How to Sell Bitcoin in Australia
There are various ways to sell Bitcoin, but which is the best? How do you get the most value from your Bitcoin? This guide is designed to help you explore ways to cash out your Bitcoin investment and much more.
Best platforms to sell Bitcoin in Australia in 2021
Compare our top platforms to sell your Bitcoins for Australian Dollars (AUD) or other cryptocurrencies.
What options do I have when selling Bitcoin in Australia?
There are different ways investors can cash out their Bitcoin investment. Some of the standard methods are:
Brokers: Brokers allow Bitcoin investors to trade Bitcoins like stocks. They typically manage the buying and selling of Bitcoin on your behalf. Prime brokerage firm examples are eToro and Plus500.
Exchanges: A large percentage of Bitcoins are sold through exchanges. It requires the vendor to open an online account on a reputable crypto exchange. The platforms allow the conversion of Bitcoins into AUD or other cryptocurrencies offered by the exchange. What happens when your Bitcoin is sold? Investors need to withdraw their cash. Connect a withdrawal method to the exchange, e.g., bank transfer. The main exchanges in Australia include CoinSpot, Swyftx, and Digital urge
P2P Marketplaces: These are decentralised platforms that match buyers and sellers. Sellers can specify the trade terms including payment methods, such as bank transfer or cash.
Most of these platforms rely on an escrow service to avert scammers. The escrow ensures that the seller gets their cash, and the buyer gets Bitcoins when the trade is complete. P2P platforms have a wide range of payment options ranging from bank transfers to Paypal. Some top P2P marketplace in Australia includes Paxful and Localcryptos.
Decentralized Exchanges: DEX platforms continue to gain traction in the cryptocurrency industry. It is usually used by traders who value anonymity. DEX exchanges like Bisq allow investors to sell Bitcoin for cash or convert to another crypto. The seller and buyer have complete control over the trade, with the platform only offering the software to complete the trade.
Sell in person: These are direct person-to-person Bitcoin trades. It works better for individuals in the same locality. It is also advantageous to those who prefer to sell their Bitcoin anonymously. The seller and buyer can set up a meeting to do a physical exchange of Bitcoins for cash. Traders typically meet in Bitcoin meetups, peer-to-peer marketplaces, or forums like Telegram or Reddit.
Bitcoin ATMs (BATMs): BATMs are known for “dispensing” Bitcoins; however, they are those which operate bidirectionally. They are found in major cities such as Sydney and Melbourne. These machines can let you scan the QR code where your Bitcoins are stored and exchange the Bitcoins for cash. The seller may also receive a redemption code which they can activate once the transaction is confirmed. The downside for BATMs is the high fees and the difficulty in finding ATMs that have the “sell” functionality. They offer an advantage to those who wish to sell their Bitcoin anonymously.
Converting Bitcoins to gift cards: Bitcoin sellers may want to exchange their Bitcoins for Gift cards. Sellers can find buyers willing to give gift cards from Bitcoin meetups or P2P marketplaces. This method also assures the traders of anonymity.
Do I have to pay tax when selling Bitcoin in Australia?
The Australian Tax Authority (ATO) expects those who sell their Bitcoin for a profit to pay taxes. Investors may qualify for a capital gains tax discount when holding Bitcoins for at least 12 months. The tax discount can go up to 50% for individuals and 33.33% for compliant super funds.
How to sell Bitcoin in Australia
Crypto exchanges like Coinspot and CoinJar are the number one method to sell Bitcoin in Australia. The seller can either get cash or convert it to another cryptocurrency. See below the steps:
Selling Bitcoins for AUD
Find a suitable exchange: The exchange needs to have the BTC/AUD pair, friendly fees, and flexible withdrawal methods.
Open your account: Users will need to use an email, password and enter their phone number for account registration on many exchanges. Exchanges will typically perform a KYC (Know Your Customer) process on the client to conform to the Anti Money Laundering (AML) Laws. Sellers have to provide their government-issued IDs, legal names, and addresses.
Deposit Bitcoin into your account: You need to transfer Bitcoin from the external wallet or another exchange to the exchange of choice. You can use the account wallet address to complete the deposit process.
