Being an Ethereum investor solely for profits isn’t easy. While it’s essential to diligently add to your savings and watch your crypto portfolio grow, there comes a time when you’ll need to skim a little profit off the top.
But did you know that you could receive less than the actual sum if you sold your ETH incorrectly?
Yes, you read it right. There are numerous methods of selling your Ethereum tokens, some more affordable than others. So to help you better, we’ve listed a few tips to sell your ETH tokens and get maximum cash.
Different Ways In Which You Could Be Selling Your Ethereum
There are three primary ways to sell your Ethereum. They are:
- Selling your tokens for cash on decentralized exchanges.
- Opting for a direct P2P exchange.
- Withdrawing at a crypto ATM
Let’s check them out in the following sections of the blog.
Selling Your Tokens Via Decentralized Exchanges
Selling Ethereum can be as simple as buying it! When you purchase your tokens through centralized exchanges using a custodial wallet like Binance, Gemini, Coinbase, or Kraken, you can sell your ETH by following these simple steps:
Step I: Look for a deposit button
The first step requires you to deposit your crypto token successfully in a crypto exchange. Most exchanges have particular wallets and addresses for digital assets on their platform.
Here, all you need to do is Find a ‘deposit,’ ‘sell,’ or “deposit into exchange” button on their platform. Once done, you can also locate your wallets and their accompanying addresses by selecting one of those buttons.
Step II: Verify your wallet address
Some tokens are constructed over different Blockchain networks; ERC-20 tokens are built using the Ethereum Blockchain. Similarly, TET-20 uses the Solana blockchain.
Therefore, before you proceed with the transfer, verify that the wallets you are using are compatible with the transaction you are making. Else, you could risk sending your money to a different address and lose your money forever.
Step III: Transfer your ETH
The third step requires you to transfer your ETH to the wallet. Here, you need to send the necessary amount of Ether from your assets kept in a self-hosted wallet, for example — to your Ethereum address on the exchange. Depending on the specified fees and the volume of activity on the Ethereum blockchain, the length of time needed for the transfer to finalize may change.
Step IV: Sell your tokens on the market
You may decide how much of your Ether you’d like to sell and the currency you want to receive in exchange once it has been confirmed and sent to your exchange wallet. This is possible on most centralized cryptocurrency exchanges using a limit or market order.
A limit sell order publishes the quantity of a cryptocurrency asset you want to sell at a particular price. If the market reaches that price and a buyer accepts the order on the exchange, the order is then filled. On the other hand, a market sell order instructs the trading exchange to sell the specified quantity of an item at the best price.
Note: Normally, the exchange rate is determined automatically using the going market rate, the transaction amount, and other factors. The money (crypto or fiat) will show up in your account when the deal is finished.
Selling Via Peer-To-Peer Exchange
If the first method doesn’t suit you or you’re looking for an alternative to sell your Ethereum, we suggest you try out the peer-to-peer (P2P) method, either in person or online via a platform. As the name suggests, P2P platforms are simple crypto markets where users may post and reply to offers.
These platforms often require sellers to advertise specific crypto assets for sale and information about them, such as the price they want to ask and how they want to be paid. Additionally, escrow capabilities on such platforms typically assist in making the process go more smoothly and safely. In simple terms, an escrow locks up funds in a neutral location throughout a multi-party agreement, generally via a smart contract.
Once the parties involved have met their commitments, the funds are released, and the assets are distributed as necessary. Another option for selling ETH is to a friend or member of the family in person.
Note: Regardless of the approach, confirm and follow any applicable local laws. Furthermore, it is crucial to proceed with prudence while making financial transactions with individuals offline or online.
Withdrawing At Your Nearest Crypto ATM
The final method on our list for selling your Ethereum safely is via a crypto ATM. Thanks to their growing prominence, today, we have hundreds of self-contained terminals worldwide. These ATMs allow crypto investors to convert, buy, or cash out their crypto holdings.
Interestingly, today we also have a few websites like Coin ATM Radar and PayDepot to assist you in finding your nearest crypto ATMs. The website has a vast network of over 1,300 ATM outlets across 31 states. However, we suggest you head towards crypto ATMs only as a last resort. Although it is a quick and straightforward method to convert your ETH to cash, the process can attract hefty fees, ranging from 11-25%, making it one of the most expensive ways to do it.
Takeaway Tips To Consider Before Cashing Out Your Ethereum
There are several ways to turn your Ethereum holdings into cash, all of which help liquidate your savings in dollars. But first, you must understand a few factors before cashing out your savings. They are:
Taxes Involved In The Transaction
Know-your-customer (KYC) protocols are now the standard for most centralized exchanges as cryptocurrency has advanced past its early Wild West days. Whether the transaction takes place on an exchange, P2P, through a crypto ATM, or by putting funds onto a crypto debit card, converting to cryptocurrency results in a taxable event. Besides, it is essential to speak with a tax expert to determine how it impacts local crypto transaction taxes.
Fees Involved In The Transaction
Every platform charges you some fee for converting your ETH to cash since fees are unavoidable in doing business with cryptocurrencies. However, which conversion method you employ should depend on the magnitude of the transaction; for more information on how to convert cryptocurrency with reduced fees, see our in-depth guide on crypto transaction fees.
Beware Of Crypto Scams
It’s crucial to make sure you know and trust the people you’re doing business with, just as with any other financial transaction. Always do due diligence before selling or shipping any quantity of bitcoin, as it may be very challenging to retrieve the stolen money. Since cryptos are still a new concept, many users need more experience and become the ideal target for hackers.
Now You Know!
This brings us to the end of our blog on how you could be selling your Ethereum token. Remember, there are numerous ways to sell your crypto token; however, only some methods are safe. Transact wisely!
