Cryptocurrency has become a real discovery for millions of new investors and the most productive asset of the last decade. While some investors bet on stable bitcoin, others prefer lesser-known assets with higher returns. And both strategies pay off.
One of the first questions for traders and investors is, "How do I sell cryptocurrency the right way?". Fair fees, support for a wide range of digital assets and payment gateways, secure storage - all of these should be considered when choosing a cryptocurrency and a platform for transactions with it.
Why is it important to invest in the right way?
Bitcoin, which has surpassed $1 trillion in capitalization for the first time in 2021, remains the most coveted asset. Holding a significant amount of capital in BTC gives investors confidence for several reasons:
- stable exchange rate growth and strong resistance to inflationary processes due to the lack of the usual government currency's ability to mint new coins;
- support from big capital, which has appreciated the benefits of fast transactions and price stability;
Support from the world's leading countries: Bitcoin is held by retirement funds in New Zealand, Norway, and Singapore, among others;
Possibility to use bitcoin both as a means of accumulation (the best version of gold) and as a currency (the best version of euro or dollar).
Diversification - directing capital to several (or even several dozen) assets - is considered one of the best strategies for the investor. It serves two main purposes:
- allows you to increase your returns with small but promising altcoins;
- it allows you to secure your portfolio in case your bet on a particular asset fails to justify itself.
A large-scale Binance 2021 survey of 23,000 traders showed: 96% of the exchange's clients invest in multiple cryptocurrencies.
Clients of Broex.io investment platform have access to 30 carefully selected cryptocurrencies. Each user has access to an intuitive interface for creating their investment portfolio.
After purchasing a cryptocurrency and waiting for it to reach local highs, an investor is faced with the question of selling digital assets. There are many ways to sell virtual coins - each with its advantages and disadvantages.
How to sell cryptocurrency?
Selling involves exchanging cryptocurrency for fiat currency, that is, government-backed currency.
Fiat currency is a currency issued by the central bank of a certain country. Examples are the Dollar, the Euro or the Pound. In today's reality, national banks issue fiat currency without regard to its backing by real assets.
Common avenues of "cryptocurrency withdrawal," that is, exchanging it for euros or dollars, remain bank cards.
Selling cryptocurrency to an individual - p2p
Selling cryptocurrency through a peer-to-peer, or p2p trading site is a direct transaction with a private individual, similar to those on message boards.
By visiting specialized peer-to-peer trading sites, a user can leave an ad to sell bitcoin, litecoin, or other currency. If the offer looks interesting, people will start responding to it; all that is left to do is to discuss the details of the deal and make the exchange.
Also, the user can take the initiative by responding to an existing ad to buy.
Peer-to-peer platforms charge minimal fees for their services, which makes them one of the most profitable solutions.
The ratings and reviews system in place on p2p platforms does not protect users from scammers properly. Also, liquidity - supply and demand of coins - looks too low for most altcoins.
Sell cryptocurrency via an exchanger
Selling cryptocurrency through exchange services is one of the easiest and fastest ways to conduct a transaction. The user just needs to select the desired direction of sale, enter the details - the address of debiting cryptocurrency and the address of crediting fiat funds, and wait for the completion of the transaction.
The method does not require additional steps and special knowledge, and it takes about 15-30 minutes from the moment of operation confirmation to the moment of funds receipt.
A significant proportion of exchangers are controlled by scammers, and even large exchangers sometimes appropriate customer funds.
Know Your Customer, or KYC ("Know Your Customer") is a customer verification procedure, which is used both in the traditional financial market and in the cryptocurrency industry. It reduces risks for both the company itself and its clients - minimizing the risks of interacting with fraudsters or blacklisted coins.
Sell cryptocurrency via an exchange
Selling cryptocurrency through an exchange looks like one of the best ways. Large trading platforms are licensed, support the sale of several altcoins and safe withdrawal of funds to the card.
The advantage of exchanges is a wide range of altcoins and withdrawal destinations while ensuring safe transactions - most exchanges are licensed and follow KYC regulations.
Trading platforms are focused on experienced traders who want to make money from fluctuations in the rate of cryptocurrencies. To do this, they are provided with a specific trading interface, the work with which can cause difficulties for beginners.
Selling cryptocurrency via an investment platform
Investment platforms are designed for those who want to make money on the long-term prospects of cryptocurrencies. Such platforms are licensed and rely on the security of all transactions, including withdrawals. Because investment platforms focus on building diversified portfolios, they give clients access to a wide range of digital assets.
Responsible investment platforms are licensed, strictly compliant with laws and KYC regulations. Security has a special role to play, as building a cryptocurrency portfolio involves holding it for a while. It is good practice to provide clients with access to a user-friendly interface and a wide range of altcoins to create a portfolio tailored to their individual needs.
An insignificant disadvantage can be called the fact that investment platforms are not designed to make money on exchange rate fluctuations. However, their clients get an opportunity to multiply capital on long-term deposits. With less time spent, such a strategy often proves to be the best.
An example of a high-end investment platform is Broex. Registered in Canada, the platform meets advanced legal requirements and its clients are verified through KYC procedures.
The platform offers 30 digital assets, withdrawal is possible to VISA/MasterCard.
When building the security system, both the technical part and the human factor were taken into account. The personnel are thoroughly checked, and the security system consists of three loops, to which the personnel do not have access. Client funds are stored in two of them - the loops do not interact directly. This way, users can not only safely conduct transactions with cryptocurrency, but also store it safely.
Prospects for cryptocurrency
Bitcoin issuance is limited to 21,000,000 BTC, which when the cryptocurrency spreads further ensures that the value of each coin will increase. Most other projects are structured similarly. For litecoin, the limit is 84,000,000 LTC.
Bitcoin rises not only against the U.S. dollar but also against any other commodity or asset.
While in 2019 1 BTC could be exchanged for a Honda Civic, in 2021 it could be exchanged for a Tesla-made car.