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How to sell Bitcoin in 4 steps in Canada
Learn how to sell Bitcoin (BTC) by following our step-by-step guide. Compare cryptocurrency exchanges to find the best place to sell Bitcoin.
How to sell Bitcoin
The best way to sell Bitcoin is through a cryptocurrency exchange. If the assets are already on an exchange, then skip to step 4. Otherwise, you will need to deposit the coins or tokens on an exchange to sell on the market.
There are a variety of factors to consider when selling BTC. Before registering on an exchange, be sure to check that the asset is listed on the platform and that your desired fiat currency is supported for withdrawing to a bank account. Compare exchanges to find the lowest deposit fees, withdrawal fees and trading fees to maximize the fiat received.
Step 1: Choose where to sell Bitcoin
Choosing where to sell Bitcoin depends on a few main factors. Cryptocurrency exchanges offer different fees for depositing assets, but it should be free to deposit BTC apart from the Bitcoin network fee. You should take into account trading fees for selling BTC when choosing where to sell as well. Reasonable trading fees range from 0%-0.5% per trade. The final factor to consider when selling Bitcoin is the withdrawal fee for cashing out to a bank account. Some exchanges charge a flat rate while others charge a percentage. Look for an exchange that either has no withdrawal fees or charges a low flat rate.
Step 2: Create an account
Once you have chosen a cryptocurrency exchange to sell your Bitcoin, you will need to create an account. Find the sign-up or register button on the homepage then do the following:
- Enter an email address or phone number
- Create a password
- Verify the email or phone number provided by entering the verification code sent to it
- Agree to terms and conditions
- Click sign up or register
You will then have to go through the KYC process to verify your identity. We've outlined the basic steps below, but more in-depth instructions can be found in our KYC-guide.
- Enter personal information
- Name, country of residence and an ID. This step may require you to upload a scan of your chosen ID or simply enter your ID number.
- Upload documents
- A clear photo or scan of your ID with no glare or obstructed view is necessary. You will also need to upload a copy of a utility bill or bank statement that matches the address and name on the ID provided.
- Upload a selfie
- This involves taking a photo of yourself with a full view of your face. You must be holding a piece of paper that has your name written on it and the current date. Some sites will provide a unique code that you need to write on a piece of paper.
- Activate 2FA
- This is an optional step but it is recommended. Some exchanges require it regardless. Activating 2-factor authentication adds an extra layer of security to your account.
Step 3: Deposit Bitcoin
The next step is to deposit your BTC on the exchange in order to sell it. In order to do this, follow these steps:
- Navigate to the wallets or balances page of the exchange
- Locate "Bitcoin"
- Click "Deposit"
- Copy the address the exchange provides for your BTC deposit
- Paste the address into your external Bitcoin wallet
- Double-check the address!
- Depending on your comfort level, you can also send a small test amount first. This will cost you an extra transaction fee but will give you peace of mind.
- Send the transaction
- You will have to choose the network fee (a higher fee results in faster processing)
- Once the transaction is broadcasted, you can exit your wallet
- Wait for the deposit to be confirmed by the exchange
- This can take a few minutes up to an hour depending on the exchange and network congestion
- Once the deposit is confirmed, you can sell your Bitcoin
Step 4: Sell Bitcoin
Now that your Bitcoin is in your exchange account, you can sell it. There are a few different ways to sell BTC through an exchange: instant sell, market order and limit order. It is important to remember that you can sell Bitcoin for fiat or for other crypto coins and tokens.
In order to do an instant sell, you will have to have previously connected a bank account or withdrawal destination. Instant sales tend to have the highest fees and are made at market price. Overall, you net less than using the spot market. With instant sale options, you are paying for convenience and speed. Generally, you choose how much to sell and where to deposit. You will get a preview of the transaction so you can check the details. Once you've confirmed the details, you can finalize the sale.
In order to access the market and limit orders on a crypto exchange, you will need to navigate to either "spot trading", "trade" or "markets". How the trading interface is labeled varies by exchange. While there are often more trading options than just market and limit orders, they are the most common. When selling Bitcoin through spot trading, you can sell it for fiat pegged stablecoins or other digital assets.
- Market orders
- Bitcoin is sold immediately for market price. It has higher fees than using a limit order but is lower than an instant sell. You should choose a market order if you want to sell as fast as possible at the current market price.
- Limit orders
- Bitcoin is sold only if it reaches a price set by you. This has lower fees than a market order and is much lower than an instant sale. You should choose a limit order if you want to sell Bitcoin at a specific price.
