The best way to sell cryptocurrency for most people is on a reputable, regulated cryptocurrency exchange using a limit order, then withdrawing the cash to a linked bank account. A broker or app “instant sell” button is simpler but usually prices its fee into the quote, while crypto ATMs are the costliest route: most U.S. machines charge 6.5% to 20%. Selling is also a taxable event in the U.S. and the UK.
Key Takeaways
- A crypto exchange matches buyers and sellers through an order book; a crypto broker quotes you a price and takes the other side or routes the trade for you.
- A limit order lets you set the minimum price you will accept when selling; a market order sells immediately at the current market price.
- Most U.S. cryptocurrency ATMs charge transaction fees of 6.5% to 20%, and the FBI logged 10,956 crypto ATM fraud complaints with $246.7 million in losses in 2024.
- In the U.S., every sale must be reported on Form 8949, and brokers report gross proceeds on Form 1099-DA for sales made on or after January 1, 2025.
- Payments sent in cryptocurrency are generally irreversible, so a buyer who pressures you to act fast is a red flag.
Cryptocurrency exchanges and crypto brokers are both viable ways of selling digital assets to other traders. These are both avenues that allow you to buy and sell various forms of cryptocurrency.
However, while both of them have the same purpose, the way they operate is slightly different. It is these differences that can affect whether you want to go with a crypto exchange or crypto broker for your endeavors.
In this guide, we are going to highlight some of the differences between the two methods so you can decide which is the right one for you.
The Key Differences Between Cryptocurrency Exchanges and Brokers
In the debate of crypto exchange vs broker, you need to be aware of the key differences between the methods so you can decide which one is best for you.
Crypto exchange is a way of connecting the buyers and sellers of digital assets through an order book. This order book will record the prices that each trader has set out of their assets, and when a buyer and seller agree on this price, a transaction will take place.
For a crypto broker, the prices of digital assets are set by an organization rather than an independent trader.
The organization will set the sale price and fee that they are willing to work with for assets, and a broker monitors this on behalf of the customer. Crypto brokers monitor the wider market for information and will work on the instruction of their customers to buy or sell the asset based on the current running price. Some traders also watch crypto press release distribution channels for news, but press releases are marketing material published by the projects themselves, not independent signals of when to buy or sell.
Brokers provide their customers with an estimated or quoted price generated from the live market conditions which they monitor.
Which Method Is Best?
Now that you know how exchanges and brokers work, it is easy to see the differences between the two.
Crypto exchanges allow for currencies to be directly traded with one another. For brokers, however, users have to make their transactions through the broker who works as a middleman between them and the company or individual offering the cryptocurrency in the first place.
For a more direct approach where you have more control over the trading of digital currencies, crypto exchange is the best option.
However, some crypto brokers offer other services that can help traders, such as lending against crypto collateral and handling higher-volume trades. Claims of extra privacy should be treated with caution: according to the IRS, brokers must report the gross proceeds of digital asset sales effected on or after January 1, 2025 on Form 1099-DA, and basis on certain sales effected on or after January 1, 2026.
There are pros and cons to both options, and finding the best one for you will take some consideration. You will need to consider how much control you need over your crypto trading, as well as the other factors mentioned, such as privacy and volume limits, before making your decision.
This will vary based on your experience in the crypto trading world, but there is support available for either option.
Exchanges and brokers can be assets to your work in trading if you know how to use them.
What Are the Main Ways to Sell Cryptocurrency?
There are four common ways to turn cryptocurrency into cash: an exchange order book, a broker or app “instant sell” quote, a peer-to-peer (P2P) sale, and a crypto ATM. Each one trades convenience against cost and risk in a different way.
| Method | How the price is set | Cost to watch | Main risk |
|---|---|---|---|
| Exchange (order book) | Your own limit price, or the best matching order | Maker and taker trading fees, withdrawal fees | Holding coins with a custodian that could fail |
| Broker or instant-sell app | A quote from the platform based on live market prices | The bid-ask spread built into the quote, plus any stated fee | Paying more than the visible fee suggests |
| Peer-to-peer sale | Agreed directly with the buyer | Platform escrow fees, if any | Fraudulent buyers and reversed or fake payments |
| Crypto ATM | Set by the machine operator | Transaction fees of 6.5% to 20% at most U.S. machines | High cost and heavy use by scammers |
According to Wikipedia’s summary of the market, a cryptocurrency exchange is a business that lets customers trade cryptocurrencies for other assets, such as fiat money or other digital currencies. Some platforms act as a market maker that earns the bid-ask spread as its commission, while others act as a matching platform and simply charge fees.
