How To Sell Cryptocurrency in the UK | Beginners Guide


Last updated April 21, 2022

During the last two years, CRYPTOCURRENCIES they have proven to be a viable alternative to traditional investing. The UK is a leading country in crypto activity. 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 Crypto 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 platforms for beginners that will help you sell your crypto assets immediately.

one

Minimum deposit

$200

Exclusive Promotion

3,000+ assets including Forex, Stocks, Cryptocurrencies, ETFs, Indices and Commodities

Buy cryptocurrencies or trade cryptocurrencies via CFDs

This announcement promotes investment in virtual cryptocurrencies within the EU (by eToro Europe Ltd. and eToro UK Ltd.) and the US (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, without EU protections, and not overseen by the EU regulatory framework. Investments are subject to market risk, including loss of principal.

two

Atani

Minimum deposit

$100

Exclusive Promotion

3

Coinmama

Minimum deposit

$100

Exclusive Promotion

4

base of coins

Minimum deposit

$fifty

Exclusive Promotion

Trade and invest in more than 25 cryptocurrencies

Extremely simple user interface

More than 68 million customers

5

Paybis

Minimum deposit

$fifty

Exclusive Promotion

Free first transaction fee

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

There are multiple options to sell crypto in the UK. Some of the examples are:

  • corridors – There are cryptocurrency brokers who manage the buying and selling of cryptocurrencies on behalf of investors. They are also renowned for providing other trading options such as spreads, CFDs and futures. Leading UK brokers include eToro, Plus500.

  • exchanges – These are custody platforms with centralized authority that allow users to buy and sell cryptocurrencies. Binance, Coinbase and Paybis are the world’s leading exchanges available in the UK.

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

  • Sell ​​in person: Although limited, there are people who prefer to buy and sell cryptocurrencies in person. This is due to the possibility of anonymity when selling your crypto or simply to avoid charges. The method requires adequate knowledge of the use of crypto wallets.

  • ATMs: Although not widely adopted, cryptocurrency ATMs allow investors to buy and sell cryptocurrencies. Just like regular bank ATMs, crypto ATMs are physical kiosks where you can sell conventional crypto like Bitcoin, EtherealY litecoin.

The type of provider you choose will likely depend on your level of experience and the cryptocurrency you are selling. Beginners prefer on-ramp platforms such as interchange and brokers.

Those who sell small amounts of cryptocurrencies prefer to use P2P markets. This is due to the ability to control your offers, including setting your preferred prices and payment method.

How to sell cryptocurrencies in the UK?

Here is a step-by-step guide to selling cryptocurrencies 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 require you to enter and verify your mobile phone number.

  2. Next, you will need to verify your account by providing required details. Fill in the 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 or passport and selfie with 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, go to the next step; otherwise, transfer your crypto from your external wallet to your eToro account. Use the recipient’s address in the eToro account to send the crypto asset.

  4. From the dashboard, click on ‘Portfolio’. The asset you want to sell should be listed there. Click on it and enter the amount of crypto you want to sell.

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

Do I have to pay taxes when selling cryptocurrencies in the UK?

Crypto is taxable in the UK. The tax body, Her Majesty Revenue and Commission (HMRC), classifies cryptocurrencies as a capital asset. Gains from the sale of capital assets are subject to capital gains tax.

The tax must be paid whether you sell your crypto for fiat or other cryptos. However, you will only be responsible for paying taxes once you exceed your £12,300 allowance. Investors will pay 10% or 20% tax on profits, depending on the bands set by the HRMC.

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

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

There are many ways to get paid after successfully selling your cryptocurrency. However, you will need to link your payment option to the crypto platform. The money can be sent to your bank account, Paypal or card accounts, depending on the platform you choose.

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

Prerequisite: Sell ​​your cryptocurrency 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 “Withdraw”. Your available balance will be displayed.

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

  3. Select the reason for the withdrawal and click continue

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

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

  6. To check the status of the withdrawal, click on ‘Portfolio’ in the side menu of the dashboard.

What to consider when selling cryptocurrencies in the UK?

You will need to do some due diligence before liquidating your cryptocurrency. The approach for most British citizens is to get value for money. However, there are other critical factors to consider.

See some examples below:

  • Availability of coins– Check if the crypto you want to sell is supported by a platform before signing up. If it’s not offered on a platform, you won’t be able to sell it there.

  • Conventional cryptocurrencies such as Bitcoin and Ethereum can be found on most platforms. However, newer altcoins tend to appear first on exchanges. Binance is a great example of an exchange that supports newer crypto currencies.

  • Security: Crypto platforms operate online, and many people store their funds and cryptocurrencies on them. Malicious attackers often target these platforms because of their value. It is advisable to hire providers with a proven safety record. This is to ensure the protection of your personal data, funds and crypto assets. Activate 2FA and use strong passwords to protect your account.

  • Easy to use: Use beginner platforms. Time and effort should be spent on selling the coin and not on learning the functionality of the platform. Platforms like Coinbase and eToro have been noted for providing intuitive interfaces that are easy to use.

  • Reputation: Check online reviews of the platform before signing up for it. You can use third party review sites to see if other customers are satisfied. Some of the features to 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 assess how many people are actually using the platform.

  • Fee: The cost of transactions is another crucial factor to consider. Different providers have different fee models. Withdrawal fees will depend on the withdrawal method used. Credit cards generally experience higher fees compared to bank withdrawals. Check a provider’s fee schedule to see if you’re getting value for your crypto assets.

  • market sentiments: Cryptocurrency prices are very volatile. To get the best deal, consider doing some fundamental 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 cryptocurrencies.

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.

The sale of cryptocurrencies is generally similar on most platforms. Withdrawals and associated fees will depend on a specific provider. Standard withdrawal methods include bank transfers, Paypal, credit and debit cards.

frequent questions

Can I sell cryptocurrencies anonymously in the UK?

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

Are there fees involved when selling?