How to Sell Bitcoin (and other Cryptocurrencies) - The Definitive New Zealand Guide
This guide explores the process of selling Bitcoin in New Zealand. If you need to offload some cryptocurrencies and are searching for the safest, simplest and most cost-efficient methods, we explain all the available options.
Updated 8 August 2023
Selling cryptocurrencies can be more challenging than buying them. Many brokers and exchanges let you buy them instantly using your debit or credit card, but unfortunately, they don’t let you sell them the same way. Therefore, you’ll need to nominate a bank account to receive funds from the buyer. What’s even more frustrating is some banks don’t allow transfers to or from crypto exchanges. This guide will help you navigate this tricky situation.
Warning:
Summary
Our guide outlines:
Selling cryptocurrencies can be more challenging than buying them. Many brokers and exchanges let you buy them instantly using your debit or credit card, but unfortunately, they don’t let you sell them the same way. Therefore, you’ll need to nominate a bank account to receive funds from the buyer. What’s even more frustrating is some banks don’t allow transfers to or from crypto exchanges. This guide will help you navigate this tricky situation.
Warning:
- Be careful who you’re selling your cryptocurrencies to, and exercise caution throughout the process. We strongly recommend selling through bona fide companies rather than private individuals and unknown companies due to the high potential for fraud.
Summary
- You can use the following methods to sell your Bitcoin: sell back to an exchange, sell via a peer-to-peer platform facilitating transactions, use a Bitcoin ATM, use a prepaid debit card connected to a payment account holding cryptocurrencies, or sell directly to an individual.
- Before you buy Bitcoin, make sure you’re familiar with how you can sell them should you ever want to dispose of your holdings.
- Fortunately, New Zealand is home to a handful of reputable exchanges, such as Easy Crypto, facilitating cryptocurrency exchanges back into New Zealand dollars and other currencies.
- Many more exchanges allow you to sell your Bitcoin in exchange for other cryptocurrencies and a range of stablecoins. Using stablecoins like Tether and Circle eliminate exposure to price volatility but allow you to avoid paying bank transfer and foreign exchange costs.
- Bitcoin ATMs are a great way to convert BTC into cash instantly. Unfortunately, there aren’t any Bitcoin ATMs in New Zealand. However, if you’re travelling to Sydney, Hong Kong or Singapore, you could use one.
- Be aware of income tax obligations arising from the sale of cryptocurrencies. The New Zealand Inland Revenue Department has defined clear guidelines on when you should pay income tax on cryptocurrency-related revenue.
Our guide outlines:
Selling bitcoin (and other cryptocurrencies) with two local and trusted platforms - Easy Crypto and Swyftx
- Our research highlighted several Bitcoin platforms, but few are based in New Zealand and offer transparency. For this reason, we suggest considering the locally-owned (and trusted) Easy Crypto alongside Swyftx, an Australian-based platform.
- These two platforms are popular with our users, have esteemed reputations and are trusted by tens of thousands of New Zealanders.
- Both options are free to join, funded from any New Zealand bank account/card, and in the case of Easy Crypto, there is a local support team.
- Advertising Disclosure: We may earn a referral bonus for anyone that clicks on some of the below links - see our Advertising Policy for more details.
1. Sell your Bitcoin and cryptocurrencies for NZD
One of the fastest, easiest and, in most cases, safest ways to sell your cryptocurrencies is via an exchange or broker.
Although dozens of exchanges operate internationally and accept New Zealand-based clients, many only support US dollars or Euros for international transfers. As an overseas client, that can be very expensive. For example, Kraken exchange accepts New Zealand clients, but international bank wire transfers withdrawals cost US$60, and once those dollars hit your bank account, you’ll pay approximately 2% conversion fees.
Therefore, we recommend using platforms operating in New Zealand to sell your cryptocurrencies so you can benefit from faster and cheaper bank settlements.
Although dozens of exchanges operate internationally and accept New Zealand-based clients, many only support US dollars or Euros for international transfers. As an overseas client, that can be very expensive. For example, Kraken exchange accepts New Zealand clients, but international bank wire transfers withdrawals cost US$60, and once those dollars hit your bank account, you’ll pay approximately 2% conversion fees.
