How To Sell Bitcoin In Australia: Step-By-Step Guide

Last Updated on December 24, 2023 by Kevin Groves

Knowing when to sell Bitcoin can be a hard task but converting it into Australian Dollars is thankfully an easy one. Almost all digital currency exchanges in Australia support the selling of Bitcoin into cash as well as the withdrawal of funds to a bank account.

In the tutorial below, we show you how to sell your Bitcoin into AUD which can be withdrawn into your nominated bank account using a top Australian crypto exchange. In addition, we present the best places to sell Bitcoin, as well as the different ways to liquidate Bitcoin other than selling through an exchange.

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How To Convert Bitcoin To AUD – Full Tutorial

Based on our detailed review of Swyftx, the level of ease and reasonable trading fees make it the best place to trade Bitcoin in Australia. Therefore, we have used Swyftx as an example in this step-by-step guide on how you can quickly and safely sell Bitcoin. If you decide on an alternative to Swyftx, then the process should be fairly similar.

Step 1 – Open an account with a crypto exchange

If you want to sell Bitcoin to cash, then the first thing to do is choose a cryptocurrency exchange and open an account. Choosing where to sell Bitcoin will involve the consideration of a few important factors such as the trading fees since you will want to maximise your return. Swyftx also allows you to conveniently link your Australian bank account so you can withdraw your cash.

Signing up for Swyftx is an easy process that can be completed in as little as a couple of minutes. All you need is a strong password, a valid email, and a mobile phone number. As an added bonus, you can use our Swyftx referral link to get $20 of Bitcoin.

Step 2 – Verify identify

With the exception of a few global crypto exchanges that operate in Australia, almost all trading platforms that allow you to sell Bitcoin with cash will require you to verify your identity. This is a mandatory process that AUSTRAC registered exchanges need to complete so they can satisfy Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) requirements.

In the case of Swyftx, you can take a photo of your driver’s licence (front and back) or Australian passport and submit them electronically. In our experience, verification of a driver’s licence took about 6 minutes to receive confirmation.

Step 3 – Send BTC to your account

Once you have verified your Swyftx account, you can start transferring Bitcoin over. On the Swyftx dashboard, click on “Deposit/Receive” on the left-hand side. Select Bitcoin as the asset to receive and the below window will pop up presenting two types of address information – a BTC address and a QR code.

The next step is to go to the external wallet where your Bitcoin is stored (e.g. crypto exchange, hardware wallet), and find the section to send Bitcoin. Here, you have two options:

1. Copy and paste the BTC address provided by Swyftx, or
2. Scan the Swyftx-provided QR code using your mobile app.

If you copy over the BTC address then you will need to ensure that it is correct since incorrect transfers of Bitcoin to another wallet are not redeemable.

The time taken to transfer Bitcoin from one wallet to another typically takes between 5 minutes and a couple of hours, depending on the level of network congestion. After the transfer is complete, you should be able to see the BTC in your Swyftx trade wallet.

Step 4 – Find the BTC/AUD trading pair

Once the Bitcoin is in your Swyftx wallet, you can start the process of cashing it out for AUD by clicking on “Trade” and finding the Bitcoin/AUD trading pair.

Next, click on “Sell” to bring up the below window. The current price of Bitcoin will be shown along with its market price plotted over time. Click on “Sell” and proceed to Step 5.

Step 5 – Enter the amount of BTC to sell

The below image shows the Swyftx selling panel where you can enter the details of the transaction. The selling asset will automatically be Bitcoin since it was selected in the steps prior. However, you can change this to another digital currency or even add more (up to 20) to sell back to AUD. In addition, you can choose to sell Bitcoin in a single transaction, use a trigger, or set up automatic sell orders to regularly convert BTC to AUD.

The bottom half of the panel is where you decide on the amount of Bitcoin to sell. You can easily use the slider feature to quicky select if you want to sell 25%, 50%, 75% or 100% of your Bitcoin.

