Table of contents:
- 1 Sell Bitcoin: All Bitcoin sell experience with possibilities, processes and costs
- 1.1 Sell Bitcoin: what reasons investors have
- 1.2 PIONEER WITH CHILDREN’S DISEASES
- 1.3 Sell Bitcoin: Experience with other investments
- 1.4 Sell Bitcoin immediately?
- 1.5 Selling physical Bitcoin: without the technology of the Blockchain it is not possible
- 1.6 KRYPTOBÖRSEN FOR THE BTC-SALE
- 1.7 BITCOIN SALES VIA A CRYPTOMARKETPLACE
- 1.8 Sell Bitcoin: Use PayPal for the proceeds
- 1.9 Selling Bitcoin: Tax depends on the type of transaction
- 1.10 BITCOIN SOLD WITH PROFIT? THIS IS CONSIDERED TRADING WITH “PRIVATE MONEY
- 1.11 WITHHOLDING TAX OF 25 % ON CRYPTO-CFD INCOME
- 1.12 Selling Bitcoin has become less complicated
Sell Bitcoin: All Bitcoin sell experience with possibilities, processes and costs
Ten years after its start the Bitcoin was firmly established as pioneer under the Kryptowährungen and numerous imitators found. The interest in the purchase of Bitcoin is unbroken, the proponents of the BTC regard it as “digital gold”. In trading with other coins and tokens, Bitcoin now has the function of a digital reserve currency on crypto exchanges. Nevertheless, investors may find themselves in the situation of wanting to sell Bitcoin for various reasons. How this happens and which alternative investment strategies are conceivable is explained in the following.
- Selling Bitcoin at a profit
- Bitcoin sell against other crypto currencies
- Exchange Bitcoin against Fiatgeld
- Sell Bitcoin and tax your profits
Sell Bitcoin: what reasons investors have
Bitcoin is the very first digital currency ever – it was created in 2009 as a direct response to the financial crisis. The developer or developers behind the pseudonym Satoshi Nakamoto want to create a user-managed, decentralized currency that cannot be manipulated by financial service providers or institutions. Bitcoin is on the one hand the unit, the virtual “coin”, and on the other hand the entire technology of the block chain. Because crypto money is only possible on the basis of a network of computers on which the Bitcoin client, the software, is installed. All transactions with BTC are added to the Bitcoin’s historical database in data blocks, as ever new, last links in a chain of blocks – the block chain. And it is constantly kept up to date on all computers in the network. So there is no central server or administration. The block chain cannot be manipulated, because this would require access to really all connected computers.
PIONEER WITH CHILDREN’S DISEASES
This is ingenious, but as a “first work” it also has weaknesses in need of improvement. The small block size of only 1 MB soon caused Bitcoin transactions to slow down and become more expensive. The generation of new coins by “mining” (nothing more than the computing power required to process new data blocks) is also a cumbersome and costly matter with Bitcoin. This is why imitators soon appeared with separate, improved block chain concepts, but also with splits from the original Bitcoin, such as Bitcoin Cash. The meanwhile thousands of new crypto currencies are differently successful or interesting from a business point of view. A few reach in popularity to the Bitcoin, even if none reaches its market share of approx. 70%.
Thousands of new coins with partly attractive business model
- Altcoins sometimes offer good options for investors
- Newer coins are technologically more sophisticated
As far as suitability for everyday use as a means of payment is concerned, the “little brother” of the BTC, Bitcoin Cash, with its somewhat larger data blocks of 8 MB, can score points with greater speed. Other coins and tokens come along in an interesting business case – for example Ethereum with its Intelligent Contracts, Ripple as an interface between crypto- and fiat money, or IOTA, which is supposed to act as a token in the Internet of Things. There is still room for improvement for investors – if you want to sell part of your credit to Bitcoin, you can invest in other coins.