Some brokerages that also sell stocks let users buy cryptocurrency but not withdraw it to their own wallet, while dedicated exchanges allow withdrawals. If you hold coins in a private wallet, check that the platform you plan to sell on accepts deposits of that coin first. For a platform-by-platform comparison, see our guide to the best crypto exchanges and apps with low fees.
How Do You Sell Cryptocurrency on an Exchange?
Selling on an exchange follows the same basic sequence on most major platforms:
- Open and verify an account on an exchange that operates legally in your country and supports withdrawals to your bank.
- Deposit the coins from your wallet to the exchange’s deposit address, using exactly the network the exchange lists for that coin.
- Choose an order type. A market order is executed immediately at the current market price. A limit order sells only at a price you set or better.
- Check the fees before confirming, including the trading fee and the fiat withdrawal fee.
- Withdraw the cash to a bank account in your own name.
- Save the records: the coin, the date, the number of tokens sold and their value in your home currency.
A detailed walkthrough for Bitcoin specifically is in our guide on how to cash out Bitcoin.
What Are Maker and Taker Fees?
Maker and taker fees are the two prices an exchange charges for trading. According to Kraken’s support documentation, a trade pays the maker fee if the order is not matched immediately and instead rests on the order book, and pays the taker fee if it is matched immediately against an order already on the book. Market orders and stop-loss orders pay taker fees; limit orders that wait on the book usually pay maker fees.
Exchanges usually publish separate maker and taker rates, so compare both on the exchange’s current fee page before you trade; fee schedules change and vary by trading volume.
Exchange vs Broker: Which Should You Use to Sell?
| Factor | Crypto exchange | Crypto broker |
|---|---|---|
| Who sets the price | Buyers and sellers through the order book | The broker, from live market data |
| Control over price | High: limit orders let you name your price | Low: you accept or decline a quote |
| Ease of use | More screens and order types to learn | Usually a single sell button |
| How you pay | Visible maker or taker fees | Spread built into the quote, sometimes plus a fee |
| Best for | Larger or regular sales where cost matters | Small, occasional sales where speed matters |
If cost is the priority, an exchange lets you see the fee and name your price with a limit order. If simplicity is the priority and the amount is small, a broker’s quote can be acceptable, as long as you compare the quoted price with the exchange price at the same moment.
Is a Crypto ATM a Good Way to Sell?
A crypto ATM is usually the most expensive way to sell cryptocurrency. According to Wikipedia’s summary of U.S. reporting, most U.S. cryptocurrency ATMs charge transaction fees between 6.5% and 20%, and about 28,000 machines were operating in the United States as of November 2025.
Crypto ATMs are also heavily used in fraud. The FBI’s 2024 Internet Crime Report recorded 10,956 complaints involving crypto ATMs or kiosks, with $246.7 million in losses, a 99% increase in complaints from 2023. Victims aged over 60 accounted for 2,674 of those complaints and $107.2 million of the losses.
Rules are tightening. Crypto ATMs were banned from operating in the UK in March 2022, and in the U.S. Indiana, Tennessee and Minnesota moved to prohibit them in 2026. More background is in our explainer on how Bitcoin ATMs work.
Do You Pay Tax When You Sell Cryptocurrency?
Yes, in both the United States and the United Kingdom, selling cryptocurrency for cash is a taxable disposal. This section summarizes official guidance as of September 2026; it is general information, not tax advice.
United States (IRS)
- The IRS says digital asset transactions must be reported whether or not they result in a taxable gain or loss.
- Sales of digital assets held as capital assets are reported on Form 8949, Sales and Other Dispositions of Capital Assets.
- The gain or loss is the fair market value in U.S. dollars at the time of the sale minus your basis, which is generally what you paid in U.S. dollars.
- Assets held for one year or less produce a short-term gain or loss; assets held for more than one year produce a long-term gain or loss.
- Brokers report gross proceeds on Form 1099-DA for transactions effected on or after January 1, 2025, and basis for certain transactions effected on or after January 1, 2026.
