Bitcoin users will be pleased to know that just about all of the methods used to buy Bitcoin provides a selling option too.
However, there is one exception – Bitcoin ATMs. Keep in mind, though, that some Bitcoin ATMs do let you exchange Bitcoin for cash. Not sure where to find your nearest Bitcoin ATM based on location? Coinatmradar will take you straight there.
What kind of investor are you?
All kinds of exchanges let you sell as well as buy. The kind of exchange that you go with to sell your Bitcoin will be dependent on the kind of investor you are. For instance, are you a trader, small investor or an institutional holder?
Selling Bitcoin as a retail client
If you are a retail client, you can use exchanges like CoinSpot, Coinbase, Independent Reserve, and BTC markets to sell Bitcoin. Some of these provide secure storage and other related services with less formal regulations, while others need verified identification for all trades. In general, we highly recommend CoinSpot – the best Australia-based crypto exchange with competitive trading fees and top-notch services. You can read our CoinSpot product review to know more about this exchange.
Note: Be sure to nominate any profit you make after a sale by informing your relevant tax authority.
Trading Bitcoin for other crypto assets
You can trade your Bitcoin for other forms of crypto assets, instead of cash. Australia’s biggest exchange CoinSpot, for example, is an exchange that delivers this service to users. This means you can choose to swap your Bitcoin for XRP, Doge, Litecoin, Ethereum and a number of other currencies.
Direct sales
Direct sale is another option to consider. Basically, you can sign up as a seller on a specific platform, which may include LocalBitcoins and LocalCryptos. Here, other people or organisations will get in touch if they are interested in your listed price. Such transactions involve wires to your bank account or deposits. Following this, the specified amount of Bitcoin needs to be transferred to the listed address.
Finally, you can always work with friends or family to sell your Bitcoin directly to them, if they have a Bitcoin wallet ready to go. This requires you to simply send the Bitcoin, and then wait to receive the payment in cash or bank transfer. Remember to always be safe when selling Bitcoin in person.
When should I sell my bitcoin?
When is an appropriate time to sell bitcoin? The answer is simple enough to comprehend but challenging to implement. There is no ideal moment to sell. It depends on your circumstances, objectives, knowledge, and experience.
Investors generally believe that investment success depends less on “timing the market” and more on “time in the market.” The same holds true for Bitcoin.
Are there individuals who precisely gauge the market and sell at the peak? Sure, but they are the exception. If you intend to trade Bitcoin, you should know that the likelihood of predicting its peak is low. In this case, dollar cost averaging (DCA) in reverse seems a preferable strategy – selling small amounts of Bitcoin regardless of price over a while to reduce volatility and the possibility of selling at the lowest.
Since it ultimately depends on individual circumstances, the more pertinent question is when not to sell bitcoin. You never want to be a forced vendor who has borrowed money and must sell swiftly depreciating collateral.
There is no particular period optimal for selling Bitcoin. Sometimes it is oversold and sometimes overbought (overpriced versus undervalued). People trade at all prices 24/7, which can rise or fall anytime.
What to consider before selling BTC?
Transaction fees: When selling bitcoin, consider trading fees. The fees on the exchange where you got your bitcoin may have altered. The Bitcoin network (not your company) charges a mining fee when moving bitcoin. Some exchanges give zero-fee trading promos to increase traffic and liquidity, especially when the bitcoin price is sideways and volatility is low. However, sending your bitcoin to a cheaper exchange is advisable if the fees are too high. Check the service provider’s terms before moving fiat money to your bank account.
Privacy: When selling bitcoin, your privacy may be compromised. You need to use peer-to-peer cash-in-hand transactions or soft-to-no KYC services to ensure your bitcoin sale is tracked. Consider whether it is worthwhile to expose your data for convenience or whether making the additional effort to investigate other options could provide you with greater peace of mind regarding your data.
Withdrawal limits: At all times, withdrawal limits must be considered. You may have to pay a substantial fee if your sales exceed the service provider’s daily or monthly limit. High trading volumes and withdrawal amounts will require more stringent KYC procedures. You can sell for cash or withdraw the funds to your bank account and stablecoins. In this situation, secure your funds and transmit them to your digital wallet, possibly an offline-secure cold storage wallet.
