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If you invested in Bitcoin and you're ready to cash it in for CAD or transfer to another cryptocurrency make sure you read this article on how to sell your Bitcoin first.

If you’ve been investing in Bitcoin, you may be ready to capture some or all of your profits. You may want to sell your Bitcoin for Canadian dollars, or invest it into another cryptocurrency.

But while you may have found buying Bitcoin easy, selling Bitcoin in Canada might not be as straightforward. This is especially true if you’ve enjoyed massive gains, and are looking to sell five or six figures worth of Bitcoin for CAD.

Where can you sell Bitcoin?

You can sell Bitcoin on virtually any cryptocurrency exchange, but you should compare different platforms in terms of currencies supported, fees, and security, as well as trade limits, before you deposit your Bitcoin. Below is a comparison of some leading Bitcoin exchanges.

 CoinsquareNetcoinShakePayBinance
Trading fees0.10% to 0.40%0.50%0%0.1%
CAD withdrawalElectronic funds transfer, wire transfereTransfer,

Electronic funds transfer
eTransferWire transfer, credit card, debit card
Withdrawal fees2%0%0%$1 to $15
Learn moreVisit SiteVisit SiteVisit SiteVisit Site

Finding the best way to sell Bitcoin in Canada

When it comes to selling Bitcoin in Canada, you want to select a cryptocurrency exchange platform based on the following:

  • Legitimacy. Ensure that you choose a legitimate cryptocurrency exchange platform. Cryptocurrency exchange platforms do not have to adhere to any standards or laws and do not have insurance. To protect your money, make sure you are using a well-reviewed and trustworthy exchange.
  • Security. Your cryptocurrency investment is most vulnerable when your coins are on a cryptocurrency exchange platform. You want to make sure the exchange has good security to protect your account and assets from hackers.
  • Price. Different cryptocurrency exchange platforms may display different prices for Bitcoin, Ether, and other cryptocurrencies. Compare prices to ensure you will get the best value for your Bitcoin when you sell it.
  • Fees. You will pay trading commissions to exchange your Bitcoin for Canadian dollars, or another cryptocurrency. Typically trading fees range from 0.40% to 2%, depending on the exchange.
  • Trade limits. Some cryptocurrency exchanges will limit the amount of Bitcoin you can sell at once. If you are trading a large amount, check to see if there are transaction or daily limits. You may have to plan to sell your Bitcoin in lump sums over a number of days.
  • Withdrawal methods. Most cryptocurrency exchange platforms will allow you to withdraw your CAD via eTransfer, but others may require PayPal or wire transfer. Make sure you are able to get your money out the way you want to before you sell your Bitcoin for Canadian dollars.
  • Withdrawal limits. There is typically a daily limit of $3,000 CAD on eTransfers to Canadian bank accounts, but the cryptocurrency exchange you are using may set a lower limit. Make sure you know how much you can transfer out at once.

How to convert BTC to CAD

You can convert Bitcoin to Canadian dollars directly on a cryptocurrency exchange. Simply select the “trade” option on the exchange platform, enter the amount of Bitcoin you want to sell, and choose Canadian dollars as the currency you want to buy.

Most cryptocurrency exchanges will allow you to convert your Bitcoin into CAD or USD very easily. Some will also support EUR and other currencies. It is best to convert your Bitcoin into Canadian dollars to make it easy to transfer it out to a Canadian bank account.

Many Canadian banks are wary of cryptocurrency exchange platforms and may block eTransfers or wire transfers between the platform and your bank account. Make sure to check which withdrawal methods are available before you send your Bitcoin to the exchange. Otherwise, you will be stuck having to convert the CAD you just bought back into cryptocurrency in order to send it to another exchange where you can sell it for CAD again.

How to withdraw Bitcoin

Withdrawing Bitcoin from a cryptocurrency exchange is simple, but you first have to make the decision as to whether you want to withdraw your Bitcoin as Bitcoin or convert it to CAD and withdraw as cash.

To withdraw your Bitcoin from an exchange as Bitcoin, all you need to do is send it to your Bitcoin address on another exchange, or that of a digital or hardware wallet you own.

