Can You Cash Out On Bitcoin

It depends on the method you’re using and the country you live in. Cashing out Bitcoin from Coinbase will take around 3-4 days if you live in Europe and 5-8 days if you live in the US. Bitcoin ATM is almost immediate (depending on the type of the ATM) Bitcoin debit card is also quite fast. You can use ATMs to cash your Bitcoin out in a few.

1. Bitcoin is a virtual currency that has become a fount of free cash for fraudsters. It can be sold on online exchange sites for real money and transferred into the buyer’s virtual wallet, but.
2. If you have stored bitcoins in your wallet that you bought from an exchange or from elsewhere, you can sell them on any crypto exchanges that let you cash out. If you live in the USA or Europe, there are several exchanges that you can use to cash out your bitcoins. Kraken, Binance, and Gemini are some of the leading exchanges that you can sign.

Article Contents:

Everyone dreams of what it would have been like to invest early in Bitcoin. They would be rich now. They could exchange their Bitcoin into fiat money and buy whatever they desire and live a free live.

For some this has pretty much become reality. But before you actually hold the money in your hands, there is the barrier of the ideal cash out. Where and how to perform the exchange – What’s the best way to get money for your Bitcoin asset?

The exchange from Bitcoin into fiat money is a topic you should know something about before you actually perform it. Because depending on from which country you come or in which form you exactly want to pay out, there are details to consider. Otherwise you risk to lose a sizable part of your asset in the form of taxes, for instance.

Known and trusted Exchanges for Bitcoin into Fiat Money:

Currencies:

Withdrawal Methods

Bank Transfers

Particularities:

Fees:

Currencies:

Withdrawal Methods

Bank Transfers

Particularities:

Fees:

Currencies:

Withdrawal Methods

• bank transfer
• Credit Card
• AdvCash
• Payeer
• Perfect Money
• Qiwi
• ElecsNet
• EX-Code
• Yandex

Can You Cash Out Bitcoin On Coinbase

Bank Transfers

Particularities:

Fees:

Can You Cash Out Bitcoin On Cash App

• USD:
• 0% CryptoCapital
• 0.2% EX-CODE
• 1.45% AdvCAsh
• 0.5% Payeer
• EUR:
• SEPA: €50
• 0% CryptoCapital
• 0.2% EX-CODE
• RUB:
• Varying Fees

Currencies:

Withdrawal Methods

• Bank transfer,
• Credit Card
• Debit Card
• EPS
• Giropay
• Neteller
• Skrill
• iDeal
• Zimpler

Bank Transfers

Particularities:

Fees:

Currencies:

Withdrawal Methods

Bank Transfers

Particularities:

Fees:

Currencies:

Withdrawal Methods

Bank Transfers

Particularities:

Fees:

Currencies:

Withdrawal Methods:

Bank Transfers:

Particularities:

Fees:

Sell Bitcoin Tax Free

The country you come from plays a big role when it comes to deciding how best to cash out Bitcoin, especially if you want to pay out larger amounts. If you live in Germany, then the payment is tax-free if you sell Bitcoin more than one year after purchase.

If you buy Bitcoin and sell it within one year, taxes will be due, in full according to the personal progressive tax rate (income tax). So the capital gains tax does not apply – contrary to what many people suspect. Depending on the amount paid out, it can therefore happen that the maximum income tax rate applies: about 43%.

In the USA for instance, selling Bitcoin always triggers a taxable event, no matter how much time there was between the purchase and the sale. However, time matters when it comes to the amount of taxes you have to pay:

If less than 1 year has passed since you bought Bitcoin, you have to pay short-term capital gain taxes on the disposal. If more than 1 year has passed, long-term capital gain taxes are due. In both cases the tax can be quite substantial and those affected likely wonder if there might be a way around these levies.

Bitcoin Taxes in the USA:

Short-term capital gains tax: falls into income tax, like additional income, so is subject to the individual income tax rate
Long-term capital gains tax: Depending on income class, 0 – 20%.

How To Get Cash for your Bitcoin without paying Taxes?

If you sell Bitcoin on a cryptocurrency exchange and then have the money paid out, this is always a taxable event (e.g. USA, Germany, others). Whether by bank transfer, credit card or Paypal, there is a transaction that is visible and on which taxes may be due. Thus, the way over an exchange, from which you get money paid out, is probably not what you seek.

Cash out Bitcoin anonymously?

The first way to get cash for Bitcoin, and avoid taxes, would be a private exchange off the books. All you have to do is find someone who can bring enough cash and is willing to do it without KYC / ID. But in many countries this is of course a form of tax evasion and not advisable. Besides, the biggest challenge would be to find someone like that.

The peer-to-peer exchange platform localbitcoins.com is a place where you can exchange BTC into cash in principle, but without an ID-verified account (i.e. anonymously) this is only possible with relatively small sums.

Leave your Country and cash out Bitcoin abroad

One option is to leave your country permanently and cash out your Bitcoin in another country afterwards. If Bitcoin has made you rich, this can be a realistic option. In principle, it’s possible to live as a nomad without fixed residency, as an earth resident so to say.

In this case of a state-independent existence you wouldn’t be taxed anywhere. Provided you’re never too long in one place. In each country there is a certain period of residence from when you become taxable. Normally there is a tax liability starting from half a year residency. Therefore, 3 different locations per year would already be sufficient if you’d spread the time equally, in case you’re not too much into traveling.. 4 months maximum at a place should be save.

The situation is different for US Americans: they have to give up their US passport in order to lose their tax liability. Tax liability in the USA is linked to citizenship. Citizenship means passport.