- Maker/taker fees
- These are the fees charged when using a spot trade.
- Maker fees are charged to those who add liquidity to the exchange (place an order not already on the books)
- Taker fees are charged to those that take liquidity off the exchange (place an order that already exists and is filled immediately)
- Taker fees are charged for market orders because the sale is immediate
- Taker fees can be charged for a limit order if the price set is the same as the market price
- If you place a limit order for a price that is not the current market price, then it is considered a maker order and has lower fees
- Some exchanges charge the same for both maker and taker trades
If using a market order, simply choose how much BTC to sell and then place the order. If using a limit order, choose how much BTC to sell and at what price, then wait for the order to be filled. You can cancel your order at any time if it's unfilled.
Withdrawing local currency
When trying to sell Bitcoin through a platform that permits fiat currency withdrawals, check to see what withdrawal methods are supported. Options may include the following:
- Bank transfer
- Credit/debit card
- Interac e-Transfer
- Wire transfer
When choosing an exchange and withdrawal method, make sure to consider the following:
- Fees. Many (but not all) platforms impose a withdrawal fee, and the fee charged usually varies depending on the withdrawal method selected.
- Certain platforms allow you to sell Bitcoin or other assets directly for CAD at market price and deposit the funds directly into your account.
- Limits. There are often minimum or maximum limits on how much you can transfer. They can differ between withdrawal methods. You can often increase these limits by providing additional verification or ID. Make sure the platform you choose won't be restrictive for your withdrawal needs.
- Processing times. The time it takes for the CAD to arrive in your wallet or bank account is important to note. While cash withdrawals are instant, bank transfers can take several days to arrive.
- Any other restrictions. Some exchanges may require you to withdraw funds using the same method with which you made your deposit.
Factors to consider when selling
The best way to sell Bitcoin is subjective and varies based on your circumstances. What works well for one person might not be a good fit for the next. Instead, it's about working out which option is the right choice for you. You can do this by asking yourself a few important questions:
- Do you want to sell Bitcoin for fiat or another cryptocurrency?
- How quickly do you want to sell your Bitcoin?
- Are you willing to accept a price well below the market rate or do you want to negotiate the best price possible?
- If selling for fiat, how do you want to receive payment?
These questions should help you decide how you want to sell your Bitcoin, and you can then figure out which platform has all the features you need. When comparing different cryptocurrency exchanges, make sure you consider the following:
- Price. How does the exchange rate compare to those offered by other platforms?
- Fees. Compare any trading fees that apply and whether there's a fee for withdrawing funds into your bank account or cryptocurrency wallet.
- Trading and withdrawal limits. Is there any limit on the amount of Bitcoin you can sell, or on how much fiat currency you can withdraw from your account?
- Security features. Are there any security measures in place to help protect your funds and your private data, for example, 2-factor authentication or a reputation system for buyers and sellers?
- Customer support. If something goes wrong with your transaction, how can you contact customer support? During what hours is support available?
- Reputation and reviews. Seek out online reviews and check crypto forum posts from other users to find out whether they recommend a particular exchange or trading platform.
There are several other important factors, such as where an exchange is regulated and the payment methods accepted by peer-to-peer trading sites. For a full breakdown of the features to look out for, check out Finder's cryptocurrency exchange guide and discover tips on how to choose the right platform.
Alterative ways to sell Bitcoin
Peer-to-peer or P2P marketplaces are one of the most popular alternative ways to sell Bitcoin. P2P exchanges require no identity verification, allow you to browse through buyers and see offers for each type of accepted payment method. They also do not require you to give up custody of your funds.
To sell your BTC on a P2P marketplace, you simply register, post what you have for sale, how much you want for it and acceptable payment methods. You will need to note any extra fees as well. Then you wait for a buyer to contact you. P2P sales are done using arbitrators and escrow and are surprisingly safe to do.
There is a P2P marketplace built into Binance, but there are other options such as Localbitcoins. Be sure to research any P2P marketplace before using it. Fees for selling on P2P marketplaces vary, but Binance and Localbitcoins both charge 0%. This does not include any fees you as the seller set for the buyer.
Bitcoin ATMs are an increasingly common sight around the world. These kiosks used to only allow the purchase of BTC with a credit or debit card. Nowadays, they often allow for both purchases and sales. You can find Bitcoin ATMs in just about every city, though they are often not all that convenient to get to. In addition, fees charged through Bitcoin ATMs are often much higher than any other option, with 6.5% being considered low and the average around 10%. While a cool option, Bitcoin ATMs are not the recommended option for selling BTC.
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