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SELLING CRYPTO CURRENCY
How to Sell Bitcoin and other cryptocurrency through an Exchange.
I want to sell my cryptocurrency such as Bitcoin or Ripple. Where do I go?
Where do I start? Searching the internet, you will find Bitcoin Exchanges such as Binance, Kraken, Coinbase, CoinSquare, and many others. Some crypto Exchanges are known for facilitating successful sell transactions while others not so much. Fulfilling your market need to sell Bitcoin or any other cryptocurrency, you may have settled on selling Bitcoin through an Exchange.
In this case, the first step as the seller is to transfer your cryptocurrency such as BTC or ETH to the directly to the Exchange’s digital wallet. After completing the transfer, you receive a credit with the Exchange, equivalent to the amount of cryptocurrency transferred. With this credit, you are able to create a sell order on the Exchange’s order books, sometimes specifying the price you want, and sometimes having to sell at the price given to you by an Exchange. Exchanges make their money on the buy-sell spread, therefore their sell orders have a downward price push, while buy orders have an upward price pressure.
Exchange will flag your order as “fulfilled” when they found a matching buyer. So far you sold your crypto, but the Exchange has your money and the seller has to request the Exchange to transfer the proceeds of sale to the sellers bank account. This can take weeks to months for an Exchange to complete. Upon receiving cash from Exchange, your selling transaction is complete.
PROS AND CONS OF EXCHANGES
There are pros and cons to selling cryptocurrency through an Exchange. On the positive side, Exchanges are established in the crypto community and marketplace. They have been around for a long time, both from historical perspectives as well as in modern concepts. Exchanges are somewhat regulated and have basic standard processes conforming to regulations of the country in which they operate. Typically it is somewhat easy to sell cryptocurrency through an Exchange, and it is a streamlined process supported by customer service.
On the downside, Exchanges are known to manipulate prices through duplicate or “air” listings. Therefore the price given to you by an Exchange should always be a guideline or a baseline, but never your final price. The inherent economic model of how Exchanges manage buyer deposits and withdrawals, in theory is similar to how a local bank would hold your money. However, the banking industry is centuries ahead of current cryptocurrency Exchanges in areas of governance and financial controls.
Lacking oversight, executive accountability, and most importantly having no consumer protection laws, Exchanges are prone to fraudulent schemes almost always stemming from a malicious tone at the top. The fish always rots at the head. As in a recent Canadian example of failed crypto Exchanges, it is likely for a crypto Exchange to simply pocket your cash and cryptocurrency and get away with it as there are no laws to protect you from such acts. Because Exchanges hold your money centrally, with limited understanding and application of cyber security controls, they are an easy target for hacking, phishing, and data loss schemes organized by professional hackers. Have you ever wondered what would happen to an Exchange if everyone at the same time asked to return their money and crypto currency?
SELLING CRYPTO CURRENCY
How to Sell Bitcoin and other cryptocurrency through an OTC trade desk.
Another way to sell cryptocurrency is through an OTC market such as Circle Trade or an OTC trade desk hosted by a major Exchange such as Kraken, Coinbase, or CoinSquare. Selling Bitcoin or other cryptocurrencies through an OTC trade desk usually involves more significant transactions, some with minimums of $50,000USD and some with minimums of as high as $250,000USD.
OTC trade desks such as Coinsquare or Circle Trade provide services only for Accredited Investors and high net worth individuals. By doing so, they exclude all regular customers and clients who do not have access to hundreds of thousands of dollars.
The typical process for selling cryptocurrency through an OTC trade desk such as Circle Trade, involves the seller contacting the OTC trade desk and requesting a quote on the quantity of cryptocurrency they are selling. A Broker representing the OTC trade desk returns with a phone call or an email and gives the seller a ballpark quote, at which time the seller has to complete their Know Your Client (KYC) onboarding and verify financials and crypto holdings.
Once the KYC is completed, trade desks may allow some movement on the price. The seller negotiates with the Broker to reach the closing price of the cryptocurrency sale. Proceeding to settlement, the seller transfers their cryptocurrency to the OTC trade desk. After confirming the transfer, the OTC trade desk receives payment from the buyer, and moves these funds into sellers bank account, completing the sale transaction.
PROS AND CONS OF OTC
On the positive side, the OTC trade desks work for large transactions. Most of the time, there are some financial controls to mitigate the counterparty default risk. Liquidity scales with the size of the network and supply and demand for crypto.
However, the downside of this OTC process are the lack of price transparency and having the sellers exposed to the principal-agent problem. In every trade situation, the seller is dependent on the mercy of the Broker to quote the selling price of the cryptocurrency. Are you really in control of your next cryptocurrency deal to sell your Bitcoin?
WHY CHOOSE EOG TO SELL YOUR BITCOIN
We offer you a Brand New method and technology to Sell cryptocurrency.
If you are not satisfied with the current market options to buy and sell Bitcoin or other cryptocurrencies, EOG offers you a brand new, incredible solution: the EOG negotiation software.
Our software connects you to the EOG Membership, a private network of cryptocurrency buyers and sellers, and enables the participants of EOG markets to directly negotiate cryptocurrency trades. Using modern disruptive technologies and Real Estate deal concepts, we have taken the foundational concepts of OTC markets and Exchanges to the next level. We are not an Exchange, and we do not have Brokers. We use IT programming code, algorithms, digital robotics, and embedded machine learning to facilitate direct off-exchange OTC negotiations within the EOG market ecosystem. We are researching AI artificial intelligence applications to further streamline and optimize negotiations.
In our world, brokers and intermediaries are EOG members, just like all other individual parties buying and selling cryptocurrency. In our EOG markets, each market participant directly negotiates with another party, not through a broker but one on one, using proprietary EOG negotiation software. EOG members directly and privately negotiate with any party in the entire EOG market ecosystem. We ensure you have transparency and control over your negotiations to get to the price that you want and not the price that is simply given to you by an Exchange or a Broker. EOG negotiation software is a new tool of the titans!
SIGN UP FOR FREE
Sign Up for a FREE account with no commitments! Using your smartphone, enter your name, email, and a password to access our EOG Sandbox OTC workspace in the next 30 seconds. Our sandbox workspace provides a safe and risk free environment to try out our software while the EOG compliance team completes your KYC (know your client) onboarding. EOG applications are MOBILE-FIRST, we do not optimize for tablet or desktop.
We support USD/CAD/GBP/EUR fiat currency, all cryptocurrencies, fiat to crypto and crypto to crypto off-exchange contracts, with NO MINIMUMS and NO UPPER LIMITS. Visit the EOG negotiation software web application directly at https://www.eogotc.app and create your FREE account.