by Hodler Ash 
Bitcoin is a digital currency that is able to purchase commodities and services digitally. Users also have the liberty to trade Bitcoins just like stocks. Here are some ways to buy and sell Bitcoins.
Steps to Buy Bitcoin
1. Find a Digital Wallet
Digital wallets are a safe place to store your bitcoin until you are prepared to spend it or trade it. Wallets diversify themselves in features, platforms they are compatible with, and level of security.
For anyone who is not familiar with how bitcoin trading works can use the wallet that is provided with the exchange you choose. However, due to overwhelming traffic most of the time it is difficult to get ready access to the crypto-exchange sites. It is always better to have a separate wallet.
2. Choose an Exchange
The best method to buy Bitcoin is through an exchange. The exchange platforms vary on different grounds. Some might have weak security, some might have limitations, so it is important to choose the right exchange.
Any exchange asks you to provide verified forms of identification to sign up. For security reasons, you will be asked to do a 2-step verification with your phone.
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Another method to purchase Bitcoins is through peer-to-peer services. This is a direct route as you are connected to a seller directly without any exchange medium. You also get more extensive payment options.
3. Choose your Payment method
Exchanges offer a wide variety of payment methods. They allow bank accounts, debit cards, credit cards, and also wireless transfers. Recently, they have also introduced Paypal as a payment option for buying bitcoin. Any one of the payment modes must be linked to your account in order to process any trade.
If you want to use cash to purchase the coins, Bitcoin ATMs are your way to go. It allows using cash or debit card to purchase. Some ATMs also enable you to sell bitcoins for cash.
4. Buy Bitcoins
An exchange platform comes with listings of how many bitcoins or what part of a bitcoin you can buy with a certain amount of money. Bitcoins are infamous for their volatile nature. Hence, there are high chances that even if you have a lot of money to spend, you can only buy a fraction of a bitcoin. There is no harm with that.
You need to enter the amount of Bitcoin you are willing to purchase, then click the “Buy” button. Your Bitcoin is temporarily stored in the wallet connected to your exchange. You can later seek the option to transfer it to your personal bitcoin wallet.
5. Use your Bitcoins
You are ready to use your Bitcoin for purchasing goods or services. Another option is to save it in your wallet till the price increases and then sell it.
How to Sell Bitcoin?
1. Set up an Exchange account
Using an exchange platform is an automated way to sell your Bitcoin in return for hard cash. It acts as a middleman who connects you with a buyer. You need to sign up for an exchange account and provide the mentioned IDs. Link your bank account so that whenever you sell, the cash is transferred directly to your bank.
2. Transfer Bitcoin to Exchange Wallet
If your Bitcoin is stored in a wallet, you are required to transfer it back to the exchange wallet. Your wallet should stay connected to the exchange platform.
3. Sell
After your bitcoins are transferred to the exchange platform and the bank is connected, you can select “Sell” from the menu. You will be asked to choose your preferred currency, where you want the money to be deposited, and also the amount you want to sell. There is a short holding period after the sale. You can sell as much as you want to during this period but the money transactions will only take place after the holding period is over.
Where to Sell Bitcoin?
The best place to sell Bitcoin through a trusted process is an exchange platform. They help you match with clients who are ready to pay your price.
Direct trading is another method that allows you to connect and trade with the buyer directly.
Online peer-to-peer trading is a marketplace where people do not directly exchange funds. People who are interested to use their credit cards to buy Bitcoin and people who want to buy goods with digital currencies are connected with each other. The former gets a chance to buy Bitcoins with their fiat currency and the latter can buy discounted goods.
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Bitcoin ATMs are not completely up and running yet but it’s a convenient way to sell bitcoin in exchange for cash.
There are certain methods that allow you to buy and sell Bitcoins anonymously. It is better to use such platforms only after you have experience in Bitcoin dealings. The factors which you should look out for while choosing an exchange to buy and sell Bitcoin are customer reviews, history, a fee of transactions, and the speed. The platform should make it easier for you to exchange bitcoins while maintaining a minimum fee.
