How to Sell Bitcoin UK – Cash Out Bitcoin in Under Five Minutes
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
If you’re based in the UK and wish to sell Bitcoin (BTC) back to cash – the process will depend on where your tokens are currently stored. For instance, if your Bitcoin investment is being stored at the same broker that you made the purchase with – you can simply place a sell order. But, if you’re holding the Bitcoin tokens in a private wallet – additional steps are required.
Irrespective of your current storage method – this guide on How to Sell Bitcoin UK will walk you through the process step-by-step.
Table of Contents
#1 Broker to Invest in Bitcoin – eToro
How to Sell Bitcoin UK – A Quick Guide For 2022
Make no mistake about it – the safest and most cost-effective way to sell Bitcoin in the UK is to do it through a regulated broker. eToro wins hands down here – as the broker is regulated by the FCA.
Here’s a quickfire guide on how to sell Bitcoin in the UK at eToro.
- Step 1: Open an Account with eToro – As an FCA-regulated broker – you will need to open an account with eToro before you can buy or sell Bitcoin in the UK. Don’t worry – this should take you no more than a couple of minutes from start to finish.
- Step 2: Verify Identity – FCA brokers like eToro are also required to verify the identity of all client accounts. Once again, this should take you no more than a couple of minutes and simply requires a copy of your passport or driver’s license.
- Step 3: Download eToro Wallet – You will need to download the eToro crypto app so that you can deposit your Bitcoin tokens. The app is compatible with both iOS and Android devices. Once installed, transfer the Bitcoin tokens to the unique wallet address that the eToro app gives you.
- Step 4: Sell Bitcoin – Once your Bitcoin tokens land in your eToro wallet, you will then need to sell them. eToro will execute your sell order within a matter of seconds. The funds will then be visible in your eToro cash balance.
- Step 5: Withdraw Money – Finally, you can now withdraw your cash balance out of eToro and into your bank account. You can complete the required steps from within your account dashboard.
And that’s it – you’ve just learned how to sell Bitcoin in the UK with an FCA-regulated broker. If the above steps are somewhat too condensed for your liking – we offer a full and detailed walkthrough further down in this guide.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
Where to Sell Bitcoin UK – Best Bitcoin Brokers
If you want to sell Bitcoin in the UK – you will need to do this through a suitable broker. There are a number of brokers operating in this space – some of which have a great reputation. However, there are also plenty of Bitcoin brokers that operate without a regulatory license or are known to charge very high fees. As such, it’s important to do a bit of research before choosing a platform.
Below we review a selection of the best brokers allowing you to sell Bitcoin in the UK.
1. eToro – Overall Best Platform to Sell Bitcoin UK
Next, you will need to download the eToro wallet – which is available via an Android or iOS app. Then, you will need to copy your eToro Bitcoin address and head over to the location that the tokens are currently being stored. This might be a mobile wallet or an alternative cryptocurrency exchange. Either way, once you transfer the Bitcoin tokens to your eToro wallet, you can then cash them out. Finally, you can then request a withdrawal so that the money is transferred to your UK bank account. It’s really as simple as that.
It is also important to note that eToro offers a low-cost method to sell Bitcoin in the UK. For example, there are no fees to open an account, nor will you need to pay anything to download the eToro wallet. In terms of commissions, eToro operates on a spread-only basis. This means that you will pay in the region of 0.75% to sell Bitcoin – which is very competitive. As we cover shortly, Coinbase charges 1.49% in commissions alone – which is in addition to the spread.
What we also like about eToro is that once you have opened an account – you will have access to a wide range of markets. This includes 30+ cryptocurrencies and thousands of UK and international shares. You can also trade commodities, indices, and forex. eToro also offers a Copy Trading tool – which means that you invest without needing to lift a finger. This is because you will select a trader to copy and then all future positions will be mirrored in your own account.
Pros
- Invest in cryptocurrencies on a spread-only basis
- Buy thousands of UK and international stocks at 0% commission
- Minimum investment per trade from just $25
- Supports debit/credit cards, e-wallets, and local bank transfers
- Regulated by the FCA, CySEC, and ASIC
- Used by over 20 million people
- Perfect for beginners
- Social and copy trading tools
Cons
- Perhaps too basic for technical traders
- No support for MT4 or MT5
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
2. Coinbase – Great Platform to Sell Bitcoin for GBP
Coinbase – a US-based cryptocurrency exchange with over 56 million users, recently entered the UK market. This means that you can use the platform to sell Bitcoin in the UK with ease. Much like eToro, you will first need to register an account and provide a copy of your passport or driver’s license. This is to ensure that Coinbase complies with UK laws of anti-money laundering.
Next, you can then head over to your Coinbase wallet and copy your unique Bitcoin address. Then it’s a case of transferring the Bitcoin from your external wallet and waiting for the tokens to arrive – which usually takes 10-20 minutes at Coinbase. You will then be required to perform a manual exchange – which you can do by searching for BTC/GBP. This means that you are selling Bitcoin for British pounds and pence.
