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How to sell bitcoin

A simple guide to cashing out your bitcoin for Canadian dollars or another cryptocurrency.

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Bitbuy Digital Currency Exchange

Bitbuy Digital Currency Exchange logo
  • Based in Toronto
  • Lets you make quick buys and sells or actively trade
  • Bitbuy dashboard makes it easy to manage and track your crypto
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If you’ve taken the leap and bought some bitcoin, it’s equally important that you know how (and when) to cash out and sell. Selling your bitcoin with low fees is the best way to get the most return on your investment, which is why we’ve done the research of comparing 50+ crypto exchanges to help you find the best match.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.

Where to sell Bitcoin in Canada

So long as you have access to your private keys you can sell your bitcoin at any exchange you’d like. Compare exchanges using deposit methods, fiat currency support and accepted cryptocurrencies to find the best match for your needs.

Name Product Deposit methods Fiat Currencies Cryptocurrencies
Bitbuy Digital Currency Exchange
Cryptocurrency, Interac e-Transfer, Wire transfer
CAD

9
cryptocurrencies

Get a $20 bonus when you open an account and deposit at least CAD$250. T&Cs apply.
At this Canada-based cryptocurrency exchange, you can fund your account in CAD via Interac eTransfer and bank wire.
Netcoins Exchange
Netcoins Exchange
Cryptocurrency, Interac e-Transfer, Bank Wire, Online Bill Payments
CAD

7
cryptocurrencies

Buy Bitcoin and 5 other cryptocurrencies instantly using this straightforward broker.
CoinSmart Cryptocurrency Exchange
Credit card, Debit card, Interac e-Transfer, Bank Wire, Bank Draft
CAD

10
cryptocurrencies

Get a $20 bonus in BTC when you open an account and deposit at least CAD$100. T&Cs apply.
Buy and sell cryptocurrency quickly and easily, with instant verification and 24/7 customer support, on this Canadian exchange.
Gate.io Cryptocurrency Exchange
Cryptocurrency
USD, EUR, GBP, HKD, SGD, AUD, CHF, MXN

267
cryptocurrencies

Finder exclusive: New users get $90 worth of Gate.IO points and an airdrop of $5 in GateTokens if trade volume exceeds $100 in their first week. T&Cs apply.
A feature-rich exchange with over 700 tokens including derivatives, yield farming and lending products.
NDAX Cryptocurrency Exchange
Bank transfer (ACH)
CAD

10
cryptocurrencies

Get a $10 bonus when you open an account and deposit at least CAD$100. T&Cs apply.
NDAX is a Canada-based digital asset exchange with CAD currency pairs and with options for advanced traders.
Binance Cryptocurrency Exchange
Bank transfer (ACH)
USD, AUD, GBP, EUR, RUB, TRY, NGN, UAH, PHP, CZK & 20+ more

306
cryptocurrencies

Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support.

US residents: As of September 2019, US-based users can only trade USD on the American dollar onramp of Binance, Binance.US.
UK residents: In addition to normal crypto trading services, Binance offers margin lending. As this is a regulated activity which they are not authorised to offer in the UK, we advise you not to use this service. If you're interested in margin trading, see authorised providers.
CA residents: Binance is not available for Ontario-based users.
Coinberry Cryptocurrency Exchange
Credit card, Debit card, Interac e-Transfer, Wire transfer
CAD

6
cryptocurrencies

Get a $20 bonus when you buy or sell at least CAD$50 in digital currency. T&Cs apply.
Buy and sell cryptocurrency with Canadian dollars on this beginner-friendly Canadian exchange.
Crypto.com App
Credit card, Cryptocurrency, PayPal, TransferWise, SEPA
USD, AUD, CAD, CHF, EUR, GBP, NZD, SGD, JPY, ZAR & 9+ more

145
cryptocurrencies

Get 0% fees on credit/debit card purchases for 30 days after signup.
Buy 80+ cryptocurrencies, earn up to 8% on holdings, pay with your crypto for cashback at stores, get loans and more with this complete crypto-finance platform.
Gemini Cryptocurrency Exchange
Bank transfer (ACH)
USD, AUD, CAD, EUR, GBP, SGD, HKD

41
cryptocurrencies

Trade bitcoin, Ethereum and more at a US-based exchange where payments can be made in USD.
KuCoin Cryptocurrency Exchange
Cryptocurrency, PayPal, Wire transfer, Credit or Debit Card, SEPA
USD, EUR, GBP, RUB, CNY, AUD, KRW, JPY, TRY, VND & 40+ more

238
cryptocurrencies

Finder Exclusive: Get up to 10 USDT in trading fee rebates for signing up and making a deposit, and up to 30 USDT in trading fee rebates after buying with fiat. T&Cs apply.
Browse a variety of coin offerings in one of the largest multi-cryptocurrency exchanges and pay in cryptocurrency.
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Step-by-step guides on selling bitcoin

There are two main options available when selling your BTC holdings:

  • Selling bitcoin for fiat currency, such as Canadian dollars (CAD)
  • Selling bitcoin for another cryptocurrency, such as Ethereum, XRP or any number of other altcoins

For many people, the main aim when selling bitcoin will be to cash out for CAD, so you can find instructions on how to do that below. However, if you want to trade your BTC for another crypto, we’ve included a step-by-step guide on how to do that as well.