Sell Bitcoin for AUD: Search for the BTC/AUD pair and proceed with the sale. Confirm the trade fees and sanction the trade when you are comfortable.
Withdraw your AUD: You need to link your bank account with the exchange. Exchanges may provide many other methods to withdraw cash. Check for the withdraw link on the exchange and finalise the withdrawal.Reflection of cash in your account will largely depend on the withdrawal method and speed of transfer,
Selling Bitcoin for other Cryptocurrency
It is possible to convert your Bitcoin to other cryptocurrencies like Ethereum. Here are the steps:
Find a suitable exchange that offers your designed crypto pairs, e.g., BTC/ETH
Deposit your Bitcoin into the exchange
Sell the Bitcoin for the other cryptocurrency
Transfer your other asset to an external wallet.
How can I withdraw my money after selling Bitcoin in Australia?
After completing the sale of your Bitcoin, you need to withdraw the money from the exchange. Australians have numerous options of withdrawing cash from exchanges, including direct bank transfers, PayID, POLi, Osko, New Payments Platform (NPP), or cryptocurrencies.
After selling your Bitcoin, consider the following before withdrawing the money:
Withdrawal processing time: This refers to the time it takes for the money to hit your account. For instance, Digital surge exchange offers instant crediting via Osko and PayID methods.
Fees: Fees form a significant concern for many Bitcoin sellers. CoinSpot offers free AUD withdrawals.
Limits: Exchanges institute minimum and maximum withdrawal limits. CoinSpot has not placed any limits on withdrawals.
Withdrawing funds from an exchange involves the following steps:
Add your preferred withdrawal method eg, Transfers via NPP, PayID, etc. Other bank details such as account number.
On the dashboard showing your asset balances, click withdraw against the money generated from the sale of your Bitcoins. You will have to specify the amount you wish to cash out.
Check your bank balance because some methods are instantaneous.
Where to sell Bitcoin in Australia?
When you have the private keys to your Bitcoins, you can deposit the coins to any exchange or crypto broker. If stored in an external wallet, send the Bitcoin address to the exchange.
The following options are ideal for those new to Bitcoin.
CoinSpot is an Aussie-based exchange that has been operating since 2013. It is friendly to newcomers. Users can easily buy, sell and swap Bitcoins. It is the only exchange to receive an ISO 27001 certification for information security.
Simple and intuitive user interface
Responsive customer support via live chat and email
Over 310 digital assets to buy, sell and swap
Supports large over-the-counter (OTC) crypto trading
Buy Bitcoin instantly with AUD.
Easy signup process
Free withdrawal to an Australian bank account
Responsive 24/7 customer support with live chat functionality
High-level security with ISO 27001 certification. It is rated the most secure cryptocurrency exchange in Australia.
Instantly buy and sell option after being verified
Investors can schedule automatic purchases
User can only deposit in AUD
Margin trading is not available
This is an Aussie exchange that focuses on making buying and selling cryptocurrency simple. This simplicity has made it accessible to complete Bitcoin traders.
Supports over 220 digital assets
Simple, easy to use interface for straightforward trading
Lower fees with competitive spreads
Fast deposits with PayID and POLi
Free withdrawal fees
Regulated and reports to AUSTRAC
Effective customer support with chat and email options
Simple and intuitive user interface that enhances user experience
A clear fee schedule with low fees
Sign-up and verification processes are straightforward and take a few minutes with the use of RapidID.
Advanced trading features such as recurring orders, trigger orders, and price notifications
Bitcoin investors cannot use credit cards to fund their accounts
Digital surge and CoinSpot both offer very competitive rates. The user interface and signup process are also rapid for both exchanges.
For experienced users
Some exchanges are oriented towards catering to experienced users. These offer Australians advanced trading, charting, and analytical tools.
Binance is one of the largest crypto exchanges globally. Advanced users prefer this platform due to the wide range of crypto derivative instruments.
Crypto derivatives instruments like the Binance futures, which include Binance leveraged tokens and Binance options
Cross collateral for lending and borrowing crypto assets
A Leaderboard feature which is a combination of social networking features and crypto trading
Price protection helps protect traders in volatile markets
Regulated by the AUSTRAC
A wide selection of digital assets; in excess of 500 for trading
Low trading fees with a VIP trading program for even lower fees.
