Bitcoin has seen astronomical growth over the last decade with an increase in global adoption and suitability as a potential hedge against inflation. The spike in demand has seen the price of Bitcoin exceed $60,000 and investors thinking about when is the right time to sell Bitcoin? This is a difficult question to answer as it depends on various factors. However, we will help provide guidance on how to cash out of Bitcoin using the best exchanges in Australia when the time is right.
How To Sell Bitcoin In Australia
To sell Bitcoin to cash in Australian Dollars (AUD), follow these steps:
- Create an account with an exchange like Swyftx
- Complete ID verification
- Enter in bank details
- Transfer the Bitcoin (BTC)
- Find BTC/AUD or crypto pair
- Enter the amount to sell
- Click 'Sell' to convert Bitcoin
- Withdraw AUD or crypto
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.
Swyftx is our top-rated exchange 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 with over 500,000 users. For those that are new to Swyftx, there is a $20 Bitcoin bonus for individuals that create an account and complete the account verification process using our referral code. The promotion is available for users who sign-up using this link.
One of the reasons Swyftx is a great exchange to sell Bitcoin is the easy-to-use and sophisticated mobile app that provides a simple and transparent way for individuals to buy and sell Bitcoin and 300 other cryptocurrencies using AUD, USD and BTC. There are top-notch features that will suit various types of investors such as rapid AUD withdrawals, portfolio and low trading fees.
There is also the added bonus of selling Bitcoin to AUD directly to an Australian bank account. The withdrawal takes between 1 and 3 business working days. Other great features such as a mobile app and a tax calculator to assist with declaring any capital gains.
CoinSpot was founded in 2013 and has built up a solid reputation and trustworthy image as an Australian cryptocurrency platform. The exchange is focused on helping newcomers to sell Bitcoin and cryptocurrency in Australia into AUD. Coinspot has historically been one the best place to sell Bitcoin over the last few years. Since it was founded, Coinspot has amassed over 2 million customers which is a testament to providing a great platform with excellent customer service.
The trading fee to instantly sell Bitcoin is a flat 1% which is a little expensive. The alternate option is the use the OTC desk for large orders which has a selling fee of 0.1%. When withdrawing AUD to a bank account, there are no Coinspot fees involved.
For investors that want to liquidate their Bitcoin holdings, Coinspot is one of the safest crypto wallets in Australia. Coinspot is regulated by Australia's highly governed financial sector to ensure proper conduct and operations with investors' money. Accounts are secured with bank-like security measures such as two-factor authentication (2FA) which requires a mobile phone code to access the platform. Coinspot is also the first exchange in Australia to receive the internationally recognized ISO 27001 certification for information security to provide peace of mind for sellers.
3. Digital Surge
Digital Surge is an Australian crypto exchange that provides a fast and easy way to sell digital currency to AUD. The platform has focused on providing a beginner-friendly exchange website for everyday Australians to cash out of crypto assets. The exchange is focused on simplicity which starts from the verification process which is automated. That means users can sell BTC quickly and easily in a few steps.
The exchange features a portfolio viewer to show the overall investment performance to determine the best time to sell Bitcoin. There is a watchlist to monitor the price of Bitcoin which is also available on the mobile app.
When it comes to selling fees, there is a 0.5% cost with spreads around 0.4% for Bitcoin. When compared with other exchanges in this article, the sell fees are very competitive and provide good value for money. Moreover, there are no AUD fees to deposit and withdraw Aussie Dollars directly with a local bank which are processed near-immediately.
CoinJar is a trusted crypto exchange in Australia and also one of the longest-running digital currency exchanges. CoinJar allows users to sell digital assets. With over 400,000 users and counting, CoinJar exchange is one of the best places to sell Bitcoin that will suit both beginners and experienced investors.
5. Independent Reserve
Independent Reserve is licensed cryptocurrency exchange in Australia that provides a stable and secure platform for individuals to buy/sell 26 of the most popular digital currencies. The exchange was founded in 2013 and has gained the trust of over 200,000 individuals and 8,000 SMSF accounts.
Best Places To Sell Bitcoin To AUD - Compared
The table below lists and compared the top-rated exchanges that can be used to quickly and safely convert Bitcoin into AUD.
|Exchange||Crypto Assets||Trading Fees||Rating||Promotion||Website||Review|
|$20 Bitcoin for creating a verified account||Visit Swyftx||Swyftx Review|
|None available at this time||Visit CoinSpot||CoinSpot Review|
|$10 Bitcoin for creating a verified account||Visit Digital Surge||Digital Surge Review|
|$10 BTC for creating a verified account||Visit Independen...||Independent Reserve Review|
|325||0.02% / 0.07%|
|5% off trading fees||Visit FTX Australia||FTX Australia Review|
Popular Ways To Convert BTC to AUD
There are several ways for Australians to sell Bitcoin which largely depends 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 of different effort levels and fees that must be considered before making any transaction.
