www.banklesstimes.com
HomeNewsHow To Sell Dogecoin in the UK
How To Sell Dogecoin in the UK

How To Sell Dogecoin in the UK

Last updated 12th Apr 2022
Disclosure

Dogecoin is a popular meme token that has exceeded expectations, particularly in 2021. Its remarkable rise to the top 10 cryptocurrencies based on market capitalization has led to an interest among investors worldwide, like in the UK. This article serves as a handbook and explores the best-performing brokers for selling Dogecoin. You will also find related concerns such as taxation, withdrawal, and factors to consider when you want to sell Dogecoin in the UK.

Best Platforms To Sell Dogecoin in the UK in 2021

You cannot sell Dogecoin in the UK without using a broker. We have put together a guide featuring the best platforms to sell your Dogecoin in 2021. 

Below is a list of top brokers to sell Dogecoin in the UK. They are recognized by industry-leading experts and are suitable for both newbies and experienced investors.

1
eToro
Minimum Deposit
$200
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
2
Atani
Minimum Deposit
$100
Exclusive Promotion
User Score
9
Popular among traders
Fast system for trading
Popular for beginners
3
Coinmama
Minimum Deposit
$100
Exclusive Promotion
User Score
9
Easy to use tool
High profit potential
Offers Phone Support
4
Coinbase
Minimum Deposit
$50
Exclusive Promotion
User Score
6
Trade and invest in over 25 cryptocurrencies
Extremely simple user interface
Over 68 million customers
5
Paybis
Minimum Deposit
$50
Exclusive Promotion
User Score
5
First transaction fee free
24/7 customer service
Instant payouts

What Options Do I Have When Selling Dogecoin in the UK?

There are different ways to sell Dogecoin in the UK. Each of which has its pros and cons. Common ways to sell Dogecoin in the UK include: 

  • Brokers: Sell futures, CFDs, or forex to online brokers like Coinbase when you want to leverage speculative price changes. You will often find brokers acting as exchanges and vice versa.
  • Exchanges: You can sell Dogecoin in the UK for fiat currency or for another cryptocurrency on top exchanges like Binance and store it in your wallet. When you withdraw, the exchange converts the funds to cash and pays you through your preferred channel.
  • P2P Marketplaces: Another option you have is to sell your Dogecoin or trade it on peer-to-peer crypto exchanges. However, you must ensure that the platform you choose is reputable.
  • Decentralised exchanges: A decentralized exchange (DEX) operates based on a distributed ledger, so it does not store user funds or data. Rather, it acts as a platform for matching bids by users. This is another way to sell your Dogecoin and a popular example is DOGEDex.
  • Sell in person: Sell Dogecoin in the UK for cash to persons, institutions, and exchanges that have provided such means of payment.
  • ATMs: You can convert your Dogecoin to Bitcoin and sell at crypto ATMs. These ATMs however are hard to come by. 

Do I Have to Pay Tax When Selling Dogecoin in the UK?

The HMRC has guidance for filing taxes on crypto assets in the UK. These assets are grouped into four categories – exchange tokens, security tokens, utility tokens, and stable coins.

Dogecoin is an exchange token since it serves as a means of payment. Anyone living in the UK with a crypto asset as a personal investment will be taxed on the profits made on the assets. This means that when you sell Dogecoin in the UK, you will have to pay capital gains tax on the profits made from the sales. This also applies to coins received from airdrops, mining, confirmation rewards, and as salaries from employers.

Even when you make capital losses from selling Dogecoin or any other coin in the UK, it is considered a tax liability and this would be deducted from your overall capital gain. Again, crypto and fiat exchanges are taxable platforms and you might also get taxed if you receive other crypto assets.

You can determine the capital gains tax you’re liable to pay by working out your gains when you sell Dogecoin in the UK. However, the process is different if you sell your Dogecoins within 30 days of getting them. You can take away certain allowable costs when working out your gain but always remember to report to the HMRC. You can pay your capital gains tax by completing a Self-Assessment tax return by the end of the tax year and this must be done in Pound Sterling. 

Overall, remember that your Dogecoin and crypto portfolio is liable for tax. It may be worthwhile seeking the help of a financial advisor. 

How to Sell Dogecoin in the UK?

Selling DOGE is a similar process across all brokers and exchange platforms. Here is a step-by-step guide:

Step 1. Sign up: After choosing your desired medium, the next step is to sign up. The registration process usually takes a few minutes and it might involve a KYC process for verification. The KYC usually includes your residential details, occupation, threshold income, legal name, and date of birth.