Sell Bitcoin: Experience with other investments
However, investing in physically acquired coins has a lot in common with “real” currency trading. For the investment to be successful, the exchange rate of the respective currency must rise. With the volatile Kryptowährungen investors experience however frequently exciting up and valley journeys. A further factor is that the Top Coins, under it also the Bitcoin, are in the meantime quite expensive and the plant binds considerable sums for longer periods. Another way to participate in the price development of the BTC is through so-called derivatives. These include contracts for differences, CFDs for short, but also participation certificates or futures on the Bitcoin and some other successful cryptocoins. With derivatives, the investor does not acquire the underlying asset, but has a share in the price development. Trading is done through a broker or a bank that manages the custody account.
- Sell Bitcoin in favor of derivatives
- BTC trade via certificates, futures or CFDs
- No purchase of Bitcoin required
Especially with flexible CFDs, where you make profits from the price difference between the time of entry and exit, speculation on falling prices is also possible. Moreover, the invested capital can be multiplied by so-called levers, and the profits from trading can be multiplied accordingly. CFDs are therefore also suitable for hedging strategies, i.e. hedging an investment in the respective underlying. Selling Bitcoin and instead Bitcoin Trading with CFDs therefore makes sense for various reasons.
Instead of trading manually, there is the option of using a trading robot such as Bitcoin Trader or Bitcoin Revolution, which promise users good profits. In the Bitcoin Revolution experience and the Bitcoin Trader test, both trading robots show quite positive aspects.
Sell Bitcoin immediately?
In general, rash sales of assets are not a good idea, and it does not matter whether one wants to sell Bitcoin or part with shares, bonds or gold. Almost always investors in a hurry must count on making losses. Who is not under time pressure and would like to sell the Bitcoin, in order to make other investments, should first try to estimate the course development. Straight crypto currencies are considered however as extremely volatile and place even experienced analysts before high requirements. All the same whether one relies on Bitcoin prognoses of experts or wants to sound out even the markets, two procedures come into question: the so-called fundamental analysis, which considers all micro and macroeconomic influences on the development of crypto currencies and Bitcoin, and the technical analysis, which tries to determine on the basis historical course of events in the Chart trends for the near or medium-term future. Both together give nevertheless reference points to it whether it is worthwhile itself to sell some or the entire Bitcoin assets or to wait rather still a while.
Selling physical Bitcoin: without the technology of the Blockchain it is not possible
Those who own Bitcoin already know that the technical requirements must be met for transactions with coins. In addition, one does not necessarily have to install the Bitcoin client and download its enormous block chain. One needs a Wallet however already. In this case, however, the virtual wallet does not accept BTCs but the keys for their administration. It is used for acquisition and administration, but also whoever wants to sell Bitcoin must authorize this with the data in the wallet. This is because the “keys” in the wallet include the public key, i.e. to a certain extent the account number of one’s own Bitcoin account, and the so-called digital signature, which indicates the credit balance, but also a private key, a kind of PIN, without which it is not possible to sell Bitcoin. Wallets of this kind are offered by crypto exchanges and cloud service providers, but even more secure are hardware versions, i.e. USB sticks that can be disconnected from the Internet. Anyone who wants to sell Bitcoin in order to invest in other crypto currencies instead has it easy with a wallet that can hold similar coins. If however Bitcoin is to be sold against euro, must be proceeded differently.
KRYPTOBÖRSEN FOR THE BTC-SALE
Not only buyers can use online offers, where supply and demand are brought together – also who wants to sell Bitcoin will find a contact point here. Bitcoin exchanges are very convenient, because here the seller only has to specify how much he wants to sell and what minimum price he wants. The exchange carries out a search for appropriate purchase requests and handles the sale as soon as a suitable buyer is found. The proceeds go to the user’s account at the exchange, from where they are paid out. However, the convenience is not quite cheap. Both transaction fees and fiat money are paid out to the seller. The payout fees depend on whether a payout is made by credit card or SEPA transfer. The costs incurred naturally reduce the profit from the Bitcoin sale and should therefore be checked in advance.
