Selling crypto for krónur

How does selling crypto work?

Selling is really buying in reverse. You exchange your crypto for money, and the money is then paid into a bank account.

The steps are usually these:

1. The crypto has to be with the provider. If you hold it in Self-custodySelf-custodyHolding the private keys to your crypto in your own wallet, so nobody else controls it but all the responsibility for the keys is yours., you first send it to the provider's wallet addressWallet addressA string of letters and numbers you give out to receive crypto, much like a bank account number.. Make sure you choose the right networkBlockchain networkThe blockchain a cryptocurrency or token is recorded and sent on, such as the Bitcoin network or the Ethereum network., or the crypto can be lost.
2. You sell. You choose how much to sell, check the price and confirm.
3. You withdraw. The proceeds are paid into a bank account, often after you request a withdrawal.

The first step is covered in more detail in How to send crypto to another wallet.

What affects the price you get?

The spread

When you sell, you usually get a little less than the market price. The difference is called the SpreadSpreadThe difference between the buying and selling price of the same asset at the same time, often used to charge for crypto trades. and goes to the provider. If you bought in the same place, you have paid the spread twice, once when buying and once when selling. Every fee is explained in What does it cost to buy crypto?

Timing

Crypto prices change around the clock, every day of the year. Nobody can predict when the price will be at its highest. A few things are still worth keeping in mind:

• In periods of high VolatilityVolatilityHow much and how quickly the price of an asset moves up and down., the price can move fast. Check the price you will get before you confirm the sale.
• A large sale in a small market can move the price. If there are few buyers, in other words if LiquidityLiquidityHow easily an asset can be bought or sold quickly at a fair price, without the trade moving the price much. is low, the price can drop while your sale goes through.
• Decisions made under stress are rarely good ones. People often sell in a panic when prices fall, or hold on too long out of fear of missing further gains (FOMOFOMOThe fear of missing out, which pushes people to buy in a hurry when prices rise fast, often close to the top.).

One approach is to decide in advance under what circumstances you will sell, or to sell in several steps rather than all at once. That doesn't guarantee a better price, but it makes it less likely that one bad moment decides everything.

Getting the money into an Icelandic bank account

When the provider pays out in krónur

If the provider pays out in krónur to an Icelandic account, the route is short. No international transfer is involved, and your bank doesn't need to convert any currency.

When the provider is abroad

Foreign exchanges usually pay out in euros or US dollars. The money then arrives as an international transfer, and your bank converts it to krónur at its own rate. There may be fees at both ends, and it can take longer.

Banks also have anti-money launderingAnti-money laundering (AML)Rules and measures meant to stop the financial system, including crypto, from being used for money laundering or terrorist financing. duties. They may therefore ask where the money comes from, for example when large amounts arrive from abroad. It helps to have receipts and statements ready.

When you sell directly to a person

Crypto is sometimes sold directly to individuals, for example through an ad online. That carries risk. Scammers may, for instance, use fake transfer receipts or pay with money that turns out to be stolen. Blockchain transactions can't be reversed, so once the crypto is gone, you carry the loss. Read about common crypto scams.

How selling works at Myntkaup

At Myntkaup, selling takes two steps, in the app or on the web:

1. You sell your crypto for USDC. USDCUSDCA stablecoin issued by the US company Circle that tracks the US dollar, so one USDC should always be worth about one dollar. is the account's base currency, a StablecoinStablecoinA cryptocurrency designed to keep a steady price, usually by tracking the US dollar or another currency. designed to track the value of the US dollar. The sale carries a 1.99% spread, which is included in the price you see before you confirm.
2. You withdraw to an Icelandic bank account. USDC is converted to krónur at Arion Bank's general buying rate, with no added spread. Each bank withdrawal carries a fixed fee of 7 USDC.

Bank withdrawals are processed every day and usually arrive the same day, often within hours. At weekends and on public holidays, Arion Bank's rate from the last banking day is used. Every withdrawal is confirmed with your PIN in the app and by email, and unusually large withdrawals may need a manual security check before funds are sent.

An example with made-up figures: You sell crypto with a market value of 1,000 USDC. After the 1.99% spread, you receive 980.10 USDC. You withdraw it all, and after the 7 USDC fee, 973.10 USDC is converted to krónur. If Arion Bank's buying rate for the dollar were ISK 130, about ISK 126,500 would be paid into your account.

You don't have to withdraw straight away. You can keep USDC or use it to buy again. Bear in mind that USDC tracks the US dollar, so the króna value of your balance changes with the exchange rate. Read more about stablecoins.

If you hold a supported coin in another wallet, you can also deposit it with Myntkaup and sell it there. Crypto deposits are free. Step-by-step withdrawal instructions are in the Myntkaup help centre↗, and every fee is on the Fees and costs page.

Keep records of what you buy and sell

Record every purchase and every sale: the date, the quantity, the price in krónur and the fees. You need this information to work out your gain or loss, and to answer questions from your bank or Skatturinn if they come up.

At Myntkaup, you can download your transaction history and year-end statements as CSV or PDF files in the web app, under Færslur, or ask for them by email. With foreign providers, it is wise to download statements regularly, because accounts can be closed and providers can shut down.

If you have moved crypto between providers and wallets, keep track of where it came from and what it originally cost. Otherwise it can be hard to show the purchase price when you sell.

Capital gains may be taxable

If you sell crypto for more than you paid for it, you make a capital gainCapital gainsThe profit from selling an asset for more than it cost you; for individuals in Iceland, gains on crypto are taxed as capital income., and it may be taxable. The rules are explained in Crypto and tax in Iceland and on Skatturinn's website↗. Talk to your accountant or Skatturinn about your own situation.

Closing thoughts

Selling crypto for krónur comes down to the price you get, the fees along the way and how the money reaches your account. A provider that pays out in krónur to an Icelandic account saves you international transfers and currency conversion.

Keep your records in order from day one, and remember that gains may be taxable. Make your decision to sell calmly, not in the heat of the moment.