Bitcoin has been making waves in the finance and investment sectors. While it’s still relatively new, it’s already considered as one of the oldest and most popular cryptocurrencies. Its popularity is credited to a number of benefits: it’s easy to use, decentralised, and resistant to transaction censorships.
Bitcoin is also permissionless, meaning it’s free and open to use wherever you are in the world. Given that it’s decentralised, it’s also immune to third-party seizure. This means that no one—not even the government—can confiscate your Bitcoins because you’re the sole owner.
In addition, one of the advantages of investing in cryptocurrency is its 24/7 trading system. Anyone can monitor the market at any given moment. In spite of its volatility, Bitcoin is one of the most popular currencies to invest in. Similar to Australian securities, you just have to buy cryptocurrency when the value is low or when it’s expected to rise. Then resell it when the time is right.
In this guide, we’ll walk you through how to sell Bitcoin in Australia, how you can buy Bitcoin from a trading platform, and how you can effectively prepare and utilise your Australian bank account to buy, sell, and trade Bitcoin.
What Is Digital Currency?
Bitcoin is one of the most important cryptocurrencies available today. Cryptocurrencies are digital assets. They are essentially virtual currencies that you can use for exchanging products or services. Given its digital nature, a digital currency doesn’t have a physical form, so you won’t need to use coins or paper bills.
To make a purchase, you only need to transfer the digital currency of your choice to retailers—much like how you’d make a payment using payment apps.
But When Is the Ideal Time to Sell?
In this guide, we will teach you when it’s best to sell your Bitcoin, as well as how to convert your BTC to Australian dollars and other crypto assets. Below, you will also discover several different opportunities to sell your cryptocurrency in Australia.
Why You Still Need a Bank Account to Buy and Sell Bitcoin
More Australian banks are opening their doors to cryptocurrency, allowing users to trade cryptocurrencies using their apps.
While blockchain technology enables you to make transactions without necessarily using banks or other financial institutions, you still need to have a bank account if you’re looking into buying or selling Bitcoin.
If you want to sell Bitcoin in Australia, you need an Australian bank account to do a bank transfer, which basically lets you transfer or cash out your funds. If you’re buying Bitcoin and other digital assets, you still need to have an account where you can deposit cash as this serves as your funding source.
While you’re free to purchase Bitcoin via a crypto exchange like Independent Reserve or Coinbase, you still need a secure wallet where you can store your coins. You have two main options when it comes to your Bitcoin wallet: hot or cold wallet. The former is also known as an online wallet, which lets you store your coins in the cloud. The latter, also known as a mobile wallet, lets you store your coins offline.
Digital assets, such as Bitcoin, may become bigger in the years to come. Bitcoin, in particular, may replace traditional fiat currencies, or currencies issued by governments. However, while Bitcoin and other virtual currencies are steadily growing in popularity, not all establishments or individuals are capable of accepting Bitcoin as a form of payment.
Furthermore, Bitcoin, like other digital currencies and the crypto market in general, is volatile. It can increase in value, but the market can also decline. Being able to convert your Bitcoin into cash helps protect you from losses, which is why it’s still important for you to have a bank account.
However, you have to be mindful of taxes and exchange fees when selling Bitcoin or converting Bitcoin into cash. In Australia, any profit from selling Bitcoins is subject to capital gains tax. You will need to pay capital gains tax, which is calculated using the guidelines set by the Australian Taxation Office (ATO). The guidelines take into consideration several factors including the purchase price, the sale price, and associated transaction fees among others.
How to Convert Bitcoin
You have two main options when you’re ready to sell your Bitcoins. First, you can exchange your BTC for fiat money. Second, you can convert your BTC into other cryptocurrencies.
Selling Bitcoin for Australian Dollars
You can sell your BTC holdings for any fiat currency, including Australian dollars (AUD). If your intention for selling your BTC is to cash out in AUD, this guide is for you.
Here’s how you can do it:
- Open an account on an exchange that supports BTC and Australian Dollars or any fiat currency of your choice.
- Deposit Bitcoins into your account.
