How to sell Bitcoin (BTC) in Australia in 2021

How to sell Bitcoin (BTC) in Australia in 2021

Daniel Chan

October 21, 2021

Cryptocurrency

What is Bitcoin (BTC)?

Bitcoin is the world's first digital currency (cryptocurrency), created in 2009 and relies on peer-to-peer technology to facilitate instant payments with no central authority or banks. Bitcoin is still the largest cryptocurrency by market capitalisation and has increased dramatically in price and popularity over the last few years. Because of the interest in cryptocurrency since 2017, a lot of fantastic Australian crypto exchanges have been founded, making it easy to both buy and sell Bitcoin. 

Where can I sell BTC?

If you are wondering where to sell your Bitcoin, you probably have your Bitcoin on an exchange that doesn't allow sale of crypto in Australia, or it's stored in an external wallet (either an app or a hardware wallet). There are two main ways to sell BTC, one is through an exchange (the easier method) and the other is using a P2P marketplace (for those that want to sell directly to someone). Click here to jump to selling Bitcoin on a P2P platform.

As the #1 cryptocurrency in the world, Bitcoin can be sold on any exchange that facilitates sale of crypto to fiat currency. With so many exchanges, the most important factor is that you choose a trustworthy and legitimate crypto exchange that isn't a scam. To make sure you are selling your Bitcoin safely, using one of the best crypto exchanges in Australia is a good place to start. They are all registered with AUSTRAC to fight money laundering and financing of terrorism, so you know they are reliable exchanges. Swyftx is my #1 recommendation for Australians so if you want to follow the steps easily, you can open an account with Swyftx and claim $20 FREE Bitcoin, which you can sell together with your existing Bitcoin. If you want to learn more about Swyftx before signing up, read my full review.

How to sell Bitcoin?

The easiest way to sell Bitcoin is to use a crypto exchange. If you prefer to sell Bitcoin using a P2P marketplace, click here to jump to that method. 

There are six easy steps to sell Bitcoin using a cryptocurrency exchange. I will describe each of these steps in detail below:

Step 1: Compare crypto exchanges

Step 2: Create an account

Step 3: Verify your account

Step 4: Send BTC into your account

Step 5: Sell Bitcoin

Step 6: Send your AUD into your bank account

Step 1 - Compare the best crypto exchanges

Your first step is to decide on a reputable and trusted exchange that is easy for you to use. I recommend any of the best crypto platforms; they are all legitimate and allow sale of Bitcoin to AUD. In this how-to guide, I will be using screenshots from my Swyftx account to show you how to sell Bitcoin. If you want to follow my steps, you can also sign up with Swyftx.

Top 3 Recommendations

#1

Swyftx

   Best Overall  

Rating

4.9

#2

CoinSpot

Most Trusted

Rating

4.6

#3

Digital Surge

   Best for Low Fees

Rating

4.4

If you are considering all your options about where to sell your Bitcoin, my review on the best Aussie crypto exchanges may be useful. If you wanted to sell Bitcoin using your mobile phone, you can have a look at the best mobile crypto apps.

Step 2 - Create an account

Signing up with Swyftx is easy. Click on this link: https://trade.swyftx.com.au/register/ and fill out the short form with your personal details.

Step 3 - Verify your account

After you have created your Swyftx account, you have to verify your account before you can sell your Bitcoin. On the left of the screen, in the dark menu, click on Profile, which opens a dropdown menu, then click on Verification (highlighted in blue in the screenshot below). Verify your mobile, email address and ID by following the instructions which will only take you a few minutes.

Step 4 - Send BTC into your account

Once your account has been verified, you can deposit Bitcoin into your Swyftx account. Click on Quick Deposit in the menu on the left and select Deposit BTC (circled in green in the screenshot below). You will see the Bitcoin deposit address (covered by a green rectangle in my screenshot below). 

If you click on the little blue circle with the three dots, you will have the option to copy the address, or to show the address as a QR code, if you want to scan the address using a camera (see QR code in screenshot below). Now go to wherever your Bitcoin is currently stored (eg: on another crypto exchange, in a wallet app, or hardware wallet) and select the option to Send Bitcoin. You can either copy and paste the address across, or if you are using a phone app, scan the address QR code. Make sure you double check that the address is correct before transferring.

After you have sent the Bitcoin, you may have to wait before it arrives in your crypto exchange account, depending on how busy the network is. It may take only a few minutes, or it can take up to an hour. Usually you will see your BTC within 10-20 minutes. You can check whether your BTC has arrived by checking your balance, your transactions, or your portfolio.

