How to Sell on Coinbase
Coinbase is a true crypto veteran, offering its services to traders around the world since 2012. It’s a centralized exchange, or rather a licensed brokerage, that allows you to buy and sell cryptocurrencies directly from the platform.
Coinbase takes great care to provide a safe trading environment for its users which is why for the time being, the platform only supports highly prominent cryptocurrencies like Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ripple. It’s available in 32 countries and allows customers to deposit or withdraw money in fiat currencies. Visit their website to check whether there are any restrictions applied to your place of residence.
The intuitive interface and user-friendly trading features make Coinbase perfect for beginners as well as seasoned traders. You can be a retail trader and still get your way around the platform and complete your orders with ease.
The focus of our guide today is to walk you through the process of selling cryptocurrencies on Coinbase and see for yourself how quick and easy the whole thing is.
How to Set Up Your Coinbase Account
Open the Coinbase website and click on the “Get Started” button in the top right corner of your screen. You’ll be redirected to a page that asks you to provide your first and last name, your email address, create a strong password, check the box that says you’re 18 years of age or older, and agree to comply with the platform’s policies.
Some traders prefer to keep their privacy when transacting with cryptocurrencies so if you’re one of them, we have some bad news. Coinbase wouldn’t accept your account application if you haven’t entered all the information they’ve requested. This includes a scanned copy of a government-issued ID. It can be a regular ID card, a passport, or a driving license.
Another important thing is linking your Coinbase account with an active bank account or credit card. This can be done at a later stage but it’s better to link the two right from the start because you’ll be able to deposit funds much faster.
What’s the difference between linking a bank account and a credit card? Well, if you’re a serious trader, we would advise linking a bank account to access higher transaction tiers of up to $2,500 per week, provided you don’t mind waiting for a couple of days to have your account verified. Otherwise, you can use your credit card, stick to your $200 weekly limit, and be able to sell your coins faster.
The Process Of Selling
On your Coinbase interface, you should see the “Trading” section. Click on the “Sell” button under your target cryptocurrency (in our case that’s Bitcoin), and specify the amount you want to sell.
The next step is to choose between a Sell Order and a Limit Order. For the novices who don’t know the difference, choosing a Sell Order means you’re okay to sell the coins at the prevailing market rate. You don’t have to worry that the price will change in the period between placing your order and getting the money as the platform locks the current price automatically.
The other option is to set a price limit and order Coinbase to find a buyer who’s willing to purchase your coins at your desired price. That’s a Limit Order. These types of orders take longer to complete because sometimes there might be a lack of buyers. This shouldn’t happen if your price is reasonable and if you’re trading on a popular platform such as Coinbase.
In the case of buying cryptocurrencies, the process is pretty much the same. Again, you can choose between a Sell and a Limit Order.
Cashing Out in Coinbase
Cashing out is when you want to convert your cryptocurrencies to fiat currencies and transfer them to the bank account or credit card that you’ve listed as your preferred deposit and withdrawal method.
First, go to the Buy/Sell section and click on “Sell”. You’ll need to insert the amount of fiat cash you want to receive. Based on this amount, Coinbase will calculate the number of Bitcoins that you need to sell and pull them out from your wallet. To finalize the order, press “Sell Bitcoin”. At this point, the platform discloses the applied withdrawal fees and lets you continue or cancel the order.
According to their website, it usually takes 1-5 business days before the funds reflect in your account balance.
Disclaimer: Digital currencies and cryptocurrencies are volatile and can involve a lot of risk. Their prices and performance is very unpredictable and past performance is no guarantee of future performance. Consult a financial advisor or obtain your own advice independent of this site before relying and acting on the information provided.