Key Takeaways
- Bitcoin (BTC) is a digital currency that uses peer-to-peer technology for instant payments without banks or central authorities. It is the largest cryptocurrency by market capitalisation, and several Australian crypto exchanges facilitate its buying and selling.
- To sell BTC, one can use a cryptocurrency exchange or a P2P marketplace. The six steps to selling BTC via an exchange include choosing a reputable exchange, creating an account, verifying the account, sending BTC into the account, selling BTC, and sending AUD into the bank account.
- CoinSpot is one of the most trusted and secure exchanges in Australia for selling BTC. The exchange offers a $20 free Bitcoin sign-up bonus, and users can withdraw AUD to their bank accounts for free.
- Other recommended Australian crypto exchanges include Swyftx and Crypto.com, while the best mobile crypto apps for selling BTC via phone include Coinbase and Binance.
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. CoinSpot is my #1 recommendation for Australians so if you want to follow the steps easily, you can open an account with CoinSpot, which is the most trusted and secure exchange in Australia. Withdrawing AUD to your bank account from CoinSpot is free. If you want to learn more about CoinSpot 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 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 CoinSpot account to show you how to sell Bitcoin. If you want to follow my steps, you can also sign up with CoinSpot. With our special offer, you can also claim $20 FREE Bitcoin when you sign up to CoinSpot.
Top 3 Recommendations
CoinSpot
Best Overall
Rating
4.9
Swyftx
Best for Demo Mode
Rating
4.6
Crypto.com
Best App for Beginners
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
The process is easy to create an account with CoinSpot. Click on the following link: https://coinspot.com.au/ and you will be taken to CoinSpot's home page. Click on the white "Register" button in the top right, then you will see a page like the screenshot below. Simply enter your email address, choose a password, click the box to show you’re not a robot, then Create Account.
Step 3 - Verify your account
Once you have created your CoinSpot account, the next step is verification. Click the "Complete Verification" button and follow the prompts. First you verify your email address, then fill out your personal details and then verify your driver license. After you have completed those steps, it may take some time before your verification is finished. While you are waiting, feel free to browse CoinSpot's account so you can get used to how it works.
Step 4 - Send BTC into your account
Once your account has been verified, you can deposit Bitcoin into your CoinSpot account. Click on 'Wallets' in the menu along the top, then click Open BTC wallet next to Bitcoin. You will see a screen like the one below.
Click on Receive along the left, and you will see your Bitcoin address displayed as a string of characters (covered by the yellow rectangle below). You can also click 'Show QR code' which will bring up the QR code if you want to scan using your phone.
Now you need to go to where your Bitcoin is currently stored (eg: on another crypto exchange, in a wallet app, or hardware wallet) and select the option to Send Bitcoin. Either copy and paste the BTC 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 CoinSpot account. It may take only a few minutes, or it can take up to an hour, depending on how busy the network is. Usually you will see your BTC within 10-20 minutes. You can check whether your BTC has arrived by checking your Wallet balance in CoinSpot.
Step 5 - Sell Bitcoin
Once your Bitcoin has arrived in your CoinSpot account, you will see it in the 'Wallets' page. Next to Bitcoin you will see your Balance and approximate value in AUD. Click on 'Open BTC Wallet' and then click on 'Sell'.
You will see a screen like the one below, which displays the current price of Bitcoin. You can type in how much Bitcoin you would like to sell. You can also click the "Change to AUD" button, to type the amount you want to sell in AUD. When you are ready, click on the blue Sell button.
A pop-up will appear, displaying how much BTC you are selling, your fee, and the amount in AUD you will receive. When you have confirmed the details are correct, click the 'Confirm Sell' button. Congratulations, you have sold your BTC for AUD!
Step 6 - Send your AUD into your bank account
Now that you have successfully sold your Bitcoin, you need to withdraw your money from CoinSpot into your bank account (unless you wanted to use it to buy another cryptocurrency). First, you need to add your bank details. Click on the dropdown arrow next to the profile icon in the top right, and then click 'Bank Details'. Enter your bank details, then click Save.
Next, click on the dropdown arrow next to the profile icon again, then click 'Withdraw AUD'.
You will be taken to a screen like the one below. Enter the amount you wish to withdraw, and confirm that your bank account details are correct. Once you are ready, click the 'Withdraw Funds' button to complete the withdrawal. If you submit your withdrawal request before 2pm, you will receive the money in your bank account the next day.
Congratulations, you have sold your Bitcoin and withdrawn your money to your bank account!
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 CoinSpot) 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. CoinSpot supports over 430+ 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. You can also have a look at our Crypto Tax Calculator to help you estimate how much tax you need to pay on your cryptocurrencies.
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 and hoping 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) on Bitcoin if you made a profit from it. You can use our crypto profit and loss calculator to work out if you need to pay tax. 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
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