3 Secure Ways to Sell Bitcoin Without Using an Exchange

There are many reasons to sell Bitcoin, including wanting to buy other cryptocurrencies, using your earnings to invest in stocks or bonds, or just getting out of the market because you don’t think it’s worth investing in any longer.

If you hold your cryptocurrency on an exchange, this can be risky. Exchanges are an attractive target for hackers and get attacked frequently, causing you to lose your holdings if they’re stolen from the exchange itself or from your account while it’s logged in on the exchange. This guide offers three secure ways to sell Bitcoin without using an exchange.

 

Method 1: Meetup

A quick Google search will turn up a lot of local groups that meet up and discuss bitcoin. This can be a great way to meet people in your community who are also interested in bitcoin, who may even be more than willing to buy your coins for cash.

Before arranging any sales via meetup, make sure you take extra security precautions like telling a friend where you're going and making sure someone knows when and where you plan on meeting with buyers.

Another plus: transaction fees are usually much lower than what's charged by an exchange. However, there is no buyer protection offered by meetups or similar services so it's still important to exercise caution before making any transactions.

Sell Over-the-Counter (OTC): While technically not a peer-to-peer service like meetups, OTC desks offer another easy option for those looking to unload their bitcoins without using an exchange.

The idea is pretty simple—you just find a counterparty online or in-person and agree on a price at which you'll trade your bitcoins for cash.

The biggest risk here is if you're dealing with somebody shady since there's no recourse if they don't follow through on their end of the deal or if they steal your coins before payment is made.

 

Method 2: LocalBitcoins

This peer-to-peer platform allows you to sell bitcoins for cash, but only locally. This means that you’ll have to meet with a potential buyer in person and conduct a quick sale.

Keep in mind that there are transaction fees associated with each purchase, but it’s still far safer than selling bitcoins on an exchange (which is known as over-the-counter trading).

As noted above, though, be careful when trading locally as scammers can try to steal your money or force fake transactions on you. That being said, LocalBitcoins has been around since 2012 and has millions of users throughout all countries and all regions.

It’s one of our favorite platforms for selling bitcoin. The website is user-friendly and intuitive and works well on mobile devices.

If you’re interested in using LocalBitcoins, just follow these steps.

1) Sign up for an account by providing your email address

2) Deposit some cash into your account

3) Find someone who wants to buy some bitcoin

4) Have them deposit their fiat currency into their account

5) Purchase their bitcoin

6) Withdraw your earnings

7) Repeat! There are several ways to earn extra income while working at home. You could do freelance work online, do odd jobs like walking dogs or cleaning homes — even drive for Uber!

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Method 3: Bitcoin ATM

Once you have cash in hand, you can use a bitcoin ATM, which is like a regular bank ATM. However, instead of withdrawing money from your bank account, you’re using your bitcoin wallet to buy bitcoin and deposit it directly into your BTC address.

Withdrawing cash from a bitcoin ATM is instant — no confirmation or extra fees are required. It’s also secure and easy to use! You simply scan your QR code (or type in your wallet address) and insert cash into the machine.

You will then be shown how much bitcoin you purchased at the current market value. Now that you have some bitcoins, where do you keep them? You could leave them on an exchange or online wallet service – but remember, if someone hacks that service, they could steal all of your coins without any recourse.

If security is important to you (and it should be), move them off-site onto a hardware device that only has access to offline storage for maximum protection against theft and hacking attempts.

Here are a few of our favorite options: Trezor Ledger Nano S KeepKey There are plenty more devices out there that are worth checking out as well. Make sure to look around before settling on one device.

Conclusion

When you sell your bitcoins, you want them to go into a secure wallet that you own. If someone else is in control of your wallet, then there’s no telling what could happen. Use cold storage for large amounts and use a multi-sig solution for smaller sums.

Another advantage of multi-sig is that it makes tracking your funds easier since all transactions need multiple signatures. If a transaction appears on both devices, then it was authorized by you! Lastly, make sure any third party knows how to reach you in case something goes wrong.

Their silence can be interpreted as fraud if they won’t help get your funds back! Don’t wait until it’s too late—use these methods today so you know exactly where your money is at all times.