How to Sell Crypto in Australia

Conor Maloney · 30 Aug 2024

Selling cryptocurrency in Australia is straightforward, with several options available to convert your digital assets into cash.

Here’s a guide to help you navigate the different methods of how to sell crypto in Australia.

Contents

• Using Grineo for Easy Conversion
• Cryptocurrency Exchanges
• Peer-to-Peer (P2P) Marketplaces
• Bitcoin ATMs
• Over-the-Counter (OTC) Trading Desks
• Tax Considerations

1. Using Grineo for Easy Conversion

Grineo is a top choice for converting stablecoins like USDT and USDC into Australian dollars (AUD). The Grineo app provides a simple, user-friendly experience:

• Step 1: Download the Grineo app and register an account.
• Step 2: Deposit your stablecoins into the Grineo wallet.
• Step 3: Use the Grineo debit card to withdraw cash from ATMs or spend directly in stores. The app automatically converts your stablecoins into AUD at the time of transaction, ensuring seamless and instant access to your funds.

Grineo’s low transaction fees and secure platform make it an ideal solution for those looking to easily liquidate their digital assets. Pay just a 1% fee on all conversions, and no fees on deposits, withdrawals, or account maintenance.

To cash out of stablecoins and digital assets with ease, sign up for a Grineo account here!

2. Cryptocurrency Exchanges

Popular cryptocurrency exchanges such as Binance, CoinSpot, and Coinbase allow you to sell various cryptocurrencies and withdraw funds to your bank account:

• Step 1: Create an account on a chosen exchange and complete the necessary KYC (Know Your Customer) verification.
• Step 2: Deposit your cryptocurrency into the exchange wallet.
• Step 3: Sell your cryptocurrency for AUD and withdraw the funds directly to your linked bank account.

Exchanges often offer high liquidity and multiple trading pairs, making them a convenient option for many users. However, be mindful of withdrawal fees and processing times, which can vary between platforms.

3. Peer-to-Peer (P2P) Marketplaces

P2P platforms like LocalBitcoins and Paxful allow you to sell crypto directly to other individuals:

• Step 1: Register on a P2P platform and verify your identity.
• Step 2: Create a sell offer specifying the amount, price, and payment method.
• Step 3: Once a buyer accepts your offer, the platform will hold the cryptocurrency in escrow until the transaction is completed securely.

P2P marketplaces provide flexibility in terms of payment methods and offer competitive rates. However, transactions can take longer, and there is a need for caution to avoid scams.

4. Bitcoin ATMs

Bitcoin ATMs are located in major cities across Australia and offer a fast and convenient way to sell Bitcoin for cash. These machines function similarly to traditional ATMs but are specifically designed for cryptocurrency transactions.

Step 1: To use a Bitcoin ATM, first locate a nearby machine using a service like CoinATMRadar. This tool provides a map of Bitcoin ATM locations, allowing you to find the most convenient option.

Step 2: Once at the ATM, follow the on-screen instructions to sell your Bitcoin. Typically, you’ll need to scan a QR code from your Bitcoin wallet, enter the amount you wish to sell, and confirm the transaction.

Step 3: After completing the sale, you can withdraw the equivalent amount in cash directly from the ATM.

While Bitcoin ATMs are quick and user-friendly, they often charge higher fees compared to other methods, such as online exchanges or P2P platforms. It’s important to consider these costs and weigh them against the convenience offered by Bitcoin ATM

5. Over-the-Counter (OTC) Trading Desks

For larger transactions, Over-the-Counter (OTC) trading desks offer a private and efficient way to sell cryptocurrency. Unlike regular exchanges, OTC desks facilitate direct trades between buyers and sellers, which helps avoid price slippage—a common issue when executing large trades on public exchanges.

Step 1: To start, contact an OTC desk, such as Independent Reserve or Caleb & Brown, to initiate the trade.

Step 2: You’ll need to complete a Know Your Customer (KYC) verification process, where you’ll provide personal identification to comply with regulatory requirements. You can also discuss the terms of the sale, including the amount and the desired price.

Step 3: Once both parties agree, the transaction is finalized at a pre-agreed price. The funds are transferred directly, often with lower fees than on public exchanges.

OTC trading is particularly suitable for high-net-worth individuals or institutional investors who want to execute large trades discreetly and securely, with minimal market impact and reduced counterparty risk.

6. Tax Considerations

When selling cryptocurrency in Australia, it is essential to be aware of the tax implications that may arise. The Australian Taxation Office (ATO) treats cryptocurrency as a form of property rather than currency, which means that the sale, exchange, or disposal of cryptocurrency is generally considered a Capital Gains Tax (CGT) event. Here’s a more detailed look at what you need to consider:

• Capital Gains Tax (CGT): When you sell or dispose of cryptocurrency, you may need to pay CGT on any profit (capital gain) you make from the transaction. The capital gain is calculated as the difference between the cost base (what you originally paid for the cryptocurrency, including any associated costs) and the sale price (what you receive when you sell or dispose of it).

• Personal Use Asset Exception: There is an exception for cryptocurrencies considered “personal use assets.” This classification applies if the cryptocurrency is kept or used mainly to purchase items for personal use or consumption. However, this exception is often limited and typically does not apply if you hold cryptocurrency as an investment or in a way that suggests you intend to profit from price increases.

• Record-Keeping Requirements: It is crucial to maintain accurate and detailed records of all your cryptocurrency transactions. These records should include the date of each transaction, the amount of cryptocurrency bought or sold, the value in Australian dollars at the time of the transaction, the purpose of the transaction, and details of the other party involved. Keeping good records will help you accurately calculate your capital gains and ensure you remain compliant with tax laws.

• Losses and Offsets: If you incur a capital loss (where the sale price is less than the cost base), you can use this loss to offset capital gains from other investments. However, capital losses cannot be used to reduce your ordinary income.

• Staking and Earning Income: If you earn cryptocurrency through staking, mining, or receiving it as a payment for services, it may be considered ordinary income, and you could be liable for income tax on the fair market value of the cryptocurrency at the time it is received.

• Gifts and Donations: Giving cryptocurrency as a gift can also have tax implications, depending on the value and the circumstances of the gift. Similarly, donations of cryptocurrency to registered charities can be treated as a deductible gift, but the rules around this can be complex.

• Consulting a Tax Professional: Given the complexity of cryptocurrency taxation and the frequent changes to regulations, it is highly advisable to consult with a tax professional who understands cryptocurrency. A tax professional can help you navigate the rules, maximize your tax efficiency, and ensure compliance with all relevant laws and regulations.

By understanding these tax considerations and maintaining diligent records, you can effectively manage your cryptocurrency transactions and stay compliant with Australian tax laws.

Conclusion

There are multiple ways to sell crypto in Australia, each with its advantages. For a seamless and user-friendly experience, consider using Grineo to convert stablecoins to cash quickly and securely. Evaluate each method based on your needs, and always consider the fees, security, and convenience before proceeding.

Sign up for a Grineo account here.