Can Cryptocurrency Really Make You Money?
Selling cryptocurrencies such as bitcoin is not quite as straightforward as purchasing them, however, fortunately, we here to assist the people. This model will give you an idea of how to cash out your cryptocurrency.
When making the decision on how to collect a profit from your bitcoin, you should initially consider which way best suits your situation: selling bitcoin online or selling bitcoin in person. Each option has its own pros and cons
Selling Bitcoin Online
Selling bitcoin online is truly a more traditional way of trading your bitcoin. There are currently three ways to go about selling bitcoin online.
1. Direct trades: Online sites that allow this kind of selling system also include Coinbase and LocalBitcoins in the US, and BitBargain UK and Bittylicious in the UK which all deal with cryptocurrency
On these websites, most times you will have to register as a seller. This deals with verification of your identity. Once you have taken the step to register, you can post an offer, indicating that you want to sell, and the website will inform you when a consumer wants to trade with you. From there, your interaction is only with the consumer, though you utilize the site to complete your trade.
2. Exchange trades: Another way to sell bitcoins is to register with an online trade. You will still have to confirm your who you are, but in this case, you won’t have to do as much work when it comes to arranging the sale.
Exchanges act as an intermediary who holds everyone’s funds. You place a ‘sell order’, stating the volume and kind of currency or cryptocurrency you wish to sell such as 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.
3. Peer-to-peer trading marketplaces
A new development in the bitcoin space is the advent of sites like Brawker and Purse, which set out to bring together two groups of people with specific and complementary needs.
The first group are individuals who want to be able to use bitcoin to buy goods from sites which do not yet directly accept digital currencies. The second comprises of others who would like to buy bitcoin with a credit or debit card. The marketplace brings together individuals with matching requirements to effectively sell bitcoin to one and provide discounted goods for the other.
The marketplace serves as a middle man, offering users the platform, bitcoin wallet and escrow for transactions.
How it works:
1.Alice posts her required Amazon wish list on the marketplace, stating the discount she would like (normally up to 25%).
2.Bob has a credit/debit card and wants to purchase a certain amount of bitcoin leveling the value of Alice’s investment. He accepts the trade and, through the marketplace, buys the Amazon goods and requests they be delivered to Alice’s address.
3.Once the goods are secured, Alice tells the marketplace and Bob’s bitcoin are freed from escrow and arrive in his wallet, minus Alice’s agreed discount and a small fee for the marketplace.
This structure does mean that Bob will be paying a considerably pricy fee for the service however this also means he will be easily able to obtain bitcoin via bank card.