Hopefully you've made your millions and are looking to retire, or maybe you just need the spare cash.
Either way, the easiest way for most people of people to sell their Bitcoin is through a recognised cryptocurrency exchange.
In this guide we're going to focus on selling Bitcoin via an exchange, but if you're looking for other ways to sell your Bitcoin you can get more information below.
Cryptocurrency exchanges are the most common (and easiest) way to sell your Bitcoin.
They allow you to sell or convert your Bitcoin to Australian dollars (or another currency) or other cryptocurrencies with ease.
Chances are you may have originally bought your Bitcoin via an exchange and kept it on there. If that's the case, you can jump straight to step 4 in order to sell your Bitcoin.
If you're instead keeping your Bitcoin on your own hardware or software wallet, you can follow the steps below to learn how to sell it.
Step 1: Choose an exchange
There's 2 main things to consider when picking an exchange to sell your Bitcoin.
Does it let you sell your Bitcoin for your preferred local currency (such as AUD) and does it offer competitive fees?
To help you pick, we've put together a table of crypto exchanges that let you sell Bitcoin for AUD below:
1 - 10 of 22
Step 2: Create an account
Once you've chosen a crypto exchange, you'll need to sign up for an account by following these steps:
Sign-Up. Navigate to the exchange's homepage, click the sign-up or register button, enter an email address or phone number, create a password, and verify your contact details through the code sent to you.
KYC process. Provide your personal information, including name, country of residence, and an ID number. Upload required documents: a clear photo or scan of your ID, a utility bill or bank statement for address verification, and a selfie with your name and the current date on a piece of paper.
Activate 2FA (optional but recommended). Enhance your account security by enabling two-factor authentication.
Step 3: Send your Bitcoin to your exchange account
After you've signed up to an exchange, you can then transfer your Bitcoin across.
Sign in to your account.
Navigate to Deposit. Find the 'wallets' or 'balances' page, select "Bitcoin", and click "Deposit".
Deposit your BTC. Copy the provided Bitcoin deposit address, paste it into your external Bitcoin wallet (or other exchange wallet), double-check for accuracy, and send the transaction. Consider sending a small test amount first to confirm you've got the right address.
Wait for confirmation. It may take up to half an hour for your Bitcoin to arrive. Deposit times vary based on network congestion and exchange processing times.
Step 4: Sell your bitcoin
Once your Bitcoin has arrived in your account, you have a couple of options for how to sell it, depending on which exchange you use.
Choose Your selling method. You could use instant sell for speed and convenience, a market order for immediate sale at current prices, or a limit order to set your desired selling price.
Instant sell: Quick sale at market price directly to a linked bank account or withdrawal destination.
Market order: Sell immediately at the current market price.
Limit order: Set a specific price at which your Bitcoin sells. It will only sell if Bitcoin reaches your sale price on that exchange.
If you're looking to sell your Bitcoin in the most cost effective way, you might want to opt for a limit order. Not only does this let you set the price at which you sell your Bitcoin (provided it hits that price), but you'll also avoid the higher fees associated with instant sells and market orders.
Of course, this will depend on the fee structure of the exchange you're using. Some exchanges may actually offer cheaper instant sell fees, or charge the same fee regardless of whether you're using a market or limit order.
Step 5: Withdraw your funds (optional)
Once you've sold your Bitcoin for AUD, you should be able to withdraw the funds to your bank account using the following methods:
PayID
BPAY
Osko
POLi
Some popular exchanges such as Binance no longer let you sell your Bitcoin for Australian dollars, or withdraw funds to your bank account. In this case, you can choose to transfer your funds to an exchange that supports AUD withdrawals first.
There's also a few factors to keep in mind when choosing how to withdraw your funds.
Fees. Many (but not all) platforms impose a withdrawal fee, and the fee charged usually varies depending on the withdrawal method selected.
Certain platforms allow you to sell Bitcoin or other assets directly for AUD at market price and deposit the funds directly into your account.
Limits. There are often minimum or maximum limits on how much you can transfer. They can differ between withdrawal methods. You can often increase these limits by providing additional verification or ID. Make sure the platform you choose won't be restrictive for your withdrawal needs.
Processing times. The time it takes for the AUD to arrive in your wallet or bank account is important to note. While cash withdrawals are instant, bank transfers can take several days to arrive.
