Whether you’ve earned Ether from mining or bought from an exchange, a time may come when you’ll need to sell some or all your holdings. At present, Ethereum is the second-largest cryptocurrency in the world, with a market cap of $23,886,890,107, and is trading at $222.78. You can sell Ethereum for fiat currency, for instance, US dollars (USD), or use it to buy another digital currency.
The easiest and cheapest method to sell Ethereum is through an exchange with an ETH/USD pair. In this guide, we will go through the process of selling Ethereum on an exchange for fiat currency and for digital currency.
Selling Ethereum For Fiat Currency
Selling ETH for fiat currency is generally quicker and more convenient, particularly if you’re a new trader. That said, let’s go through a step-by-step process to sell Ethereum tokens for fiat currency.
Step 1: Register On An Exchange That Lists ETH/USD
After selecting a suitable exchange, sign up for an account on the exchange and provide your email address and password. Some exchanges ask for your full personal details and proof of ID to satisfy the KYC and AML regulations.
Additionally, enable the 2-factor authentication on your new account before moving to the next step.
Step 2: Deposit ETH into your new account
The next thing is transferring your ETH holdings into your exchange wallet. First, log in your account. Find your ETH address, and use the address to transfer tokens from your external wallet.
For instance, if you’ve opened a Coinbase account, click on the Wallets tab at the top of the exchange and select Ethereum wallet. Click Generate Deposit Address, after which you’ll be provided an address that you can transfer ETH.
Step 3: Sell ETH
After receiving ETH into your account, navigate to the exchange’s trading page, and select your desired currency pair. Enter the amount of ETH you intend to sell and place your order.
For instance, on your Coinbase account, click Sell and select the wallet you want to transfer ETH from. Click Sell ETH and enter the amount of ETH you intend to sell in the space provided. From here, select the currency you want to sell your ETH for.
In all these exchanges, ensure you confirm the transaction details before completing this action.
Step 4: Withdraw USD
The final step is withdrawing the amount you’ve received and deposited it into your bank account. This is an easy process, but ensure you know the fess you’ll be charged before completing this action.
Sell Ethereum For Cryptocurrency
Step 1: Register on an exchange that lists ETH
If you intend to sell ETH on the same exchange where you bought it, skip to the second step.
If you want to sell on a new exchange, you should consider certain factors before settling on an exchange that’s right for your needs. The good news is that Ethereum is the second-largest cryptocurrency, thus traded in almost all exchanges.
After selecting a suitable exchange, register an account by providing your email address and creating a password. As stated above, some exchanges will require your details and proof of ID in line with the KYC/AML regulations.
Again, ensure you enable the 2-FA features for additional security.
Step 2: Deposit ETH into the account
Transfer the amount of ETH you want to sell from your external wallet into your account. Use the ETH address of your wallet and then transfer ETH to the exchange using the address.
For instance, if you’re selling ETH on Binance, select Deposit from the Funds drop-down menu. Then select ETH as your deposit currency and scan the QR code.
Step 3: Sell Ethereum
After receiving the tokens on your exchange account, click through the trading section of your exchange. Select the pair that you want to trade, such as ETH/BTC and enter the amount of ETH you want to sell.
For instance, click Exchange on Binance, and select either Basic or Advanced trading view. Search for the pair you want to trade in the box provided on the right side of the screen, and select the order. Click Sell ETH.
Again, ensure you confirm all details before moving forward.
Step 4: Transfer Your New Cryptocurrency To A Secure Wallet
After purchasing a new coin, you should keep in mind that storing your crypto on an exchange for too long is not recommended. For enhanced security, transfer your coins to a private wallet that allows you to retain your private key.
For instance, on Binance, you can transfer the digital currency to a secure wallet by clicking on Withdrawals link from the Funds drop-down menu. Select the digital currency you want to transfer from your exchange and enter the withdrawal amount and address.
What To Consider Before Selling Your ETH
Before selling your ETH, remember that there are some risks involved. Additionally, cryptocurrencies are volatile. As such, conduct due diligence before making this decision.
The factors you should consider include, the trading fees on the exchange, the withdrawal fees and methods, the transaction limits, the type of platform to use, ID verification required and customer support of the exchange.
These are vital factors since they determine the ease with which you sell your ETH. Look at the number of fees charged by the exchange you intend to sell your ETH on. Some exchanges are quite expensive, while others a cheap. Additionally, others are user-friendly and have a good customer support service, while others are difficult to navigate, especially for beginners and have poor customers support.
Moreover, consider the personal details you are willing to give out before selecting a suitable exchange for your needs. Some exchanges ask for your details and ID, while some do not require any personal identification, which is suitable for those who intend to maintain their privacy.
Also, others may take time to verify your details, and given the volatility of cryptocurrencies, this may not be suitable for a trader looking to sell their coin ASAP.
Therefore, it’s vital to consider these factors before selecting a suitable exchange.
Selling your ETH is an easy process for both experienced and new traders. All you need is to register on a suitable exchange and place your order. You can choose to sell your ETH for fiat currency or another cryptocurrency, this choice depends on your needs. However, before choosing a suitable exchange to sell your ETH, consider factors such as trading fees, withdrawal method, customer support, ID verification, and transaction limits. These factors determine how smooth the selling process will be for you.