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How to Sell Bitcoin in Australia (Easily & Quickly)
By
Will Ellis
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Last Updated on April 12, 2024
Edited by
Adam Turner
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Fact checked and reviewed
For many people, the purpose of getting their hands on Bitcoin is to sell it. For them, it is not about whether or not Bitcoin will increase in value or decrease in value in the long term.
Bitcoin is not a retirement fund – it is a way of making money to spend right now. That is probably how most people feel.
There will be crypto bros who hate on you for that outlook. There will be idealogues who think that everyone should be contributing to Bitcoin as if it is the forum of some cause rallied against big banks.
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And given how Bitcoin works, we can sympathise with those crypto bros. But for ordinary people, who have bills to pay, selling your Bitcoin might be all that stands between you and paying rent.
So, how do you do it? How do you sell your Bitcoin for cash? Where do you sell it? In fact, how do you sell your Bitcoin for other cryptocurrencies too? A diverse portfolio is a strong one. Today, I will walk you through the steps of where to sell Bitcoin, how, and even when is a good time to sell.
Table of Contents:
Where to Sell Bitcoin 🔎️
Let’s not put the cart before the horse. If you are to sell Bitcoin, then you have to know where to sell it. Knowing the methodology of selling Bitcoin is highly dependent on the marketplace. But at the same time, it is not unreasonable for a person to go in expecting Bitcoin to be sold similarly anywhere.
There is a reason for this. You see, in order to connect to people willing to buy Bitcoin, you need a trading platform. But that trading platform needs to be connected to the “blockchain”, or else it is not good for selling anything.
The blockchain is the place where Bitcoin “is”, despite its lack of physicality.
Think of the blockchain as a miniature internet. Every Bitcoin has its own address and password. You need to know the address and the password of your Bitcoin if you want to be able to claim to own it.
Whether you buy Bitcoin, sell it, or use Bitcoin to buy goods and services, it never leaves the blockchain. This is because the blockchain is both storage space, as well as a ledger for tracking where every Bitcoin is. It is what keeps Bitcoin secure. No single user on the blockchain can defraud the blockchain using the blockchain itself, because they would immediately be contradicted by every other user on it.
Which Trading Platform is the Best? 📱️
So, you have to find a place to trade Bitcoin that is connected to the blockchain. Luckily, tons of trading platforms do that. But picking the best is not easy. For good reason: There are tons of good platforms.
If you want a platform that is good for beginners, try:
- Coinbase
- crypto.com
But not everyone is a beginner. Some people are looking to sell their Bitcoin for cash, others are looking to sell their holdings for other cryptocurrencies. For those needs, go to these platforms:
- BlockFi
- Kraken
- Uphold
Everything you do with your Bitcoin will be easier if you have a wide range of knowledge of where it can go. So, even if you do not use all of these platforms, take a look at them. They might surprise you.
How to Sell Bitcoin 🛒️
Now we can get down to it. Selling your Bitcoin on a trading platform is easy. It is designed to be easy, after all, or else average consumers would not have any interest (or financial incentive) to do it.
There are some steps that are basically universal no matter what platform you are on.
Step One: Opening and Verifying Your Account
This step requires different information and methods of verification depending on where you open it. If you want the easiest experience you can get, use a trading platform that does not also trade in stocks.
The reason for this is that stocks are regulated, but Bitcoin is not (or rather, it is not as regulated). That means a trading platform that deals only in crypto will need less information. That said, it will still need to connect to your crypto wallet or blockchain holdings, so be ready to provide that information.
Step Two: Funding Your Account
In order for you to trade your Bitcoin for anything, you have to transfer that Bitcoin to your account. People who have not traded Bitcoin before might be uncomfortable with this—after all, if you are transferring your Bitcoin to the trading platform, then perhaps it is just a few steps away from them stealing it.
You can be assured that of the Bitcoin trading platforms I listed, none of them have ever stolen Bitcoin from their customers. Transferring your Bitcoin to your account is normal, and part of the End User License Agreement of the platform is that they will not do anything nefarious with it.
And as many of those aforementioned crypto bros will tell you, they really can’t do anything with it. Remember, the blockchain records what every Bitcoin on the network does. That means if they use your Bitcoin without your permission, you can actually track that activity and litigate them for it.
Step Three: Selling the Bitcoin
There are two ways to sell the Bitcoin you have on your trading platform account: The first is by using the trading platform’s market tools. This basically means that you will rely on the trading platform to connect the Bitcoin you are selling with people who are looking to buy it.
This is probably the best method, as it is the easiest. The drawbacks are pretty small: You do not get to communicate or haggle with the person you are selling to (nor do they get to haggle with you). There will also be a small amount of deviation in price from what you meant to sell it at.
This small deviation comes from the fact that people are setting the prices they are comfortable with buying at, you are setting the price you are comfortable at selling at, and there needs to be some deviation to ensure that those two groups reach each other without inputting the same prices.
Step Four: Cashing Out
So, you have made and funded an account, transferred your Bitcoin into it, and closed a sale. All that is left to do after that is transfer your earnings to your account in the form of Australian Dollars.
Just be aware that most trades will have a “settling period” of two days or so before they are finalised. This allows you, the trading platform, and the person you are buying from to transfer the money and have the transaction validated by all parties involved before it is finalised.
The purpose of this settlement period is to make sure that no one is scammed. I point out this settlement period because it can sometimes worry new traders, who are expecting to get their money instantly. But rest assured, this is all a security measure to make sure that you really do get your money.
Selling Your Bitcoin for Other Cryptocurrencies 👀️
On most, if not all, of these platforms, you have far more options than just trading between Bitcoin and cash. You can also trade Bitcoin for other foreign currencies, as well as trade Bitcoin for other cryptocurrencies if you are expecting to make a complex play on their shifts in value.
Just know, however, that this kind of currency exchange is notorious for being volatile. Not to mention complex; if you wanted to start from scratch and make some money, the process would involve:
- Buying Bitcoin when it is cheap
- Selling the Bitcoin for another cryptocurrency when that currency when it depreciates or when Bitcoin appreciates in value
- Cashing out for Australian Dollars
It might seem like a three-step process but consider that each step might involve days of research, preparation, and market changes. There is little way to do this quickly unless you already know what is going to happen, and that is simply not very probable.
Conclusion 💡️
With that, you have everything you need to start selling. With one exception: I did not talk about when to sell Bitcoin. But there is a reason for this. The process of selling Bitcoin is essentially mechanical. If you can use a computer, you can sell Bitcoin. But figuring out when to sell it is different.
Nobody can tell you when the best time to sell your Bitcoin is. Anyone who does is doing just as much guesswork as you are. The phrase “buy low, sell high” is essentially the motto of capitalism, but you should pay attention to the fact that it is essentially reactive.
You are not supposed to “buy during the winter and sell during the summer”. Nothing about the market is that consistent. The best time to sell your Bitcoin is when you will make a profit. Then, wait for the price to go down and buy again, and repeat the process.
The goal is to make small profits over time, rather than trying to calculate the moment that acts as a perfect lottery ticket.
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