Can You Cash Out On Bitcoin
In particular, if you want to cash out the Bitcoin to invest the money immediately into another project, the necessary cash flow may be missing as soon as the tax payment is required. This is exactly the problem many people had in 2018, after they had sold BTC at a high rate in late 2017. You can withdraw cash from a Coinsource Bitcoin ATM and many other operators. It’s fast and easy. In summary: Yes, you can convert your Bitcoin into cash at a Bitcoin ATM; Not all Bitcoin ATMs have the ability to sell crypto; To withdraw cash from a Bitcoin ATM, you must already have a wallet with Bitcoin in it, ready to be used. Whether you need USD, GBP, Rubles, or any other currency, there are a few things to know about how to cash out Bitcoin. Factors to consider when cashing out Bitcoin. Before cashing out your Bitcoin (or any other cryptocurrency), there are some factors you should consider: Transaction fees and steps required by each process.
If you own bitcoin or some other form of digital currency, there are many things you can do with it. Except for trading it, gambling with it, buying and selling stuff, or simply making more, one can also transfer cryptocurrency into traditional cash. Bitcoin (BTC) has been among us for more than a decade, so the industry has caught up nicely and everyone is accustomed to it. There are several options for converting your bitcoin into cash, and in this article, we will go over them. If you still want to learn more about the topic, make sure to visit cfds-trader.com where you can expand your knowledge and educate yourself on CFD trading.
1. Transferring Bitcoin to a Bank Account
Ever since it gained prominence, bitcoin is thought of as a currency that is eventually going to replace fiat currencies, which is another name for traditional, government currencies like US dollars and Euros. This is why a rising amount of people are investing in bitcoin and making money with it. However, until it completely replaces fiat currencies, there is still a need for cash, and those who have bitcoin sometimes need to convert. Still, more businesses do not accept digital currencies than those who have made it a legitimate paying option. Because of this, some customers are transferring their bitcoins to their bank accounts. This can be performed quite easily. Navigate your way to an online cryptocurrency exchange. Once you are there, create an account, sign in, verify everything, and sell however much you want. Then, transfer the money you get from your bitcoins into your bank account and withdraw it as you would normally, on an ATM, or a service like PayPal.
/bitcoin-5a3adb064e46ba00362a9b74.jpg "Cash")
2. Get Cash through a Bitcoin ATM
Source: qz.com
Although they were quite scarce and not at all common during the last five or six years, more and more bitcoin ATMs are now available worldwide. Most major cities and economic centers around the world house modern, easy-to-use ATMs that can give you cash for your digital currency. This is also a relatively fast and easy way to convert bitcoin and other cryptocurrencies into government currency, most notably $, €, £, and ¥. Many of these devices let the users buy bitcoin too, in the same way you would deposit your cash at a normal ATM. Except for bitcoin, most cryptocurrency ATMs support Ethereum and Litecoin too, as well as other prominent ones. Keep in mind there are transaction fees that are still quite high, considering this is new technology. Fees tend to be much higher than regular fees of online banking. Conversation rates are another potential problem, so make sure to do some research first.
3. Bitcoin Debit Cards
Cryptocurrency debit cards are both an affordable and practical way of spending bitcoin and other currencies like it. They allow the users to deposit them on websites that can convert digital currencies into fiat currencies, again, most notably USD and EUR. VISA or Mastercard power each card, which can be associated with Monaco, CoinJar, BCCPay, Bitpay, and other less popular card issuers. Online and offline shopping work equally well with these cards, but the availability varies, and so do the daily and monthly limits. Compare each card to find the best one for your respective circumstances.
Things to Remember
Source: nairametrics.com
Before you decide to convert your hard-earned BTC into regular fiat currencies, we highly advise you to consider the following:
- Taxes
The popular saying goes, “only death and taxes are inevitable”, and the same goes for bitcoin conversion. There is still a high need for many jurisdictions that would clarify the position of bitcoin, including tax laws and other accompanying issues. Until that happens and things become clearer, most governments and tax authorities claim that the users have to pay taxes on profits they make when they sell their bitcoin for traditional cash. For those who think they can simply ignore these rules, it is not so easy. Some bitcoin exchange services have to report your profits to the tax people above them whenever you cash out, meaning you cannot hide forever.
