How to Sell Crypto in the UK

How to choose the best way to sell cryptocurrency

Choosing the best exchange to sell cryptocurrency can be quite difficult. There are several crypto exchanges out there that have experienced some hacks in the past. You need to research a wide range of platforms and compare the pros and cons of each option.

Consider the following factors when choosing the best crypto exchange to sell your crypto.

• Price. Consider the exchange rate of the platform and how it compares to those offered by other platforms.
• Fees. Compare all the trading fees that apply and whether there’s a fee for withdrawing funds into your bank account or crypto wallet.
• Trading and withdrawal limits. Find out if there is any limit on the amount of crypto you can sell, or on how much GBP you can withdraw from your account.
• Exchange’s security standards. Check if there are any security checks in place to help protect your funds and your private data, for example, 2-factor authentication or a credibility system for buyers and sellers.
• Customer support. Find out if they have efficient customer support in place if something goes wrong while selling your coins. And confirm if they’re available 24/7.
• Reputation and reviews. Check out online reviews and check crypto forum reviews from other users to find out whether they’d recommend a particular exchange or not.

Check if you need to pay tax when you sell crypto assets

Crypto trading or investing is a regulated activity in the UK. Her Majesty’s Revenue and Customs (HMRC) has issued strict tax guidance on crypto assets. HMRC does not treat cryptocurrency as currency or money but as different tokens – exchange tokens, utility tokens, security tokens, stablecoins– and the tax treatment depends on the use case of each of them.

If you hold any cryptocurrency as an investment in England, you will be subject to capital gains tax rules. This means you’ll be taxed on the capital gain of the coin at the time the cryptocurrency is disposed of (e.g. sold, traded, used for a purchase, etc.). If you trade cryptocurrency as a business activity, your profits will be subject to income tax rules. But HMRC doesn’t define what business activity is.

You will be charged income tax on cryptocurrency received via mining, airdrop, and crypto received as salary from an employer. 

If you are at a loss, you can claim capital losses and use them to make up for the capital gains in the same tax year or future tax years. The duration for claiming capital losses is within four years from the end of the tax year when you realised a capital loss.

How to sell a large amount of cryptocurrency

The best way to sell a large amount of crypto is to use an over-the-counter (OTC) crypto trading service. This platform links buyers and sellers of cryptocurrency directly by matching the desired conditions specified by clients. There are several benefits of OTC trading; the trade will not affect the current value of the coin, there are no withdrawal limits, and you get to experience some anonymity during a transaction.

Here is a step by step instructions on how to sell large crypto in the UK  through an OTC trade.

• Find a partner for the trade. You can check a chat room or an OTC brokering platform. When selecting an OTC broker, assess the lowest and highest rade amount accessible, the transaction fees, sign up process, supported cryptocurrencies, etc.
• The next step is to negotiate the terms of the trade with the broker. Indicate the amount of crypto you want to sell when you want the trade to take place and your desired price. 
• Once a price has been agreed upon between the both of you, the buyer will send the agreed amount of GBP to you and you will send an equivalent amount of crypto to the buyer in return. Depending on the location you’re trading from, you and your trading partner might need to do KYC or due diligence on each other to meet legal regulations before trading.