By Josiah Wilmoth
Many investors desire to add cryptocurrencies and tokens to their investment portfolios, but they are concerned about being able to sell them when they are ready to liquidate their positions.
Strategic Coin wants investors to be able to navigate the crypto finance industry with confidence, which is why they provide the research and educational materials investors need to take advantage of market opportunities as they arise. Below, this article explains how to sell your crypto coins and tokens when you are ready to liquidate your investments:
Transfer Your Balance to an Exchange
When you are ready to sell your coins or tokens, the first step is to transfer your balance to a cryptocurrency exchange with a liquid market for your chosen trading pair. Popular exchanges that offer liquid markets and include support for tokens include Bittrex, Kraken, Bitfinex, and Poloniex. For large withdrawals, you may have to verify your identity to comply with financial services regulations, so it’s wise to set up your account ahead of time to prevent delays.
As with all cryptocurrency transactions, it is important to verify that you are sending your tokens the correct address since there is no way to reclaim balances sent to the wrong address. The best way to do this is to send a small transaction and verify that it arrives before transferring the rest of your balance.
Trade for BTC, ETH or USD
Now that your holdings are on an exchange, you can trade them for another currency. If you are unfamiliar with order-book exchanges, it would be wise to consult an investment professional to assist you with the transaction.
Bitcoin (BTC), Ethereum (ETH), and a few of the more-established altcoins can be traded directly for USD. However, most altcoins and tokens do not have USD trading pairs, so you will most likely have to trade your tokens for BTC or ETH and then swap those coins for USD. If the exchange offers USD withdrawals, you can initiate a wire transfer to send the money to your bank account.
However, depending on the exchange–as well as your local regulations–you may not be able to withdraw USD from a token exchange. If this is the case, you should trade your tokens for BTC or ETH and then transfer them to Coinbase. Here, you can sell your coins for USD and then transfer the balance to your bank.
Strategic Coin is your go-to source for cryptocurrency investment research and education. Whether you need help understanding the basics of blockchain technology or desire to read an in-depth analysis of the latest initial coin offering, Strategic Coin will provide you with the information and resources you need to understand the crypto finance industry.