Therefore, we recommend using platforms operating in New Zealand to sell your cryptocurrencies so you can benefit from faster and cheaper bank settlements.
Most Popular Option - Easy Crypto
Easy Crypto is a New Zealand-based cryptocurrency broker, acting as a bridge between you and numerous international exchanges. The company is a Registered Financial Services Provider and a member of BlockchainNZ innovation hub. You can learn more about this company by reading our Easy Crypto review.
You can sell 143 different coins via the Easy Crypto platform. Easy Crypto quotes all coins in New Zealand dollars, and all fees are included in the quote prices.
Firstly, you need to verify your identity to sell cryptocurrencies via Easy Crypto. Once your account is verified, a sell order can be initiated by following these steps:
To learn more about this process, check the Easy Crypto how to sell cryptocurrency guide.
You can sell 143 different coins via the Easy Crypto platform. Easy Crypto quotes all coins in New Zealand dollars, and all fees are included in the quote prices.
Firstly, you need to verify your identity to sell cryptocurrencies via Easy Crypto. Once your account is verified, a sell order can be initiated by following these steps:
- Head to the “Buy & Sell” option in the menu and choose “Instant buy & sell”.
- Enter your order parameters, such as what cryptocurrency you’re selling and how many.
- Enter or confirm your bank account details to receive the New Zealand dollars.
- Easy Crypto will generate a wallet address where you should send the coins. Make sure to send it to the precise amount to avoid any errors.
- Once Easy Crypto receives the coins, the order will be expected, and you’ll receive NZD in your bank account within 24 working hours.
To learn more about this process, check the Easy Crypto how to sell cryptocurrency guide.
2. Sell your Bitcoin for cryptocurrencies or stablecoins
If you’re interested in selling your Bitcoin for other cryptocurrencies or stablecoins, then your options increase significantly. Using exchanges like Coinbase, Kraken, Binance and Bitstamp, you can exchange Bitcoin for hundreds of other tokens.
The primary advantage of taking this approach is lower transaction fees. For example, Binance charges just a 0.1% fee for transactions matched on the exchange.
Stablecoins are useful for minimising your exposure to cryptocurrency price volatility. Unfortunately, there isn’t a circulating NZD-denominated stablecoin. Most stablecoins are denominated in US dollars.
The primary advantage of taking this approach is lower transaction fees. For example, Binance charges just a 0.1% fee for transactions matched on the exchange.
Stablecoins are useful for minimising your exposure to cryptocurrency price volatility. Unfortunately, there isn’t a circulating NZD-denominated stablecoin. Most stablecoins are denominated in US dollars.
3. Sell your cryptocurrencies via peer-to-peer directory
You can sell Bitcoin on classified marketplace platforms dedicated to handling cryptocurrency transactions between individuals. The most popular peer-to-peer marketplace for selling Bitcoin is LocalBitcoins.
How does LocalBitcoins work?
How does LocalBitcoins work?
- As a seller, you can create a listing, which buyers can respond to, or you can answer buyer requests.
- When selling on LocalBitcoins, you deposit your Bitcoin to a wallet the platform hosts. When you enter into trades with buyers, your BTC will be taken from your wallet and held in escrow.
- LocalBitcoins lets you see the reputation of buyers based on ratings and the number of transactions conducted. When setting up an ad, the platform lets you set prices and minimum and maximum transaction limits.
- When selling on LocalBitcoins, you can choose a payment method that suits you. For example, you can choose local bank transfer, cash, PayPal or other methods. However, you should keep in mind that buyers can perform chargeback fraud once they receive your Bitcoins, and payment methods like PayPal have a reputation for siding with the buyer over the seller.
Selling bitcoin (and other cryptocurrencies) with two local and trusted platforms - Easy Crypto and Swyftx
- Our research highlighted several Bitcoin platforms, but few are based in New Zealand and offer transparency. For this reason, we suggest considering the locally-owned (and trusted) Easy Crypto alongside Swyftx, an Australian-based platform.
- These two platforms are popular with our users, have esteemed reputations and are trusted by tens of thousands of New Zealanders.
- Both options are free to join, funded from any New Zealand bank account/card, and in the case of Easy Crypto, there is a local support team.
