How to Sell Crypto in Ireland

How to Sell a Large Amount of Crypto

If you want to sell a large amount of Bitcoin or other digital currencies of up to €50,000 or more, using an ordinary crypto exchange may not be the best way to do it. This is because they may not have enough liquidity to complete the trade which may result in price slippage.

The best way to sell a large amount of virtual currency is through using over-the-counter (OTC) trade. OTC trade offers a simpler and cheaper way to buy and sell large amounts of crypto.

Here are some step-by-step instructions on how to sell large crypto through an OTC trade.

• Find a counterparty for the trade. This could be done through a chat room or an OTC brokering platform. When choosing an OTC broker, consider the minimum and maximum trade amount available, the transaction fees, sign up process, several supported cryptocurrencies, etc.
• The next step is to negotiate the terms of the trade with the broker. If you want to sell ETH, for instance, you need to specify the amount of ETH you want to sell, when you want the trade to take place and your desired price. 
• Once a price has been agreed upon between both parties, the buyer will send the agreed amount of fiat to you and you will send a similar amount of crypto coins or tokens to the buyer in return. Depending on the location you’re trading from, you and your counterparty might need to do KYC or due diligence on each other to meet legal regulations before trading. 

How to Choose the Best Way to Sell Crypto

The best way to sell crypto isn’t objective and it differs based on a crypto trader’s experiences. What is ideal is to work out a method that works well just for you.

When you feel like it’s time to trade those profitable crypto assets back to fiat money, you need to ask yourself these questions:

How do I want to get paid? 

You must decide if you want to receive money from your PayPal account, your credit card, your bank account, or maybe through cash.

Knowing this will lead you to ask the next question 

Which exchange do I want to use?

Various exchanges have different payment methods, financial services, fees, and exchange rates. You need to compare the available options carefully and go for the one that suits your needs.

Make sure you consider the following when choosing an exchange to sell your crypto: the exchange rate/ price, trading or withdrawal fees, the withdrawal limits of the exchange, high-level security features, the level of customer support, and existing reviews about the platform.

There are no perfect ways to sell crypto without some drawbacks, but considering all these before choosing where to sell your crypto will help you make the right decision.

Cryptocurrency Regulations

There is currently no prohibition on the use of cryptocurrencies in Ireland but the Central Bank of Ireland has issued warnings on the risks associated with investing in crypto assets. 

To curtail the risk of use of crypto assets to facilitate crimes, Ireland has passed a law that requires cryptocurrency companies offering exchange services, called virtual asset service providers to register with the Irish Central Bank and comply with the EU’s anti-money laundering guidelines. 

The law requires that VASPs who exchange fiat currencies for cryptocurrencies must strictly follow  “know-your-customer” requirements.  VASPs are required to conduct due diligence on their customers, know the source and destination of their crypto assets, and report any suspicious financial activities.

Cryptocurrency transactions are subject to both income tax and capital gains taxes in Ireland, as well as to Capital Acquisitions Tax, or ‘Gift Tax’. In Ireland, crypto investments are treated just like investments in stocks or shares. Hence, if you’re making profits (or losses) through selling, gifting or exchanging your cryptocurrency, you’ll pay a 33% capital gains tax (CGT) to Revenue but the first €1,270 profit a year is free.

You will need to file a tax return to Revenue each year when your profits exceed this amount. The following activities attract CGT tax: buying crypto as an Investment, selling crypto, exchanging and trading crypto, gifting crypto, margin trading, ICOs, etc. The following activities are tax-free: token and coin swaps, transfer of cryptocurrencies between own wallets.

The following activities attract Income tax treatment: getting Paid in Crypto, accepting Crypto for payment of goods and services, airdrops, signup & refill Bonuses, interest from Lending, Staking, DeFi and Masternodes, and Crypto Mining.

Under Capital Acquisitions Tax (CAT), receiving crypto inheritance or gift is considered taxable.