How to Sell Crypto in New Zealand in 2021

It’s the goal of every crypto investor out there — buy smart, sell for a profit. If you’re ready to cash out some of your crypto assets in New Zealand, you have a lot of options available to you!

How to Sell Crypto in New Zealand

New Zealand is a growing crypto market with many exchanges and crypto software services available to its residents. Of course, it’s important to be aware of what to look for in a crypto exchange, as well as to have an understanding of the risks and fundamentals involved in selling. Let’s get into it!

What Does 2021 Hold for Bitcoin?

There is no final thought on what 2021 holds for Bitcoin. There have been various predictions on what the price of Bitcoin will be at the end of 2021 from various stakeholders in some crypto communities.

A crypto analyst, Vetle Lunde has forecasted that the price of Bitcoin will reach $120,000 by the end of 2021. According to him, this is because “more funds are joining the space, the first country has adopted bitcoin as legal tender, and we have several exchange-listed companies now owning bitcoin”.

However, Bloomberg in its most recent “Crypto Outlook” has predicted that Bitcoin could hit the $100,000 mark by the end of 2021. The CEO of YAP Global, Samantha Yap has also predicted that Bitcoin will end the year at around US$100,000 as a result of large institutional adoption of the crypto.

Surprisingly, the recent crash in Bitcoin price hasn’t affected the adoption of digital currency. Some countries including El Salvador and Paraguay have adopted bitcoin as a legal tender alongside the U.S. dollar. 

Other countries have revealed similar plans to do the same. The institutions that have adopted Bitcoin include JP Morgan, Microstrategy, Goldman Sachs, etc.

Whether these predictions will hold or not, what is certain is that the adoption of Bitcoin will increase by the end of 2021.

How Secure is Cryptocurrency Now?

The security of a cryptocurrency varies wildly depending on the project. Projects that are more decentralized (i.e., not directly controlled by any one person or group of people) are generally considered to be more secure than others, and this is also said of projects with a higher market cap.

Bitcoin and Ethereum are mainstream assets these days, often featuring in the financial news alongside assets such as gold or major tech stocks. The longevity of these projects, and the fact that the developers cannot make changes to the cryptocurrencies without complete community consensus from crypto miners, contributes to their reputation as secure assets.

Of course, your crypto is only as secure as your method of storage. If you’re not keeping your crypto safely secured in a reputable wallet, your funds are at risk of loss or theft.

Wallet providers that offer custodial protection or two-factor authentication (meaning you need to confirm withdrawals with a separate device, such as a laptop or tablet) are seen as highly secure. The most secure method of storage is cold or offline storage, meaning funds cannot be accessed online — however, this is not convenient for trading. Some users opt for a mix of custodial and offline storage.

Are there any Fees for Exchanging Crypto to NZD?

Almost all cryptocurrency exchanges have a trading fee when customers purchase and sell coins using their platform. These fees include the maker fee and the taker fee. Exchanges offer lower fees to traders who trade larger volumes of crypto. Hence, trading a low volume of crypto is not cost-efficient at some cryptocurrency exchanges.

Cryptocurrency and Tax Guide for New Zealand 

New Zealand’s Inland Revenue (‘IRD’) has created a guide on how cryptocurrency will be taxed. According to the guide, crypto assets are considered as a form of property for tax purposes”. But such crypto assets will attract some tax based on the characteristics and use of the assets, not what they are called. 

All activities geared toward making profits are called disposal and will be taxed. These include swapping your cryptocurrency for another, and trading crypto. All unrealized gains are also taxable. The guide states:

  • “If your purpose for getting crypto assets is to sell or exchange them, you’ll need to pay income tax when you do.”
  • “If you make a loss when you sell your crypto assets you may be able to claim this loss.”

If you are a regular trader, it might be a good idea to keep the crypto for trading separate from your long-term holds by using different exchanges or hardware wallets.

If you want to reduce your risk, note that transferring crypto to a different wallet or platform may be seen as a disposal. Transfers made to non-custodial wallets which you own and control should reduce the chances of IRD referring to that activity as a taxable income.

Use platforms like taxoshi and koinly to save you time in calculating your income tax return. It’s important to note that every taxpayer’s situation is different. When in doubt, seek specific advice from online resources or experts for your situation.

The Best Exchanges to Sell Crypto in New Zealand

2 Gate.io

Gate.io is one of the global top 10 cryptocurrency exchanges with real-time trading volume.