Step 2. Buy Dogecoin: Since you cannot sell the asset without first possessing it, the next step is to buy an amount of the coin that you are comfortable with. You can use your credit/debit cards, bank transfers, or third-party platforms like PayPal.

Step 3. Determine when to sell Dogecoin UK: Just as you would have determined the right time to purchase the coin, it is also important to know when to sell it to avoid losses in a highly volatile market. Once you have a selling target based on an informed decision, click on Dogecoin on the exchange. 

You will see more information about its trading volume. Knowing the value of your portfolio is also important in selling your Dogecoin. For instance, eToro has a base withdrawable amount of $50, which is the minimum you can sell. 

Step 4: Close any active positions: This involves exchanging your Dogecoin for USDT or other cryptocurrencies after which you can withdraw to cash. After selling your Dogecoin, you might discover that you have the equivalent of the amount sold or a little less if transaction or withdrawal fees are involved. 

Positive or negative slippage could also occur. You can close your trades by finding the preferred crypto pair of your Dogecoin. Your balance is withdrawable to your local bank account, PayPal, or to a credit card attached to your account.

How Can I Withdraw My Money After Selling Dogecoin in the UK?

There are multiple withdrawal options for Dogecoin depending on the trader’s country of residence. In the UK, the most popular methods include:

  • Payment providers: Payment providers or third-party payment platforms like PayPal and Venmo mostly support only four cryptocurrencies – Bitcoin, Bitcoin Cash (BCH), Ethereum (ETH) and Litecoin (LTC). Thus after selling your Dogecoin, you must convert it to one of these cryptocurrencies before getting your fiat equivalent.
  • Bank account: You can link your bank account to the exchange where you have your Dogecoin and withdraw the equivalent directly to your bank account.
  • Debit /credit card: You can withdraw your money using credit and debit cards. When you sell your Dogecoin on an exchange, you can convert your funds to fiat. This method of withdrawal offers high security and transactions are smooth.
  • Cash: You can sell Dogecoin for cash using an integrated withdrawal channel on exchanges like eToro. Remember to set the preferred currency to Pound Sterling if you are in the UK. When you make a withdrawal request, the exchange will help you convert your funds to cash and pay you through your preferred channel. 

Where To Sell Dogecoin in the UK?

There are more than 100 exchanges located in different countries all over the world. Most of these exchanges are accessible to both crypto enthusiasts and expert investors. You can buy and sell your coins using these exchanges. The following are the most reliable brokers and exchanges available in the UK for both beginners and experts. 

For Beginners

The following brokers/exchanges are most suitable for newbies:

  1. Coinbase: We consider Coinbase to be the best Dogecoin trading platform in the UK for Beginners. With a community of over 56 million people, the brokerage makes buying, selling, and trading super-easy for first-timers with its user-friendly interface. After verifying your account, you can make transactions using your debit/credit card and bank account.

Pros

  • It is one of the most popular crypto exchanges
  • The registration process takes less than 10 minutes.
  • You can deposit funds through a UK bank transfer for free
  • Offers a vast selection of digital currencies just like eToro
  • Institutional-grade security practices
  • Has a mobile app for instant and direct access to accounts
  • Has a Visa debit card that allows you to spend your coin online or in-store

Cons

  • Coinbase charges hefty fees on buying and selling Dogecoin.
  • Debit card deposits are expensive
  1. Robinhood: This exchange only recently became accessible to cryptocurrency owners in the UK. It allows the trading of major coins like Bitcoin Cash, Litecoin, Ethereum, and Dogecoin. The exchange generates its profit through payment for order flow (PFOF). 

Pros

  • Robinhood is suitable for newbies looking to trade multiple classes of assets.
  • Does not charge any commission on crypto trades.

Coins

  • Robinhood’s pricing structure is not entirely transparent like other exchanges.
  1. Binance: Binance is another exchange/brokerage option for both beginners and experienced investors. Binance stands out for its various technical analysis tools to help newbies with trading. Binance offers hundreds of alternative crypto markets making it easy to sell Dogecoin in the UK. 