Step 5 - Sell Bitcoin

Once your Bitcoin has arrived in your crypto exchange, you're ready to sell. Click on Trade in the menu on the left, then click Sell (highlighted blue below). Next to the magnifying glass icon, type BTC and click on Bitcoin in the Assets list. You can see the price of BTC in the middle of the screen, and it constantly changes as the price updates.

Choose how much Bitcoin you want to sell. You can sell a percentage of your Bitcoin, or type in an amount in BTC or AUD. In my example (see below), I selected $200 worth of AUD and clicked Instant Sell underneath. A pop-up window will show you how much BTC you are selling, the fee that you will pay, and the total AUD you will receive from the sale. If you are happy with the price, click on the red Confirm Sell button.

Note: Swyftx charges 0.6% transaction fee to sell Bitcoin. Other exchanges will charge different fees.

Your sale of Bitcoin will be processed, and you will see that your AUD is now available in your balance in your cryptocurrency exchange.

Step 6 - Send your AUD into your bank account

Now that you have successfully sold your Bitcoin, you need to get your money out of the crypto exchange into your bank account (unless you wanted to use it to buy another cryptocurrency). Click on Quick Withdraw in the menu, and then click Withdraw AUD (circled in green below). You will see that there is box called Australian Dollars Withdrawal Addresses. Click on the + symbol (circled in purple below) to add your bank account details.

A pop-up will appear on your screen. Enter the details of the bank account you want to withdraw to, then click Add at the bottom.

Now you will see your Withdrawal Address listed, and you just need to click the blue Withdraw icon (circled in green below) to send your money to your bank account. 

Another pop-up window comes up, where you can select how much AUD you wish to withdraw to your bank account. Once you have entered the amount, click on Withdraw. You can also click Withdraw All if that is what you want to do.

If your bank is set up to receive incoming transactions via OSKO, your withdrawal from Swyftx will be instant. Log in to your bank account to check that you have received your money. If your bank doesn't support OSKO transactions, the withdrawal will be processed by Swyftx that business day and then will take another business day to clear in your bank account.

Note that Swyftx does NOT charge any fee for withdrawals, but some other crypto exchanges will charge you. Also, Swyftx has instant withdrawals using OSKO, whereas some others don't support this, and will take a few days for you to receive your money. If speed of withdrawal is important to you, make sure you do your research before choosing a crypto exchange.


Advantages of selling BTC using P2P exchange

You may have heard of P2P (peer-to-peer) exchanges and decided that's where you want to sell your Bitcoin. Binance is the best P2P exchange to use to sell Bitcoin as well as plenty of other cryptocurrencies. If you are new to cryptocurrency, I would suggest using a regular crypto exchange to sell your Bitcoin as it is simpler. However, if you have a bit of experience with cryptocurrency, Binance's P2P exchange is great. Here are the reasons why people prefer selling BTC using a P2P market.  

Zero fees

On Binance, there are 0% fees charged when selling Bitcoin, either as a maker (someone who posts an ad) or a taker (someone who responds to an existing ad).

More payment methods

Using Binance's P2P market, sellers can decide which method of payment they want and in any fiat currency.

Choose what price you want to sell at

When you post an ad on the P2P exchange, you can select the price that you want to sell your Bitcoin at. If someone is willing to pay you for it, then your sale will be successful.

Privacy and protection of bank details

When you use a P2P exchange to sell Bitcoin, the crypto exchange does not collect details about buyers or sellers. Binance will not know the bank details that you provide to a buyer, it is only between you and the buyer.

How to sell BTC using P2P marketplace?

Since you have decided to sell your Bitcoin using P2P, I am going to assume that you have some experience with cryptocurrency. I will not go through a basic step-by-step of how to create an account with Binance, as I'm sure you know how to do that. Once you have signed up with Binance and verified your account, send your BTC into your Binance account. Now you can click on Trade in the menu, and select P2P.

You will see a screen similar to the one below. To sell BTC, you need to click the toggle for Sell, (circled in green below). Select BTC as the coin you want to sell (circled in blue), and choose your fiat currency as AUD, or another currency if you prefer (circled in yellow).

Now your screen should look like the one below. These are ads that people have placed, looking to buy Bitcoin. You can see the price they are offering, the amount of BTC they want in total, and the minimum and maximum amount (in AUD) that they want to purchase. The payment type is also listed next to each ad, and you can filter by payment types if you only want to receive payment a certain way. If you want to sell to one of the advertisers, click the red Sell BTC button on the right.

I clicked on the Sell BTC button for the first advertiser in the list, and it brings up another screen (shown below). You can select the amount of BTC you want to sell, and the payment method. Once you are ready, click Sell BTC and patiently wait for the payment to come through. As you can see in the ad below, there is a payment time limit of 360 minutes (6 hours), and once you receive the funds, Binance will send the Bitcoin to the Buyer. 