- Fees
All three forms of converting bitcoin for fiat currencies listed above come equipped with heavy fees, higher than all the banking and online payment fees an average user is familiar with. An exception to this is only selling digital currency directly to your friends since you will probably not take advantage of one another and keep things civilized. In any other case, the exchange, BTC ATMs, and debit cards are going to act as intermediates, charging fees, and slowly poke and drain away from your digital currency.
Closing Remarks
It is relatively a straightforward process to convert your bitcoins to cash. The real question is whether or not you should do it. Cryptocurrencies are thought of as more of an investment than a traditional currency, which is why many advise against conversion. It is not the same as converting British pounds into American dollars. These people view it as selling property, land, or art, something that gains, or loses value over time. This is why it would be smarter if you kept it for the time being unless there is an extreme emergency. By doing so, you could earn a fortune in the coming years, considering the infamous spikes in wealth cryptocurrencies are known to have.
If you still wish to convert bitcoin into cash, take one more break, and consider the cost and ease of method you chose. Before you cash out, ask yourself do you really need the cash or you simply want to have your savings in the form of traditional money. Think of where it will be deposited, the type of currency and the country you live in, the conversion rate, and how long you can or want to wait to get cash. If you end up thinking it is not worth it, that is fine, because bitcoin is the future and it might be best to just save up your amount instead of converting it!
Lately, there have been a lot of people wondering how to cash out large amounts of bitcoins safely.
Whether it be that they became one of the famed crypto millionaires, they are on their way to being one, or just out of simple curiosity.
Figuring out how to cash out large amounts of bitcoin is a good problem to have.
Because it means you made it!
A lot of people claim that they got involved in the cryptocurrency space because of the tech, but we all know that the majority of investors are just here for the money.
And for the ones that actually made it big, we decided we’d help them out by detailing how to cash out large amounts of bitcoin and safely deposit them into their bank accounts.
Let’s get into it.
How Is Cashing Out Large Amounts Of Bitcoin Different Than Cashing Out Small Amounts Of Bitcoin?
First off, we need to understand that there is a big difference between withdrawing large sums of bitcoin versus small sums of bitcoin.
The reasons are intuitive, but let’s touch on them here.
Life-changing Money
Depending on who you are, this could be life-changing money.
Wealth is a very relative term, and “large amounts” may mean different things for different people.
Whatever a “large amount” means to you, just bear in mind that you’re going to want to treat the withdrawal of this money seriously.
Withdrawal Limits
Most exchanges have withdrawal limits.
Some are only a couple thousand, some are tens of thousands, and some even go up to one hundred thousand.
Either way, you must know the withdrawal limits of the exchange you’re working with so that you don’t send all your money to your exchange address only to have it sitting there without the ability to take it out.
Bank Freezes
If there are unusually large amounts of funds being deposited into your bank account, the bank may get suspicious.
They may even freeze your account.
This is why you must plan accordingly so that this does not happen.
Taxes
And then, of course, there are taxes.
The taxes on large amounts of bitcoin are going to be much larger than small amounts (obviously).
You’re going to want to keep in mind the tax implications of the funds you withdraw.
Can You Cash Out Your Bitcoin To Fiat?
For the record, yes, you can cash out your bitcoin to fiat currency.
Newbies, be aware: you can convert your BTC to fiat just as you initially converted your fiat to BTC.
You just have to understand the process of doing so.
Which is exactly what we’re talking about here (for large amounts, that is).
Talk To A Lawyer For Tax And Legal Purposes
The very first thing you must do when cashing out large amounts of bitcoin is to talk to a lawyer or a tax accountant immediately.
All countries have different tax implications.
You need a cryptocurrency tax specialist to guide you through the exact process of depositing your funds at the lowest rates possible.
Of course, there will be a fee to do so.
But the fee will be nominal compared to the amount the accountant will be able to save you with his experience and expertise.