- Advertising Disclosure: We may earn a referral bonus for anyone that clicks on some of the below links - see our Advertising Policy for more details.
Other options to consider
1. Sell cryptocurrency via a Bitcoin ATM
Bitcoin ATMs allow you to buy and sell Bitcoin; some machines even support other cryptocurrencies too. Unfortunately, there aren’t any Bitcoin ATMs in New Zealand. However, if you’re travelling to places like Sydney, or, after travel restrictions end, Hong Kong or Singapore, you’ll be able to find ATMs to sell your Bitcoin to local currencies.
2. Prepaid debit card connected to a crypto wallet
A handful of decentralised finance companies offer prepaid debit cards connected to a payment account loaded with cryptocurrencies, similar to Wise. Companies like Wirex (MasterCard) and Crypto.com (VISA) issue debit cards that automatically convert cryptocurrency from your account to cover transactions. You can use your debit cards to withdraw cash at any ATM or pay at any point of sale terminal.
3. Spend your Bitcoin in New Zealand
Instead of selling your Bitcoin, another method to unlock its value is to use your crypto to cover payments. Numerous restaurants, tradespeople, stores and services accept payment in Bitcoin. This list from EasyCrypto has the latest merchants.
Know This: Taxation on selling cryptocurrency in New Zealand
As New Zealand does not tax capital gains, cryptocurrency-related income is taxed as income. Whether you’re trading, mining or staking crypto, you’ll need to pay tax on this income. Also, if you’re a freelancer or a business accepting crypto as a payment method, you’ll need to disclose cryptocurrency-related income on your tax return.
There are some exemptions to paying tax on cryptocurrency profits, notably when categorised as capital gains. You should check with a tax advisor experienced in dealing with crypto-assets to determine whether you should pay tax or not.
The Inland Revenue Department urges crypto-asset users to maintain detailed records of their transactions and keep them for at least seven years. The Inland Revenue Department has written a detailed guide concerning taxes on crypto assets.
There are some exemptions to paying tax on cryptocurrency profits, notably when categorised as capital gains. You should check with a tax advisor experienced in dealing with crypto-assets to determine whether you should pay tax or not.
The Inland Revenue Department urges crypto-asset users to maintain detailed records of their transactions and keep them for at least seven years. The Inland Revenue Department has written a detailed guide concerning taxes on crypto assets.
Frequently Asked Questions
What is the best way to sell Bitcoin in New Zealand?
To determine the best way to sell Bitcoin, you should reflect on your needs and expectations. You will need to consider the costs, convenience, and expected time to complete the transaction. Typically, converting Bitcoin to stablecoins will be the fastest and cheapest solution, but you won’t be able to spend them easily. Conversely, selling via a broker, it might cost a few per cent in fees and take a few days to complete the transaction, but at least you’ll have NZD in your bank account. Think about your situation and use this guide to find the best method.
How much should I sell my Bitcoin for?
The spot Bitcoin price is easily found by simply googling a phrase like “BTC to NZD”. However, this is the spot price and doesn’t factor in any fees that exchange and brokerage platforms charge. Therefore, it’s entirely reasonable to add one or two per cent to the spot price.
How can I sell a large value of Bitcoin in New Zealand?
If you’re trying to sell tens, even hundreds of thousands of dollars worth of Bitcoin, you should exercise caution. While you might get better prices selling directly to people you find on sites like LocalBitcoins, it might take many buyers to sell the entire amount. Although it might cost more, it would be faster, easier and safer to go via a service provider like Easy Crypto.
Selling bitcoin (and other cryptocurrencies) with two local and trusted platforms - Easy Crypto and Swyftx
- Our research highlighted several Bitcoin platforms, but few are based in New Zealand and offer transparency. For this reason, we suggest considering the locally-owned (and trusted) Easy Crypto alongside Swyftx, an Australian-based platform.
- These two platforms are popular with our users, have esteemed reputations and are trusted by tens of thousands of New Zealanders.
- Both options are free to join, funded from any New Zealand bank account/card, and in the case of Easy Crypto, there is a local support team.
- Advertising Disclosure: We may earn a referral bonus for anyone that clicks on some of the below links - see our Advertising Policy for more details.
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