One of the advantages of investing in cryptocurrency is its 24/7 trading system. Anyone can monitor the market at any given moment. Today, Bitcoin is the most popular method of investment. You just have to buy when the currency value is low or when it’s expected to rise. And you can resell when the time is right.
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 digital currencies. Below you will also discover several different opportunities to sell your cryptocurrency in Australia.
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 BTC 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 your Bitcoins into your account.
- Sell your BTC.
- Withdraw your AUD.
Selling BTC for 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 your Bitcoins into your account.
- Sell your BTC.
- Transfer your new digital currency into your crypto wallet.
How to Sell Large Amounts of Bitcoin
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 large amounts of BTC, 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 digital currency?
- 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.
- 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 a crypto exchange 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.
Take a look at these options:
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 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 account.
- Select the Wallets tab and click on your bitcoin wallet.
- Hit the Generate Deposit Address
- Copy the address. You need it to transfer your BTC from your external wallet to your wallet on CoinSpot.
- Click on 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.
- Once processed, you can withdraw AUD from your bank account.
Instead of selling BTC through an exchange, you can use a peer-to-peer platform. Direct trading gives you the option to sell your coins to another user. 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.
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 on the Quick Sell
- Select your country.
- Choose your preferred payment option.
- Look for the perfect buyer.
- Review traders’ profiles and their reputation. Check their trading history and reviews.
- Click on the Sell button if you wish to trade.
- Indicate the amount of BTC you intend to sell.
If you’re looking for a quick and easy way to sell your BTC, you should consider a Bitcoin ATM. It lets 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 fees if you want fast access to cash.
You also need to find a 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. 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 your BTC to a friend or a relative. This way, you can negotiate a great sale price and dodge all those middleman fees.
But if it involves a stranger, it might be more time-consuming than selling your Bitcoins online. Though you transact with strangers at 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 address.
- Transfer the BTC to that 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.
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 digital currencies safe, you should transfer your digital currency to a crypto wallet instead.
When is it an Ideal Time to Sell BTC?
Knowing the right time to sell or buy 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, 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. You should get better over time.
Frequently asked questions about selling Bitcoin
How can I sell Bitcoin for cash?
Use Bitcoin ATMs if you want instant cash. You can use an online exchange or a peer-to-peer platform that supports such a payment option, but it won’t be as quick. You can also transact with someone personally and ask them to send you a cash transfer.
How can I sell BTC through PayPal?
You need to go to a peer-to-peer marketplace that supports PayPal payments. LocalBitcoins is one example of such a platform.
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 cash.
Can I use Bitcoin to pay my bills?
Let us know in the comments about your experience. Have you sold your Bitcoins?