How to Sell Crypto in Estonia

Cryptocurrencies are popular in Estonia, which is known for its low taxes compared to other E.U. countries. Estonia views crypto as value represented digitally, rather than as legal tender. In fact, Estonia is a hub for crypto regulations, and many crypto exchanges are registered in Estonia!

The easiest way to sell crypto in Estonia is through cryptocurrency exchanges such as CryptoWallet and Coinbase, and we’ll do a full review of these services below.

Cryptocurrency License in Estonia

Many Estonian companies dealing with crypto carry out their business from the location across Europe due to the many benefits it presents. In Estonia, crypto companies receive fair regulation. The company needs to have authorized capital reaching €12,000 visible from their bank account to operate in Estonia.

Once you have set up your organization, you may apply on the Estonian Ministry of Economic Affairs and Communications’ Website for a Virtual Currency Service Provider Licence. The statutory fee for a license application is €3,300.

The charge is payable to the Estonian Finance Ministry. Rahapesu Andmebüroo (RAB), an independent financial intelligence unit within the Police and Border Guard Board, explores the concept of a license within 60 working days after the filing. The crypto-license is then issued for a timeless timeframe. The country’s AML Act and related rules give the licensed company a look into what is permitted, prohibited, and general compliance with the law.

Taxation of Cryptocurrency Earnings

In Estonia, income that comes from cryptocurrencies is taxed as income that is received in traditional cash. If an Estonian citizen gets income from exchanging crypto assets, they are required to declare the income received. Users must convert the purchase or sales price or the received income into euros at the virtual currency exchange rate, which is established on the market applying the date of receipt of the income or costs.

The Estonian government requires miners to register themselves in the Business register as sole proprietors. They are then required to state their income for taxation purposes. There are no set rules for any crypto company, but they follow the same rules as other companies in the country. Note that taxation of companies in Estonia is the most profitable in the European Union.

How to Choose the Best Way to Sell Crypto

The best way to sell cryptocurrency is very subjective and will be based on the investor’s circumstances. The same method that works very well for one person might not benefit the other person.  There are a few things you can look at to find the most favorable method:

  • Price negotiation for the crypto: how much it will cost to transact
  • Exchange means: whether you are looking to exchange the crypto for fiat or another cryptocurrency.
  • Means of receiving payment: spells out how you will receive payments if you sell the crypto for fiat currency. Mostly, you should have a cryptocurrency wallet.
  • Urgency: how quick you want to sell the crypto

Here Are The Best Exchanges to Sell Crypto in Estonia

Let’s take a look at our curated list of exchange platforms where you can sell your crypto and cash out as an Estonian resident.

2 eToro

eToro is a cryptocurrency exchange platform that supports Ethereum, Bitcoin, Litecoin, and Zcash among other cryptos. It offers several ways of transacting such as bank transfer, Paypal, SEPA, and more.

  • Ease of use: Easy
  • Rating: 4.9
  • Fees: $5 withdrawal fee
  • Limits: High

Pros (What We Like)

  • Access to 18 cryptocurrencies
  • Social trading where you can match famous traders moves
  • Low minimum to start trading

Cons (What We Don’t Like)

  • Minimum deposit of $500 US required to begin trading

3 Coinbase

Coinbase is among the top digital currency exchanges in the world. It trades in over 50 cryptocurrencies and offers high-security measures. However, its trading fees can be confusing and relatively high.

  • Ease of Use: Easy
  • Rating: 4.9
  • Fees: 0.5% – 4.5%
  • Limits: High

Pros (What We Like)

  • More than 60 cryptocurrencies are available, insured exchange, and low minimum fee of $2

Cons (What We Don’t Like)

  • High transaction fees

4 CEX.IO

CEX prides itself in being the first crypto platform to make fiat-to-crypto transactions accessible through bank cards. Founded in 2013, it allows traders to participate in margin trading, staking rewards, and more services.

  • Ease of Use: Easy
  • Rating: 4
  • Fees: 0-0.16%
  • Limits: High

Pros (What We Like)

  • Offers over 80 cryptocurrencies
  • Low transaction fees
  • 24/7 customer care services

Cons (What We Don’t Like)

  • Not available worldwide

5 Kraken

Kraken is a reputable cryptocurrency exchange founded in 2011 and launched in 2013. It is one of the oldest and most secure exchanges out there. It also provides premium exchange services for pro traders.