Once you complete the sale, you will see the money in your GBP wallet. Then, it’s just a case of requesting a withdrawal back to your UK bank account. Unfortunately, although it is useful that Coinbase offers a BTC/GBP market, it is one of the most expensive exchanges in this industry. In fact, the platform will charge you a commission of 1.49% to sell Bitcoin in the UK. This is on top of the mark-up it makes on the spread.
Pros
- One of the most popular cryptocurrency exchanges
- More than 56 million users
- Supports instant debit card purchases
- Dozens of digital currencies to choose from
- Institutional-grade security practices
Cons
- Debit card deposits are expensive at 3.99%
- You will pay a standard trading commission of 1.49%
at eToro, UK’s #1 Broker
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
3. Binance – Best Way to Sell Bitcoin UK for Crypto
Binance is a super-popular cryptocurrency exchange with over 100 million clients on its books. Until recently, the exchange allowed UK customers to sell Bitcoin back to pounds and pence – and then withdraw the proceeds to a bank account via the Faster Payments network. However, the FCA has since put a block on this – so fiat currency withdrawals are no longer available in the UK.
However, Binance is still worth considering if you are thinking about selling Bitcoin for another cryptocurrency. If you are, then you will have access to hundreds of alternative crypto assets of all shapes and sizes. Whether you are interested in large-cap tokens like Ethereum, Tether, or BNB – or smaller projects such as AAVE or Decentraland – Binance will offer a market against Bitcoin.
Furthermore, the fees involved when selling Bitcoin for crypto at Binance are super low. In fact, you will only pay a commission of 0.10%. This means that by selling £5,000 worth of Bitcoin for Ethereum – you would pay a commission of just £5. We should note that Binance also offers crypto savings accounts. This means that instead of selling Bitcoin – you can earn regular interest until the market price is more favorable.
Pros
- Facilitates billions of dollars in daily trading volume
- Supports hundreds of digital asset pairs
- Near-instant deposits via debit/credit card
- Trading commission starts at just 0.1% per slide
- Offers crypto savings accounts
- Ideal for both beginners and experienced traders alike
Cons
- Not all supported cryptocurrencies can be purchased with a debit/credit card
- No e-wallet deposits or withdrawals
at eToro, UK’s #1 Broker
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
Different Ways to Sell Bitcoin UK – Fiat or Crypto?
There are two main ways in which you sell Bitcoin in the UK. The first is perhaps the most preferable – selling Bitcoin back to pounds and pence. This would then allow you to withdraw the money back to your bank account. The other option is to sell Bitcoin for another cryptocurrency – such as Ethereum or XRP.
This would be a good option if you are looking to invest in an alternative cryptocurrency that you think has greater potential than Bitcoin. In the sections below, we explain these two core ways of selling Bitcoin in the UK so that you can select the right one for your requirements.
Sell Bitcoin UK for GBP
If you have invested in Bitcoin and wish to cash your profits out – you will need to sell back to fiat money. The only way to do this is to open an account with a broker that has the legal remit to support fiat currency deposits and withdrawals. The best broker that we came across in this respect is eToro – as the platform is authorized and regulated by the FCA.
Irrespective of the broker you decide to go with – the process is typical as follows:
- If you do not already have an account with the broker – you will need to open one. This will require some personal information and contact details.
- You also need to ensure that you complete a KYC (Know Your Customer) process as per anti-money laundering laws. This will require a copy of your ID and in most cases – a document that validates your home address
- You will then need to transfer the Bitcoin tokens to the brokerage site
- When the tokens arrive, you need to sell the Bitcoin back to GBP
- Finally, you can then request a withdrawal back to your bank account
Although the above process might sound a bit cumbersome – it doesn’t have to be. Crucially, if you purchased Bitcoin from an FCA-regulated broker like eToro – you wouldn’t have needed to withdraw the tokens out. This means that when the time comes to sell – you can do this from within your portfolio. As such, you don’t need to worry about transferring funds to and from a Bitcoin wallet.
Sell Bitcoin UK for Crypto
If you want to sell Bitcoin in the UK for another crypto asset – there is a lot less red tape involved. This is because there are dozens of cryptocurrency exchanges that allow you to swap one digital token into another without needing to go through a KCY process.
If, however, you are looking to sell a significant amount of Bitcoin – you might need to provide a copy of your ID. This will depend on the respective exchange nonetheless.
If you are looking to sell Bitcoin for an alternative digital currency – the steps required are as follows:
- You will need to open an account with a cryptocurrency exchange. Assuming you are not looking to access fiat currency facilities – this typically only requires your email address
- Next, copy the unique Bitcoin wallet address that your exchange gives you
- Transfer the Bitcoin tokens over to the exchange
- Swap Bitcoin for your chosen digital asset. For instance, if you want to exchange the tokens into Ripple – find the XRP/BTC market.
- You can then withdraw your newly acquired digital tokens to a private wallet
Due to a lack of regulatory oversight on crypto-to-crypto conversions in the UK – you can complete the above process in a matter of minutes. On the other hand, if you want to sell Bitcoin in the UK for cash – then the KCY process is unavoidable.