Any other restrictions. Some exchanges may require you to withdraw funds using the same method with which you made your deposit.
What are the benefits and drawbacks of using a crypto exchange to sell Bitcoin?
Pros:
Convenience. Cryptocurrency exchanges provide a user-friendly platform for selling Bitcoin, often with intuitive interfaces that guide you through the selling process step by step.
Accessible. With internet access, you can trade from anywhere, anytime, making it one of the most accessible ways to sell Bitcoin. Most exchanges offer mobile apps, enhancing this accessibility.
Immediate liquidity. Exchanges offer a large pool of buyers and sellers, which typically ensures that you can sell your Bitcoin quickly and at current market rates, providing immediate liquidity.
Variety of trading options. Beyond simple selling, exchanges offer various trading options, such as spot trading, futures, and margin trading, giving sellers more strategies to capitalise on market movements.
Market information. Exchanges provide real-time market information, charts, and tools to help you make informed decisions on when to sell your Bitcoin.
Cons:
Fees. Most exchanges charge a fee for each transaction, which can vary widely between platforms. These fees can eat into your profits, especially if you are engaging in frequent trading or selling small amounts.
Security risks. While many exchanges have robust security measures, they are not immune to hacks and security breaches. Storing large amounts of Bitcoin on an exchange can pose a risk.
Regulatory concerns. Exchanges are subject to varying levels of regulation depending on their location, which can affect their operation and, by extension, your assets. Changes in regulations can impact your ability to sell when you want to.
Withdrawal limits. Some exchanges have limits on the amount of money you can withdraw at a time, which can be inconvenient if you need to access large sums of money quickly.
Market dependence. Your ability to sell and the price you get are directly affected by the exchange's liquidity and market depth. In highly volatile markets, you might not be able to sell at your preferred price if the market moves against you.
2. How to sell Bitcoin using a Bitcoin ATM
Bitcoin ATMs allow you to deposit cash and convert it to Bitcoin. However, some of these ATMs also allow you to transact in the opposite direction – in other words, convert your BTC balance into fiat currency so you can withdraw cash.
These ATMs provide a convenient and straightforward way to sell your Bitcoin, but the trade off is higher fees. You may need to pay up to a 10% fee when selling your Bitcoin, depending on which ATM you use. As a result, it's probably a better idea to use a crypto exchange to sell your BTC, but if you're set on using an ATM, you can follow the steps below.
The selling process will vary depending on which ATM you use. For the purposes of this example, we're using CoinFlip Bitcoin ATMs.
Find the closest Bitcoin ATM. You should be able to search Google Maps (or another map service) to find a Bitcoin ATM that's close to you. Make sure you verify that the ATM in question is legitimate before using it.
Select "Bitcoin" and then "Sell". You'll need to agree to the terms and conditions before continuing.
Enter your phone number. You'll be sent a code that you'll need to enter into the ATM.
Enter the amount you want to sell and hit "Sell". You'll be able to enter the amount of Bitcoin you want to sell in your local currency.
Transfer your Bitcoin from your wallet to the specified address. You'll be given a Bitcoin address (normally via QR code) that you'll need to send the specified amount of Bitcoin to. Make sure you double check you've selected the right amount to send before confirming the transaction.
Wait for confirmation. You'll receive a text message when your Bitcoin has been sent.
Return to the ATM and select "Redeem". You'll need to re-enter your phone number and will receive a code that you'll need to enter.
Select the transaction and take your cash. Confirm the transaction and your cash will be distributed.
What are the benefits and drawbacks of using an ATM to sell Bitcoin?
Pros:
Immediate access to cash. Bitcoin ATMs offer instant transactions and are one of the quickest ways to convert your Bitcoin to local currency.
Ease of use. The process is simple and user-friendly, requiring only your Bitcoin wallet and the amount you wish to sell.
Anonymity. Depending on the machine and location, you might not need to provide personal information, offering a degree of privacy.
Cons:
High fees. Bitcoin ATMs typically charge higher transaction fees compared to online exchanges, which can eat into your returns.
Limited availability. Not all areas have Bitcoin ATMs, and availability can be a significant limitation for some users.
Variable limits. Many ATMs have limits on how much Bitcoin you can sell at a time, which might not be suitable for large transactions.