BITCOIN SALES VIA A CRYPTOMARKETPLACE
More cost-effective is the sale via so-called marketplaces, which are also designed to bring buyers and sellers together. However the use of such a market place is a little more complex, because one must sift even purchase requests, which cover themselves concerning the price with own expectations. Although there is a search function with filters, but a bit of brain power is demanded from the seller here. If a suitable buyer is found, one must take up the contact and initiate the transaction. The advantage of marketplaces is that both parties can agree on individually negotiated conditions and the fees are significantly lower than with crypto exchanges. Since just as with the stock exchanges a registration and verification of the users is necessary, the market place offers beyond that also a protection for buyers and salesmen.
Registration is usually uncomplicated and involves several steps. Personal details, contact details and bank account information are required. In the course of a VideoIdent procedure, a valid identification document must be presented or uploaded. For additional security, most crypto-marketplaces offer their users the option of activating 2-step verification. After that, each transaction is confirmed in two steps, usually by a verification code sent to the cell phone.
Sell Bitcoin: Use PayPal for the proceeds
For a long time, the ability to receive payments for the BTCs sold via PayPal was limited and possibly associated with high costs. Therefore, investors usually chose other payout options. Meanwhile however some crypto stock exchanges offer to make payments from the Wallet led there among other things over PayPal. So the disbursement of proceeds can take place also without additional costs and very much faster than with a bank credit transfer. There are also special platforms for the direct sale of BTC via PayPal. However, one should consider that Bitcoin PayPal usually charges the costs to the payee. However, it is still much more common to use a credit card or a reference account when buying and selling Bitcoin.
Selling Bitcoin: Tax depends on the type of transaction
One thing all investors should consider in the end before selling Bitcoin – the Bitcoin tax. Germany taxes the incomes from the trade with or the speculation on crypto currencies. This however very differently, it is differentiated between the profits from the investment in physical Bitcoins and the proceeds from the trade with financial products such as derivatives. Both are classified differently.
BITCOIN SOLD WITH PROFIT? THIS IS CONSIDERED TRADING WITH “PRIVATE MONEY
Who invested in time and wisely, can make profits in the trade with Bitcoin and Co. The proceeds from this kind of activity are not considered however as incomes from capital assets or speculation. The coins themselves are considered “private” money, and the trade corresponds to the private trade in vintage cars, paintings or antiques in terms of tax law. The final withholding tax is not applicable. All income from the purchase and sale of BTC is considered other income and is tax-free up to a total amount of 600 Euro (on all private sales of the owner per year). The following are regarded as trading with “private” money
- the sale of Bitcoin against fiat currency
- a sale of BTC against another coin
- the purchase of goods or services against BTC, i.e. a “real” sale
WITHHOLDING TAX OF 25 % ON CRYPTO-CFD INCOME
The profits from CFD trading are classified completely differently – the tax law considers this as profit from futures transactions, they are subject to the final withholding tax like many other capital gains. For traders this means: 25% of the profit, plus soli and church tax, if applicable, are to be paid. If you trade through a German broker, you will find that the broker pays the tax immediately. Traders who choose a broker based outside of Germany to trade crypto CFDs will have to take care of taxing their profits themselves.
Selling Bitcoin has become less complicated
Ten years of Bitcoin – and transactions with the crypto currency have become much less complicated. Bitcoin sell or buy, in the first years of the Blockchain a thing for Nerds, became accessible owing to the availability of crypto stock exchanges and market places also the broad mass of the investors. The same applies to further crypto currencies with high market capitalization. As an investment the Coins are increasingly interesting in view of the continuing zero interest rates. Who does not want to deal with the technological background of the block chain, has beyond that the possibility of participating in the course of the price by the trade with financial products. It is conceivable to trade futures or buy Bitcoin certificates, but crypto CFDs are particularly popular, as they allow speculation on falling prices. Here, buying and selling takes place via a broker who gives access to the markets, but traders do not acquire the coin as the underlying asset, but can make profits through price changes. Buying and selling Bitcoin, whether directly or through derivatives, can generate good returns if you have sufficient knowledge of the subject matter, but investors should also take into account the cost of disbursements of sales proceeds and the applicable tax rates.