How to sell Bitcoin: Selling Bitcoin is a step that can be complex in your cryptocurrency investment journey. Whether you want to reap profits, diversify your portfolio, or simply know how to proceed when needed, this article will guide you through the essential prerequisites for selling BTC.
Explore the options available to you and understand the tax implications before selling bitcoins.
What to Know Before Selling Bitcoin
Before you decide to sell your BTC, it is essential to have a clear understanding of why you are making this transaction.
If you intend to take profits to re-expose yourself to the price of Bitcoin later, it may make sense to convert Bitcoin to stablecoins.
Although they present a technical risk of loss of value, stablecoins offer the possibility of taking gains while remaining in the crypto ecosystem.
However, if you want to sell Bitcoin to buy a good or service, two options are available to you:
- You can first check if the good you want can be purchased directly with Bitcoin. In this case, you will be able to transfer BTC without having to convert them into fiat currency;
- If this is not possible, or if you prefer to obtain euros, you will need to find a platform that allows you to convert Bitcoin into fiat currency, to then send them to your bank account.
Which platform should I use to sell BTC?
The simplest approach is to use the platform you already use to buy Bitcoin. If you have not made purchases on a platform, our guides are available following this article to guide you.
However, before making the sale, it is interesting to check the fees applied by the platform. Although purchasing cryptocurrencies on the most popular exchanges is often inexpensive in terms of fees, some of them may charge higher fees.
In this case, it may make more sense to create an account on another platform that offers more affordable fees to sell your BTC at the best price.
What are the tax obligations for selling cryptocurrencies?
When considering selling Bitcoin, it is essential to consider the tax implications, as they can have a significant financial impact. In France, it should be noted that the sale of cryptocurrencies for other cryptocurrencies is not subject to any taxation.
For example, if you decide to convert your BTC into stablecoins, this transaction will not be taxable. However, if you opt to sell your BTC in euros or to purchase goods directly, a flat tax of 30% is applicable on the capital gains made.
For a better understanding of these tax rules and to simplify your administrative procedures, the French company Waltio has developed a tax assistance tool specially designed to facilitate the declaration of your profits from cryptocurrencies.
Guide to Selling Bitcoin on Popular Platforms
Several platforms offer you the possibility of exchanging Bitcoin for other cryptocurrencies or fiat currencies. Here is our selection of four of them:
How to sell Bitcoin on eToro
- First, log in to your eToro account;
- Select the “ Withdraw Funds ” tab located in the left menu;
- Enter the amount you want to withdraw in USD, then tap “ Continue ”;
- Follow any additional required steps;
- Finally, click “ Submit ” to finalize the transaction.
How to sell Bitcoin on Binance
- Start by logging into your Binance account;
- Once connected, go to “ Wallet ” then select “ Fiat and Spot ”;
- Convert your BTC into the currency you want;
- Then click on “ Withdrawal ”;
- Choose the “ Fiat ” tab to access fiat currency withdrawal options;
- Select the currency you wish to withdraw and the appropriate payment method. The available payment method options depend on the currency and region you previously selected;
- Provide the required information in accordance with the instructions provided;
- Finally, to validate the withdrawal, enter your verification codes.
How to sell Bitcoin on Bitpanda
- Log in to your Bitpanda account;
- Exchange your BTC for the desired currency in the “ Trade ” tab;
- Click on the “ Portfolio ” tab;
- Select “ Cash ” from the menu;
- Choose the currency you wish to withdraw;
- Click on “ Withdrawal ”;
- Select the payment account you want to use. If you have not yet created a payment account for this method, you will need to do so;
- Enter the amount you want to withdraw, then click “ Go to Summary ”;
- On the summary page, make sure all the information is correct, then click “ Confirm ”;
- You will receive a confirmation email. To initiate the withdrawal, click on the “ Confirm Transaction ” button in this email.
How to sell Bitcoin on Zengo
- Open the Zengo app and tap “ Sell ”;
- Choose either “ Trade to stablecoin ” to convert to USDC, USDT, or DAI, or “ Cryptocurrency to local currency ” to cash out in local currency;
- If you choose to collect in local currency, select a partner from the list, follow their instructions, and complete the order;
- Return to Zengo and send the cryptocurrencies to your chosen partner, carefully copying their destination wallet address provided on their website, along with the exact amount of cryptocurrencies you wish to cash out;
- Once they receive your cryptocurrencies and the transaction is confirmed on the blockchain, they will convert to local currency and initiate a bank transfer.
When is the best time to sell Bitcoin?
Before purchasing an asset such as Bitcoin or any other, it is essential to establish a clear resale objective. It is crucial to determine up front whether you intend to sell at a specific time or hold on to your investment for the long term.
If you intend to sell, it is imperative to set a specific date or price for this operation. This will allow you to make rational decisions rather than acting on emotional impulse, avoid holding on to latent profits that may disappear if prices fall, or maintain a losing position in the hope of an unlikely comeback.
Regarding Bitcoin, many investors anticipate that this cryptocurrency will occupy a significant place in their daily lives in the future, and do not plan to ever sell. However, this strategy involves being prepared not to recover your investment if Bitcoin fails in its mission and loses all its value.
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FAQ: How to sell Bitcoin
Do I have to pay taxes when selling Bitcoin?
Yes, by selling Bitcoins for euros or using them for direct purchases, a flat tax of 30% is applied to the profits made. For a clearer understanding and simplified assistance during administrative procedures, the French company Waltio has developed a tax assistance tool specially designed to facilitate the declaration of your profits from cryptocurrencies.
Are there other methods to sell Bitcoin?
Indeed, exchange platforms are very liquid markets that allow a rapid sale of your BTC. However, it is also possible to sell them peer-to-peer to someone you know or to someone you might meet on specifically dedicated platforms, such as Paxful or Bisq.
What is the best method to sell Bitcoin?
There is no one-size-fits-all method for selling Bitcoin, as each solution mentioned has its advantages and disadvantages. Exchange platforms are ideal for obtaining the best buying and selling prices due to their high liquidity, they also offer the possibility of easily converting Bitcoin into stablecoins. On the other hand, using your BTC directly to make purchases can be less restrictive and contribute greatly to the democratization of Bitcoin as a currency. In each option, it is essential to always take into account the associated fees as well as the tax implications that may apply.