Step 6 – Review and confirm the transaction

Once you’ve entered the amount of BTC to sell, reviewing the details is the next step. Swyftx will present a quote for the AUD that you get in return, as well as the fees incurred for processing the transaction. Swyftx’s fees to sell Bitcoin and other cryptocurrencies are 0.6%, which is competitive in the Australian market.

Step 7 – Link your bank account

Before you can withdraw the converted AUD from your account, you will need to link your bank account. Swyftx supports free fiat withdrawals to Australian bank accounts.

To add your bank account, select “Withdraw/Send” on the left-hand side of the dashboard. Then use the drop-down menu to select Australians Dollars (AUD) as the asset to withdraw. After you click on “Add a new account”, details that you will provide include the name of the account, account holder name, BSB, and account number.

After you successfully add your bank account details, Swyftx will prompt a 2-Factor Authentication (2FA) process by sending a numbered code to your mobile device. After the code is entered, Swyftx will then send an email asking you to confirm that the bank details are correct.

Step 8 – Withdraw AUD cash

Just like the deposit process, the withdrawal process on Swyftx is straightforward and easy to follow. There are zero fees to withdraw AUD and the limit is $50,000 per day. Simply follow on from the windows presented in Step 7 and enter the amount of AUD to withdraw. Funds should be seen in your bank account one day following confirmation of the withdrawal transaction.

Where To Sell Bitcoin In Australia

1. Swyftx

Swyftx is a popular cryptocurrency exchange amongst Australian investors and traders due to its user-friendly interface and features that suit the Australian market. The AUSTRAC registered company has accumulated a 600,000 strong customer base since its inception in 2019. Despite being relatively young, Swyftx has managed to quickly capture the Australian audience with its range of crypto products and services that are designed to service beginners, novices, and enthusiasts.

Swyftx is a crypto trading platform that ticks all the boxes when it comes to trading BTC to AUD. With its low trading fee of 0.6%, Bitcoin is one of the 320+ digital currencies that can be cheaply converted to AUD.

The trading experience on Swyftx is simple enough for beginners to understand thanks to the recent re-design of its interface that makes it more visually intuitive than previously. In fact, we find the overall experience to be quite enjoyable as it is much more flexible than older platforms but not confusing like global crypto exchanges.

Above all, Swyftx supports with free withdrawal of AUD funds to an Australian bank account. And we should note that you can perform all your BTC to AUD trades on the feature-rich apps for iOS and Android mobile devices.

For a detailed understanding of Swyftx and its features, you can read our review on Swyftx.

2. CoinSpot

CoinSpot is a hugely popular place to buy and trade over 370+ digital currencies such as Bitcoin, Ethereum, and Cardano. The company has accumulated over 2.5 million customers over the 9 years it has been operating due to its long-standing reputation as a trusted provider of crypto services, and its ease of use. Its reputation is built on its strict adherence to government regulations and above-average security controls that put it firmly in place as one of Australia’s most reliable crypto exchanges.

Similar to Swyftx, CoinSpot also supports the trading of BTC to AUD and free withdrawals of fiat to an Australian bank account. However, the trading fees of 1% to sell BTC to AUD are fairly expensive compared to other popular crypto trading platforms in Australia.

Despite that, CoinSpot is widely known to be a highly secure and reputable place to trade Bitcoin. In addition to Bitcoin, you have a massive selection of over 370+ digital assets to buy and sell back to AUD., making CoinSpot a great choice for altcoin investors.

For a detailed understanding of CoinSpot and its features, you can read our review on CoinSpot.

3. Digital Surge

Founded in 2019, Digital Surge is a relatively young cryptocurrency brokerage platform that offers Australians with a cheap and simple gateway to obtaining cryptocurrencies. The platform is so well designed that people with no experience with cryptocurrencies should be able to quickly buy popular altcoins and stablecoins. Other attractive features include its very competitive trading fee of 0.5% (with around 0.4% Bitcoin spreads) and a wallet where you can earn interest payments on your crypto of up to 23% APY.

