How to sell Bitcoin (BTC) in Australia in 2022

There are a number of methods to sell Bitcoin and other cryptocurrencies. In Australia, crypto can be sold via exchanges, peer to peer trading, crypto ATMs, as well as through brokers.

What is Bitcoin (BTC)?

Bitcoin is a decentralised digital cryptocurrency – the first of its kind in the world. Bitcoin was invented by Satoshi Nakamoto back in 2009. While Bitcoin acts as a medium of exchange, store of value and unit of account, but is not issued under the authority of any government body.

Every Bitcoin transaction is made on a peer-to-peer network online and there is no server or central authority that needs to check first with a bank before clearing a transaction. The decentralised verification process creates the potential for banks to transfer funds to each other faster and at a lower cost than traditional methods. Currently, international money transfers can come with relatively high fees and higher exchange rates to cover the cost of the banks involved.

Blockchain, the technology behind Bitcoin and other cryptocurrencies is basically a ledger of who owns which bitcoins. Every transaction made with bitcoins is sent to the decentralised network and ‘mined’ into the Blockchain. And if you own bitcoins, you can own the ‘digital keys’ to unlock and spend those funds, unlike traditional currencies.

How to sell cryptocurrency in three easy steps?

One of the easiest, and most popular, ways to both purchase and sell cryptocurrency is through an exchange. An exchange acts as an intermediary between the buyer and the seller. They hold each party’s funds in the buy and sell process. So, here’s how you can sell Bitcoin through an exchange.

Step one: Open an account with an exchange

To get started selling cryptocurrency through an exchange, you’ll need an account. Reputable accounts should include some sort of identity verification requirement – if they don’t, you should probably look elsewhere.

Step two: Transfer your coins

With your account set up, you’ll need to transfer coins from your crypto wallet to your exchange account. Every platform will be slightly difference but the option to ‘transfer’ will likely be on your home screen and from there you can follow the prompts. Most exchanges do not charge fees to transfer from your wallet to the exchange.

Step three: Place a ‘sell order’

How this looks on each exchange’s interface may be a little different, but the basic premise is the same. You’ll set the price and wait for an interested buyer. Once sold, the funds will be credited to your account. To access these funds, you will need to transfer to a bank account. Keep in mind, these transfers can be subject to withdrawal fees that will differ between each exchange.

If instead of selling for fiat currency, you’re selling for another currency, you’ll simply transfer the newly acquired currency to your crypto wallet, instead of your bank.

Other ways to sell Bitcoin

There are two other ways to sell Bitcoin and other cryptocurrencies in Australia.

Selling Crypto for Fiat through a Crypto ATM

Another way you may want to sell your crypto is through a Crypto ATM. These look similar to traditional ATMs but function differently. While most of these machines are built to purchase crypto, some, like Genesis ATMs and General Bytes ATMs, let you sell crypto through them.

You’ll have to complete identity verification at the ATM by providing valid photo identification. The ATM then provides a wallet address to send the crypto to, and from there the seller waits for confirmation. Unfortunately, this can take some time so most ATMs provide a redeem code that can be used to access cash once the transaction is completed.

For the most part, Crypto ATMs are rare in Australia and typically have higher fees than exchanges, but when available they can be convenient.

Peer to Peer Trading To Sell Cryptocurrency

Peer to peer trading, as its name would suggest, is the direct exchange of cryptocurrency from one wallet to another. The buyer will provide their wallet address for the seller to transfer to, and typically the buyer will either pay in cash or do a bank transfer of funds.

For obvious reasons, this can be risky, so be sure you can trust the buyer or seller you’re dealing with. There are several P2P marketplaces and forums online, and some of the more reputable ones provide user ratings.

So, what’s the best way to sell Bitcoin?

For ease and affordability, the best option to sell cryptocurrency in Australia is through an exchange. However, this really comes down to personal preference.

If you opt to go through an exchange, ensure you do your research on any associated fees and if in doubt, talk to a professional.

What can you actually sell cryptocurrency for?

Firstly, as you may or may not know, cryptocurrency isn’t actually considered fiat currency by the Australian government. It is considered property.

As such, it is a commodity that can be sold for one of two things:

A fiat currency, such as Australian Dollars (AUD$)
Another cryptocurrency

Why would someone want to sell their cryptocurrency?

There are many reasons you may consider selling your cryptocurrency.

These could include:

Bills and other expenses

While some predict crypto as the future of currency, this is certainly not the case now. You probably can’t go grocery shopping or pay your gas bill with dogecoin (or any other crypto) just yet. That said, you may opt to sell your coins in order to pay for these expenses.

To generate profit

Like stocks, cryptocurrency can increase in value. If you purchased coin A for $1 at the start of the year, its value may increase to $3 by the beginning of May. This could prove to be a very profitable exercise, and you may then want to sell your coins for fiat currency.

Anticipating a dump in value

Again, similarly to the stock market, cryptocurrencies behave in both bull and bear-like manners. If you anticipate a particular coin is about to significantly drop in its fiat value equivalent, you may opt to sell it off before this happens so your portfolio doesn’t lose its value.

Cover image source: Pavel Ignatov/Shutterstock.com

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This article was reviewed by our Content Producer Marissa Hayden and Content Producer Isabella Shoard before it was updated, as part of our fact-checking process.

Alex Harper

Co-founder and CEO Swyftx

Alex Harper co-founded Swyftx in 2018 and is CEO of the exchange. In 2021, he was nominated for CEO Magazine’s Young Executive of the Year award and named one of Australia’s 30 under 30: Brightest Young Minds.

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