How to Sell Bitcoin in the UK – A Beginner’s Guide (2025)
Learn how to sell Bitcoin in the UK quickly and securely. From choosing the best exchange to minimising fees and avoiding tax pitfalls, this guide provides real insights, tested strategies, and step-by-step instructions to help you maximise your profits.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
To sell Bitcoin in the UK, you’ll need to…
Choose a secure, FCA-regulated exchange like eToro, Coinbase, or Uphold, sign up, and complete KYC verification. Sell Bitcoin at market or limit price, then withdraw GBP via bank transfer or PayPal. Track transactions for tax purposes, as profits over £3,000 are subject to Capital Gains Tax (CGT).
Selling Bitcoin in the UK Has Never Been Easier
Selling Bitcoin in the UK is straightforward, but fees, tax rules, and withdrawal options can impact how much money you actually receive. Here’s a quick step-by-step breakdown of the process:
Step 1: Choose a Secure, FCA-Regulated Exchange
Pick a trusted platform like eToro, Coinbase, or Uphold to ensure safe transactions and compliance with UK laws.
Step 2: Complete Account Verification (KYC)
Most UK exchanges require ID verification to comply with FCA regulations. This typically involves uploading a photo ID and proof of address.
Step 3: Transfer Bitcoin to Your Exchange Wallet (If Needed)
If your Bitcoin is stored in a private wallet, you’ll need to send it to the exchange before selling. eToro users can skip this step since the platform holds crypto within its system.
Step 4: Sell Bitcoin at Market or Limit Price
- Market Order: Sell instantly at the current market price.
- Limit Order: Set a target price and sell when Bitcoin reaches that level.
Step 5: Withdraw GBP to Your Bank Account or PayPal
Once sold, withdraw your GBP via bank transfer, PayPal, or debit card. Processing times vary (PayPal is fastest, bank transfers take 1-3 days).
Step 6: Track Transactions for Tax Purposes
Profits over £3,000 are subject to Capital Gains Tax (CGT). Keep records and consider using a crypto tax calculator like Koinly.
💡 Tip: Compare exchange fees before selling to maximise your profit.
Introduction – My First Experience Selling Bitcoin
The first time I sold Bitcoin in the UK, I had no idea what I was doing. I was excited about making a profit, but between fees, tax implications, and withdrawal options, I felt lost.
I started with Coinbase, thinking it was the safest choice. It was easy to use, but the high fees (1.49%) quickly ate into my profits. That’s when I explored eToro and Uphold, realising I could sell Bitcoin cheaper and withdraw faster.
Now, after multiple sales, I’ve learned what works (and what doesn’t)—this guide is everything I wish I had known before I sold Bitcoin for the first time.
Things to Know Before Selling Bitcoin in the UK
Selling Bitcoin isn’t just about hitting “Sell” and cashing out. Before selling, I always check:
- How much tax I might owe
- Which platform has the lowest fees
- The best withdrawal method for my bank
Here’s what every UK Bitcoin seller needs to know:
Do You Need to Pay Tax on Bitcoin Sales?
Yes. In the UK, profits from selling Bitcoin are subject to Capital Gains Tax (CGT). I didn’t realise this at first, and had to backtrack my records to calculate my taxable gains.
UK Bitcoin Tax Rules
💡 Example: If I bought Bitcoin at £20,000 and sold at £35,000, my taxable gain is £15,000. After the £3,000 tax-free allowance, I’d be taxed on £12,000 at 10-20%.
🚨 Warning: HMRC has been cracking down on unreported crypto gains. In 2023, thousands of UK investors received tax warning letters. (www.ft.com/content/3523e8ef-47c3-4591-8ce9-ea641acb045e)
🔹 Tip: I use crypto tax calculators like Koinly to keep track of my gains and losses.
Understanding Fees & Withdrawal Charges
I learned the hard way that fees can eat into your Bitcoin profits. Every platform charges differently, and I always compare fees before selling.
➡ My mistake? I originally withdrew via Coinbase, not realising eToro was cheaper for selling, and Uphold was faster for bank transfers.