United Kingdom (HMRC)
HMRC treats selling cryptoassets, exchanging them for a different cryptoasset, using them to pay for goods or services, and giving them away as disposals that may be subject to Capital Gains Tax. The individual Capital Gains Tax allowance listed on GOV.UK is £3,000, and the UK tax year runs from 6 April to 5 April. HMRC asks you to keep a record of the token type, the disposal date, the number of tokens and their value in pounds sterling for each transaction.
For more detail, read our guide to Bitcoin taxation for investors and our explainer on paying tax on crypto in the UK.
How Do You Avoid Scams When Selling Crypto?
Cryptocurrency fraud is large and growing. The FBI’s Internet Crime Complaint Center received 149,686 complaints involving cryptocurrency in 2024, with reported losses of $9.3 billion, a 66% increase in losses from 2023. Crypto investment fraud alone accounted for $5.8 billion.
The U.S. Federal Trade Commission’s warning signs apply directly to sellers:
- Only scammers demand payment in cryptocurrency, according to the FTC. A “buyer” or “agent” who says you must first send crypto to release your money is running a scam.
- Only scammers guarantee profits or big returns. Ignore anyone who promises a better price if you move coins to their platform.
- Crypto payments are typically irreversible. The FTC notes that cryptocurrency lacks the protections that credit cards offer, so confirm a P2P buyer’s payment has fully cleared before releasing coins.
- Beware of impersonators who claim to be from a government agency or a company and say your account will be frozen unless you move crypto.
If you have been targeted, the FTC lists ReportFraud.ftc.gov, the FBI’s IC3, the CFTC and the SEC as places to report, along with the exchange you used. Our guide on avoiding scams when withdrawing crypto to a bank account covers the cash-out stage in more depth.
Why Does the Platform You Sell On Matter?
When you deposit coins on a centralized exchange to sell them, the exchange holds them until you withdraw the proceeds. Two failures show the risk. Mt. Gox, then the largest cryptocurrency exchange, suspended trading and filed for bankruptcy protection in Japan in February 2014. FTX, then the third-largest exchange by volume and valued at $18 billion, entered U.S. bankruptcy proceedings on November 11, 2022.
A practical rule follows: move coins to the exchange only when you are ready to sell, and withdraw the cash promptly rather than leaving large balances on the platform.
Common Mistakes When Selling Cryptocurrency
- Using a market order without checking the order book: a market order executes immediately at whatever the current market price is.
- Comparing only the stated fee on a broker app and ignoring the spread in the quote.
- Sending coins on the wrong network to an exchange deposit address.
- Selling through a crypto ATM when an exchange withdrawal would cost far less.
- Not keeping records of purchase cost and sale value, which the IRS and HMRC both expect.
Frequently Asked Questions
What is the cheapest way to sell cryptocurrency?
The cheapest way to sell cryptocurrency is usually on a reputable exchange, where the trading fee is published and a limit order lets you set your minimum price. Broker quotes include a spread, and most U.S. crypto ATMs charge 6.5% to 20%. Compare the total cost before you sell.
What is the difference between a crypto exchange and a crypto broker?
A crypto exchange matches buyers and sellers through an order book, so traders set the prices. A crypto broker quotes a price based on live market data and handles the trade for you, which is simpler but gives you less control over the price.
Do I have to report crypto sales if I lost money?
Yes, in the United States. The IRS says digital asset transactions must be reported whether or not they result in a taxable gain or loss, and sales of digital assets held as capital assets go on Form 8949.
Is it safe to sell crypto at a Bitcoin ATM?
A Bitcoin ATM is an expensive way to sell and is heavily used by scammers, and several U.S. states moved to ban the machines in 2026. The FBI recorded 10,956 crypto ATM complaints and $246.7 million in losses in 2024. Never use one because a caller or “agent” told you to.
What is a limit order when selling crypto?
A limit order is an order to sell at no less than a price you choose. It protects you from selling at a sudden low price, but it may not fill if the market never reaches your price.
Does selling crypto for another coin count as a sale for tax?
In the UK, yes. HMRC counts exchanging one cryptoasset for a different cryptoasset as a disposal for Capital Gains Tax. In the U.S., the IRS instructions cover digital assets sold or exchanged on Form 8949.
