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sell bitcoin

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How To Sell Bitcoin?

Selling bitcoins at Coinbase, one of the world’s largest and most well-known crypto exchanges, is easy and safe. It is essential to approach the selling process carefully and pay close attention to details. When to sell bitcoins is a complex question with no clear answer.

How To Sell Bitcoin: A Quick Guide

Selling bitcoins at Coinbase, one of the world’s largest and most well-known crypto exchanges, is easy and safe. Coinbase is also regulated in the United States and known for its beginner-friendly interface. You can be sure not to run into trouble when selling bitcoins and withdrawing euros to your bank account.

This article will cover how to sell bitcoins for fiat money. We use the euro as an example of a fiat currency. Selling Bitcoin is no more complicated than using an online bank. Even a beginner investor can do it. If you know how to buy bitcoins, you certainly know how to sell them.

Follow these steps to sell bitcoin:

  1. Choose a crypto exchange: We recommend Coinbase for beginners.
  2. Register a new account: Click here to open a Coinbase account.
  3. Download the mobile app: Selling is most straightforward through the mobile app.
  4. Complete the KYC process: Verify your identity with a passport.
  5. Transfer bitcoins to Coinbase: Transfer bitcoins from your wallet to Coinbase.
  6. Sell ​​bitcoins: Sell bitcoins, i.e., exchange them for euros.
  7. Withdraw euros to your bank account: Withdrawals are completed in a couple of hours or on the next banking day at the latest.
  8. Calculate capital gains: Calculate capital gains from the sale and declare them for taxation.

Below is a picture of Coinbase’s homepage.

coinbase front page

If you have already created an account for another exchange when buying bitcoins, you can also use that service for sales. However, it is important to note that not all services necessarily support bank transfers. You may, therefore, have to look for a new service. If that is the case, we recommend trying Coinbase!

Coinbase is a crypto exchange aimed at global users. If you are European, you can withdraw money using SEPA transfers. Coinbase also supports UK and US bank wires.

This article also provides detailed instructions on every step of the sales process. If you need further instructions on using Coinbase, check our Coinbase review.

How To Sell Bitcoin: A Detailed Guide

It is essential to approach the selling process carefully and pay close attention to details. Selling bitcoins begins with selecting an exchange and ends with filing a tax return. Next, let’s go through all the steps one at a time.

Where to sell bitcoins?

Selling bitcoins begins by choosing a Bitcoin exchange.  Most investors sell their bitcoins at the same place they bought them from. This is not always possible. Even if it’s possible to convert bitcoins to fiat, the exchange might not support withdrawing euros to a bank account.

We recommend using Coinbase to sell bitcoin. It supports bank transfers to dozens of countries; this article uses Coinbase as an example.

Open an account and download the mobile app

Opening an account with Coinbase is easy. Below is a picture of the service registration form on a mobile device.

coinbase registration

Enter your name and e-mail, accept the terms of use, and register a new account. Then, you must complete the customer identification process and identity verification, which is standard procedure for all crypto exchanges that enable bank transfers.

Once you’ve opened an account, download the Coinbase mobile app. Sell ​​bitcoins easily and quickly with it. The free mobile app is available in both Apple and Google app stores.

Transfer bitcoins to Coinbase

When you have created a Coinmotion account, you can deposit bitcoins there. You can skip this step if your bitcoins are stored at Coinbase. This is for people who store bitcoins in an external wallet.

Open the mobile app and click the Receive button from the Home page. Next, a form opens where you can select the correct cryptocurrency from a dropdown list. The list might also have a Bitcoin (BTC wallet) already selected.

coinbase receive btc

Next, transfer bitcoins from your wallet to this address. Always remember to use copy-paste with Bitcoin addresses! Never try to enter the address by hand. Scanning the QR code is also a very safe way.

Bitcoin transfers typically take 30-60 minutes.

Sell ​​Bitcoin

Once the bitcoins have arrived in your Coinbase account, you can sell them. Open the mobile app and click My Assets from the main menu (at the bottom of the screen). Scroll down until you have Bitcoin listed under My Crypto. Click Bitcoin and click Sell from the next page. Now, you should see a form on your screen for selling Bitcoin.

coinbase sell bitcoin

Type in the EUR amount you want to receive. Alternatively, switch the units to BTC and sell a specific amount of bitcoins instead. Euros appear in your account immediately after the sale.

Transfer euros to your bank account

Finally, you can withdraw money from your bank account. Click My Assets from the main menu and scroll down until you see Euro under My Cash. Click Euro and the Cash Out button from the next page to complete the withdrawal.

Coinbase supports SEPA transfers that usually arrive within a few hours but no later than the next banking day.

Calculate capital gains

The last step in the sales process is calculating taxes. This does not need to be done when buying Bitcoin, as taxes are only paid at the time of sale. However, each Bitcoin investor must keep records of all transactions and calculate capital gains accordingly.

You have to keep track of the following actions:

  • Purchases: At what price did you purchase, when, where, and how much did you pay for fees?
  • Sales: At what price did you sell, when, where, and how much did you pay for fees?
  • Transactions: All transfers between crypto wallets and exchanges.
  • Fiat: All fiat (EUR, USD, etc.) deposits and withdrawals to crypto exchanges.

The easiest way is to use crypto tax software, which supports importing transactions from your Coinbase account. Such tax software will calculate your capital gains automatically. We recommend using Divly, which is a very beginner-friendly app.

divly

In this article, we will not discuss crypto taxes in detail. Just remember that you always have to calculate capital gains when selling bitcoins and enter the capital gains or losses on the tax return. The information is not automatically transferred from Coinbase to the tax authorities!

When should you sell bitcoins?

When to sell bitcoins is a complex question with no clear answer. One common strategy is to look at the moving averages of the Bitcoin exchange rate. If the price of Bitcoin is significantly higher than its long-term moving average, some investors take it as a sign of overvaluation and a possible future correction. In this case, selling part of the ownership may be worth considering.

Sometimes, it is worth selling bitcoins even at a loss from a tax point of view! In many other countries, you can deduct capital losses from your taxes. If you sell bitcoins at a loss, you can deduct that loss from your other capital gains, lowering your tax burden.

Ultimately, the decision to sell bitcoins depends on your financial goals, risk tolerance, and strategy.

Antti Hyppänen

Antti Hyppänen is the founder and editor-in-chief of AboutBitcoin.io. Antti has written articles about cryptos since 2017. He follows the crypto market every day of the year and is responsible for the daily operations of AboutBitcoin. Antti is not a maximalist regarding any cryptocurrency but looks at the industry objectively. Antti’s investment profile is “buy & hold,” i.e., he does not trade or use leverage. His crypto portfolio consists of mainly Bitcoin and Ethereum. Antti also follows macroeconomic events. In addition to cryptos, his interests include gold, silver, and the US stock market.