How Do I Sell Ethereum (ETH)?
The Ethereum network is foundationally different from the Bitcoin network. Ether (ETH) is not intended to be used purely as a digital currency or store of value, like bitcoin (BTC) is. Essentially, it used to make the entire Ethereum ecosystem work. We assume you already know how to buy Ethereum, but if not, you should probably start there before trying to sell!
Ethereum is a major technological project and the advance of the Ethereum blockchain supporting the network could well push up its price over the coming months. In this context, how can you recover the money you have invested into the Ethereum network?
This is the whole purpose of our guide, which aims to introduce you to the different ways of selling Ethereum. Join us as we show you the way forward for each of the options available on some of the most reputable platforms.
Option 1: Sell Ethereum on an exchange platform
Exchange platforms are essential for selling and buying cryptocurrencies. As Ethereum is the second largest cryptocurrency by market capitalisation, it is very easy to find crypto exchange platforms that offer the purchase and sale of it.
The sales process is quite similar to the buying process:
Step 1: Choose a platform and sign up.
First, you will need to register on an exchange platform that allows you to sell Ethereum.
Look at the various withdrawal fees:
If you want to sell your ether, it is important to choose the right exchange platform to carry out the transaction. Your choice may be influenced by ease of use, currencies supported, or reputation, but you also have to consider the fees charged, as they vary across each platform:
· Coinbase: Faster payments: free, bank transfers: €0.15.
· Kraken: £1.95 with a minimum withdrawal of £100.
· Gemini: free of charge up to 30 transfers per month.
· Bitfinex: 0.1% of the amount withdrawn, with a minimum $60.00. 1% for an express transfer.
· CEX. IO: £25 + 0.3% for a bank transfer, free for faster payments.
· eToro: Free, but there are minimum amounts.
NB: This list is not exhaustive, and may be out of date by the time you’re reading it. Please DYOR and choose the ideal platform for your needs!
Step 2: Check your identity
When signing up, you will be asked to verify your identity and provide your date of birth, country of residence, telephone number, and identification. Today, these identity verification procedures are widespread and common, so although they seem restrictive, they ensure your safety and that of the exchange platform.
Step 3: Link your bank account
Provide your bank account details so that the platform can verify them ready for making your withdrawal in GBP.
Step 4: Place a sell order
Once you are registered and your identity and bank details are verified, you can then sell yout ether for pounds, another any other fiat currency or even for other cryptocurrencies. All you have to do is set how much you want to sell and select the currency you want to be paid in. Be careful to double check that your platform of choice offers the possibility of converting your ether directly into pounds at a good exchange rate, otherwise you may be losing out!
Step 5: Complete the transaction and withdraw your funds
Once the transaction is complete, the funds, regardless of the currency or cryptocurrency, will appear on your platform/exchange account. If you have chosen to sell your ETH for one of the traditional fiat currencies, you will then have the option to withdraw the funds to your bank account. This is usually done by bank transfer, and will take between three and four days for the money to clear and show up in your bank account. Depending on the platform you use, it may also be possible to withdraw your funds more quickly through faster payments. Payout in this case will be near instant!
How to sell ETH on Coinbase
Coinbase is one of the easiest platforms to use. It will take you no time at all to sell your ETH and transfer out the currency you exchanged them for.
1. Sign up for Coinbase by providing your first name, surname and email address. Choose a password and your account will be created. Check through the legal documents, then, enter the code sent to you by email to activate your account.
2. Check your identity, once again this identification is very simple because several options are available to you, you can take pictures of the documents directly via your webcam or upload photos of the documents. Just a few more minutes, and you will be verified and well on your way to selling your ETH.
3. Provide your bank details.
4. Sell your ether by clicking on the “Buy/Sell” button in the top-right, and then click the “Sell” tab. All you have to do is select your Ethereum portfolio and indicate which other currency or cryptocurrency you want to convert your Ethereum into.
5. Withdraw your funds: once the transaction has been validated you can withdraw your funds in GBP to your bank account.
Option 2: Sell Ethereum to an individual on a platform
If you want to deal with a real buyer in order to sell your ether, this is possible via the exchange site LocalEthereum. This completely decentralised site, unlike traditional centralised exchange platforms, lets you manage all the aspects of the transaction between buyer and seller.
Once the details are settled, your ether are transferred to the buyer’s portfolio and the money will be automatically paid into your account, all managed by smart contracts that automate and improve the speed of transactions.
LocalEthereum functions as a market in which users can place sales offers and buyers can respond to them. When selling on the platform, you will usually be charged a 0.25% fee. The site also offers a messaging service, which allows users to exchange and negotiate.
In order to meet individuals who would be potentially interested in buying your ether, you can also consult the various Ethereum communities or events organised by the Ethereum project. There are even events that aim to bring together sellers and buyers.
However, if you opt for this type of online transaction, remember to be careful and check that the buyer has the funds available. You don’t want any nasty surprises or to waste too much of your time in long negotiations. Use the Ethereum price to offer your selling price and avoid any problems. The LocalEthereum website also allows buyers and sellers to be noted. Make sure you build a good reputation and check the reputation of buyers before making a transaction.
How to sell ethereum on the LocalEthereum platform
In practical terms, how does it work to sell your ETHon the LocalEthereum platform?
1. Sign up by providing your personal information or by connecting your Ethereum wallet directly.
2. Look at Ethereum’s sales market to set a market-like price.
3. Place your offer, indicate how much ether you are selling and at what price.
4. Get in touch with a buyer interested in your offer.
5. Validate the transaction and receive your funds.
6. Transfer funds to your bank account, credit card, PayPal account, or even withdraw cash via a Western Union or MoneyGram account.
Don’t forget to read the regulations
HMRC views the buying and selling of crypto assets by an individual as investment activity. Therefore, individuals will typically have to pay Capital Gains Tax on any gains they dispose of/realise (translated from legalese – by selling your ETH!).
You do not have to pay Capital Gains Tax if all your gains in a year are under your tax-free allowance, and while crypto assets are digital and therefore intangible, they still count as a ‘chargeable asset’ for Capital Gains Tax. So, if you are making more money than this, please read up on the legislation and don’t fall foul of tax evasion!
What to remember when selling Ethereum
The easiest way to sell ETH seems to be through Coinbase. All the same, find out more about the various platforms on the market, including transaction fees and ease of use. Also make sure that your chosen platform allows for an exchange of ether into pounds, and then that it is possible to simply and cheaply make a withdrawal of funds. As we have seen with Option 2, it is also possible to make in-person sales and be paid in cash or via a PayPal account. If you don’t have any Ethereum for sale yet, check out our guide: How to buy Ethereum? to find out more.
Just your average global millennial embracing, and interested in, the future of money and finance. Excited by blockchain tech as well as fintech but have a special passion for DeFi and Yield Farming, what will this technological disruption bring next?
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.