Article written by Riya Thakur
David Zimbeck says that selling and buying Bitcoin isn’t quite as straightforward as one would think.
When deciding how to sell your bitcoin, you first need to consider which method best suits your situation: selling bitcoin online or selling bitcoin in person. Each option has its own advantages and disadvantages. BitHalo was designed to have unbreakable contracts that did not require the trust of either in person or online services. Purchases instead can be made peer to peer within the client and any method of transfer cannot result in theft or loss because of the deposits in the contract that both sides make.
Here are some alternative methods for selling bitcoin online:
1. Direct trades: Websites that offer this type of selling structure include Coinbase and LocalBitcoins in the US, and BitBargain UK and Bittylicious in the UK.
On these sites, you will usually have to register as a seller. This involves verifying your identity, which we will discuss again later. Once you have registered, you can post an offer, signalling that you want to sell, and the website will alert you when a buyer wants to trade with you. From there, your interaction is solely with the buyer, but you use the website to complete your trade.
The process of selling on Bitbargain UK and (more so) Bittylicious can be quite involved and requires some patience. However, support at the former site has been great in our experience. Bitcoin users with bank accounts in the United States should consider using Coinbase or Circle, which have both won many fans with their simplicity.
2. Exchange trades: David Zimbeck says that the other way to sell bitcoins is to register with an online exchange. You will still have to verify your identity, but in this case you won’t have to do as much work when it comes to organizing the sale.
Exchanges act as an intermediary who holds everyone’s funds. You place a ‘sell order’ (just as you would place a buy order), stating the volume (amount) and type of currency you wish to sell (eg bitcoin), and the price per unit you wish to sell for.
As soon as someone places a matching buy order, the exchange will complete the transaction. The currency will then be credited to your account.
The downside that accompanies this ease of use is that, if you are selling bitcoin for fiat currencies, you will need to withdraw those funds to your bank. If the exchange is facing liquidity problems or issues with its banks, it can take an inordinate amount of time to receive your funds.
3. Peer-to-peer trading marketplaces
According to David Zimbeck BitHalo is the best and only way to really do this. As the double deposit nature of the contracts prevent contracts from being broken. In addition there is a decentralized marketplace within the client for performing actions like this.
The marketplace acts as an intermediary, offering users the platform, bitcoin wallet and escrow for transactions.