Oleg Galeev

4 weeks ago

How to Sell Bitcoin and Other Crypto in Canada in 2022

Selling bitcoin in Canada

In our previous article, we covered how to buy bitcoin in Canada. While many people want to hold bitcoin and other cryptocurrencies for the long term, it’s never a bad idea to take profits. There could be a million reasons why you might want to sell bitcoin, but it’s not always obvious how to do it. Depending on how you bought bitcoin in the first place, there are several ways you can sell bitcoins in Canada. There are exchanges, peer-to-peer websites, and other ways you can sell. If you’d like to know more, read on for our guide about how to sell cryptocurrency in Canada.  

1. Sell Bitcoin Through Canadian Crypto Exchanges

Buying and selling crypto in Canada by using exchanges

When you first buy bitcoin and other cryptocurrencies, you’ll usually have to sign up to a Canadian crypto exchange. This process involves verifying your account and depositing funds or buying crypto with a credit or debit card. 

To sell bitcoin in Canada, one of the easiest ways is to use the same crypto exchange where you bought your crypto. Since you’re already signed up and verified, the process will be quick. However, if there’s no option to sell and transfer the money to your bank account, then you can simply transfer your bitcoin to one of the crypto exchanges listed below to cash out bitcoin in Canada. 

To sell cryptocurrency in Canada using any of these exchanges, first login to your account then follow the steps:

Sell Cryptocurrency On Bitbuy: Step-By-Step

  1. Go to ‘express trade’
  2. Click ‘sell’ 
  3. Select the crypto you want to sell
  4. Enter the amount and confirm the sale
  5. Go back to your wallet
  6. Click ’withdraw’ next to Canadian dollars
  7. Preview and confirm withdrawal to your bank account

Sell Cryptocurrency On Ndax: Step-By-Step

 

  1. Go to Quick Buy/SellSell cryptocurrency on NDAX step 1
  2. Select the coin you wish to sellSell cryptocurrency on NDAX step 2
  3. Enter the crypto and amount you want to sell for CADSell cryptocurrency on NDAX step 3
  4. Click on it, review, and confirmSell cryptocurrency on NDAX Canadian crypto exchange step 4
  5. Click “Confirm selling”

Sell Cryptocurrency On Coinberry: Step-By-Step

Coinberry logo

  1. Select buy/sell
  2. Enter amount
  3. Select ‘preview order’
  4. Click ‘sell now’
  5. Go to ‘withdraw’
  6. Select Interac e-Transfer or wire transfer
  7. Enter the amount
  8. Preview and ensure email is correct
  9. Click send

Sell Cryptocurrency On Newton: Step-By-Step

  1. On the right, click tradeSell cryptocurrency on Newton step 1
  2. Select crypto to CADSell cryptocurrency on Newton step 2
  3. Enter amount to sellSell cryptocurrency on Newton step 3
  4. Click ‘review trade’Sell cryptocurrency on Newton step 4
  5. Preview and click ‘Sell *name of the coin*’Sell cryptocurrency on Newton step 5
  6. On the right, click up arrow (withdraw)Sell cryptocurrency on Newton step 6
  7. Select Interac e-Transfer or bank transferSell cryptocurrency on Newton step 7
  8. Enter amount of CAD and email addressSell cryptocurrency on Newton step 8
  9. Click “Withdraw” and review withdrawal
  10. Click confirm

Sell Cryptocurrency On Coinfield: Step-By-Step

CoinField's quick trade window

  1. Go to trade
  2. Select ‘quick trade’
  3. Select sell
  4. Click on your crypto you want to sell
  5. Enter amount and select CAD
  6. Click sell
  7. Go to Wallets
  8. Select ‘transfer’
  9. Next to CAD select withdraw
  10. Choose Interac e-Transfer or bank transfer
  11. Enter amount
  12. Select withdraw

Sell Cryptocurrency On Coinsmart: Step-By-Step

Cool usability and design of Coinsmart cryptoexchange

  1. Click ‘buy/sell/trade’
  2. Click ‘sell’
  3. Select your crypto
  4. Enter amount
  5. Click review
  6. Click sell
  7. Go to wallet
  8. Click fiat
  9. Select CAD and click withdraw
  10. Ensure details are correct
  11. Confirm

2. Sell Bitcoin and Other Crypto On Peer-to-peer Exchanges

Selling bitcoins on LocalBitcoins.com peer-to-peer

If you’d rather not use a crypto exchange to cash out bitcoin in Canada, you can use a peer-to-peer exchange like Localbitcoins. Here, you can sell bitcoin to another person. Trades are quick, and you can sell bitcoin in Canada without having to go through a KYC process. 

