How To Sell Cryptocurrency in the UK
Over the last couple of years, cryptocurrencies have proved a viable alternative to traditional investment. The UK is a leading country in crypto activity. Many platforms support buying and selling of digital assets.
We will explore how British citizens can liquidate their crypto assets, the best platforms to use, steps to sell the crypto, and more.
Best Platforms To Sell Cryptocurrency in the UK in 2022
There are many crypto providers available in the UK. Finding a suitable platform to sell your crypto assets can be daunting. Below is a list of top beginner-friendly platforms to help you sell your crypto assets right away.
What Options Do I Have When Selling Cryptocurrency in the UK?
There are multiple options to sell cryptos in the UK. Some of the examples are:
Brokers - There are crypto brokers who manage the buying and selling of crypto on behalf of investors. They are also renowned for providing other trading options like margins, Contracts for Differences(CFDs), and futures. Leading brokers in the UK include eToro, Plus500.
Exchanges - These are custodial platforms with centralized authority that allow users to buy and sell cryptocurrency. Binance, Coinbase, and Paybis are world-leading exchanges available in the UK.
P2P Marketplaces - These are non-custodial platforms that act as marketplaces. The platforms match buyers and sellers and provide a framework for exchanging crypto and money. Some of the leading P2P marketplaces in the UK include Binance P2P and Paxful.
Decentralized exchanges - Unlike centralized exchanges, these are non-custodial platforms that allow buying and selling of cryptocurrency. Examples include UniSwap, SushiSwap.
Sell in person: Although limited, there are people who prefer to buy and sell crypto in person. This is due to the possibility of anonymity when selling their crypto or just to avoid fees. The method requires proper knowledge of the use of crypto wallets.
ATMs: Although not widely adopted, crypto ATMs allow investors to buy and sell crypto. Much like the regular bank ATMs, crypto ATMs are physical kiosks where you can sell mainstream crypto like Bitcoin, Ethereum, and Litecoin.
The type of provider you choose will most likely depend on the level of expertise and the crypto you are selling. Beginners prefer on-ramp platforms such as exchange and brokers.
Those who sell small amounts of crypto prefer to use P2P marketplaces. This is because of the possibility of controlling their offers, including setting up their preferred prices and mode of payment.
How To Sell Cryptocurrency in the UK?
Here is a step-by-step guideline to selling crypto in the UK on eToro.
Visit the official eToro website and open an account. You will need to provide a valid email and password combination. The signup process will also require you to enter and verify your mobile number.
Next, you’ll need to verify your account by providing mandatory details. Fill in the Know Your Customer (KYC) details. This is in line with the UK government’s Anti-money laundering laws. These regulations involve providing your proof of identity (government-issued ID or passport and selfie holding the ID) and proof of residence. The platform will also ask you to clarify your trading experience for better services.
If your crypto assets are on eToro, jump to the next step, otherwise transfer your crypto from your external wallet to your eToro account. Use the receiver’s address on the eToro account to send the crypto asset.
From the dashboard, click on ‘Portfolio’. The asset you want to sell should be displayed there. Click on it and enter the number of cryptos you intend to sell.
Finally, you’ll need to click the red cross icon to close the trade successfully.
Do I Have To Pay Tax When Selling Cryptocurrency in the UK?
Crypto is taxable in the UK. The taxation body - Her Majesty’s Revenue and Commission (HMRC), categorizes crypto as a capital asset. Profits realized from selling capital assets are subject to capital gains tax.
The tax has to be paid whether you sell your crypto for fiat or other cryptos. However, you will only be liable to pay taxes once you exceed your £12,300 allowance. Investors will either pay 10% or 20% tax on profits depending on the bands set by the HRMC.
Please note that the HMRC updates crypto taxes periodically. We recommend that you seek professional help if needed.
How Can I Withdraw My Money After Selling Cryptocurrency in the UK?
There are many ways to cash out after successfully selling your cryptocurrency. However, you’ll require to link your payout option to the crypto platform. The money can be sent to your bank account, Paypal, or card accounts, depending on your platform of choice.
The process is generally similar on most platforms. We’ll explore the step-by-step guidelines to withdraw your money from a brokerage called eToro.
Prerequisite: Sell your crypto on eToro following the steps listed above. You will also need to have a minimum balance of at least $30.
After signing into your account, click on “Withdrawal”. Your available balance will be displayed.
Enter the amount you wish to withdraw and click submit
Select the reason for funds withdrawal and click continue
Add a withdrawal method or select from the list of methods available.
Submit the request to trigger the withdrawal. Confirm the transaction details are correct
To check the withdrawal status, click on ‘Portfolio’ from the side menu on the dashboard.
What To Consider When Selling Cryptocurrency in the UK?
You’ll need to do some due diligence before liquidating your cryptocurrency. The focus for most British citizens is on getting value for money. However, there are other critical factors to consider.
See some examples below:
Availability of coins: Check whether the crypto you want to sell is supported on a platform before signing up. If it’s not offered on a platform, you’ll not be able to sell it there.
Mainstream cryptos such as Bitcoin and Ethereum can be found on most platforms. However, newer altcoins tend to be listed on exchanges first. Binance is an excellent example of an exchange that supports newer crypto coins.
Security: Crypto platforms operate online, and many people store their funds and crypto in them. Malicious attackers usually focus on these platforms because of the value they hold. It’s advisable to sign up to providers with proven security track records. This is to ensure protection for your personal data, funds, and crypto-assets. Activate 2FA and use strong passwords to protect your account.
Ease of use: Use beginner-friendly platforms. Time and effort should be spent selling the coin and not learning the platform’s functionality. Platforms like Coinbase and eToro have excelled in providing intuitive interfaces that are simple to use.
Reputation: Check online reviews of the platform before registering on it. You can use third-party review sites to see whether other customers are satisfied. Some of the features you can look out for include security, processing speeds, fees, and customer support. Another option is to check the daily traffic of a platform using sites like Coinmarketcap to evaluate how many people actually are using the platform.
Fees: The cost of transactions is another crucial factor to look out for. Different providers have varying fee models. Withdrawal fees will depend on the cash-out method used. Credit cards typically experience higher fees compared to bank withdrawals. Check the fee schedule of a provider to see if you’ll get value for your crypto assets.
Market sentiments: Crypto prices are highly volatile. To get the best deal, consider doing some fundamental analysis and research. This will enable you to pick an appropriate time to sell your crypto.
Crypto is now seen as an alternative form of investment even in the UK. Exchanges, brokers, and direct trades are the primary methods of buying and selling crypto.
Before selecting a platform to sell your crypto, check to see whether the platform is secure, beginner-friendly, and reputable. Coinbase, eToro, and Binance are some of the best platforms you can use to sell your cryptocurrency in the UK.
Selling crypto is generally similar on most platforms. Withdrawals of funds and the fees associated will depend on a specific provider. Standard withdrawal methods include bank transfers, Paypal, credit and debit cards.