How To Sell On Coinbase
What is Coinbase?
Coinbase is a centralized asset exchange company that deals primarily in trading of cryptocurrencies. It acts as a middleman of sorts, providing a platform where traders can buy and sell all kinds of digital currency. The platform has already served over $50 billion worth of transactions to date and has more than 10 million customers in its roster.
At the moment, you can trade major coins like Bitcoin, Litecoin, Bitcoin Cash, and Ethereum with fiat money from 32 countries. You can also facilitate Bitcoin transactions in some selected territories.
The Coinbase platform is a fantastic way to get into cryptocurrency trading in a more accessible, less technical way. You don’t need to know any of the technologies and technicalities, such as blockchain, to successfully become a crypto trader. Coinbase does all the legwork for you, including providing a digital wallet and verifying transactions.
It’s as easy as setting up an account, then just buying and selling. It’s an interface that any investor should be familiar with
However, this also means that you lose the most significant advantage of using cryptocurrency – anonymity. As a Coinbase user, your identity is your real name and real-world bank account. In essence, you’re putting your entire trust on Coinbase to do transactions on your behalf.
But if you don’t care about any of that and just want to deep dive into cryptocurrency investing right away, Coinbase is your best bet to do that.
How to Setup your Coinbase Account
The first step with using Coinbase is to register an account with them, which requires all of your personal information. Then you must link either your active bank account or credit card with them. You can do this later on, but Coinbase recommends doing it right away to make transferring funds from then on as smooth as possible.
Linking your bank account allows you to have higher transaction limits (up to $2,500/week), but it takes an additional two to four days to verify. Using a credit card allows for significantly lower limits (just $200/week), but you can cash out faster.
Aside from this, you must comply with “Know Your Customer” rules by sending a valid identification, such as an I.D. or passport. The exact requirements vary from country to country.
You can also upgrade to Coinbase Pro for added control.
Once you have your account set up, you need to infuse your wallet with funds or send your Bitcoins to it. After that, you can begin trading.
How to Sell on Coinbase
To begin, navigate to the Trading section of your Coinbase or Coinbase Pro interface. If you’re selling your Bitcoin, select “Sell” under the Order Form. Otherwise, choose “Buy.”
To sell, input the amount of Bitcoin (or any cryptocurrency) you want to sell. You now have the two options – you can either do a Sell Order or a Limit Order.
A sell order sells your Bitcoin at the prevailing market rate. The great thing about Coinbase is that this price locks in, regardless if it changes in between placing the order and receiving the actual currencies in your account.
Placing a Limit Order is for selling cryptocurrency at your desired price, or better. So you need to specify this price limit before executing the order.
Either way, once you place the order, that’s it. Coinbase will then automatically find a buyer for your cryptocurrency, and transfer the funds to your account once the sale finishes. The time this takes will vary but shouldn’t take too long, especially if your prices are reasonable. Selling at market rates is the fastest way to trade.
Buying follows roughly the same process, just the reverse.
Cashing Out in Coinbase
To cash out means converting your Bitcoin into fiat currency, which you can then send to your linked account for withdrawal.
To cash out, go to your wallet in the Coinbase interface, and select the Buy/Sell section. Go to the Sell tab. Here, you can input how much fiat currency (say, U.S. dollars) you would like to get. Coinbase will then calculate if you have enough Bitcoin in your wallet to satisfy this sale.
Then click on “Sell Bitcoin” to start executing the sale. You’ll see the corresponding fees for the transaction. If you’re OK with it, confirm the deal to continue.
It will take the system a few days to sell your Bitcoin for cash. Once done, your funds should appear in your bank account.