How to sell bitcoin in Canada using Localbitcoins:

  1. Select ‘quick sell’
  2. Enter the amount in CAD and click search sell bitcoins with Localbitcoins step 2
  3. Find an offer that has the withdrawal method you want (e.g. Interac)Sell bitcoins with Localbitcoins step 3
  4. Click sellSell bitcoins with Localbitcoins step 4
  5. Enter the amount you want to sellSell bitcoins in Canada with Localbitcoins step 5
  6. Enter your email address
  7. Click ‘send trade request’
  8. Buyer has a set time to send your money before trade is cancelled
  9. Your bitcoin is held in escrow until you are paid
  10. Once you’ve been paid, click ‘release bitcoins’ 
  11. You can leave a ‘trust’ review for your buyer to give them feedback 

If you’re looking for a quick cash payment without signing up then you can use FastBTC to sell bitcoin in Canada. Here, you simply enter your email address where you want to receive the Interac e-Transfer, scan the QR code and send your bitcoin, then wait for your cash payment. 

Cash Out Crypto Via Gift Cards and Charity

Gift cards you can spend Bitcoin on CoinGate website

There are other ways to cash out cryptocurrency in Canada without having to sell. Some people choose to gift their crypto away so it does not count as income for you or the receiver. The less income you have, the lower your taxes. However, you could still be liable for capital gains tax if the price of the crypto increased in the time you bought it the time you gifted it. When the receiver sells they will also be liable for any capital gains.

Other people cash out their cryptocurrency using gift cards. The most popular and reliable service for Canadians to do that is Coingate. Keep in mind that buying a gift card with crypto counts as a taxable event and you could be liable for capital gains tax. However, buying gift cards for someone else with crypto can be considered a gift as well, so the receiver won’t incur income tax and it can lower your income tax overall. 

Some good gift card options that accept cryptocurrency payments include Coingate and Coincards.

You could also give some of your crypto to charity, which could lower your income tax for the year. However, charitable contributions with crypto are not exempt from capital gains tax.

4. Spend Crypto In Canada

Spending bitcoin in Canada

Another way to cash out bitcoin in Canada is to spend it on websites such as Newegg or Overstock. These websites accept several cryptocurrencies as payment including bitcoin, Ethereum, Dogecoin and Litecoin. Remember that buying anything with crypto could incur capital gains tax. 

For other ways to spend bitcoin in Canada, see our previous article

5. Use Bitcoin ATM to Sell Crypto In Canada

Another way to sell cryptocurrency in Canada is to use a bitcoin ATM. There are thousands of bitcoin ATMs all over the world, so finding one is not difficult. To sell cryptocurrency in Canada using a bitcoin ATM, simply use the touch screen and follow the instructions. Bear in mind that there are many different ATMs with different processes. For some, you may have to scan your ID, and others you won’t. The basic process goes like this:

  1. On the ATM, select ‘withdraw’ or ‘sell’
  2. Enter your phone number
  3. Enter SMS verification code
  4. Select your crypto
  5. Enter amount or select ‘other’ and enter amount
  6. Click ‘finish’
  7. Open your wallet app on your phone
  8. Select your crypto and go to transfer or send
  9. Enter the exact amount of crypto as stated on ATM and withdraw
  10. Scan the QR code on the ATM
  11. Send the crypto from your wallet
  12. Click confirm on the ATM
  13. Take your receipt from the ATM
  14. Wait for SMS notification that says your crypto is ready (could take minutes or hours)
  15. Click ‘redeem’ on ATM
  16. Enter phone number
  17. Enter SMS verification code
  18. Enter redemption code on receipt
  19. Click ‘finish’
  20. Take your cash and receipt from ATM

When you’re looking to cash out bitcoin in Canada, we recommend using a crypto exchange. They are safe, offer the lowest fees, and you can withdraw Canadian dollars straight to your bank account. If you choose to spend crypto or gift it, be mindful of taxes you will be liable for. You can find out more about crypto taxes in Canada in our tax guide

  • How To

Author

Oleg is a crypto expert who has been trading since 2016. He started out with Coinbase, Kraken and Peer-to-Peer exchanges. After some time, centralized exchanges started charging crazy fees to their users.

He decided to review different crypto exchanges in order to educate Canadians on what kinds of things are going inside each one while giving them unbiased advice. On top of that, Oleg also has experience with NFT, airdrops, and crypto staking and he is constantly checking on new crypto assets.

His writing has been featured in popular Canadian media sources such as Toronto Sun.