  • Ease of Use: Medium
  • Rating: 4
  • Fees: 0.0% – 1.16%
  • Limits: High

Pros (What We Like)

  • Very secure
  • Wide range of crypto of over 60 cryptocurrencies
  • Advanced trading features are available

Cons (What We Don’t Like)

  • Less beginner-friendly than Coinbase, its main competitor
  • No tax support

6 Coinmama

Founded in 2013, Coinmama carries over 2 million customers in over 188 countries. It is the best choice when it comes to purchasing crypto with debit and credit cards.

  • Ease of Use: Easy
  • Rating: 3.8
  • Fees: Up to 5.9%
  • Limits: High

Pros (What We Like)

  • Range of payment options
  • No withdrawal or deposit fees
  • Offers over ten cryptocurrencies

Cons (What We Don’t Like)

  • High transaction fees
  • No crypto wallet offered

7 PayBis

The exchange is an online exchange that deals with several cryptocurrencies. It provides liquidity services for fintech businesses. It was founded in 2014 and is regulated by the Financial Conduct Authority (FCA). It operates in more than 180 countries worldwide.

  • Ease of Use: Easy
  • Rating: 4
  • Fees: As low as 0.99%
  • Limits: Medium

Pros (What We Like)

  • Regulated by FCA
  • Available in over nine languages
  • Transparent fee structure

Cons (What We Don’t Like)

  • Only ten cryptocurrencies are available
  • No demo account

8 Bittrex

Founded in 2013, Bittrex is a U.S.-based crypto exchange with high security. It is also known for its speed and stability and has hence grown in popularity in recent years.

  • Ease of Use: Easy
  • Rating: 3.8
  • Fees: 0.25% flat commission
  • Limits: High

Pros (What We Like)

  • Wide variety of currency pairs
  • Easy sign-up
  • Compliance with U.S. laws

Cons (What We Don’t Like)

  • No leveraged margin trading
  • Poor customer support

9 Bitit

Bitit is a cryptocurrency exchange platform founded in 2015 and has headquarters in Paris, France. It operated in over 50 countries and came into the light to provide crypto investors with its services worldwide.

  • Ease of Use: Easy
  • Rating: 3
  • Fees: Low
  • Limits: High

Pros (What We Like)

  • Fully transparent
  • Supports 15 fiat currencies
  • Highly secure

Cons (What We Don’t Like)

  • High transaction fees
  • Mobile app not designed yet

10 Binance

Binance is a cryptocurrency exchange platform launched in September 2019 and features among the top 10 largest exchanges by trading volume. The exchange is known for high-speed transactions and low transaction fees.

  • Ease of Use: Advanced
  • Rating: 4
  • Fees: 0.1% – 0.5%
  • Limits: High

Pros (What We Like)

  • Low trading fees
  • Over 50 cryptocurrencies are available

Cons (What We Don’t Like)

  • Controversy around breach of regulations in some areas
  • Poor customer support, often leaving tickets unanswered

11 Paxful

Paxful is a peer-to-peer marketplace for cryptocurrencies, founded in 2015. The platform offers a lot of payment methods for its users to have many choices. However, some countries are not supported by the exchange, such as Somalia, Iran, Lebanon, and Yemen.

  • Ease of Use: Medium
  • Rating: 3
  • Fees: 1% seller fee
  • Limits: High

Pros (What We Like)

  • Buy up to $1000 worth bitcoin anonymously with no I.D. verification
  • Funds are held until both parties confirm the transaction

Cons (What We Don’t Like)

  • Users may post higher-priced offers (above market rate)

Selling Crypto in Estonia FAQs

Here are some of the most frequently asked questions about selling crypto in Estonia.

Do I need a license to sell cryptocurrency?

No. Only companies that deal with cryptocurrency are required to apply for a license to legitimize their services.

Can I sell my cryptocurrency for cash?

You can sell your cryptocurrencies for cash in any of the cryptocurrency exchanges that are stated above. Exchanges like Binance and CryptoWallet allow conversions of cryptocurrency and cash.

Is crypto legal in Estonia?

Yes. Although Bitcoin’s legality in Estonia is uncertain, Bitcoin and other cryptocurrencies are not restricted by the government and are easier to buy and sell.

Is it hard to sell crypto for cash?

It is not hard to sell crypto for cash. Exchanges such as CryptoWallet, Coinbase, and eToro allow their users to sell crypto and obtain cash in return.

How do I convert cryptocurrency to cash?

Visit CryptoWallet, or any other exchange and deposit your cryptocurrency into your account. From there, you can exchange it for cash using the detailed steps provided.