Taxes: You must pay attention to taxes, as they are likely to be owed when you sell bitcoin unless you reside in an exceedingly Bitcoin-friendly jurisdiction. In Australia, you must pay Capital Gains Tax (CGT) if you profit from selling Bitcoin. If you sell your Bitcoin within a year of acquiring it, you must pay twice as much CGT as if you held it for over a year. This should be considered when deciding when to sell.
Where to sell BTC in Australia?
When you have the private keys to your Bitcoins, you can deposit the coins to any crypto exchange or CFD provider. If your digital currency is stored in an external wallet, send the Bitcoin address to the crypto exchange. Below are some of the best crypto exchanges to sell bitcoin in Australia.
CoinSpot
Since 2013, CoinSpot has operated as an Australian cryptocurrency exchange with over 380 kinds of cryptocurrencies supported. It is the only exchange to be awarded the ISO 27001 certification for information security. To learn more about CoinSpot, you can read our detailed CoinSpot Review.
Pros
- Only AUSTRAC-regulated and ISO-certified exchange in Australia
- Support over 380 coins, more than any Australian exchanges
- Many deposit options, including POLi, BPAY, PayID, and cash via BlueShyft
- Simple-to-use staking feature that requires NO LOCK-IN periods
- OTC features larger trades for a low 0.1% fee with no extra fees
- 24/7 live chart with the professional specialist local support team
Cons
- Users can only deposit and withdraw in AUD (despite reasonable fees)
- No advanced trading markets, such as derivatives and margin trading
- Some deposit limits apply if your accounts haven’t been fully verified
Binance
Binance was founded in 2017 and rapidly became one of the world’s largest cryptocurrency exchanges. Advanced users prefer this platform due to its extensive selection of crypto-derivative instruments.
Pros
- A wide range of more than 500 digital assets supported
- Reasonable trading fees with a VIP trading service for even lower fees
- Advanced trading options include spot trading P2P, margin, and future trading
- Many deposit methods are supported, including credit and debit cards
- 0.1% trading fee, staking discounts, and minimal slippage
Cons
- Difficult to navigate and use for novice investors and traders
- The customer support is sluggish, and no live chat is available
- Security concern, as Binance suffered a severe cyberattack in 2019
Digital Surge
Digital Surge was founded in 2017 and is renowned for its aesthetically pleasing and user-friendly interface. However, customers frequently gripe about its lack of efficacy, particularly with the mobile phone version: blank wallet registers, limited charting capabilities, etc.
Pros
- Support over 300 cryptocurrencies, including BTC, ETH, LTC, ADA
- Easy-to-use and intuitive web interface that betters user experience
- A transparent tiered fee model based on rolling 30-day trade volume
- Sign-up and verification processes are quick with the use of RapidID
- Advanced features include recurring orders, price notifications, trigger orders, etc.
Cons
- Limited payment options as you can’t deposit via credit cards
- No ISO 27001 certification, so not the best level of security
- Poor customer support with a very slow responses time
How to sell Bitcoin in Australia?
Step 1: Compare crypto exchanges
Your first stage is to select a trustworthy and user-friendly exchange with a solid reputation. Choosing any of the best crypto exchanges in Australia is advisable, as they are all legitimate and permit Bitcoin to Australian Dollar sales. This guide will demonstrate how to sell Bitcoin using screenshots from the CoinSpot account.
You can check the best mobile crypto applications if you intend to sell Bitcoin using your mobile device.
Step 2: Register an account
The process of creating an account with CoinSpot is simple. When you click on https://coinspot.com.au, you will be redirected to CoinSpot’s homepage. When you click the white “Register” icon in the upper right, a page similar to the one below will appear. Input your email address, select a password, check the box to verify that you are not a robot, and click Create Account.