- Sell your BTC.
- Withdraw your AUD.
Selling Bitcoin for Other Cryptocurrency
Most people sell their BTC holdings to cash out for AUD. But if you would rather trade your Bitcoins for another digital cryptocurrency, you can do that as well.
Here’s how you can convert BTC into other currencies:
- Open an account on an exchange that supports BTC.
- Deposit Bitcoins into your account.
- Sell your BTC.
- Transfer your new cryptocurrency into your digital wallet.
Our Recommended Exchanges:
How to Sell Large Amounts of Bitcoin Outside Crypto Exchanges
Let’s say you’ve collected a hefty amount of Bitcoins, and you intend to sell most of it. Carrying out your transaction through an ordinary exchange isn’t the best way to do it, especially if you’re selling BTC worth $50,000 or more. For starters, the exchange might not have sufficient liquidity. That could lead to slower processing times and slippage. The market could move against you before your trade is fully processed. Not to mention, you’ve got to deal with potential hacking risks and theft.
Moreover, exchanges impose certain transaction limits. Sometimes, they can’t cater to what you need. So, if you intend to sell crypto coins in large amounts, you have a better chance of doing it through an over-the-counter trade.
OTC cryptocurrency trading doesn’t take place in your usual digital exchanges. This method is favoured by large-scale traders as it lets them avoid low trading limits and slow processing times. Compared to online currency exchanges, OTC trading offers better prices and security.
There are several ways to do an OTC trade. Here are three common methods:
- OTC trades are often facilitated by trustworthy brokers. Such platforms offer high-volume traders the chance to avoid challenges such as slippage.
- Chat rooms. The first OTC trading of Bitcoin occurred in an IRC chatroom known as #bitcoin-otc. There, traders could indulge in peer-to-peer transactions.
- Bitcoin ATMs. They let you convert your AUD into digital coins and vice versa without having to go on an online exchange.
How to Determine the Best Way to Sell Bitcoin
Today, you will find all sorts of ways to sell your digital currencies. Just remember that what works for one person might not work for you. And you don’t have to keep sticking with it if it doesn’t. Instead of playing it safe and doing what everyone else is doing, you should find the ideal option for you.
Start by asking yourself a few questions:
- Do you want to sell your BTC for AUD? If so, how do you want to receive your fiat money?
- Do you want to convert your BTC into a new cryptocurrency?
- Do you want to settle with a price lower than the market rate?
- Do you need to get the best possible price?
As you go through these questions, you will slowly start to realise your priorities. Keep those things in mind when you’re looking for your ideal platform, and you should be able to find one that caters to your needs. You must also consider the following factors when you’re weighing your options:
- Compare each platform’s exchange rate. Find out which one’s the most beneficial for you.
- Compare their trading fees. Check if they will charge you for withdrawing funds into a crypto wallet or a bank account. Choose a platform that offers reasonable trading fees.
- Withdrawal and trading limits. Exchanges often limit the amount of BTC you can trade, so find out what their limits are. Note how much AUD they will allow you to withdraw from your account.
- Exchanges are a usual target for hacking and other cybersecurity threats. Find out what each platform is doing to protect your cryptocurrencies and your data.
- Find out how long customer support usually takes to respond to users’ issues or feedback. Check if they’re available 24/7 or only at certain hours. You need to find a platform that offers the kind of support you need in case something goes wrong.
- Browse through online reviews and crypto forums to figure out other users’ experiences with the platforms you’re considering. Try to find out if the exchanges you are eyeing are even worth considering.
How to Sell Bitcoin: What Are My Options?
As mentioned, there are several ways to cash out BTC. Selling them on the best crypto exchanges is just one of them. You can opt to sell your coins through a peer-to-peer platform and a Bitcoin ATM. You may even sell them in person.
If you want to sell Bitcoin in Australia, take a look at these options:
Australian Cryptocurrency exchanges
If you stored your Bitcoin in an online exchange, you should have no trouble selling your coins. The entire process should be quick and easy. Depending on the crypto exchange you’re using, you may be able to carry out the transaction through a web browser or their official mobile app.
