How to sell Bitcoin Cash: A beginner’s guide to selling BCH tokens
Getting into crypto does not always mean buying the dip, it also involves anticipating the right time to sell the digital assets. The most popular way of selling Bitcoin Cash (BCH) tokens is using platforms that unite buyers and sellers, such as cryptocurrency exchanges or a peer-to-peer (P2P) service. BCH can also be sold directly to any other person — by sending the tokens to their BCH wallet’s public address in exchange for fiat currency such as the dollar.
But, why would anyone let go of their Bitcoin Cash (BCH) stash, right? Crypto investors don’t always sell the tokens to make a quick buck. Instead, selling cryptocurrency can be attributed to numerous personal or financial reasons from diversifying an investment portfolio to needing fiat currencies to sponsor day-to-day expenses. The latter holds true, especially for the global workforce that has started accepting salaries in Bitcoin (BTC) and other cryptocurrencies.
Irrespective of the motive, let’s check out the ways to sell Bitcoin Cash tokens:
Cryptocurrency exchange
Crypto exchanges are one of the most popular platforms to buy and sell a wide range of cryptocurrencies. Typically, a crypto exchange allows users to place a buy or sell order for cryptocurrency tokens against other cryptocurrencies or local currency.
To do this, exchanges use trading pairs that represent the asset you will be exchanging your BCH tokens against. For example, placing a sell order with a BCH/USD trading pair means agreeing to exchange your BCH tokens against an equivalent amount of the U.S. dollar. Similarly, a BCH/BTC trading pair will let you exchange an equal amount of Bitcoin for the worth of your BCH tokens.
Given its popularity as an asset among investors, investors can find BCH on most mainstream exchanges across the world. The process of selling BCH on a crypto exchange is fairly straightforward: Transfer the BCH tokens on the exchange’s BCH wallet, place a sell order against a trading pair of your choice and wait until the transaction is processed.
Once the equivalent fiat or cryptocurrency is shown on the respective wallet, you can either transfer the fiat currency to your bank account or purchase any other cryptocurrency of your choice.
Peer-to-peer service
A peer-to-peer service is a platform that connects two or more investors willing to exchange currencies based on mutual consent. P2P platforms are available as standalone applications but can also be accessed through many crypto exchanges.
A typical BCH P2P service will allow users to exchange BCH tokens for local currency. This type of service introduces buyers and sellers in real-time and facilitates trade between the two. Some form of escrow built-in will guarantee the trade between the two entities to the platform’s infrastructure.
Moreover, one can also connect with other traders on dedicated forums and meet them in person to exchange currencies, a peer-to-peer trade in its purest form. The risk associated with these types of transactions is highly dependent on the credibility of the parties involved. So it is advisable to keep an eye out for red flags before meeting unknown people, such as checking the user’s online reputation. Compared to a crypto exchange, P2P is usually considered faster, cheaper, and more secure as there is no middleman involvement.
Some other ways to sell BCH
In-house BCH offerings
The Bitcoin Cash ecosystem is a privately owned entity, just like most cryptocurrencies out there. And given its backing by established entrepreneurs such as Roger Ver, the BCH community can take advantage of a host of BCH-friendly in-house offerings that include a crypto exchange, peer-to-peer service and crypto wallet.
Buying products and services with BCH
Although BCH has not yet witnessed mainstream adoption, it can be traded against products and services. Depending on the jurisdiction, you can find several mom-and-pop stores that accept Bitcoin Cash as a payment method. In addition, BCH can be used to make online purchases, including e-commerce, subscriptions and frontline services including food delivery.
Things to consider while selling BCH
The appreciating value of BCH has made the token one of the most rewarding assets in the crypto ecosystem. The cryptocurrency’s high value makes it a good target for bad actors, commonly known as hackers. Irrespective of the mode of transfer you’ve chosen for selling your BCH holdings, double-checking each aspect of the trade (e.g., risk, return, order size, etc.) should become second nature for crypto investors.
Historically, crypto investments were aimed only at life-changing long-term returns, but investors are now keen on understanding real-world use cases of their investments. If you are yet to start your journey as a BCH investor, check out Cointelegraph’s guide on buying Bitcoin Cash.