Step 3: Verify your account
Once your CoinSpot account has been created, the next step is to complete verification. Click “Complete Verification” and follow the on-screen instructions. You must validate your email address, fill out your personal information, and authenticate your driver’s license. Afterwards, your verification may take some time to complete. While you wait, explore CoinSpot’s account to familiarise yourself with its operation.
Step 4: Send BTC to your account
Now you can deposit Bitcoin to your CoinSpot account. Select Wallets along the top menu, then select Open BTC wallet next to Bitcoin. When you click Receive on the left, your Bitcoin address will be displayed as a string of characters. You can also select ‘Show QR code’ to display the code for scanning with a mobile device.
You must now navigate to where your Bitcoin is stored (e.g., another cryptocurrency exchange, a wallet program, or a hardware wallet) and select the Send Bitcoin option. Copy and paste the Bitcoin address, or scan the QR code if you’re using a smartphone app. Ensure that the address is valid before initiating the transfer.
After sending the Bitcoin, there may be a delay before it appears in your CoinSpot account. Depending on the network’s activity, it could take as few minutes or as long as an hour. Typically, you will receive your Bitcoin in 10 to 20 minutes. You can determine if your Bitcoin has arrived by viewing the balance of your CoinSpot wallet.
Step 5: Sell your Bitcoin (BTC)
Once your Bitcoin has been deposited into your CoinSpot account, you can view it on the Wallets page. Next to Bitcoin, the balance and approximate value in Australian Dollars will be displayed. Click on “Open BTC Wallet” followed by “Sell.”
You will see an interface similar to the one below, which displays the current Bitcoin price. You can enter the amount of Bitcoin you wish to sell. You can also select “Change to AUD” to enter the quantity you want to sell in Australian dollars. Click the blue Sell button when you are set.
A pop-up will display the quantity of BTC you are selling, your fee, and the Australian dollars you will receive. Click the “Confirm Sell” icon once you’ve confirmed that the details are accurate. You have successfully converted your BTC to AUD.
Step 6: Send AUD into your bank account
Now that you have effectively sold your Bitcoin, you must withdraw the funds from CoinSpot and deposit them into your bank account. (unless you wanted to use it to buy another cryptocurrency). You must enter your banking information first. select the arrow next to the profile indicator in the upper-right corner, then select “Bank Details.” Click Save after entering your banking information.
Next, click the navigation arrow again next to the profile icon, then select “Withdraw AUD.”
You’ll be taken to a screen where you must enter the quantity you want to withdraw and validate that your bank account details are correct. Click the “Withdraw Funds” icon when you are ready to finalise the withdrawal.
Frequently Asked Questions
Is selling Bitcoin legal in Australia?
In Australia, cryptocurrencies are legal to buy and sell but essentially unregulated. Numerous crypto-assets and other digital assets are typically not considered financial products, so the Australian Securities and Investments Commission (ASIC) may not regulate the platforms where you can trade crypto.
Is selling Bitcoin in Australia safe?
Yes. Selling, purchasing, and trading Bitcoin in Australia is secure if you use a legitimate and reputable cryptocurrency exchange. The best cryptocurrency exchanges, such as CoinSpot, offer multi-layered security and are registered with AUSTRAC, allowing you to sell confidently.
Do I have to pay tax on Bitcoin sales?
Australians who sell Bitcoin will be required to pay tax on their profits. The ATO categorises Bitcoin and other cryptocurrencies as assets, not currencies; therefore, you must pay Capital Gains Tax when selling. Thus, you should consult a tax professional or accountant before selling your Bitcoin. You can also use Crypto Tax Calculator to estimate the tax you must pay on your cryptocurrency holdings.
How to sell Bitcoin in Australia instantly?
If you wish to sell Bitcoin promptly, the quickest method is to use the Australian exchange Easy Crypto Australia. You do not need to transmit your Bitcoin to your exchange before you can sell it using Easy Crypto Australia. Instead, when you sell your BTC, you send it directly to the supplied wallet address and input your bank account information. Easy Crypto Australia is non-custodial and never stores your fiat or cryptocurrency funds. You always have complete control over all of your assets.