Today, however, there are simple methods to get another quality passport. Especially if you have money. So you can buy citizenship in places like Grenada, Antigua & Barbuda, Dominica, St. Kitts and Nevis or even Russia. Surely there are others. Depending on the sums involved, living nomadic could be an interesting solution, at least for some time.

How to cash out a bigger amount of BTC without making major mistakes you might regret later?

Cash for Bitcoin – Here’s perhaps the Smartest Option:

A much more tricky solution to get cash against Bitcoin are Bitcoin Loans. This means that you would take out a loan with a financial service provider for which you deposit Bitcoin as a pledge.

So you get a certain amount of money against Bitcoin, and you don’t have to pay tax on this money, because it is a loan. Your BTC only move temporarily from your custody to the custody of the loan company, and in the end you get it back.

A Bitcoin loan in a bull market is particularly advantageous if the BTC price at the end of the loan is significantly higher than at the beginning of the loan. Then one would have the possibility of refinancing the first loan with a smaller amount of BTC. In a bull market, you may already be able to get a portion of your BTC back during the loan term, depending on how far the price would have risen.

Find out more about Bitcoin backed Loans.

Sell Bitcoin for Cash

If you are sure that the loan path is not the right one for you, and you definitely want to convert Bitcoin to USD or whatever fiat currency, the following questions arise.

Are you sure you want to pay out a large amount of Bitcoin at once?

Maybe one part will do now and the rest can follow later? For example, it would be possible to calculate how much Bitcoin you can cash out per year without paying taxes, or just a small amount. The sticking point here would be to avoid the 20% tax. If you pay out a fortune of millions at once, however, a corresponding levy will certainly be unavoidable (except for BTC loans!). This whole consideration of course only makes sense if you’re bullish on Bitcoin. If you don’t think that Bitcoin will go further up long term, then there’s no question why you would want to sell all at once.

Sell Bitcoin for USD and withdraw the Money to your Bank Account

If the sale on a cryptocurrency exchange should come into question, you can use a big bitcoin exchange allowing fiat money withdrawals. The biggest and most trusted ones are in the comparison table at the beginning of this page.

Depending on the trading amount and income class, a taxable event can occur at the time of the sale on an exchange. Whether this is the case and how much it is, should therefore be calculated IN ADVANCE in order not to be surprised by a tax payment you may not be able to pay. 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. The money they had received for selling their BTC was no longer available when the tax was due. And their other savings weren’t sufficient. This is a problem you should urgently avoid.

This is where the Bitcoin Loans come into their own again, as a solution to this problem, since you don’t need to pay taxes on borrowed money / debt.

Cash Out Bitcoin on the Street

ATM Withdrawals

There are generally 2 different ways to withdraw Fiat money from an ATM against Bitcoin. The first is to use one of the few Bitcoin ATM that already exist at some places. If you’re lucky one might be nearby to your place. The other way is to use a normal ATM with a Bitcoin debit card. There are several Bitcoin card providers – actually there are a lot, but the majority are scammers, so you need to make sure you take one of the good ones.

1. ATM Withdrawal with Bitcoin Debit Cards

To our knowledge, the following card providers are reputable and no scams. However, we recommend do your own research about them.

2. BITCOIN ATM Withdrawal

Since couple of years there are special Bitcoin ATMs where you can exchange money for Bitcoin or vice versa on the street. In New York City there are already about 150 Bitcoin ATMs right now. Money can be deposited into these machines to buy Bitcoins. Occasionally it is also possible to sell Bitcoins at these ATMs to cash out money.

On the coinatmradar.com site you can find current Bitcoin ATM locations. In addition the map shows at which ATMs you can only buy BTC and which machines also offer fiat money cash outs against Bitcoin. But it is noticeable: There are a total of 4,726 Bitcoin machines in 77 countries (May 2019).

We do not recommend to use such machines to buy Bitcoins. This is sometimes much easier and better via crypto exchanges. In addition, you would have to bring a lot of cash with you to the machine. That shouldn’t be worth it. Also, you hardly have an overview of whether you are currently buying at a good or a bad price. Also the fees are not yet foreseeable.

Can You Cash Out Bitcoin On Binance

To withdraw money, by selling Bitcoins and getting paid Fiat money, the machines are probably be more suitable. They simply offer another way to withdraw money. Little seems to speak against that, a weak point is, however, that you can’t see in the ATM whether you’re about to sell for a good price or not. Many people certainly know a similar problem from abroad when withdrawing a foreign currency. So Bitcoin machines are quite nice, but in the future they would have to develop further and offer more functions and low fees in order to actually assert themselves.

Sell Bitcoin – No Cash Out

What if you sell Bitcoin but don’t cash it out (so you won’t send the money to your bank account) ?

The moment you exchange Bitcoin for a Fiat currency, a taxable event occurs. Even if you don’t have the money paid out to your bank account. In principle, at this point, you own the money, whether it is on the exchange or on your bank account is a detail that really doesn’t matter. So you have to be aware that you always have to pay taxes on the sale. The event will also not be undone if you reinvest the entire amount immediately. However, before the next tax return, all individual trades are offset against each other (profits against losses), and the final amount is entered into the tax declaration.

That’s why you have to keep an exact record of all individual Bitcoin trades. But this is usually no problem, since this data should be stored in the Trading History of your exchange platform or broker.

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.

How To Cash In Bitcoin

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

Can You Cash Out On Bitcoin

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

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.

Until then – HODL on!