3. How to sell Bitcoin using peer-to-peer (P2P) transactions
Peer-to-peer or P2P marketplaces are one of the most popular alternative ways to sell Bitcoin. P2P exchanges require no identity verification and allow you to browse through buyers and see offers for each type of accepted payment method. They also do not require you to give up custody of your funds.
To sell your BTC on a P2P marketplace, you can follow the steps below.
Sign in or create an account.
Select how much Bitcoin you want to sell.
Choose a payment method.
Choose a buyer.
Share your payment details with the buyer
Wait for the buyer to deposit the funds to the specified account
Transfer the Bitcoin to the buyer.
What are the benefits and drawbacks of using a P2P marketplace to sell Bitcoin?
Be sure to research any P2P marketplace before using it as fees for selling on P2P marketplaces vary.
Pros. Potentially lower fees and more control over the sale price.
Cons. Higher risk of scams and requires more effort to find a trustworthy buyer.
4. How to sell Bitcoin using an online payments platform
Online payment services such as PayPal, Revolut and Venmo offer options to sell Bitcoin directly within their platforms. Users can quickly convert their Bitcoin into fiat currency, which can then be used for other transactions or withdrawn to a bank account, using the following steps:
Open your payment app
Navigate to the crypto section
Select Bitcoin and then select "Sell"
Choose the amount you want to sell
Confirm the transaction
The money should be deposited to your cash balance
What are the benefits and drawbacks of using an online payments platform to sell Bitcoin?
Pros:
Integration. Seamlessly integrates with your existing online finance platforms, making it easy to manage funds.
User-Friendly. These services offer straightforward, intuitive interfaces that simplify the selling process.
Cons:
Transaction limits. There may be limits on how much Bitcoin you can sell at a time or withdrawal limits on the proceeds.
Market dependence. The exchange rates provided by these services may not always align with the market rates, potentially affecting the return on your sale.
How to sell a large amount of bitcoin?
If you're looking to sell a large amount of Bitcoin, such as $50,000 or more, conducting the transaction through an ordinary crypto exchange may not be the best way to go about it, because there may not be sufficient liquidity on a traditional exchange. This can result in slower processing times or "slippage" – which is when a large market sell order eats through the available buy orders, resulting in a price drop.
The transaction limits on these exchanges may also be too low for your needs, so anyone looking to sell a large amount of Bitcoin should consider an over-the-counter (OTC) trade. OTC trades are those that take place away from a conventional, regulated exchange, and they offer a simpler and more cost-effective way to buy and sell large amounts of Bitcoin.
You can sell Bitcoin for cash by using a Bitcoin ATM that allows you to exchange your BTC for an AUD cash withdrawal. Alternatively, you could arrange to sell your Bitcoin through a peer-to-peer marketplace that accepts cash as a payment option, either meeting someone in person to accept payment or asking them to send a cash transfer through a payment service such as Western Union.
Yes, some multi-currency wallets (such as Coinomi and Jaxx) come with an in-built exchange service that allows you to quickly swap Bitcoin for another crypto within your wallet. However, this convenience usually comes at a price, as the exchange rate you’ll get will typically be lower than the price you could get on an open exchange.
Yes. If you make a capital gain when you sell BTC for AUD or exchange it for another crypto, a Capital Gains Tax (CGT) event occurs. For more details on the tax treatment of Bitcoin in Australia, check out our cryptocurrency tax guide.
Look at the current sell offers listed on your chosen platform to get an idea of the average price. However, remember that you’re competing with the other sellers on that platform and will need to make a compelling offer. The price you set could vary depending on what else you’re bringing to the table, such as being in a convenient location for buyers or accepting cash payments.
Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly
volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of
future performance. Consider your own circumstances, and obtain your own advice, before relying on this information.
You should also verify the nature of any product or service (including its legal status and relevant regulatory
requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may
have holdings in the cryptocurrencies discussed.
Tom Stelzer is a publisher and writer for Finder, covering investing and cryptocurrency.
He previously worked for Finder as a writer in Australia and the UK, covering things like personal finance, loans, investing, insurance as well as small business and business loans.
He has a Master of Media Arts and Production and Bachelor of Communications in Journalism from the University of Technology Sydney. See full bio
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