investment goals are aligning with the market situation at the time. If you already know how to buy Ethereum, you are probably wondering how to sell it too, just in case you wish to liquidate your holdings or increase the share of another cryptocurrency in your investment portfolio. If you are, then this is the place for you because in this article, we will help you figure out all the steps to be undertaken in selling your Ethereum, where to do it and anything you might possibly want to know about the process.
Now given the basic nature of Ether: the cryptocurrency of Ethereum, it is slightly difficult to trade on it. It is essentially meant to be used for facilitating transactions within the Ethereum network itself and its primary role as a crypto token, giving users rights and stakes in the network, can pose a challenge when you try to sell your ETH holdings off. However, there does seem to be two broad ways to achieve that. Let’s have a look.
Ways of Selling Ethereum
There are two main ways in which you can sell Ethereum. The first one is an obvious way: of selling via an exchange. The other alternative is using a peer-to-peer trading platform where you can get directly connected with a buyer. Let’s have a look at the details of both these ways.
1. Selling Ethereum Using A Cryptocurrency Exchange
Most of the top cryptocurrency exchanges in the fintech space allow both buying and selling of Ethereum. Some examples include exchanges such as Coinbase, BitFinex, Kraken and Gemini. The basic process of selling Ethereum on an exchange is fairly straightforward. You must register on your preferred exchange with your name and all requisite details. Usually, this step also involves linking your bank account with your account on the exchange itself. After all this is done, one call you must take is whether you want your ETH to be sold in exchange for some fiat currency like the USD or if you want some cryptocurrency in return, like BTC. Different exchanges offer different crypto/fiat and crypto/crypto pairings and you can choose which pairing you want to go for while selling off your ETH holdings.
Now, what are the actual steps involved in the sale? Now since these exchanges you’ll be using are all reputed players in the crypto market, they usually do have sophisticated crypto wallets. You must access your wallet and then use an option that varies from exchange to exchange but usually is called either “sell”, deposit into exchange” or simply “deposit”. After clicking this button, a transfer is immediately made. Following this, the seller must choose a preferred pairing and amount to be sold. Having done that, one waits for a purchase order to be placed on the exchange or is simply used to fulfill an order that had been waiting. The exchange rate obviously depends on the market price at the given moment but might also be modified depending on the amount, user’s duration of membership or overall volatility. Once all these steps have been completed, you will find the price of your sold ETH transferred to your account, in the form of either fiat or crypto. If you wish to take your fiat currency out into your normal bank account for use, you must pay an additional fee, that varies from one exchange to another.
2. Using P2P Trading Platforms to Sell Ethereum
If you wish to sell your ETH directly to an actual person, you may wish to use a platform such as LocalEthereum or even Meetup. LocalEthereum usually charges around 0.25% of the transaction as fee. Now these are great ways to get rid of your ETH without much fuss but one needs to be quite careful while conducting due diligence as individuals operating on these platforms are obviously not certified traders who can be trusted.
Now that you know all about selling Ethereum just as well as you know about buying them, we are sure you’ll have little trouble in handling your investment portfolio. However, if you are more excited about the tech aspect of things, rather than the financial one, you must check out our article discussing ways to mine Ethereum, to know how you can explore this crypto in a more hands-on way. If you get too tired of mining, you can always sell them off just the way we told you to!