With large amounts that could be life-changing for you and your family, it is 100% worth it to speak to a professional to get clear instructions on how to best navigate your situation.
Speak To Your Bank
The next step would be to speak to your bank.
You have to warn them of the deposits you’re about to make.
If you don’t, they may become suspicious and freeze your account.
Even still, you may discover that they will not even accept your deposits anyways.
Depending on the bank you are with, they may not accept cryptocurrency-related deposits into their accounts.
The market is still so new and not all banks are on board yet.
If this is the case, you may need to register an account at a different bank.
Which is why you want to speak to them as soon as possible, so that you can set this up with as little hiccups as possible.
Possible Methods Of Cashing Out Large Amounts Of Bitcoin
This is going to depend on exactly what your lawyer and accountant tell you.
Typically, there are a few popular options that they recommend.
To get yourself familiar with their recommendations based on your own personal situation, we have listed the usual options below.
Cryptocurrency Exchanges
Connecting your bank account to an exchange and depositing the funds directly into your account is a very popular way to withdraw your BTC.
However, different exchanges have different withdrawal fees (some high, some low) and also have different daily, weekly, and monthly withdrawal limits.
Based on how much you’re taking out at a time could really affect which crypto exchange is recommended.
If the fees are too high or the limits too restricting, they may point you in a different direction.
Over The Counter (OTC) Brokers
OTC brokers are people who specialize in purchasing bitcoin OFF of an exchange, not on.
They usually deal with large amounts, and some of their biggest clients are billion-dollar financial institutions.
Depending on how much money you have, you may be directed to take this option.
They can usually give you a good deal for a large amount, and also avoids the slippage that may happen on exchanges.
Peer-To-Peer
This is similar to OTC because it also happens off of an exchange.
But peer-to-peer could be with anyone, not just professional OTC brokers.
If the lawyer or accountant have been in this space for years (which they should be) they may be connected to people who specialize in large purchases on bitcoin, but may not necessarily be professionals.
With this option, it is highly recommended that you trust your lawyer.
With such large sums of money, you want to make sure you aren’t getting swindled at any point.
Get Know Your Customer (KYC) Verification
If you are vying for the exchange option, you will need to get KYC verification on the exchange in which you are going to be withdrawing your funds.
To avoid money laundering and criminal activity, it is required that larger exchanges know a bit about their customers for large transactional withdrawals.
So you will definitely want to set this up beforehand so you aren’t waiting when the time comes to withdraw.
Sometimes it could take a few days – if not weeks.
Break Up Your Withdrawals In Incremental Portions Just To Be Safe
Instead of withdrawing all of your BTC all at once, it is sometimes advised to withdraw only a portion of your bitcoin incrementally over time.
This is to avoid something going wrong with your lump sum withdrawal that can result in you losing all of your money.
That would be the last thing you’d ever want to happen.
Some people even recommend to withdraw small portions of your total balance across different withdrawal methods.
Which means withdrawing on different exchanges AND on OTC or peer-to-peer.
This is an extra precaution taken to ensure your one withdrawal method does not screw you over in some way.
This spreads your risk so that you don’t put all your eggs – or BTC – in one basket.
Report Your Taxes
How To Turn Bitcoin Into Cash
And, lastly, when all is said and done and your money is safely in your bank account…
REPORT YOUR TAXES.
Some investors like to get cute and try to weasel their way out of it.
But at the end of the day, there is a high chance that you may get caught.
In our opinion, it is best to simply pay the taxes rather than to try to hide your earnings and be constantly paranoid about the government finding out.
If you really made a huge amount of gains, you should be able to pay the taxes and still be happy.
Withdrawing And Cashing Out Large Sums Of Bitcoin – A Conclusion
In conclusion, there are standard procedures that need to be taken in order to withdraw large amounts of BTC.
You need to speak to a lawyer or tax accountant, inform your bank, and pay your taxes.
There are also popular ways to cash out your bitcoin, but the specific steps should be given to you by a lawyer based on your own specific, exact situation.
Hopefully, you will one day be able to deal with this.
Can You Cash Out Bitcoin On Binance
Until then – HODL on!