Looking for a place to sell Bitcoin or other crypto for Canadian cash? In this guide we’ll break down how to sell bitcoin & altcoins in Canada, the dos and don’ts, and how to get cash in your hand the safest way possible.
You’ve probably heard the term HODL, or ‘hold on for dear life’ when looking at investment strategies for cryptocurrency. However, HODLing isn’t realistic for all cryptocurrency users. We live in a fiat based world, and sometimes you need to convert our cryptocurrency holdings to cold hard cash. Here are the top reasons why people sell Bitcoin for cash.
1) Closing Out An Investment Position: Many Bitcoin buyers are investors who hold cryptocurrency in their portfolio the same way they might hold gold. They both act as an alternative to fiat currency and other traditional assets. Buying and selling Bitcoin as an investment also comes with risk, as the cryptocurrency industry has seen major price volatility. Selling after a period of gains is always a good strategy. You may choose to sell a small amount of your investment position, or the entire position.
2) Transactions With Crypto: There’s a growing list of merchants who accept Bitcoin as payment. Maybe your small business is one of them? In the business world, Bitcoin allows an alternative to the banking system. More businesses are using Bitcoin to pay suppliers to avoid foreign currency exchange, regulations, high transaction fees, and wait times for international wire transfers. If you have received Bitcoin for a transaction or a payment, you can convert it easily to Canadian dollars by ‘selling’ your Bitcoin on Bitbuy.
3) Need Cash: Unfortunately, not everywhere accepts Bitcoin and crypto as payment…yet. If you need to sell a portion of your Bitcoin in order to pay for something in the fiat world, you can do it quickly and easily with Bitbuy. Bitbuy will send you an e-transfer or wire transfer the same day, so you can get cash fast.
4) Use Cash As A “Stablecoin”: There is no doubt that the cryptocurrency markets are volatile. It’s not uncommon to see swings of 5%+ up or down in a given day. Many conservative investors may find these hard to stomach, and may want to pull out of the market in times of volatility. A common strategy with crypto investors is to pull out in periods of high volatility, especially when trading downward, and transfer that value into a “stablecoin”. Stablecoins are cryptocurrencies that are pegged to stable reserve assets like USD and move with them. Because of this, stablecoins are way less volatile than other cryptocurrencies. Examples of popular stablecoins are Tether, USDC, Binance USD or MakerDai. The problem is, these are often only available on very few American exchanges, such as Binance. An alternative to moving your volatile cryptocurrency holdings into a stablecoin would be moving them to cash. After all, stablecoins are backed by just that, cash. Since there is no well established Canadian stablecoin, Canadian cash could be your best bet.
Whether you want to close out a cryptocurrency investment, or use it as a business solution to cut transaction fees and pay suppliers, you can safely sell Bitcoin online on Bitbuy with the assurance of customer support. At Bitbuy we stand out as a top Canadian crypto exchange by providing better customer service and support. Sell your Bitcoin with Bitbuy, and you won’t have to worry.
If you want to sell Bitcoin and cryptocurrency in Canada, Bitbuy offers a very simple and straightforward process to do so. Once you’ve confirmed your identity, email, and phone number, you can send your cryptocurrency to your Bitbuy account. Once you have crypto in your Bitbuy wallet, you are a couple steps away from trading it to cash.
Here are the steps to sell your Bitcoin or other cryptocurrency for Canadian dollars:
1) Log in/get verified on Bitbuy.
2) Click ‘Wallets’ on the dashboard of your account and scroll to the coin of your choosing.
3) Beside the coin you would like to deposit, click ‘deposit’. You will be given a wallet address that you can send your crypto to.
4) Wait for it to arrive and show up in your Bitbuy account.
5) Once your account shows your deposited crypto, click the ‘Buy/Sell’ button and sell the amount of your choosing.
6) After selling your chosen coin, you will have a Canadian dollar balance on Bitbuy. You can then withdraw via e-transfer or bank wire to get your cash.
Bitbuy will send your Interac e-Transfer or bank wire within 1-2 business days, and you will have the cash available to you in your bank account. This process can also take place on other reputable exchanges, but you will want to do some research to make sure you are dealing with a company that will actually get you your cash. Unfortunately, due to a lack of formal regulations in all markets, there are many exchanges that delay ‘cash out’ payments, or in some cases, won’t allow them.
Not in Canada? No problem. You can sell Bitcoin and cryptocurrency for cash using a number of international, reputable exchanges. Below is a list of recommended exchanges for your international region.
1) Bitbuy (Canada)
2) Binance (USA)
3) CoinCorner (UK)
4) YouHolder (Europe)
5) Coinjar (UK/Australia)
6) BitFlyer (Japan)
7) BitOasis (United Arab Emirates)
8) Buda (South America)
9) Kiwi Coin (New Zealand)
10) Luno (Africa)
If you don’t want to use a secure exchange like Bitbuy or any of the other exchanges listed to sell your cryptocurrency, you have other, albeit riskier, options.
1. Peer-to-Peer crypto marketplaces:
LocalBitcoins and Paxful are some examples of peer to peer markets for selling crypto. P2P marketplaces like these can facilitate trades using a variety of payment methods, however these sites are breeding grounds for scammers. You can select from a number of payment methods such as Interac e-Transfer, Paypal or more. Typically, the cryptocurrency you are selling is held in escrow by the marketplace until both parties sign off that the transaction is done.
The problem with this method is that scammer buyers can reverse payments after they have taken place by claiming fraud, resulting in the money they sent you being peeled from your bank account. Since crypto transactions are not reversible, you’ll be left in a situation where you no longer have your cash or your crypto.
2. Traditional Online Marketplaces:
You can also sell Bitcoin or cryptocurrency on traditional marketplaces such as Kijiji and Craigslist to set up in person cash transactions. These are incredibly risky, but are the easiest way to get cash for your Bitcoin without the need of KYC.
If you do decide to do an in-person transaction of crypto, the process is typically as follows:
1) Meet the buyer in person in a public place, such as a café or transit station.
2) Send the Bitcoin or other cryptocurrency from a wallet you have access to on your phone to the buyer’s address.
3) Wait for the transaction to appear on the blockchain and receive confirmations.
4) Receive cash from the buyer once crypto appears in their wallet.
Because of the tremendous risks associated with selling crypto on peer-to-peer marketplaces or in person, we suggest selling your cryptocurrency for cash using vetted and trusted crypto exchanges such as Bitbuy or other reputable exchanges.
If security concerns have kept you from selling Bitcoin or other cryptocurrency that you’ve been hanging on to, Bitbuy could be a great option for you. Take advantage of one of the best cryptocurrency exchanges in Canada when it comes to security. Every transaction you make on Bitbuy is encrypted using Secure Socket Layer technology, with two-factor authentication solutions implemented throughout. Users can choose between text 2FA or enhanced Google 2FA, which is recommended.
Bitbuy is the only Canadian cryptocurrency exchange that’s been audited for proof of reserves, solvency, and security practices. You can read the full audit reports:
Bitbuy also operates with a 95% cold storage reserve for all digital currencies in custody and executes daily encrypted and distributed backups for disaster recovery. Cold storage is a cryptocurrency best practice. Since Bitcoin can be withdrawn instantly, cold storage prevents intruders from taking advantage of a security breach to withdraw the entire reserve. 95% of Bitbuy’s cryptocurrency reserves are stored offline to mitigate any potential security breaches.
