How To Sell Cryptocurrency In The UK | Beginner’s Guide

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Last updated on April 27, 2022

Over the past two years, cryptocurrencies have proven to be a viable alternative to traditional investments. The UK is a leading country in crypto business. Many platforms support the buying and selling of digital assets.

We’ll explore how UK citizens can liquidate their crypto assets, the best platforms to use, steps to sell crypto, and more.

Best Platforms to Sell Cryptocurrencies in the UK in 2022

There are many crypto providers available in the UK. Finding a suitable platform to sell your crypto assets can be daunting. Below is a list of the best beginner-friendly platforms to help you sell your crypto assets right away.

1

Minimum deposit

$200

Exclusive promo

Over 3,000 assets including currencies, stocks, cryptocurrencies, ETFs, indices and commodities

Buy crypto or trade cryptocurrency via CFDs

This advertisement promotes investing in virtual cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) and the United States (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, without EU protection and unsupervised by the EU regulatory framework. Investments are subject to market risk, including loss of principal.

2

Atani

Minimum deposit

$100

Exclusive promo

3

Coinmama

Minimum deposit

$100

Exclusive promo

4

Coinbase

Minimum deposit

$50

Exclusive promo

Trade and invest in over 25 cryptocurrencies

Extremely simple user interface

Over 68 million customers

5

Paybis

Minimum deposit

$50

Exclusive promo

First transaction fee free

What options do I have when selling cryptocurrency in the UK?

There are several options for selling crypto in the UK. Some of the examples are:

  • Brokers – There are crypto brokers who manage the buying and selling of crypto on behalf of investors. They are also famous for providing other trading options such as margins, contracts for differences (CFDs) and futures. Major UK brokers include eToro, Plus500.

  • Exchanges – These are depository platforms with centralized authority that allow users to buy and sell cryptocurrencies. Binance, Coinbase and Paybis are the major global exchanges available in the UK.

  • Decentralized exchanges – Unlike centralized exchanges, these are non-custodial platforms that allow the buying and selling of cryptocurrency. Examples include UniSwap, SushiSwap.

  • Sell ​​in person: Although limited, some people prefer to buy and sell crypto in person. This is due to the possibility of anonymity when selling their crypto or simply to avoid fees. The method requires a good knowledge of the use of crypto wallets.

  • ticket vending machines: Although not widely adopted, crypto ATMs allow investors to buy and sell cryptocurrencies. Much like regular ATMs, crypto ATMs are physical kiosks where you can sell common cryptocurrencies like Bitcoin, Ethereum, and Litecoin.

The type of provider you choose will most likely depend on the level of expertise and the crypto you are selling. Beginners prefer on-ramp platforms such as exchanges and brokers.

Those selling small amounts of crypto prefer to use P2P marketplaces. This is due to the ability to control their offers, including setting their preferred prices and payment method.

How to sell cryptocurrency in the UK?

Here is a step-by-step guide to selling crypto in the UK on eToro.

  1. Visit the official eToro website and open an account. You will need to provide a valid email and password combination. The registration process will also ask you to enter and verify your mobile phone number.

  2. Next, you will need to verify your account by providing the required details. Fill in Know Your Customer (KYC) details. This is in line with UK government anti-money laundering laws. These regulations involve providing your proof of identity (government-issued ID card or passport and selfie containing the ID) and proof of residence. The platform will also ask you to clarify your trading experience for better services.

  3. If your crypto assets are on eToro, proceed to the next step, otherwise transfer your crypto from your external wallet to your eToro account. Use the recipient address on the eToro account to send the crypto asset.

  4. From the dashboard, click on ‘Portfolio’. The asset you want to sell should be displayed there. Click on it and enter the number of cryptos you intend to sell.

  5. Finally, you will need to click on the red cross icon to successfully close the transaction.

Do I have to pay tax when selling cryptocurrency in the UK?