Pros

  • Facilitates transactions worth billions of dollars in daily trading volume
  • Supports hundreds of digital asset pairs
  • Near-instant deposits through debit/credit cards
  • Low trading commission unlike other exchanges
  • Takes only a few minutes to set up your account
  • Offers crypto savings accounts
  • Ideal for both beginners and experienced traders

Cons

  • Debit/credit card transactions are not available for every coin pair
  • No e-wallet deposits or withdrawals 

For Experienced Users 

  1. eToro: This platform is one of the best if you want to trade and sell Dogecoin in the UK. It is used by over 20 million people and is heavily regulated. eToro has licenses from the UK’s FCA, ASIC in Australia, and CySEC in Cyprus. eToro’s commitment to regulation makes trading and selling Dogecoin safe and easy. You can also trade other top cryptocurrencies like Bitcoin, Ethereum, Ripple, EOS, Aave, etc. 

Pros

  • Simple to use
  • Has a $50 minimum stake which is ideal for traders with a small budget
  • Low trading fees
  • Wide cryptocurrency portfolio, which supports over 15 coins
  • Invest in cryptocurrencies on a spread-only basis
  • Supports a wide variety of payments including debit/credit cards, bank transfers, and e-wallets such as PayPal and Skrill). 

Cons

  • May be too basic for advanced traders
  • Has no support for MT4 or MT5
  1. Bittrex Global: This platform has the lowest trading fees in the crypto market with about 0.2% commission. Bittrex has over 500,000 active users even though it accepts fewer currencies than Coinbase.

Pros

  • Secure
  • Small, fixed fees
  • Fast exchanges
  • Wide variety of crypto and fiat currencies

Cons

  • Some users complain of the customer support
  • Still a relatively new-comer in the industry
  1. Kraken: Kraken is a cryptocurrency spot exchange founded in 2011. The platform offers futures contracts and margin trading unlike Coinbase, which is a spot exchange. However, it only supports approximately 20 coins unlike Binance, which supports over 100 cryptocurrencies. It has a relatively low trading fee, making it an affordable exchange. 

Pros

  • Trusted exchange
  • Supports many countries
  • Kraken does have a wider feature set

Cons

  • Requires ID verification, so not private
  • User-interface makes it difficult for first-time buyers

What To Consider When Selling Dogecoin in the UK?

When choosing where to sell Dogecoin in the UK, there are various aspects to consider as they would influence your decision. Below are some areas to consider:

  • Volatility: The crypto market is highly volatile and could result in slippage, profits, or losses when selling Dogecoin.
  • Security: The exchange’s reputation matters, so you should consider whether there are extra security measures such as 2-factor authentication, KYC, and AML.
  • Transactions: Once made, transactions are irreversible, so investors are advised to be certain before selling Dogecoin.
  • Anonymity: Bitcoin and Dogecoin are not anonymous. A valid ID is needed to carry out transactions.
  • Regulation: Cryptocurrencies are subject to various regulations from government authorities and exchanges. It is important to consider this when selling dogecoin in the UK.
  • Selling for fiat or other coins: You can sell Dogecoin in the UK for fiat or exchange with other cryptocurrencies.
  • Preferred currency for cash out: GBP, EUR, USD are some of the common currencies that can be used to cash out Dogecoin.
  • Where you keep your coins: There are different wallet options for Dogecoin. Investors should be familiar with the best places to keep their coins.
  • Available withdrawal methods: Payment platforms, bank account, and credit/debit cards support Dogecoin withdrawal. Traders or investors in the UK should be familiar with the various options.
  • How quickly do you want to sell Dogecoin/transfer speeds: Some exchange routes are faster than others and investors should know their options.
  • Emergencies: People who want to sell Dogecoin in an emergency, could get a loan through decentralised providers like Nexo.
  • Transaction fees & commissions: These vary from one exchange to another.

Final Thoughts

We have outlined the best options to sell Dogecoin in the UK, methods of withdrawal, along with tax information. Coinbase and eToro are relatively better placed for investors or traders starting out. However, you can use any of the exchange platforms that we have reviewed according to your individual needs. 

FAQs

Can I sell Dogecoin anonymously in the UK?

Yes. Although the transactions are not anonymous, DOGE owners can sell their coins without an ID by converting them to Bitcoin at a Bitcoin ATM.

Do I need to verify my account when selling Dogecoin in the UK?

Yes. As an extra layer of security, you need to verify your ID and perform other KYC activities on your account, after which you can buy and cash out on your coins. 

News Desk

News Desk

The latest news, comment and analysis from our crypto news desk.