🚀 Tip: If cashing out a large amount, I now use Uphold to avoid high withdrawal fees.
Choosing the Best Way to Sell Bitcoin
Different selling methods come with different costs, speeds, and security risks. Here’s how they compare:
💡 My Choice? I stick with regulated exchanges like eToro for the balance of security, low fees, and fast withdrawals.
Best Platforms to Sell Bitcoin in the UK (Ranked & Reviewed)
After trying multiple exchanges, these are my top three picks for selling Bitcoin in the UK.
I personally use eToro the most because it’s simple to use and has lower selling fees than Coinbase.
Pros (What We Like)
✅ Low selling fees (1%), cheaper than Coinbase.
✅ Easy-to-use interface, ideal for beginners.
✅ Regulated by the FCA, meaning high security.
✅ Multiple withdrawal options, including bank transfer & PayPal.
H4: Cons (What We Don’t Like)
❌ £5 withdrawal fee for bank transfers.
❌ No direct crypto withdrawals (must convert to GBP first).
❌ Limited altcoin support compared to Coinbase.
I started with Coinbase, and while it’s beginner-friendly, the fees are higher than eToro.
Pros (What We Like)
✅ Highly secure, trusted by millions of UK investors.
✅ Easy to use with a clean interface.
✅ GBP bank withdrawals supported via Faster Payments & SEPA.
Cons (What We Don’t Like)
❌ High selling fees (1.49%).
❌ Slow withdrawals, can take up to 5 days.
❌ Verification issues for some users.
I recently tried Uphold, and I was impressed with its lower withdrawal fees and instant bank transfers. Unlike Coinbase, Uphold allows instant withdrawals to UK bank accounts, making it a great option if you need quick access to funds. However, the interface can be confusing for beginners, and the fees vary based on market conditions.
Pros (What We Like)
✅ Lower selling fees (0.9%-1.2%), compared to Coinbase’s 1.49%.
✅ Instant bank withdrawals, unlike eToro and Coinbase, which take 1-5 days.
✅ Supports multiple assets, including stocks, commodities, and crypto.
✅ Transparent fee structure, so you always know the costs upfront.
Cons (What We Don’t Like)
❌ Interface can be confusing, especially for new users.
❌ Limited payment options, compared to eToro (no PayPal support).
❌ Not as widely used, as Coinbase or eToro, meaning fewer user reviews.
💡 My Verdict: If I need fast GBP withdrawals and lower fees, I use Uphold. But for a simpler user experience, I prefer eToro.
Step-by-Step Guide: How to Sell Bitcoin on eToro
Selling Bitcoin on eToro is straightforward, but I made a few mistakes at first. The interface is simple, but understanding fees and choosing the right withdrawal method can save you money.
Here’s exactly how I do it:
Step 1 – Sign In and Navigate to Your Bitcoin Holdings
- Log in to eToro – I use two-factor authentication (2FA) for extra security.
- Go to the “Portfolio” tab – This shows all my active investments.
- Find Bitcoin (BTC) – I scroll down to my Bitcoin holdings.
- Click “Sell” – This opens the trade execution window.
💡 Tip: eToro shows the real-time market price, so I always check the spread (the difference between buy and sell prices) before confirming my trade.
Step 2 – Select the Amount to Sell
- Enter the amount – I decide how much Bitcoin to sell (GBP or BTC equivalent).
- Check the fee breakdown – eToro charges a 1% selling fee, deducted from the total.
- Confirm the selling price – Since crypto is volatile, I always double-check the price before finalising.
- Click “Open Trade” – This executes the sale instantly at the current market price.
💡 Personal Experience: The first time I sold Bitcoin, I panicked during a price dip and lost out when it rebounded the next day. Now, I use limit orders to automatically sell at my target price.
Step 3 – Choose Your Withdrawal Method
After selling Bitcoin, I need to withdraw my GBP from eToro to my bank account.
- Click “Withdraw Funds” – Found in the left menu under “Portfolio”.
- Enter the withdrawal amount – Minimum withdrawal is £30.
- Select my preferred method – I usually go for PayPal for faster access.