Selling BTC for Canadian dollars

If you want to sell BTC for fiat currency, here’s an example of how you can do it:

  1. Register on an exchange that lists the BTC/CAD trading pair
    To satisfy government regulations, most exchanges will also require you to provide your full name, address and proof of ID.
  2. Deposit bitcoin into your account
    Before you can sell your bitcoin, you’ll need to transfer it into the wallet of your chosen exchange. Find the deposit address for bitcoin and then transfer BTC from your external wallet to that address.
  3. Sell bitcoin
    Once your transfer has been completed, you can then search for the currency pair you want to trade on the exchange you’re using. In this case BTC/CAD, and enter all the details of your transaction.

Selling BTC for cryptocurrency

If you want to exchange your bitcoin for another cryptocurrency, here’s how you can do it:

  1. Register on an exchange that lists BTC
    Bitcoin can be exchanged for hundreds of altcoins on a huge range of platforms, so you’ll have plenty of crypto exchanges to choose from.
  2. Deposit BTC into your account
    You’ll first need to find the BTC deposit address, so head over to your wallet and use the address you’ve just copied as the destination for your BTC transfer.
  3. Sell BTC
    Navigate your way to the trading section of your chosen platform and then enter the full details of your sale. You can then type in how much BTC you want to sell, review the details of the transaction and click “Sell BTC.”
  4. Transfer your new cryptocurrency into a secure wallet
    Consider finding a crypto wallet that supports your new digital currency and allows you to control your private key.

How to sell a large amount of bitcoin

If you’re looking to sell a large amount of bitcoin, such as $50,000 or more, conducting the transaction through an ordinary crypto exchange may not be the best way to go about it. Not only may there not be sufficient liquidity on a traditional exchange, resulting in slower processing times, but you’ll also need to battle “slippage” which is when the market moves against you before your trade can be completed.

The transaction limits on these exchanges may also be too low for your needs, so anyone looking to sell a large amount of bitcoin should consider an over-the-counter (OTC) trade. OTC trades are those that take place away from a conventional, regulated exchange, and they offer a simpler and more cost-effective way to buy and sell large amounts of bitcoin.

Check out our OTC cryptocurrency trading guide for more info on how this type of trading works.

How to choose the best way to sell bitcoin

There’s no such thing as a best way to sell bitcoin for everyone, because what works well for one person might not necessarily be a good fit for the next. Instead, it’s all 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 CAD 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 CAD, how do you want to receive payment?

This 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 your options, make sure you consider:

  • Price – How does the exchange rate you’ll get 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 crypto wallet.
  • Trading and withdrawal limits – Is there any limit on the amount of bitcoin you can sell, or on how much CAD 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 will you be able to 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’d recommend a particular exchange, trading platform or bitcoin ATM provider.

There are several other important features to consider, such as where an exchange is regulated and the payment methods accepted by peer-to-peer trading sites, so check out our cryptocurrency exchange guide for more tips on how to choose the right platform.

How to sell bitcoin: what are my options?

The step-by-step guides above take you through the process of selling bitcoin on an exchange. However, this is just one of several options available when you want to cash out your bitcoin, so let’s take a closer at what other options you have.

Withdrawing your funds after the sale

Even after you’ve sold your bitcoin, your transaction hasn’t been fully completed. The final step is to withdraw the proceeds of your sale into either your bank account or your cryptocurrency wallet.

Withdrawing CAD

If you’ve sold bitcoin through a platform that permits CAD withdrawals, check to see what withdrawal methods are supported. Options include:

  • Bank transfer
  • Credit/debit card
  • PayPal
  • Cash

When choosing your withdrawal method, make sure you consider:

  • Fees. Many (but not all) platforms impose a withdrawal fee, and the fee charged usually varies depending on the withdrawal method selected.
  • Limits. Are there any minimum or maximum limits on how much you can transfer? How do they differ between withdrawal methods? Can you increase these limits by providing additional verification or ID?
  • Processing times. How long will it take for the CAD to arrive in your wallet or bank account? For example, while cash withdrawals are instant, bank transfers can take several days to arrive.
  • Any other restrictions. For example, some exchanges will require you to withdraw funds using the same payment method with which you made your deposit.

Withdrawing cryptocurrency

Storing your cryptocurrency on an exchange for the long-term is not recommended. Exchanges control the private keys to these wallets and are also popular targets for hackers, so the safest option is to transfer your crypto into a secure wallet that lets you retain ownership of your private keys. It’s a good idea to set this wallet up well in advance of selling your bitcoin, and make sure you double-check your wallet address before depositing any funds.

Once again, check whether there are any limits on the amount of crypto you can withdraw per-transaction or in any 24-hour period. You’ll also need to factor any withdrawal fee into the total cost of the transaction.

When is the right time to sell bitcoin?

Unfortunately, there’s no easy answer to this question.

Timing is crucial to maximizing the success of any trade, but working out the right time to sell can be a tricky task. From crypto regulatory developments and broader economic factors to bitcoin hype levels and even your own appetite for risk, there are many factors that can affect whether you should or shouldn’t sell your BTC.

Analyze the market carefully to decide whether you want to sell or hold.

FAQs

  • [/fin_accordions]
    Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

    Disclosure: At the time of writing the author holds ADA, ICX, IOTA and XLM.


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