Numerous trading options such as spot trading P2P, margin, and future trading.
A native Binance token used to provide incentives, lower fees, and rights to other products.
Many deposit methods are available, including credit and debit cards.
Zero fee AUD account funding
Non centralised and nontransparent corporate structure
Lengthy account verification processes
Binance offers far more trading instruments and many more cryptocurrencies for trading. Coinspot and Digital surge have an advantage over Binance due to the provision of more localised payment methods. The two Aussie-based exchanges have a better variety of customer support channels.
This is a brokerage firm that provides social and CFD trading for cryptocurrencies. Investors can trade cryptocurrencies like Bitcoin and Ethereum.
Staking services allow customers to earn passively while they HODL their crypto assets.
Ability to create price alerts and a crypto watchlist
Buy and sell Bitcoin instantly
Regulated by the ASIC (Australian Securities and Investments Commission)
High level algo trading capabilities
Tight spreads and high liquidity
Low trading fees and 0% commission
Free insurance for assets above 1 million AUD
A social trading platform powered by over 20 million customers and some credible, experienced investors.
A copy trader feature that enables users to copy trades from experienced traders
A vast library of educational resources
A variety of payment methods including Paypal, Neteller Skrill, VISA and Mastercard.
The eToro money crypto wallet with unique features
Higher minimums for investors to participate in copy trading
Institutes a minimum amount for purchase of cryptocurrencies
Requires currency conversion, which is disadvantageous for investors
Unlike the other platforms, eToro is a brokerage firm that is extremely popular for copy trading. The platform offers advanced trading instruments such as CFD, unlike CoinSpot and Digital.
What to consider when selling Bitcoin in Australia?
Before selling your Bitcoins, consider the following:
Volatility: This refers to the price movement of Bitcoin, and timing is critical in reaping maximum value. It is well known that Bitcoin is one of the most volatile crypto assets and is tracked by the Bitcoin volatility index. Sellers have to monitor price swings to catch the market on an upward trajectory.
Security: Most tier 1 exchanges in Australia are secured, with the likes of CoinStop getting ISO 27001 certification on information security. Sellers should check whether security features such as 2FA, notifications when funds are withdrawn, cold storage, and asset insurance are available in a crypto exchange.
Transactions cannot be reversed: Ensure to complete the transaction with correct details because Bitcoin transactions cannot be reversed. An incorrect transaction and the exchange cannot refund you.
Regulations: Sellers should consider tax obligations before selling their Bitcoin. We also advise Bitcoins investors to choose exchanges or brokerage firms regulated by AUSTRAC.
Fees: Check for exchanges that charge minimal fees and withdrawal fees to avoid eroding your gains.
Reputation and reviews: Before selecting an exchange to sell your Bitcoins, we advise checking reviews from trusted third-party sites. Other forums like Reddit usually give a good insight into the reputation of an exchange.
Available withdrawal methods: We recommend sellers check withdrawal methods offered by an exchange before signing up.
Customer support: We recommend exchanges that offer responsive and immediate customer support. This includes support via live chat, email, and phone support.
Consider which currency you want to cash out in: Sellers mainly prefer cashing out their investment in AUD or USD. Aussie-based exchanges majorly support AUD withdrawals. International exchanges like Binance provide a variety of currency withdrawals such as AUD, USD and GBP, although currency conversion might attract fees.
Selling Bitcoins in Australia should be a straightforward exercise, especially considering the beginner-friendly exchanges available. Sellers have to take several factors into consideration, including fees and market volatility.
Can I sell Bitcoin anonymously in Australia? It is impossible to sell your Bitcoins anonymously with most crypto exchanges. Most have committed to comply with AML and CFT guidelines that require every client to submit their KYC details. Sellers can use P2P marketplaces to sell Bitcoins in person for cash anonymously.
Do I need to verify my account when selling Bitcoin in Australia? Yes, sellers have to verify their accounts before selling their Bitcoins. This is because AML regulations bind exchanges.