Selling Bitcoin on Digital Surge is highly streamlined which is not surprising given its beginner-friendly interface. Instead of solely converting BTC to AUD instantly, you can also set up triggers where you can sell BTC when the market price reaches your desired sell price. Withdrawing AUD funds from your Digital Surge wallet carries no fees, which is consistent with most Australian crypto platforms.

For a detailed understanding of Digital Surge and how it works, you can read our review on Digital Surge.

4. Independent Reserve

One of the longest-serving cryptocurrency platforms to trade Bitcoin and other assets, Independent Reserve has managed to establish itself as a reputable Australian company. The fully licenced and AUSTRAC regulated platform doesn’t come with all the bells and whistles of its younger counterparts, but it does provide a highly secure environment for long-term investors. In fact, the security and crypto features that Independent Reserve offers makes it one of the best places to use Self-Managed Super Funds (SMSF) to invest in crypto.

When it comes to trading Bitcoin for AUD and then withdrawing your funds, Independent Reserve is a lot like Digital Surge and Swyftx, with the exception of a modern interface. The fee to obtain AUD from selling BTC is 0.5%, and all fiat withdrawals to an Australian bank account are free. Despite having an outdated interface, it does not mean that the trading experience on independent Reserve is inferior. Navigating through the interface and finding account management features such as withdrawals and linking a bank account is still easy to do.

For a detailed understanding of the platform works, you can read our Independent Reserve review.

Best Ways To Sell Bitcoin To Cash In Australia

1. Sell Bitcoin on a crypto exchange

Cryptocurrency exchanges as well as brokerage platforms provide you with all the tools that you need to safely and efficiently sell Bitcoin to Australian Dollars. All are highly regulated by government requirements, implement robust security protocols, support AUD and BTC as a trading pair, and support the withdrawal of AUD to an Australian bank account.

One of the disadvantages of selling BTC on an exchange is that you need to verify your identity and therefore cannot liquidate your BTC anonymously. The other things to note is the fees and charges to trade Bitcoin and withdraw AUD funds from your wallet. In Australia, fees to convert BTC to AUD typically range between 0.1% and 1%. FTX and Binance Australia are probably the cheapest options, however, their advanced interfaces are not suited for beginners.

Zero fees to transfer AUD to your nominated bank account are generally commonplace in the Australian crypto industry. So, if you find a platform where withdrawal fees will be incurred then you should consider alternatives.

Exchanges are also good places to store your Bitcoin and other digital currencies. Depending on the crypto platform you choose, you can even earn interest payments on your Bitcoin.

2. Selling Bitcoin on a P2P marketplace

A Peer-to-Peer (P2P) marketplace is a virtual place where you can trade Bitcoin directly with other users without an intermediary third party facilitating the exchange. Some P2P marketplaces are hosted by cryptocurrency exchanges such as KuCoin and Bybit, however, do not participate in trading activities. On the other hand, some P2P exchanges like Elbaite operate independently in Australia and perform the same service. For more information, read our full review on Elbaite.

P2P marketplaces essentially work as their namesake suggests. Sellers can advertise their Bitcoin and provide buyers with a price and a number of payment methods for the transaction. As such, a lot of Bitcoin vendors sell their BTC on P2P marketplaces since they prefer to receive AUD cash as payment.

Since an intermediatory third party like exchange is not involved, you often don’t need to pay for any trading fees. Exchanges that do offer a P2P marketplace typically don’t charge any trading fees, however, vendors typically need to undergo a vetting process to ensure that the service carries a high level of integrity.

As some P2P marketplaces don’t require Know-Your-Customer (KYC) processes to be completed, you can trade BTC for AUD anonymously. To ensure that you and the other party receive your ends of the trade, P2P marketplaces often use an escrow service to temporarily hold the Bitcoin until payment is confirmed.

