Should you be among the bevy of investors and speculators who recently purchased bitcoin, you might be eagerly wondering how to sell bitcoin for cash. More specifically, you might be wondering how to sell bitcoin in Australia, whereas crypto exchanges like Coinbase don’t treat all nations equally when it comes to services provided. Suffice to say, you’re not alone in your desire to cash out. And while there are plenty of crypto fanatics out there suggesting you hold (or HODL, rather) onto your bitcoin, you’ll find just as many financial experts saying there’s no harm in selling while the value is still high. For that, we’re here to help. Read on for how to sell bitcoin and cryptocurrency in Australia.
Why Sell Bitcoin?
Before you sell your hard-earned cryptocurrency, you might be asking yourself if it’s the right move to begin with. The answer really depends on your attitude toward risk and investment. Plenty of experts are suggesting that bitcoin and crypto are bubbles, meaning an extreme crash might be lurking right around the corner. Hence, one reason to sell bitcoin this very minute is because that same bitcoin might have far less value in a matter of days or weeks.
On the flip side, there’s a substantial army of young investors out there who are basically banking their futures on crypto. These are the guys who will tell you that in a few decades, physical cash and banking institutions might be a thing of the past. In their opinion, you should be hodling every bitcoin you can find, because the value might very well skyrocket in the near future.
Our advice is to sit down and determine just how much time, stress and energy you’re willing to commit toward buying and selling crypto before you cash out. And if you’re the type who likes to hedge his bets, you can always sell some of your bitcoin and hodl on to the rest.
How to Sell Bitcoin in Australia
If you have any experience with the stock market, then you pretty much already know what buying and selling crypto is like. That is, you ultimately buy bitcoin at one price and then sell or spend it at another. You can either exchange bitcoin for other crypto, spend it on goods or services, or sell it for cash. If you want to spend it, all you need to do is find a vendor that accepts bitcoin and use your wallet address to make purchases. If you’re selling it for AUD through an exchange, you will need your bitcoin wallet linked to a bank account, which commonly requires ID verification.
Now, we’re going to assume you already know how to buy bitcoin in Australia, and that you have a bitcoin wallet. The next thing to determine is whether you’re exchanging bitcoin for another crypto or selling it for AUD. You should be aware that some sites will allow you to set the price for your bitcoin, while others set the price for you. There are also varying fees to consider. Also, you need to know who you’re selling to in the general sense. That is, are you selling on an exchange, to a broker, or to another individual? Here are some great sites to use:
Coinspot – On Coinspot, you’re selling bitcoin (or ether) to brokers at a rate that they pre-determine.
Local Bitcoins – Local Bitcoins is a peer-to-peer exchange, meaning you’re selling or trading bitcoin with another individual like yourself. Here, you can determine your own rates, but they should be in line with the general market rate. There’s also some flexibility to provide additional incentives (like accepting cash payments), which can be reflected in your asking price.
Coinjar – Straight out of Australia comes Coinjar, a wildly popular exchange that allows you to sell or exchange bitcoin (and only bitcoin) for AUD and other currencies. That means you can sell bitcoin for AUD, then send the AUD to a linked bank account. Included in the deal is a bitcoin wallet for storage. In Coinjar’s own words, this is the “simplest way to buy, sell and spend bitcoin.”
How to Sell Bitcoin in Australia for Hard Cash
Bitcoin might be the future of currency, but in the present day, no one argues with cash. That’s not to mention that most cash transactions will cut down on fees and in some cases even allow you to inflate the price. If you want to sell your bitcoin for hard cash, you have a few options:
Sell Bitcoin in Person – Hop online and go to sites like Local Bitcoins or other crypto communities, find someone looking to buy, and then meet up with them in person. Make sure you’re selling to someone with a positive feedback score, and that you meet him or her in a public space.
Visit a Bitcoin ATM – A growing trend, Bitcoin ATMs allow you to buy bitcoin using cash, and in some cases sell bitcoin in exchange for cash. The machines are currently pretty scarce in Australia, but they do exist. Click here for a map
How to Sell Bitcoin in Australia Using Coinbase
Among the most popular crypto exchanges in the world is Coinbase. Indeed, the site is tremendously easy to use and a great starter destination for those figuring out how to buy bitcoin in Australia. One major caveat, however, is that Coinbase doesn’t currently allow you to sell your bitcoin in Australia. If you’re someone who bought crypto through Coinbase while the action was hot, click here for a breakdown on how to sell that crypto in Australia, which entails transferring the crypto to another wallet.
Bitcoin is so new that governments and financial institutions around the world are still catching up. Consequently, the tax laws surrounding crypto aren’t necessarily as fleshed out as they are in other financial sectors. That means you might be wondering whether you need to pay taxes on any profits you make selling or exchanging bitcoin or crypto. The short answer is: yes on all fronts. If you’re selling bitcoin for cash, you’ve earned income and that needs to be reported. If you’re selling bitcoin for other crypto, your holdings are treated like assets and therefore subject to a capital gains tax. Are there loopholes you can use to minimise tax? Probably. But that’s a question for your accountant.