Each P2P trade on Binance involves escrow service protection, so you can trust that your transaction is protected from attempts by the buyer to act in bad faith. 

If none of the ads are suitable for you, and you want to post your own ad, it is easy. Click on More (circled in green in the screenshot below), then click Post new Ad. Follow the prompts and you will have your own advertisement set up, that others can select if they want to buy from you.


Frequently Asked Questions:

Is selling Bitcoin legal in Australia?

Yes, you can legally sell, buy, trade and own Bitcoin in Australia. 

Is selling Bitcoin in Australia safe?

Yes, selling, buying and trading Bitcoin in Australia is safe if you are using a legitimate and trusted crypto exchange. The best crypto exchanges (such as Swyftx) all feature multi-layered security, and are registered with AUSTRAC so you can sell with peace of mind. Take a look at the quick comparison table at the bottom of the page which shows some key information about the best crypto exchanges for selling Bitcoin.

Can I use this method to sell all cryptocurrencies or only Bitcoin?

As long as the cryptocurrency you want to sell is supported on the crypto exchange, you can follow the steps above to sell any coin you own. Swyftx supports over 270+ different cryptocurrencies, so there is a good chance that you can use this guide to sell the coins you have. 

Do I have to pay tax when I sell Bitcoin?

Australians that sell Bitcoin will have to pay tax on any profits they made. The ATO treats Bitcoin and other cryptocurrencies as assets, not currencies, so you will need to pay Capital Gains Tax when you sell. For detailed information including examples, see the ATO website. It is a good idea to seek the advice of a tax agent or accountant before selling your Bitcoin. 

Pro Tip: if you hold your Bitcoin for over a year before selling it, you only have to pay half the amount of Capital Gains Tax that you would if you sell it within one year.

When should I sell my Bitcoin?

This is a tough question to answer, because no one can predict what the price of Bitcoin will do in the future. The answer is different for everyone. As a general rule, I would say that if you need the money, then you should sell your Bitcoin instead of putting yourself in debt, in the hope that Bitcoin's price rises in the future. However, if you are using Bitcoin as a long-term investment, I believe we are still in the early days of Bitcoin and cryptocurrency, so there is a lot of potential for tremendous growth.

Pro Tip: A point to remember is that you will need to pay Capital Gains Tax (CGT) tax on Bitcoin if you made a profit from it. If you sell your Bitcoin within a year of owning it, you will need to pay double the amount of CGT that you would if you held it for more than a year. This is something to keep in mind when deciding when to sell.

How do I sell Bitcoin instantly?

If you want to sell your Bitcoin immediately, the fastest way is using an Aussie exchange called Easy Crypto Australia. With Easy Crypto Australia, you don't need to send your Bitcoin to your exchange before you can sell it. Instead, when you sell your BTC, you send it straight to the wallet address provided, and enter the bank account details you want the money sent to. Easy Crypto Australia is non-custodial, which means they never store your fiat funds or cryptocurrencies. You have total control over all of your assets at all times. For more information, read the detailed review here.

How do I buy Bitcoin?

If you found yourself on this page because you wanted to find out how you can sell Bitcoin, before you start investing in crypto, then you may also want to know how to buy Bitcoin. The process is easy, and you can find some easy-to-follow steps here

Comparison Table of the Best Crypto Exchanges in Australia

Swyftx
CoinSpot
Digital Surge
eToro
Binance
Crypto Exchange
Crypto Exchange
Swyftx
CoinSpot
Digital Surge
eToro
Binance
Fiat Currencies
Fiat Currencies
AUD
AUD
AUD
AUD, USD, GBP, EUR & 11 more
AUD, USD, GBP, EUR, CAD, HKD, JPY & 35 more
Cryptocurrencies
Cryptocurrencies
BTC, BTG, BCH, ADA, ETH, ETC & 270+ more
BTC, ETH, LTC, XRP, BCH, ADA & 300+ more
BTC, ETH, BNB, ADA, XRP & 270+ more
BTC, ETH, BCH, XRP, LTC, ADA & 24 more
BTC, ETH, LTC, BNB, ADA, XRP & 300+ more
Deposit Methods
Deposit Methods
POLi, PayID, OSKO, Bank transfer, Credit card, Cryptocurrency
Bank transfer, BPAY, Cash, POLi, PayID, Cryptocurrency
PayID, POLi, OSKO, Cryptocurrency
Bank Transfer, Credit card, Debit card, PayPal, POLi
PayID, OSKO, Cryptocurrency
Trading Fees
Trading Fees
0.6%
Market order: 0.1%, Instant buy: 1%
Market order: starts from 0.5%, Instant buy: 0.5%
Included in spreads
0.1%

Marketplacefairness.org provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual's needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us. 

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