3. Sell Bitcoin in person

Just because Bitcoin is most commonly traded on virtual crypto exchanges, it doesn’t mean you can sell Bitcoin in person and receive cash in hand. Despite this, you will still need an internet connection on a laptop or mobile device to transfer Bitcoin on the blockchain. Whilst the advantage is the lack of trading fees, the downsides include the level of trust between the parties and overall transaction speeds which might be slow.

4. Spend it on a crypto debit card

CoinJar and Crypto.com are examples of digital currency platforms that offer debit cards where you can spend Bitcoin at online or in-store retailers to buy goods and services. Crypto exchanges that offer these services usually allow you to manage the Bitcoin card entirely from the mobile device, including topping up funds and withdrawing AUD to a bank. Most Bitcoin debit cards work by automatically converting your Bitcoin into AUD at the time the transaction takes place.

However, with the convenience this provides, the downside is the fees which typically run in the order of 2% – 3% of the transaction amount.

5. Use a Bitcoin ATM to get cash

Australia has a growing number of Bitcoin ATMs. Similar to bank ATMs, these facilities let you sell your Bitcoin and output AUD cash in return. To sell Bitcoin, you will need to connect your hardware to the ATM via the QR code provided, input the amount of BTC to sell, and collect the dispensed money.

There are several advantages to using Bitcoin ATMs that make them attractive selling options. The first one is all about convenience. Using a Bitcoin ATM doesn’t involve any lengthy bank transactions or authentication procedures. This also means that you exchange your BTC for AUD whilst protecting your identity. This doesn’t apply to all ATMs as some will require you to complete KYC processes.

On the other hand, the fees to sell BTC to cash are typically high, ranging anywhere from 5% to 15%, depending on the ATM operator. If you are planning on selling BTC more regularly, then ATMs will prove to be a costly exercise. To get started, follow our tutorial on how to sell Bitcoin using an ATM.

6. Use Bitcoin to pay your bills

Paying your bills with Bitcoin is a great way of liquidating Bitcoin. Digital Surge is an Australian example of a crypto platform that allows you to use BTC to pay any Australian bill or credit card as long as there is a BPAY biller code for Bitcoin.

7. Lend Bitcoin for a cash loan

Instead of selling or liquidating your Bitcoin, you can use it to obtain other benefits. Crypto lending and borrowing platforms such as Nexo will allow you to use Bitcoin as collateral and instantly take out a cash loan. At the time of writing, Australian Dollars are a supported fiat currency that you can receive in your nominated bank account for loaning your Bitcoin.

8. Spend Bitcoin through a gift card

Instead of selling Bitcoin for money, you can also buy gift cards to spend at retailers. Websites such as BitcoinGiftCards and Bitrefill accept Bitcoin as payment for gift cards that can be spent at popular in-store and online merchants in Australia.

Frequently Asked Questions

Is it legal to sell Bitcoin in Australia?

Yes, it is legal to sell your Bitcoin in Australia through business transactions or convert it into Australian Dollars. It is also acceptable to use it as a payment method for goods and services such as gift cards, as well as paying utility and credit card bills. However, selling Bitcoin into cash may trigger a capital gains event and will be subject to Capital Gains Tax (CGT). Therefore, to keep track of the profit and loss, it is important to use a crypto tax software that is available to Australians.

Is selling Bitcoin easy?

Selling Bitcoin for cash is a task that is easily completed using a crypto exchange or brokerage platform. Most platforms in Australia have modern and intuitive interfaces that provide streamlined ways of converting your BTC into AUD. Additionally, there are also functional ways of withdrawing the AUD funds straight into your bank account. If you prefer to sell Bitcoin whilst protecting your privacy, then you can also find a Bitcoin ATM to quickly get cash.

Can you sell Bitcoin at an ATM?

There are numerous Bitcoin ATMs located in the major cities in Australia where you can rapidly sell Bitcoin and receive cash in return. You will need to bring your hardware wallet containing your BTC, follow the prompts and scan the QR code. Australian Dollars will be dispensed for collection. For the high level of convenience Bitcoin ATMs provide, they usually charge high fees.