0

I'm looking to sell bitcoin from a paper wallet into fiat.

So far my research is suggesting that a good way of doing this may be to transfer the paper wallet to LocalBitcoins wallet and sell from there. As I understand it, this incurs a fee to bring into the LocalBitcoins wallet, and then a fee to sell. In order to get the paper wallet BTC into the LocalBitcoins account, I would surely have to import the paper wallet into a software wallet first in order to transfer them to LocalBitcoin.

This means it would be something like:

Paper Wallet > Software Wallet > LocalBitcoin Wallet > Sell on LocalBitcoin

The above seems quite convoluted. I don't mind convoluted if it saves on money and is relatively secure. But it would be good to get some advice on either reducing the number of steps in this process or an improved method of selling from a paper wallet. Note that I want to spend all of the BTC in the paper wallet (which is a fraction of a BTC) so the software wallet does not need to be trusted beyond the importing/spending part of the process.

Also, if I must do the software wallet first, would be good to get recommendations on good software wallets. I assume I can spend bitcoins from a software wallet that I have "imported" my paper wallet into rather than "sweeped"?

I'm using the term "software wallet" to include online hosted wallets and local computer wallets alike here. But will play close attention to any advice given on this.

I also have a Bitcoin.com account, if that's any use.

Improve this question
2
  • Make sure you understand how change addresses work before spending from your paper wallet!
    – chytrik
    Commented Jan 11, 2021 at 1:35
  • As I said, I will be spending the whole of the BTC.
    – shennan
    Commented Jan 11, 2021 at 6:01

1 Answer 1

Reset to default
1

Since the LocalBitcoin wallet doesn't have a private key import function, you can't shorten the number of steps.

You can use Electrum, it's very popular and it has both "import" and "sweep" functions. If you don't want to trust it (I do trust it, unless the computer has malware) you can use it on an airgapped computer.

That's all you need to know, good luck!

Improve this answer
3
  • Thanks for the info. Do you consider the route I've chosen a good one for selling from a paper wallet? Or would you go with an exchange like Blockchain to sell (i.e paper > Blockchain.com > Sell)?
    – shennan
    Commented Jan 10, 2021 at 10:21
  • There is no difference. However I would definitely use a wallet that has "import private key" function rather than "sweep" (I don't know if Blockchain.com has "import") to avoid paying transaction fees twice.
    – MCCCS
    Commented Jan 10, 2021 at 10:27
  • 1
    Thanks again; for anyone wondering if a better route might be paper > Blockchain.com > Sell, it seems that this page suggests BTC wallets imported will be "non-custodial" and therefore unable to be sold on their trading network.
    – shennan
    Commented Jan 10, 2021 at 10:56

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.