💡 Tip: eToro only allows withdrawals to verified accounts, so I always set up my bank details before selling to avoid delays.
Step 4 – Confirm & Complete the Transaction
- Review withdrawal details – I always double-check my bank details before proceeding.
- Click “Submit” – eToro processes the request.
- Wait for funds – Processing time depends on the chosen withdrawal method.
💡 My Experience: My first bank withdrawal took 3 days, but PayPal was almost instant. Now, I avoid selling on Fridays or weekends because withdrawals don’t process until Monday.
How to Sell Bitcoin on Coinbase & Uphold
While eToro is my go-to platform, I’ve also sold Bitcoin on Coinbase and Uphold. Here’s a quick comparison of how they work.
💡 My Choice: If I need cash quickly, I use Uphold (instant UK bank withdrawals). For longer-term selling, I use eToro (cheaper fees).
Tips to Get the Best Price When Selling Bitcoin
Selling Bitcoin at the right time and minimising fees can increase your final profit. Here’s what I’ve learned.
Timing the Market – When’s the Best Time to Sell?
I once sold Bitcoin in a panic when the price dropped, only to watch it skyrocket the next day. Since then, I follow these market timing strategies:
- Avoid emotional selling – Bitcoin is volatile, and sudden dips often recover.
- Check trading volume – Prices are more stable when liquidity is high (8 AM – 8 PM GMT).
- Monitor news & regulations – Bitcoin tends to spike after major announcements (e.g., ETF approvals).
- Follow historical price trends – Bitcoin typically peaks after halving events (next one: April 2024).
💡 Tip: I now use limit orders to sell Bitcoin automatically at my target price instead of reacting to market swings.
Reducing Fees – How to Keep More of Your Profits
Fees can add up, so I always compare platforms before selling.
🚀 My Fee-Saving Tips:
✅ Use bank transfers instead of debit cards (lower withdrawal fees).
✅ Sell larger amounts less often to avoid multiple withdrawal charges.
✅ Look for fee-free promos (some exchanges offer discounts at certain times).
Final Thoughts – My Experience & What I’d Do Differently
The first time I sold Bitcoin, I lost money on fees and sold at the wrong time. Now, I always:
✅ Compare selling fees before cashing out – eToro is great for convenience, but Uphold is cheaper for large transactions.
✅ Check Bitcoin’s market trend – I avoid selling during panic dips and use limit orders instead.
✅ Plan withdrawals in advance – I use PayPal for faster withdrawals and avoid weekends to prevent delays.
💡 If I had to recommend one exchange for beginners, I’d say eToro is the easiest, but for large sales, Uphold saves more on fees.
If you’re selling Bitcoin in the UK, take your time, compare fees, and don’t sell in a panic.
FAQs
Selling Bitcoin on eToro, Coinbase, or Uphold is instant, but withdrawing GBP to your bank can take 1-5 days depending on the platform. PayPal is usually the fastest (within 24 hours), while bank transfers take 1-3 days. Weekends and bank holidays may cause delays.
Bitcoin sales are subject to Capital Gains Tax (CGT) in the UK. If your total crypto gains exceed £3,000 (2024 threshold), you owe 10-20% tax. HMRC has been tracking crypto transactions, so it’s essential to report profits and use tax tools like Koinly to stay compliant.
Most UK exchanges require ID verification to comply with FCA regulations. However, peer-to-peer (P2P) platforms like LocalBitcoins or Bisq allow anonymous trades. These come with higher risks, including fraud and scams. I always prefer FCA-regulated platforms like eToro or Coinbase for security.
For low fees, Uphold (0.9%-1.2%) is the best option for selling Bitcoin in the UK. eToro (1%) is also affordable, but has a £5 withdrawal fee. Coinbase (1.49%) is more expensive. Bank transfers are the cheapest withdrawal method compared to PayPal or cards.
Yes, eToro is FCA-regulated, which means strong security protections. I use two-factor authentication (2FA) and only withdraw to my verified UK bank account or PayPal. eToro holds funds in segregated accounts, which adds an extra layer of safety for users.
References
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Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
