How to Sell Bitcoin for Cash
20 December 2017
Here are your options for cashing out of bitcoin:
- Sell your bitcoins online
- Convert your bitcoins to gold
- Trade directly with buyers
- Selling your bitcoins at an ATM
- Trading in person
One way to cash out your bitcoins is by selling back to the online platform that you used when you purchased your bitcoins. This may be a convenient, and sometimes affordable, option for those who want to convert their bitcoins to cash. The bitcoins will usually be deposited directly into your bank account. Before you cash out, read the terms and conditions of your trading website to ensure your provider doesn’t charge excessive margins on the trade.
Sell Your Bitcoins Online
Convert Your Bitcoins to Gold for Liquidity and DiscretionIf you want to cash out of bitcoin, but you don’t want your money going straight to your bank account, you can convert your bitcoins to gold. At ABC Bullion, Australia’s largest independent bullion dealer, you can choose physical gold, pool allocated gold, or a gold savings account. Gold is both a highly liquid asset and a historical hedge against rapid volatility, so many of those who have scored big with bitcoin are choosing to move their wins into gold in anticipation of further profits when the market turns.
To convert your bitcoins to gold (or silver), ABC Bullion uses Bitpay as a payment gateway and charges 1.9% of bullion value. When you’re ready to cash out of bitcoin, call our account executives on 1300 361 261 (within Australia) or +61 2 9231 4511 (from abroad). We’ll send you the bitcoin payment link. For bitcoin payments, our minimum transaction is $1,000 and our maximum is $100,000.
If you’re based in the U.S., you may be able to store your gold offshore in Australia without being subject to FBAR and FACTA reporting requirements. Speak to your financial advisor or tax specialist about your unique circumstances. If you’re based overseas, ABC Bullion can provide you with a Global Vaulting Solution from our partner Custodian Vaults.
Trade Directly with BuyersSome bitcoin websites allow you to perform a direct trade with a bitcoin buyer. You post your offer and the website will notify you when buyers are willing to make a trade. You might need to provide your bank account or PayPal details, so that the buyer’s cash could be deposited directly into your account. Again, watch out for the margin charged by the payment platform as this may be up to 8%.
Sell Your Bitcoins at an ATMYou might also be able to sell your bitcoins at a bitcoin ATM that will convert the currency into cash for you. Doing a bit of searching online will help you find local bitcoin ATMs that are in your area and that are designed for both buying and selling (some bitcoin ATMs only give you the option of purchasing bitcoins). Just follow the instructions on the ATM.
Selling Your Bitcoins in PersonAnother way to sell your bitcoin balance is by meeting up with a buyer in person. There are services available online, as well as bitcoin meetup groups and Facebook groups, that could help you locate buyers who are local and willing to meet you in person to trade bitcoins for cash. Or you could sell your bitcoins to family members or friends by sending your bitcoins to their bitcoin wallet and then collecting your money. As with any transaction involving large sums, precautions should be taken to ensure your personal safety.
The Pros and ConsEach of the methods above comes with a set of pros and cons that you should consider before diving in and selling off your bitcoins for cash.
- When you sell your bitcoins online with the help of an exchange or a brokerage, you might incur a fee and/or a margin. These fees typically range from 0.2% to 4% for every trade, but they do vary from one platform to the next, and many companies reserve the right to change their margin during times of heavy volatility.
- When you sell your cryptocurrency at a bitcoin ATM, you might also incur fees, and they might be much higher than online fees, too. For example, you might be hit with a 5-10% fee on every sale when you use an ATM. Ouch! And, like online platforms, different ATMs will charge different fees, so do your research and compare the fees, so you can keep more of your money when you decide to cash out of crypto.
Other Considerations when Converting Bitcoin to CashTax implications are an important consideration of any financial transaction. While ABC Bullion does not provide financial or tax advice, here’s what the ATO has to say about capital gains on bitcoin as of December 2017.
It’s important to keep quality records regarding your transaction(s) including:
- the date of the transactions
- the amount in local currency (which can be taken from a reputable online exchange)
- the purpose of the transaction
- who received your funds (even if it’s a bitcoin wallet address)