How to sell Bitcoin online
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This guide explains where you can sell Bitcoin and how to do it. It includes helpful advice on the most important things to look out for, answers the most common questions, and considers whether now is the right time to sell your coins.
Compare where to sell Bitcoin, and withdraw cash
These are the best cryptocurrency trading platforms if you’re ready to dive in and sell straight away. Our experts have reviewed the best brokers and these are at the very top of their field. To learn more about selling Bitcoin first, scroll down to keep reading.
How to sell Bitcoin – a step-by-step guide
Step 1. Choose a platform
A cryptocurrency exchange is usually the best place to sell your coins. Exchanges offer the best prices, and the most options in terms of which currencies to sell them for. They also usually offer a mobile app so that you can easily buy or sell coins wherever you are.
Here are a couple of our favourite exchanges, or you can choose one from the table above.
- Binance: Binance is the most popular cryptocurrency exchange in the world. With hundreds of coins available, you can swap them for each other or for fiat currencies like GBP, USD, and EUR. Sign up for Binance today >
- Bitpanda: Bitpanda is a user-friendly platform that lets you trade cryptocurrencies for fiat currency. It also has an advanced version for anyone who wants to deal with large amounts of Bitcoin. Join Bitpanda now >
Step 2. Deposit your BTC
If you already have an exchange account, you can start selling straight away. If not, then you will need to sign up first. Then transfer the Bitcoin you want to sell from your wallet to the exchange account.
Look out for the fees a platform charges. You will have to pay a blockchain fee (which is explained in more detail below) each time you move your coins and, while there often isn’t a fee for deposits and withdrawals of fiat currency, there can be for cryptocurrency. Do your research and factor in the fees when you choose a platform.
Step 3. Sell
To sell you have to choose which currency you want to exchange it for, and then search for that coin pair on the exchange. So if you want to be paid in GBP, search for the BTC/GBP pair. Then you can enter the amount you want to sell, the price you want to receive, and execute the trade. It can sometimes take a few moments to match your sell order with a buyer, and generally the more you want to sell the longer it will take.
Things to look out for
When it comes to selling coins, timing the decision is up to you, but there are lots of things that you want your exchange to provide as well. Here are the most important things to look out for when you’re choosing a trading platform.
Each exchange is its own market, so the price for each coin is likely to vary across platforms. The difference might only be small, but a little can go a long way, especially if you have a lot of coins to sell. It is certainly worth spending the time to compare prices on different platforms.
You should think of fees like an extension to the price of the coin. You probably are going to have to pay something, as exchanges usually make their money through transaction fees. These can vary significantly between platforms though, from around 0.1% to 1.25%. Don’t forget about withdrawal fees either, as these are often different depending on the currency you withdraw, with much higher fees for cryptocurrency than the likes of GBP or USD.
There can be some restrictions on the amount you can trade. For most exchanges, this is in the form of a minimum trade value – £10, for example – but there can be other limits in the form of maximum daily deposit or withdrawals. Again, these vary across platforms, but if you intend to sell a lot of Bitcoin in particular, you need to consider this when choosing a platform.
You want to be confident in any company or platform that’s holding your cash. There are many well-established, reputable crypto exchanges these days, but they aren’t as regulated as stock brokers. You have limited protection if anything were to happen to your money. The best way to deal with this is to pick well-regarded platforms. Use our reviews to help, and you can also get a good feel for what a platform is really like based on the reviews of other customers online.
Quick answers to key questions
Can I swap Bitcoin for another cryptocurrency?
Yes, you can swap it for most other crypto coins. Search for the ticker of the coin you want to exchange it for to find the pair – such as ETH/BTC if you want to swap it for Ethereum – and execute the trade. The only thing to note is that if you want to swap a lot of Bitcoin for a small altcoin then it might take longer to find a buyer, and you might receive a lower price than advertised.
Will I have to pay to withdraw my money?
Usually yes, but the amount can vary depending on which platform and currency you use. Withdrawing fiat currency via a bank transfer is often the cheapest method, and sometimes free, while you should expect to pay more to withdraw to a credit or debit card (or any other payment method). Likewise, moving cryptocurrency to a wallet often comes with a transaction fee as well.
Can I sell Bitcoin with PayPal?
Yes., you can buy, sell, or hold a select group of the leading cryptocurrencies from your PayPal account, but only in some countries. Bitcoin, along with Ethereum, Litecoin, and Bitcoin Cash, are all available at the moment and it’s likely that even more will be added soon.
Can I sell anonymously?
To some extent, although it’s difficult to remain completely anonymous. Most platforms abide by ‘Know Your Customer’ regulations, which require users to submit ID and/or verify their address to combat money laundering. A ‘decentralised’ exchange is your best bet to stay relatively anonymous, as on these platforms there is no central party to govern who can or can’t trade.
However, you need to have a cryptocurrency wallet to use a decentralised exchange, and wallet addresses can be traced back to you. You can increase your anonymity by using a peer-to-peer exchange, like LocalBitcoins, or a Bitcoin ATM, where you can be paid in cash. The trade-off is usually higher fees and a worse price than you would get on an exchange, and unfortunately even these options now often ask for some form of ID.
Can I sell Bitcoin for cash?
Yes, in some situations. As discussed above, you can use Bitcoin ATMs and peer-to-peer exchanges if you want to be paid in cash. You can also buy Bitcoin in that way as well. The other option is to facilitate a meeting with the buyer directly, but this is one of the least secure ways to sell.
Is it a good time to sell Bitcoin?
That depends on why you want to sell. Keep in mind that cryptocurrency markets are volatile, and significant price falls aren’t necessarily a reason to dump your coins if you believe in Bitcoin long term.
However if you want to exchange Bitcoin for a different coin, to move your money into a different investment, or simply to transfer it into a currency you can spend, then it’s all about the current price and whether you think that represents good value. You can use the news and analysis below to assess if the state of the market means the time is right.
Bitcoin mining firm Compute North files for bankruptcy
JPMorgan CEO slams crypto as ‘decentralised Ponzi schemes’
CoinCorner partners Seed Group to offer Bitcoin trading in UAE
Not really, it’s largely the same. You just have more options when you want to buy. The most popular one is to sign up with a broker and use contracts for difference (CFDs) to speculate on future price moves. To learn more about that, as well as all the other options available, check out our guide on how to buy Bitcoin.
It depends on where you live, but yes, probably. Most countries, like the US and the UK, class cryptocurrency as a taxable asset and you have to pay tax if you sell your coins for more than you bought them.
In the UK, you have an allowance so that you only have to pay capital gains tax on any money you make above £11,700 per year. You can learn more about that here. We highly recommend you check your local laws before you sell.
If you use an exchange, the funds will show up in your exchange account. If you sold your Bitcoin for another cryptocurrency, you can then transfer your new coins to your wallet. If you sold it for fiat currency, you can withdraw that straight to your bank account.
No. Sometimes that’s the easiest option if you never transferred your coins out of an exchange account to begin with. If you hold your Bitcoin in a wallet then you can choose any platform you want to sell it through – just make sure it’s one that accepts cryptocurrency deposits so you can transfer your Bitcoin there.
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