Ask LH: How Do I Sell My Bitcoin In Australia?

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Dear Lifehacker, I bought bitcoin through Coinbase, now I am told I can't yet sell digital currency in Australia. Is this so? If not, is there a way in which I can transfer my bitcoin to another exchange to be able to sell it? Thanks What-The-Fine-Print.

Hey WTFP,

I see you’re interested in the bitcoin craze and you have used Coinbase to buy bitcoin. As you may be aware, Bitcoin is a decentralised digital currency – there are no banks or institutions that look after the money. As such, it is a global currency and can be bought and sold by basically anyone with an internet connection.

Coinbase is an intermediary between you and your valuable, precious bitcoin. In fact, Coinbase is just your bitcoin wallet. Essentially, without advanced knowledge of the way in which bitcoin works, the system it is relatively difficult for novice users to execute buying and selling. However, places like Coinbase will allow you to buy and sell bitcoin via their service so you don’t have to do any of the more complicated work. Coinbase makes buying and selling bitcoin a little bit more like trading on the stockmarket - you use your real money to buy bitcoin and you can track the value of the cryptocurrency in almost real-time.

The problem you have run into is that Coinbase allows Australians to buy bitcoin, but not to sell bitcoin. According to their website, Coinbase are “working to add the ability to sell digital currency for Australia soon” so the first thing I would suggest is contacting them to see how far away this might be. If you don't have to wait long, just hold onto your bitcoins. 2017 has seen the value of bitcoin rise pretty dramatically so you might even see their value increase!

One of the negatives of using an intermediary like this is you have to create an account and connect your banking details to it which takes away the pseudonymity of using a cryptocurrency, one of the major appeals of using it in the first place.

Fortunately, if you want to send your digital currency elsewhere, Coinbase has a step by step guide to doing so. This should allow you to send your bitcoin from your Coinbase account to another wallet address or email address, which hopefully will allow you to sell bitcoin. There are a wide range of online facilities to sell bitcoin in Australia.

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Comments

    You can use the 'Living room of Satoshi' (https://www.livingroomofsatoshi.com/) which was previously featured on Gizmodo. They allow payment via Bpay or direct deposit to a bank account - once the transaction details are entered, they will give you a bitcoin address and the exact amount to pay in bitcoins. You then take this and enter it into the 'Send' feature on Coinbase and the transaction will be processed.

    Note that the rate they will give you is lower than the one that Coinbase will have at the time - this is both due to their being based in Australia, and (I'm assuming) a profit margin as well.

    Two specific ways to do it.
    Easiest. (Also handles several other currencies)
    https://www.livingroomofsatoshi.com/
    Deposit straight into your bank account. No setup or questions asked.

    My current way, as I happen to have moved to them, since MtGox crumbled.
    CoinJar.com.au
    Their rate are probably better than livingroomofsatoshi.

    Also should mention, you might like to hold the coin through CoinBase during the coming fork.

      You actually want to take your BTC into your own wallet during the forks as there is no guarantee that Coinbase will honour you with the additional currency that is created (Bitcoin Gold, BTC 2x). They didn't honour bitcoin cash (they said they will give it in January, maybe, if they feel like it).

      Yep! Coinjar, they aren't cheap though. I also use a Ledger Nano S hardware wallet, which gives me a little piece of mind. I put $400au in there a few months back and currently sitting on $1100au, ride the wave baby! :)

        I second coinjar. They give a great rate of Bitcoin to cash. Shapeshift to move Bitcoin to coinjar wallet then transfer to coinjar cash for deposit into your nominated bank account. Happy to guide you if you are around Brisbane as I'm off work with a baby currently. Good luck

          @dancingirena I'm a stay at home dad currently between contracts as a private security professional. I've invested in btc but not familiar with the details of cashing out. If the offer is still there I'd be happy to shout a coffee for the guidance. I'm South of Bris 15 mins.

    Coinbase charge a large premium for purchasing crypto that way for convenience of not having to place buy and sell orders yourself.

    For purchasing crypto in Australia I highly recommend using https://btcmarkets.net/ there is the "Australia Tax" tacked on which you will find with pretty much all methods of buying in Australia (BTCmarkets is fairer than most). A good way to check if you are getting a good deal or not is to look at https://coinmarketcap.com/#AUD which shows the average price of different crypto currencies from all the exchanges they trade on.

    Surprised in a article about selling crypto in Australia it provides no real information... Please remember you need to pay tax on all crypto gains as well.

    Last edited 19/10/17 2:15 pm

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