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 do’s 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 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 use the cryptocurrency in their portfolio the way they might invest in gold. It’s an alternative to fiat currency and other traditional assets. Buying and selling Bitcoin as an investment also comes with risk, as the cryptocurrency 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? As a business, 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…..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 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 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 is to pull out of volatile cryptocurrency markets, especially when trading downward, and transfer that value into a “stablecoin”. Examples of popular stablecoins are Tether, USDC or MakerDai. The problem is, these are often only available on crypto-crypto 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 or altcoins in Canada, it’s simple and straightforward with your Bitbuy account. Once you’ve confirmed your identity, email, and phone number, you can send your Bitcoin, Ethereum, XRP, Stellar, Bitcoin Cash or Litecoin to your account and sell. Here are the steps to sell your Bitcoin or altcoins for Canadian dollars.
To do this:
1) Log in/get verified on Bitbuy
2) Click “Wallets” from the main page
3) Beside the coin you would like to deposit, click ‘deposit’. You will be given an address that you can ‘send’ your crypto to.
4) Wait for it to arrive, then click ‘sell’ from the main screen.
5) You’ll have a Canadian dollar balance on Bitbuy, withdraw that 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’ll 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) Kraken (USA)
3) Coinfloor (UK)
4) BitFlyer (Europe)
5) Coinjar (UK/Australia)
6) Bitbank (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 to sell your cryptocurrency, you have other, albiet riskier, options.
LocalBitcoins and Paxful are peer to peer markets for selling cryptos. You 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 marketplace until the both parties sign off that the transaction is done.
The problem is scammer buyers can reverse payments after they have taken place by claiming fraud, and the money they sent you will be 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.
You can also sell Bitcoin on traditional marketplaces such as Kijiji, Craigslist or more and 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 the following.
1) Meet the buyer in person in a public place such as a cafe or transit station.
2) Send the Bitcoin from a wallet you have access to on a phone to the buyers address.
3) Wait for the transaction to appear on the blockchain and recieve confirmations
4) Receive cash from the buyer
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Organizing an in-person meeting can be nervewracking
Because of the tremendous risks associated with selling cryptos on peer to peer marketplaces, we suggest selling your cryptocurrency for cash using a vetted, trusted fiat on and off ramp such as Bitbuy or another reputable exchange.
If security concerns have kept you from selling Bitcoin or Altcoins 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 here and reach out to the Bitbuy team if you have any questions.
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.
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