How To Sell Bitcoin In Australia
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There are several options available in Australia when it comes to selling Bitcoin such as crypto exchanges, P2P platforms, and Bitcoin ATMs. This article will explain how to sell Bitcoin in Australia using a crypto exchange with a step-by-step tutorial.
Here's a quick summary of how to sell Bitcoin in Australia:
- Sign-up with an exchange. Create an account with a low-fee crypto exchange such as Binance Australia.
- Verify ID. Upload a copy of a driver’s license and complete the face verification process to enable AUD withdrawals.
- Deposit Bitcoin. Copy the wallet address for Bitcoin and transfer the coins from an external wallet to the exchange.
- Convert BTC to AUD. Navigate to the 'Trade' section and select BTC/AUD. Enter the amount of Bitcoin and sell to AUD.
- Withdraw to a bank account. Go to the 'withdrawal' page and select AUD. Choose the nominated bank account, enter the amount, and confirm the withdrawal.
Where To Sell Bitcoin In Australia
The best way to sell Bitcoin in Australia is to find a cryptocurrency exchange that is regulated in Australia. The exchanges and trading platforms below are recommended crypto exchanges in Australia to cash out of Bitcoin. This is based on important factors such as ease of use, reputation, fees, security, and live support.
|Exchange||BTC/AUD Trading Fees||AUD Withdrawal Fee||Limit|
|Swyftx||0.6%||None||$4 minimum, $50,000 daily|
|CoinSpot||1% (instant), or 0.1% (exchange)||None||None|
Binance is the best way to convert BTC to AUD within Australia. It is free to create an account with the exchange and takes only a few minutes to verify an account. Individuals can use either the "Binance Convert" or the advanced trading platform to sell Bitcoin with a maximum fee of 0.1%. The former is a fast and simple way to cash out of Bitcoin to AUD. There are zero fees to withdraw from the Binance AUD wallet and the funds will arrive in an Australian bank account near-immediately.
Read our full Binance Australia review and how to claim the Binance referral bonus.
Swyftx is next on our list of where to sell Bitcoin into AUD or another cryptocurrency. The exchange is a reputable and trustworthy option to deposit Bitcoin as it is an ASIC-licensed and AUSTRAC-registered platform.
The advantage of selling Bitcoin on Swyftx is the rapid method direct to a nominated Australian bank account. While it will cost 0.6% to convert Bitcoin to AUD, there are zero fees to withdraw to a bank. The withdrawal is processed near immediately and there is a maximum limit of $50,000 per day.
Read our full Swyftx review.
CoinSpot is a beginner-friendly crypto exchange that is ideal for newer investors that want a safe and convenient way to sell their Bitcoin to cash. Coinspot does have a higher trading fee of 1% when using the instant sell feature but there is a dedicated exchange with a BTC/AUD pair with 0.1% trading fees which is useful. However, it does not provide adequate liquidity for selling large amounts of Bitcoin compared to Binance.
Read our full CoinSpot Australia review.
How To Convert Bitcoin To AUD
1. Create an account with a crypto exchange
The first step to selling Bitcoin is to create an account with a licensed crypto exchange in Australia. It is important to select an AUSTRAC-regulated provider that is registered with ASIC. Exchanges such as Binance, Swyftx, and Coinspot are worthy options that are free to open an account. To create an individual account, a valid email address will be required.
Using Swyftx as the example for this tutorial, visit the website and click on 'Sign Up' in the top-right corner of the website. The next stage is to select 'Australia' as the place of residence, then enter details including full name, email address, and mobile phone number. Complete the captcha verification and then click on 'next'. If you have a Swyftx referral code, enter in the characters to receive a $20 BTC deposit bonus.
2. Complete the ID verification process
The vast majority of crypto exchanges now require ID verification to take place before withdrawing fiat currency, in this case, Australian dollars. This step is to satisfy Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) requirements. Swyftx will prompt a KYC process at the beginning. A photo of a driver’s license (front and back) or Australian passport is required for this step which will be automatically approved in a few minutes.
3. Deposit Bitcoin (BTC) to the exchange
The next step is to deposit Bitcoin into the exchange. This can be from an external cryptocurrency wallet or from another trading platform. On Swyftx, to deposit Bitcoin, click on 'Deposit' on the left navigation menu. This will bring up a deposit box where the asset (BTC) can be selected from the list. Choose the blockchain network to use, and copy the QR code or the Bitcoin wallet address.
Within the external wallet or other platforms, initiate a withdrawal and enter the amount of Bitcoin to Swyftx using the wallet address that was copied to the clipboard. Depending on the network, it can take up to 60 minutes for Bitcoin to be transferred between wallets.
4. Convert Bitcoin to Australian dollars
When the Bitcoin has arrived, the next step is to convert the Bitcoins to AUD. Using Swyftx as the example, navigate to the side menu on the left and click on 'Trade'. Selecting 'Bitcoin' from the list will bring up the price chart of the BTC/AUD pair. To sell Bitcoin, click on the red 'Sell' button on the right of the screen which will bring up an order entry box.
There are three options to choose from on how to sell Bitcoin: at market prices, using a limit, or conditional order. Make a selection on the order type to use and then enter the amount of Bitcoin to sell by dragging the slider. Click on 'Review". Check the details of the BTC to AUD trade, then click on 'Place Order' to complete the sell trade.