Selecting the Best Way to Sell Bitcoin in the UK
If you’re still not sure about the best way to sell Bitcoin in the UK – it’s important to take a step back and do a little bit of research. After all, not only do you need to figure out whether you want to sell Bitcoin for GBP or crypto – but you also need to explore which broker is best for this purpose.
To help clear the mist, below we discuss the main factors to consider when thinking about the best way to sell Bitcoin in the UK.
- Asset: We’ve already discussed that you can sell Bitcoin for cash or crypto. Nevertheless, this is the first thing that you need to think about.
- Regulation: Irrespective of whether you want to sell Bitcoin for GBP or an alternative token, you should consider the regulatory standing of your chosen broker. eToro, for example, is regulated by the FCA, ASIC, SEC, and CySEC. Most platforms in this space are not regulatory, however, so it’s crucial to check this before proceeding.
- Fees: Your chosen broker will charge you a fee to sell Bitcoin in the UK. At eToro, you will pay a spread of just 0.75% when selling Bitcoin back to cash. At Coinbase, the same transaction would cost you 1.49% plus the spread.
- Withdrawal Methods: You should also consider what withdrawal methods are supported by the broker. For example, eToro supports e-wallets, bank transfers, and debit/credit cards. As per KYC laws, you might need to verify your preferred payment method before you can make a withdrawal.
- Customer Support: If you are a complete beginner in the world of cryptocurrencies – you might find the process of selling Bitcoin a bit daunting. If this is the case, it’s best to choose a broker that offers top-notch customer support. eToro offers live chat support on a 24/5 basis.
There are plenty of other metrics that you might need to consider when thinking about how to sell Bitcoin in the UK – albeit, we would argue that the above are the most important.
When is the Best Time to Sell Bitcoin UK?
Bitcoin is no different from traditional investment products like stocks and shares. That is to say, the overarching objective is to invest a certain amount of money and then at some point in the future – cash out at a profit. However, knowing when to sell Bitcoin in the UK can be challenging – as it’s never easy to know whether the price will continue to rise or subsequently drop.
For example, in early 2020 – Bitcoin price fell rapidly – hitting lows of around $5,000 per token. However, just over 12 months later, the digital currency hit all-time highs of $64,000. This means that had you panicked and sold your Bitcoin tokens at a price of $5,000 – you would have missed out on some significant gains.
If you find it difficult to determine the right time to sell Bitcoin, it might be worth cashing out in small increments. For example, you might decide to sell 10% of your portfolio and see how Bitcoin performs in the coming days or weeks. If things are going well, you might then cash out another 10%. However, if it looks like a prolonged downward spiral is in the making, you might consider selling a larger portion.
How to Sell Bitcoin UK – Full and Detailed Walkthrough
To conclude this guide, we are now going to walk you through the process of how to sell Bitcoin in the UK. By following the steps below – you can cash out your Bitcoin investment in under 10 minutes!
Step 1: Open an Account
There is no way of selling Bitcoin in the UK for cash without first opening an account with a regulated broker. eToro is the best option here – as the platform is simple to use and most importantly – regulated by the FCA.
To open an account with eToro, click on the ‘Join Now’ button and enter some personal information and contact details. You will also need to confirm your email address and mobile number.
Cryptoassets are highly volatile unregulated investment products. 67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Complete KYC Process
You also need to verify your identity before you can sell Bitcoin for cash. This is the case across all brokers serving UK clients. You can confirm your identity by uploading a copy of your passport or driver’s license. For proof of address, you can upload a recently issued bank statement or utility bill.
Step 3: Download eToro Wallet
You will need to download the eToro wallet – so that you can transfer your Bitcoin tokens to the platform. The wallet comes in the form of a mobile app that is compatible with iOS and Android devices.
You can download the wallet directly from the eToro website. All you need to do is click on the ‘Google Play’ or ‘App Store’ button and you will be redirected to the relevant page.
Step 4: Add Bitcoin to eToro Wallet
You will now need to locate your unique Bitcoin wallet deposit address from within the eToro app. Then, head over to your private wallet and transfer the Bitcoin tokens over. The funds should arrive in 10-20 minutes.
Step 5: Sell Bitcoin
Now that your eToro account is funded with Bitcoin, you can proceed to cash out. For this, you will need to head over to your portfolio and look for Bitcoin. Next, click on the ‘Sell’ button located next to Bitcoin and confirm the order. Within a couple of seconds, you will see that you now have cash in your eToro balance.
Step 6: Withdraw Money
The final step is to withdraw the proceeds from the Bitcoin sale to your bank account. As you have already verified your identity, it’s now just a case of providing eToro will your bank account details and confirming the withdrawal.
How to Sell Bitcoin UK – Conclusion
By reading this guide in full, you now know how to sell Bitcoin in the UK. To recap, you will need a regulated broker by your side that has the legal remit to support fiat currency withdrawals. eToro is a great option here – as the platform is authorized and licensed by the FCA.
Once you’ve opened an account with eToro and downloaded its native mobile wallet – you can then transfer your Bitcoin tokens across. Finally, it’s then just a case of selling your Bitcoin tokens and withdrawing the cash to your UK bank account.
FAQs
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