To withdraw your Bitcoin from an exchange as Canadian dollars, you will typically have three different choices:

  1. Electronic funds transfer to a bank account (1-3 business days)
  2. Interac eTransfer (20 minutes to 1 business day)
  3. Wire transfer (1 to 5 business days)

Most cryptocurrency exchange platforms will charge a withdrawal fee, as well as have limits on the amount you can withdraw at a time. Normal withdrawal limits are $3,000 for an eTransfer, $10,000 for electronic funds transfer to a bank account, and $100,000 for wire transfer.

What about large amounts of Bitcoin?

If you are selling multiple five-figure amounts of Bitcoin and you want to do it all at once, you will likely find most mainstream cryptocurrency exchange platforms insufficient to support your trade. Even if they do not have transaction or trading limits, you will likely find the trade is executed slowly and the price of Bitcoin may even change while you’re in the midst of it.

Here’s what you can do to get around this:

Plan to sell your Bitcoin in amounts less than $10,000 over multiple days

Instead of transferring a large amount like $30,000 of Bitcoin to a cryptocurrency exchange platform all at once, you may instead transfer lump sums of a few thousand dollars at a time. You can then sell the Bitcoin you transfer for CAD, and eTransfer or wire transfer it to a Canadian bank account. Because Bitcoin’s price continues to be volatile, doing things this way carries price risk. However, it is simple and convenient so may still be a good option for you.

Use over-the-counter (OTC) trading

OTC or “over-the-counter” trading is a great alternative for large-volume and experienced traders. This typically offers the best exchange prices for Bitcoin, Ether, and other cryptocurrencies, as well as avoids the trading limits typically set by cryptocurrency exchange platforms. You can use brokers like itBit or HiveEx, or trade directly with another trader via peer-to-peer IRC chatrooms. OTC trading is for amounts of Bitcoin valued at $50,000 or above.

How to sell Bitcoin in Canada for CAD

  1. Open an account with a cryptocurrency exchange that allows you to sell Bitcoin
  2. Fund your account by sending your existing Bitcoin to the exchange
  3. Wait for your Bitcoin to appear in your account. This can take anywhere from 10 minutes to a few days, depending on the amount.
  4. Once your Bitcoin is in your account, you can exchange it by selecting “Buy” or “Trade” and choosing CAD.
  5. Enter the amount of Bitcoin you wish to trade or sell. Many exchanges will let you quickly select 50% or 100% of your holding.
  6. Click “Get Quote.” This will provide you with a quote of exactly how much CAD you can expect to receive for your Bitcoin. If you are happy with the amount, proceed to the next step.
  7. Click “Trade” or “Confirm.” Your Bitcoin will now be sold and converted to CAD.
  8. After you’ve made your sale, you can withdraw your CAD to your bank account via eTransfer.

How to sell Bitcoin in Canada for another cryptocurrency

  1. Open an account with a cryptocurrency exchange that allows you to sell Bitcoin
  2. Fund your account by sending your existing Bitcoin to the exchange
  3. Wait for your Bitcoin to appear in your account. This can take anywhere from 10 minutes to a few days, depending on the amount.
  4. Once your Bitcoin is in your account, you can exchange it for another cryptocurrency by selecting “Buy” or “Trade” and choosing the cryptocurrency you want.
  5. Enter the amount of Bitcoin you wish to trade or sell. Many exchanges will let you quickly select 50% or 100% of your holding.
  6. Click “Get Quote.” This will provide you with a quote of exactly how much of the cryptocurrency you’ve selected you can expect to receive for your Bitcoin. If you are happy with the amount, proceed to the next step.
  7. Place your trade! Your Bitcoin will now be sold and converted for the cryptocurrency of your choice.
  8. After you’ve made your sale, you can transfer your new cryptocurrency to an external wallet.

Don’t forget your taxes

If you sell your Bitcoin for CAD, your profit is subject to capital gains tax. Make sure you know how much CAD you spent to buy your Bitcoin when you first purchased it, as well as exactly how much CAD you are receiving now when you sell your Bitcoin. You will need to record the amount you have made in profit from cryptocurrency trading in order to pay the appropriate amount of capital gains tax when you file your income taxes.

Final thoughts

If you are one of the lucky ones that have enjoyed major profits from investing in Bitcoin or other cryptocurrencies, congratulations! But remember that cashing out is as important as investing in crypto the first place, so make sure you select a trustworthy exchange, minimize your fees, and ensure your profits land directly in your bank account.

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