  • Fiat Currencies: USD, EUR, GBP, HKD, SGD, AUD, CHF, MXN
  • Cryptocurrencies: BTC, ETH, ETC, XTZ, CLV, EOS, OMG, BNB, LTC, UNI & 770+ more

Pros (What We Like)

  • Many cryptocurrencies to choose from
  • High level of security
  • Low fees

Cons (What We Don’t Like)

  • Poor customer support
  • Limited functionality in terms of trading or spending crypto

3 Huobi

Huobi.com is the world-leading crypto trading platform, providing secure and convenient trading services for hundreds of digital assets.

  • Fiat Currencies: No fiat currency supported due to local regulations 
  • Cryptocurrencies: Supports over 100 cryptocurrencies

Pros (What We Like)

  • Strong customer support
  • High level of cybersecurity

Cons (What We Don’t Like)

  • Doesn’t support deposits and withdrawals in fiat currency

4 Bitit

Bitit is a leading fiat-to-crypto trading platform serving over half a million users.

  • Fiat Currencies: Supports 15 fiat currencies
  • Cryptocurrencies: Over 55 cryptocurrencies 

Pros (What We Like)

  • Simple to use
  • Easy payment method

Cons (What We Don’t Like)

  • High cash voucher fees

5 Idex

IDEX is a high-performance and decentralised exchange for traders.

  • Fiat Currencies: No fiat currency supported 
  • Cryptocurrencies: Supports 257 cryptos

Pros (What We Like)

  • Access to a wide range of tokens
  • Integrated with Ledger Nano S and Metamask

Cons (What We Don’t Like)

  • Supports only ERC20 tokens
  • No fiat support

6 Bithumb

Bithumb is a leading cryptocurrency exchange for traders based in South Korea.

  • Fiat Currencies: Supports 36 fiat currencies 
  • Cryptocurrencies: Offers traders 271 coins and 330 pairs

Pros (What We Like)

  • Competitive fees
  • Wide selection of cryptocurrencies

Cons (What We Don’t Like)

  • Slow verification process

7 OKEx

OKEx is a major crypto derivatives exchange based in Seychelles, owned by Ok Group which also owns the OKcoin exchange.

  • Fiat Currencies: Supports 30 fiat currencies
  • Cryptocurrencies: 471 supported cryptos

Pros (What We Like)

  • Supports a wide range of fiat currencies
  • Great customer support

Cons (What We Don’t Like)

  • Complex fee structure

8 ShapeShift

ShapeShift is a crypto trading platform available on mobile and desktop applications.

  • Fiat Currencies: Doesn’t support fiat currencies
  • Cryptocurrencies: Supports 50 cryptos

Pros (What We Like)

  • Fast transaction speed
  • Reputable organization

Cons (What We Don’t Like)

  • No fiat support

9 Bitstamp

Bitstamp is one of the world’s most famous crypto exchanges, serving users since 2011.

  • Fiat Currencies: Supports EUR and USD
  • Cryptocurrencies: Supports 28 cryptos

Pros (What We Like)

  • Great customer support
  • One of the oldest exchanges in the industry

Cons (What We Don’t Like)

  • Not suitable for beginners

10 Indacoin

Indacoin is a trading exchange for buying and selling any cryptocurrency instantly.

  • Fiat Currencies: USD, EUR, RUB
  • Cryptocurrencies: Supports 127 cryptos

Pros (What We Like)

  • Simple purchase methods
  • User-friendly

Cons (What We Don’t Like)

  • Strict buying limits
  • High fees

FAQ

Is cryptocurrency legal in New Zealand?

Trading and investing in cryptocurrency is legal in New Zealand, There are very few local regulations in place regarding crypto.

How do I convert crypto to cash?

There are 2 major ways you can convert your crypto to cash in New Zealand. The first method is to swap it directly for NZD with an exchange like CryptoWallet. The second method is by spending it directly anywhere through the use of crypto debit cards.

Is crypto a good investment in 2021?

Crypto is still a good investment in 2021. What matters is to do due diligence before settling with a crypto asset to invest in for the long term. While the success of a cryptocurrency project is not assured, if a cryptocurrency project achieves its goals, then early investors could amass serious gains over time.

How does crypto make money?

There are several ways crypto makes money for individuals. You can buy and hold to earn gains when it rises in value, earn dividends from crypto tokens, run crypto master nodes, stake crypto, partake in crypto microtasks, or work in crypto projects.

What is the price of Bitcoin in New Zealand?

The price of Bitcoin changes daily, and it has the same value in every country around the world.