Crypto is taxable in the UK. The tax body – Her Majesty’s Revenue and Commission (HMRC), classifies crypto as capital. Profits made on the sale of fixed assets are subject to capital gains tax.

The tax must be paid whether you are selling your crypto for fiat or other cryptos. However, you will only be liable to pay tax once you have exceeded your allowance of £12,300. Investors will pay either 10% or 20% profit tax depending on the bands set by the HRMC.

Please note that HMRC periodically updates crypto taxes. We recommend that you seek professional help if necessary.

How can I withdraw my money after selling cryptocurrency in the UK?

There are many ways to withdraw money after successfully selling your cryptocurrency. However, you will need to link your payment option to the crypto platform. Money can be sent to your bank account, Paypal, or card account, depending on your platform of choice.

The process is generally similar on most platforms. We will explore step by step guidelines for withdrawing your money from a brokerage called eToro.

Prerequisites: Sell ​​your crypto on eToro by following the steps listed above. You will also need to have a minimum balance of at least $30.

  1. After logging into your account, click “Withdrawal”. Your available balance will be displayed.

  2. Enter the amount you want to withdraw and click submit

  3. Select the reason for withdrawing funds and click Continue

  4. Add a withdrawal method or select it from the list of available methods.

  5. Submit the request to trigger the withdrawal. Confirm that the transaction details are correct

  6. To check the status of the withdrawal, click on “Wallet” in the side menu of the dashboard.

What to consider when selling cryptocurrency in the UK?

You will need to do your due diligence before liquidating your cryptocurrency. Most UK citizens focus on value for money. However, there are other critical factors to consider.

See some examples below:

  • Parts Availability: Check if the crypto you want to sell is supported on a platform before signing up. If it is not offered on a platform, you will not be able to sell it there.

  • Mainstream cryptos such as Bitcoin and Ethereum can be found on most platforms. However, new altcoins tend to get listed first on exchanges. Binance is a great example of an exchange that supports new cryptocurrencies.

  • Security: Crypto platforms operate online and many people store their funds and cryptos there. Malicious attackers typically focus on these platforms because of the value they hold. It is advisable to register with providers with a proven track record of security. This is to ensure the protection of your personal data, your funds and your crypto-assets. Enable 2FA and use strong passwords to protect your account.

  • Ease of use: Use platforms suitable for beginners. Time and effort should be put into selling the coin and not learning the features of the platform. Platforms like Coinbase and eToro have excelled in providing easy-to-use, intuitive interfaces.

  • Reputation: Check the platform’s online reviews before signing up. You can use third-party review sites to see if other customers are happy. Some of the features you can look for include security, processing speeds, fees, and customer support. Another option is to check a platform’s daily traffic using sites like Coinmarketcap to gauge how many people are actually using the platform.

  • Costs: The cost of transactions is another crucial factor to monitor. Different providers have different pricing models. Withdrawal fees will depend on the withdrawal method used. Credit cards generally incur higher fees than bank withdrawals. Check a provider’s fee schedule to see if you will get value for your crypto assets.

  • Market Sentiments: Crypto prices are highly volatile. To get the best deal, consider doing basic analysis and research. This will allow you to choose an appropriate time to sell your crypto.

Final Thoughts

Crypto is now seen as an alternative form of investment, even in the UK. Exchanges, brokers and direct transactions are the main methods of buying and selling crypto.

Before selecting a platform to sell your crypto, check if the platform is secure, beginner-friendly, and reputable. Coinbase, eToro, and Binance are some of the best platforms you can use to sell your cryptocurrency in the UK.

Selling crypto is generally similar on most platforms. Fund withdrawals and associated fees will depend on a specific provider. Standard withdrawal methods include bank transfers, Paypal, credit and debit cards.

FAQs

Can I sell cryptocurrency anonymously in the UK?

Do I need to verify my account when selling cryptocurrency in the UK?

Are there any fees when selling?

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