Here’s a step-by-step guide for selling your Bitcoin on an exchange like CoinSpot:
- Log into your CoinSpot account.
- Select the Wallets tab and click your bitcoin wallet.
- Click Generate Deposit Address.
- Copy the wallet address. You need it to transfer your BTC from your external wallet to your wallet on CoinSpot.
- Click the Buy/Sell tab from your account.
- Look for Bitcoin and select Sell BTC.
- Enter the amount of BTC you intend to sell.
- Choose the currency you want to exchange it for.
- Check your transactions details.
- Click Confirm Sell.
- Once processed, you can withdraw AUD from your bank account.
Two of the Australian Exchanges:
Instead of selling BTC through a crypto exchange, you can use a peer-to-peer platform. Direct trading gives you the option to sell your coins to another user at a good Bitcoin price. Compared to online exchanges, this trading method lets you have more control over the entire process. You can set your own price and get greater deals than you would by selling at market price.
Take note that these peer-to-peer platforms vary greatly. Some only accept specific payment methods like bank transfers while others allow everything, from credit cards to cash, and even PayPal. The downside of direct trading is that it takes longer than other options. You will have to compete with several other sellers for the right buyer.
Here’s how you can sell your BTC through LocalBitcoins:
- Log into your account.
- Click Quick Sell.
- Select your country.
- Choose your preferred payment option.
- Look for the perfect buyer.
- Review traders’ profiles and their reputations. Check their trading history and reviews.
- Click the Sell button if you wish to trade or sell Bitcoin.
- Indicate the amount of BTC you intend to sell.
If you’re looking for a quick and easy way to sell Bitcoin, you should consider getting crypto debit cards. They let you trade your BTC for fiat currency and vice versa. However, these ATMs charge about 7-10% for selling and buying Bitcoins. So, you’ve got to be willing to put up with high transaction and withdrawal fees if you want fast access to cash.
Fiat currency withdrawals can be done from any Bitcoin ATM in your area. You’re lucky if you live in big cities as there might be a handful of ATMs where you live. But if not, you might have to go on a little road trip.
Use platforms like Find Bitcoin ATM to search for machines near your location. Remember to check details such as fees and transaction limits, so you know how much BTC you can sell. More importantly, find out if the machine supports buy-only, sell-only, or two-way operations.
Here’s how you can sell BTC using a Genesis1 Bitcoin ATM:
- Select the withdraw cash option.
- Select Bitcoin.
- Indicate the amount you want to withdraw.
- Transfer Bitcoins to the address QR code from your mobile wallet.
- Collect your fiat money.
Some of the Bitcoin ATMs may require an ID or a phone number. This usually happens if you want to trade large amounts of Bitcoins.
Selling in Person
For this particular option, it’s best if you know who you’re trading with. It will be far less complicated if you sell Bitcoin to a friend or a relative. This way, you can negotiate a great Bitcoin sale price and dodge all those middleman fees.
But if it involves a stranger, it might be more time-consuming than selling your Bitcoins on a cryptocurrency exchange. Though when you transact with strangers through a peer-to-peer platform, they offer some sort of rating system to help you verify their legitimacy, making the process less risky. If you do get an offer from a buyer you met at an online forum, you can arrange a meeting through any platform that lets you verify the other party’s reputation.
Here’s how you can sell your BTC to someone you know:
- Scan their wallet QR code or copy the bitcoin address.
- Transfer the BTC to the wallet address.
- Accept payment.
How to Withdraw Funds After a Sale
Now that you’ve sold your Bitcoin, there’s only one thing left to do: withdraw the funds from your sale. There are two ways to do that.
Depending on the platform you chose, you should be able to withdraw your fiat money through bank transfers, PayPal, cash, and credit and debit cards.
If you want to withdraw AUD, you need to be mindful of factors, such as withdrawal fees, transfer and withdrawal limits, and varying processing times.
