Informational

How to Sell Bitcoin

Caroline Bowler

It is important to remember that while selling Bitcoin is similar to buying Bitcoin, you must first have BTC in your cryptocurrency wallet to do so. Whether you prefer a quick and simple method or a slower but more private one — there are a variety of answers to the question of how to sell your cryptocurrency.

Each of the platforms where you can go to sell Bitcoin has its own pros and cons, and you will have to find the one that works best for you. The avenues available include online cryptocurrency exchanges like BTC Markets, direct peer to peer transactions both in-person and online, and through a Bitcoin ATM among others.

Cryptocurrency exchanges

One of the simplest and most automated ways to turn your Bitcoin into cash in your bank account is through an exchange platform. It effectively acts as a middleman who sells this famously decentralised cryptocurrency on your behalf. Since it is the most popular and well-established cryptocurrency exchange in Australia, we recommend using BTC Markets.

There are also other well-known international cryptocurrency exchanges like Coinbase and Binance, although it is necessary to note that some exchanges have banned certain regions and countries from being able to use their platform. Signing up for an account on any exchange platform is relatively easy, but there are certain non-negotiable steps you will need to take.

By this, we mean having to comply with whatever form of “know your customer” the platform uses. This will usually involve uploading some form of identification such as your identity card, driver’s licence, or passport, as well as a proof of address. Once your account is created and linked to your bank account, selling your Bitcoin for cash is as easy as clicking a button.

The one downside to using an exchange is that they have to charge a fee to keep the service running. This means it’s not always the cheapest option. There is also the fact that a centralised organisation, namely the exchange platform you’re using, will be monitoring the transaction — the exact thing that you may be trying to avoid by using Bitcoin.

Always be mindful of the withdrawal fees that your platform of choice charges when selling your Bitcoin. Some platforms will also limit how much money you can withdraw within a fixed period, a limit that may be raised the longer you have an account with them.

Hackers can also target cryptocurrency exchanges that offer wallet services — so be sure that the exchange you are using is a reputable one with a long-standing history as a trustworthy platform. Another option is to store your cryptocurrency in an offline digital wallet that is not tied to a specific exchange platform.

Online P2P trading

Unlike traditional cryptocurrency exchanges, peer-to-peer (P2P) exchanges let you set your own price before you sell your BTC. The platform then finds a buyer who is willing to pay that price. Once a buyer is found, the two of you will decide how payment is made. In some cases, you can do this on the site, which is known as a direct trade, but most of the time, people choose to use a separate bank transfer.

More reputable platforms will typically use an escrow system so that both the sellers and buyers have a certain level of security during the transfer of their digital assets. When using a P2P trading platform, you can sell any cryptocurrency, including Bitcoin, Ethereum, XRP, Litecoin and more.

And because you’re setting the price as well as choosing how you want to receive payment, you could accept gift cards for popular online stores, meet up in person to exchange cash for your Bitcoin and even accept goods like computer equipment, expensive art and more. However, be aware that some P2P marketplaces will limit or exclude certain payment methods, so investigate more thoroughly before committing to a particular site.

Bitcoin ATMs & Cards

There is nothing wrong with using a cryptocurrency market or peer-to-peer exchange platform to sell your Bitcoin. But ultimately, that money ends up in your bank account and not as cash in your hand. With a Bitcoin ATM, you can skip right past all the hassles of waiting for your Bitcoins to be exchanged for a traditional currency, deposited in your bank account and only then being available for withdrawal.

Although Bitcoin is a digital currency originally designed to be used for online transactions, Bitcoin ATMs make it possible for you to withdraw cash directly from your Bitcoin wallet. However, you will need to remember all your Bitcoin wallet address details or have its QR code saved somewhere to do so. These ATMs also allow you to buy Bitcoin if you don’t want to use your own computer to do so.

One problem with Bitcoin ATMs is that there are not many around Australia yet. In fact, at the time of writing, there are only 41 of them available. They also tend to charge incredibly high transaction fees when compared to the other methods we have listed. It’s also important to note the fact that not every Bitcoin ATM offers both buy and sell functionality.

These days, there are also several crypto-focused payment cards available. These are effectively the same as your traditional Visa or MasterCard; however, the balance is linked to your crypto wallet. Different cards operate in different ways, but they usually exchange your Bitcoin into cash at the point of sale. This means that they can be used anywhere that accepts cards, including establishments that allow you to withdraw cash at the till point.

Frequently Asked Questions

What is Bitcoin worth right now?

Bitcoin’s value fluctuates from minute to minute, just like any traditional currency. We recommend visiting our site to have a look at the current exchange rates for Bitcoin and the other cryptocurrencies we support.

Can I use my SMSF to invest in bitcoin?

Digital assets like Bitcoin and other cryptocurrencies are considered property and are legal tender in Australia. Therefore, you can use your SMSF to invest in listed digital assets. Visit this page to find out more.

Can I earn interest on my Bitcoin balance?

Yes, it is possible to earn interest on Bitcoin. However, you have to use a process known as staking, which is effectively the same as opening a fixed deposit. Find more information about staking on this page.

Now you have some answers to the question “how do I sell my Bitcoins?” and a few others, so you’re ready to start with your Bitcoin journey. Whether you are planning to use your Bitcoin for investment purposes, are interested in a secure way to store your funds, or are simply looking for a completely private way to conduct your business online, Bitcoin is a wise choice. Backed by its revolutionary blockchain technology, it has been around for 12 years now, and it is here to stay.

So are you ready to sign up with BTC Markets and start your Bitcoin investment today? Among the options that we listed for selling your Bitcoin, which one do you think you will use?


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