5. Withdraw AUD to a bank account
The final step of the process is to withdraw AUD from the exchange to an Australian bank account. To do this on Swyftx, navigate to the main menu on the left of the screen and click on 'Withdraw'. Once the pop-up box appears, enter the withdrawal details. This involves choosing AUD as the asset to withdraw, how much AUD to withdraw, and the reason. Once this information has been entered in, click on 'Continue'. This will bring up the review screen to verify and confirm the withdrawal request. The final step to selling Bitcoin for cash is to click on 'Withdraw'.
Other Ways To Convert BTC to AUD
There are several ways for Australians to sell Bitcoin which largely depend on whether the customer wants to convert BTC to AUD or sell Bitcoin to trade for a different coin. Each method of selling Bitcoin will comprise different effort levels and fees that must be considered before making any transaction.
- Sell Bitcoin on an exchange. Using a regulated and trustworthy exchange in Australia is the safest and best way to convert Bitcoin into AUD. The exchange allows users to deposit Bitcoin to a secure wallet which can then be converted into cash and withdrawn to a bank account.
- Sell Bitcoin cash in hand. Bitcoin can be sold for cash in person with a trusted friend or family member who is willing to pay with Australian dollars. A mobile phone wallet or laptop will be required to send the Bitcoins to the buyer's address and to confirm the transaction on the blockchain. The downside of this method is the speed of the overall transaction process.
- Sell Bitcoin on a P2P platform. There are several crypto P2P platforms that connect willing buyers and sellers. Bitcoin sellers can advertise their orders and choose the preferred payment method to receive money in AUD. These platforms do not always require the buyer or seller to complete ID verification. P2Ps use an escrow service to ensure the transaction is completed on both sides before the Bitcoin/AUD is released.
- Convert Bitcoin to a gift card. Bitcoin owners that want to cash out and remain anonymous can convert Bitcoin into a gift card. The payment method is not common so will be limited opportunities to find a buyer. Alternatively, the card can be used as a way to gift crypto to a friend.
- Sell Bitcoin using an ATM. Bitcoin ATMs can be used to convert Bitcoin into AUD by transferring the asset to the machine's Bitcoin wallet address. The conversion rates and fees are generally higher however is an option for individuals that don't want to use a digital currency platform.
- Spend Bitcoin. There are several Bitcoin debit cards on the market to spend BTC at any online merchant, store, shop, or ATM that accepts a debit card. Platforms such as Coinbase, Binance, and Crypto.com offer their own crypto debit cards which can be loaded with Bitcoin and used to purchase goods and services. The card will automatically sell the stored Bitcoin into the accepted fiat currency (e.g. AUD).
- Obtain a Bitcoin-backed cash loan. This method will be suitable for individuals that need to sell Bitcoin for money to pay for everyday living expenses. Crypto lending platforms such as CoinLoan and Nexo allow Bitcoin holders to loan out their BTC in return for a cash loan in fiat currency.
How To Pick The Best Place To Sell Bitcoin
Finding the best way to sell Bitcoin will depend on individual circumstances at the time. To assist with the decision, the individual should consider the following criteria when deciding to use a crypto exchange to cash out and receive money in an Australian bank.
- Check the Bitcoin price. Knowing when the right time to trade crypto can be a challenging task. Checking the Bitcoin price is therefore essential to know if you're selling at a good price. In general, it is a good time to sell when others are rushing to buy.
- Fees. Two costs that need to be considered are the conversion and withdrawal fees. The trading fee is the cost to fulfill the transaction and can range between 0.1% and 1% per sell order. It is important to also check the spread (as mentioned above) when determining what the cheapest platform is. For withdrawals to a bank account, there can sometimes be a small fee.
- Payment types and limits. For individuals that prefer to sell Bitcoin into cash, check the exchange supports withdrawals to an Australian bank account. Not all exchanges support fiat currency withdrawals or a bank account. For high-net-worth investors, the maximum daily withdrawal limit is an important aspect of choosing an exchange. The withdrawal amount per 24-hour period can usually be increased with additional verification.
- OTC desk support. For high-net-worth investors, the best method to cash out of Bitcoin is to use an OTC desk. Most crypto exchanges will offer an OTC desk with direct customer support to facilitate converting large amounts of Bitcoin to AUD. Depending on the platform, the fees can be reduced for trading larger volumes.
Frequently Asked Questions
Yes, Bitcoin can be cashed out into AUD using an exchange to spend as real money. The best method to sell Bitcoin is using an Australian cryptocurrency exchange to withdraw to a bank account.
The quickest way to liquidate Bitcoin into Australian dollars is on a trading platform. Crypto trading platforms offer high liquidity to convert Bitcoin into AUD or altcoins. Once an account is created and the user's ID is verified, Bitcoin can be deposited and sold almost instantly.
Not all exchanges allow the conversion of Bitcoin to Australian dollars or support fiat currency withdrawals direct to a bank account. In these cases, the individual will need to find an exchange that enables direct AUD withdrawals.
No, Coinbase does not provide the option to sell Bitcoin back to AUD. Bitcoin owners in Australia that used Coinbase will need to transfer the asset to a local exchange that supports withdrawals to an Australian bank account.
We hope this guide was useful to explain how to sell Bitcoin into cash or crypto. Just remember any gains that you make as a result of selling Bitcoin need to be recorded under the capital gains tax (CGT) rules. So it's a good idea to consider using Swyftx and Independent Reserve to withdraw cash to your account as they both have a very helpful tax calculator that is compliant with Australian crypto tax reporting requirements.
If you want to cash out to USD instead of AUD to use overseas, we have compiled a guide that is more relevant on how to sell Bitcoin to USD that you can read here.