If you’re thinking of cashing out your Bitcoins anytime soon, you have to be wary of scams that claim to help you convert your coins into cash. When doing a bank transfer, for example, you need to make sure that you’re using reputable and reliable companies or financial establishments.
You should never store cryptocurrency on an exchange for long periods of time. These online platforms are a favourite target for hackers, so it’s not the safest practice. To keep your cryptocurrencies safe, you should transfer your digital currency to a crypto wallet instead.
When Is It Ideal to Sell BTC?
Knowing the right time to buy or sell Bitcoin is important as it helps you maximise your success in trading. However, it’s never easy. You have to consider several factors before you decide to sell or hold your coins, from regulatory developments and hype to broad economic factors. You need to take a good look at the market before you make such a crucial decision.
If you want to figure out the best time to sell Bitcoin, do your research and get some trading experience. Familiarise yourself with how crypto exchanges work. You should get better over time.
Frequently asked questions about selling Bitcoin
How can I sell Bitcoin for cash?
There are several ways to sell Bitcoin for cash. If you want instant cash and have a crypto debit card, use a Bitcoin ATM. You can also sell directly to a friend who has a digital wallet. Transfer Bitcoin to their wallet and get their cash payment. If you want to get as much as you can from your Bitcoin, use a cryptocurrency exchange or a peer-to-peer marketplace.
How can I sell BTC through PayPal?
You need to go to a peer-to-peer marketplace or a cryptocurrency exchange that supports PayPal payments. LocalBitcoins, Paxful, and eToro are some of the trading platforms and crypto exchanges that allow the selling of Bitcoins through PayPal. Keep in mind though that some platforms have trading fees and transaction fees.
How can I spend my cryptocurrency with a BTC debit card?
When you add BTC to your debit card, it will be converted into AUD by your card provider. That means you will be able to use your card to pay for goods and services, online or in-store. You may even use it to withdraw Bitcoin cash.
How can I buy and sell Bitcoins in Australia?
We’re sharing a simplified step-by-step guide to buying and selling Bitcoins in Australia in 2023. These steps are for transactions done in crypto exchanges.
- Buying Bitcoins
- Research and compare cryptocurrency exchanges before buying coins.
- Create an account on your trusted exchange.
- Deposit money into your account using your preferred payment method.
- Start purchasing Bitcoins.
- Deposit bitcoin into a crypto wallet.
- Selling Bitcoins
- Select a crypto exchange you’re comfortable working with—this could be Bitcoin brokers, crypto trading platforms like Binance or P2P exchanges.
- Create an account on your selected crypto exchange and verify it.
- Send coins to your account.
- Start selling Bitcoin.
- Once you sell Bitcoins, start sending AUD to your bank account.
It’s worth noting that when it comes to selling Bitcoins, using P2P exchanges has some advantages over other methods. These include having more payment options, being able to set your selling price, getting lower trading fees, and enjoying the protection of your bank account details.
Can you sell Bitcoin on Coinbase in Australia?
Yes, you can now sell bitcoin on Coinbase in Australia. Coinbase has made it easier for Australians to buy, sell, and trade crypto. Through PayID, a payments infrastructure that allows users to link an email address or a mobile number to their bank account, Australians can now buy and sell crypto with ease. This payment method enables deposits and withdrawals in Australian dollars and opens access to over 200 crypto assets.
Australian Coinbase users are also given access to Retail Advanced Trading, which allows them to use trading tools to manage their bitcoin assets. The platform is also rich in security features and offers 24/7 chat support. This gives bitcoin traders an easy and convenient way to sell bitcoin in Australia.
Can I use Bitcoin to pay my bills?
Yes, you can. Although Bitcoin is not considered legal tender in Australia, there are merchants and service providers that accept it as a form of payment. There are also Bitcoin payment processors, such as Living Room of Satoshi, that process bill payments for utilities, taxes, credit cards, and retail purchases using bitcoins.
Another way to use Bitcoin to pay your bills is by using a Bitcoin debit card. This allows you to spend your Bitcoins wherever debit cards are accepted.
Let us know in the comments about your experience. Have you sold your Bitcoins?