Selling Bitcoins

The process of selling or redeeming Bitcoins for goods or services is very simple. It is faster than you might think. It is definitely faster than the process of mining for them!

First, you need to make sure you have a Bitcoin wallet set up. This is where Bitcoins you have purchased will be found. Next, find what you would like to buy and negotiate the number of Bitcoins. As previously mentioned, some retailers have a conversion already in place for you to use.

Of course you also have to make sure the entity you are doing business with accepts Bitcoins. It doesn’t matter if it is a business or a person – if they accept then you can proceed with your transaction.

Follow the steps for your wallet or for the retailer on their site to send the Bitcoin payment to that new owner. You will need to make sure the number of Bitcoins is accurate before you submit the payment. Never assume all of that information is correct!

After you click send, the payment is then looked at for confirmation. The Bitcoin network has to recognize the transaction and validate it. This is when the Bitcoins are removed from your wallet. They are then placed into the wallet of the entity you sold them to (or that you paid for goods or services for).

Escrow

You can also use an escrow service if you are selling Bitcoins in exchange for a good or service. This helps to reduce the risk for both parties involved in the transaction. This process involves you sending the Bitcoins to an authorized and verified 3^rd party.

They keep them until the product or service you were to get of value have been received. Once that takes place, then the 3^rd party will release the Bitcoins to the other party involved. One of the most common escrow entities for this to consider using is Localbitcoins.com.

Bitcoins are locked when they are in escrow. This means that they can’t be sold by the seller to another buyer in the meantime. Should the transaction not be completed between the original buyer and seller, then a claim can be filed with the 3^rd party. They can then make the decision to release the Bitcoins back to the original owner.

They can also determine that the conditions were met by the buyer, and thus release the funds to the buyer rather than back to the seller. It is important to understand that the circumstances for doing so vary based on the policies and guidelines of the 3^rd party. It is important for all buyers and sellers to read those polices and be aware of the procedures before they enter into any such agreement for an escrow.

Create your Own Bitcoin Exchange

There is also the possibility of creating a business on your own that allows you to be in the mix of an exchange for Bitcoins. This is a great way to make money, similar to the process of day traders for the stock market.

If you are already involved in the process of buying and selling Bitcoins, then why not take it a step further? This is one more way for you to realize a profit that helps your overall funds grow. This can start out as a side job but it may turn into something you decide to do full time.

There aren’t fees involved with buying or selling of Bitcoins between users. This is why there isn’t going to be those high costs to take account of. Ask anyone that takes part in day trading. They will quickly confirm to you that the cost of the fees adds up very quickly – even if they take a loss rather than make a profit on such investments.

There is a market and a demand for Bitcoins which is why selling them through your own Bitcoin exchange can work well for you. There isn’t the time spent with finding a niche market and hoping they will have a need for your product or service.

Cash flow concerns can be an issue with any type of investment. That doesn’t have to be the case though when you sell Bitcoins. The trading process is fast and you can complete conversions by confirming your code. Transactions can be completed from any device that has internet access. This includes:

• Desktop Computers
• Laptop Computers
• Smart Phones
• Tablets

If you are interested in selling Bitcoins as an exchange provider, there are some initial steps you need to complete. They involve:

• Downloading Bitcoin application
• Load enough Bitcoins to your wallet or wallets for the transactions to take place
• Post advertisements online about the service you offer such as through social media

As an exchange provider, you do need to know the ins and outs of Bitcoins. You also need to be able to quickly answer questions for those that may be interested in buying them. Setting up efficient customer support via email and by phone is important. You can also set up a website or social media site that features a FAQ section.

Simplify Pricing

Pricing can be one of the most complex elements of selling Bitcoins. The more you practice the process, the easier it becomes. There are software programs that help with this too, based on the formulas that are frequently used in this market.

The weighted USD price or the market price is used as the base. By entering this amount into the field, you can then put your commission percentage into the next field. That will calculate what price you need to sell at in order to generate that level of a commission profit.

Make sure you are always working with the most current prices in order to make these types of calculations work for you. The market price can change daily so always confirm, don’t make assumptions! If you mined for the Bitcoins, your only investment is time.

If you purchased them, you also need to take that purchase price into consideration. It makes sense to only sell them if you would generate more income from them than you paid for them to become yours!

Disclaimer: Please refer to our disclaimer and seek your own financial advisors on any investments. All information here is intended for educational purposes only.