1. Sell Bitcoin Using An Exchange
Creating an account with 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.
Australian crypto exchanges can also be used to convert Bitcoin into other digital currencies such as Ethereum, Litecoin, XRP or other altcoins. Using a local exchange provides the individual with the flexibility to instantly sell Bitcoin into cash or another crypto when the price is at a desirable value.
2. 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.
3. Sell Bitcoin Using A Peer To P2P Platform
Peer to Peer (P2P) exchanges such as Paxful connects willing buyers and sellers on the internet. Sellers can advertise their order on a P2P exchange and the preferred payment method to receive money in AUD. These platforms do not always require the buyer or seller to complete ID verification. However, use an escrow service to ensure the transaction is completed on both sides before the Bitcoin is released.
4. Convert Bitcoin To Gift Cards and Spend
Bitcoin owners that want to cash out and remain anonymous can convert Bitcoin into a gift card using a P2P platform. The payment method is not common so will be limited opportunities to find a buyer. There are websites such as Bitrefill that accept Bitcoin as payment to purchase a gift card which can then be spent like money.
5. Withdraw Cash From Bitcoin ATM
Bitcoin ATM's 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.
6. Pay Bills With Bitcoin
Cryptocurrency platforms like Digital Surge offer it's users the ability to pay bills with Bitcoin. This means the owners do not need to liquidate their Bitcoin holdings into cash to spend on daily living expenses. The platform can be used to pay any Australian bill or credit card statement using Bitcoin (BTC).
7. Spend Bitcoin Using A Crypto Debit Card
There are several Bitcoin cards on the market that allow investors to spend BTC (instead of selling it for cash) at any online merchant, store, shop and ATM that accepts a debit card. Platforms such as Coinbase, Binance and Crypto.com offer some of the best crypto debit cards which can be used to purchase goods and services. The card will automatically sell the stored Bitcoin into the accepted fiat currency (e.g. AUD).
8. Lend Out Bitcoin To Get A Cash Loan In AUD
This method will be suitable for individuals that need to sell Bitcoin for money to pay for everyday living expenses. Some of the crypto interest platforms such as BlockFi 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. There is no single best method, however, when deciding on where to sell the investor needs to ask:
- Should I sell Bitcoin to AUD or another cryptocurrency?
- Do I want to sell Bitcoin now or wait for a higher price?
- How do I want to receive the payment?
- Should I sell Bitcoin instantly and pay higher fees or use a limit order?
- How much am I willing to pay in exchange fees?
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 Prices
Check the prices between the top-rated exchanges in Australia to see which platform offers the best prices and lowest spreads. This can be confirmed by looking at the difference between the bid and ask price. A larger gap means there is a premium called a spread that will reduce the amount of AUD received when selling Bitcoin.
Trading & Withdrawal 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.
Withdrawal Types & 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.
Withdrawing funds from an exchange can be a challenging process for beginners. While most exchanges will provide a customer support section with FAQ's and How-To guides, check if there is a live chat feature or direct email address.
Reviews & Social Media
Feedback from other investors can be a powerful tool to provide insight into their experience using the exchange. Check social media platforms such as Facebook and Twitter as well as credible forums such as Bitcointalk.org.
Frequently Asked Questions
Bitcoin can be cashed out into fiat currency such as USD, AUD, EUR and GBP using an exchange to spend as real money. The best method to sell Bitcoin is using a cryptocurrency exchange that supports the local currency with zero fees to withdraw to a bank account. There are also options such as Elbaite which have 0% trading fees to cash out of Bitcoin and Ethereum to Australian Dollars.
Knowing when to sell Bitcoin is one of the hardest things to know as there is no right or wrong answer to this question. It depends on your financial circumstance, risk appetite and what price you paid for it. To maximize your fiat profits you need to buy low and sell high. So, don't be afraid to take profits if you were fortunate to buy on the dip. Remember, Bitcoin is a highly volatile asset so we caution all investors to never risk more than you can afford to lose and avoid buying or selling based on FOMO or FUD.
The quickest way to liquidate Bitcoin into cash or another cryptocurrency is on a trading platform. Crypto trading platforms offer high liquidity to convert Bitcoin into fiat currency or altcoins. Once an account is create and the user's ID is verified, Bitcoin can be deposited and sold almost instantly.
It is important to check the exchange allows the selling of Bitcoin to fiat currency as not all global trading platforms are supported in each country due to regulations. Furthermore, there are each exchange can offer various withdrawal methods, daily limits and fees.
Coinbase allows residents in Australia to purchase Bitcoin using a debit card, however 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 or use a dedicated crypto tax software that is compliant with Australian tax reporting requirements,