Bitcoin is a true game-changer in every sense of the word. Ever since it appeared, it opened up a whole new world to the people who were ready to take the risk and try.
Even though there were a lot of people who thought Bitcoin is just news of the day that will soon be forgotten, many people who turned their lives around by earning big with Bitcoin have proven that it is very possible and happening. If you have been dancing around Bitcoin for a while now and you simply want to take a leap and cash out your fortune, keep reading, because we have made a guide for you!
Things that you need to keep in mind
When it comes to cashing out, the process consists of a few important aspects that you need to keep in mind. You will need to have in-depth knowledge about crypto exchange limits, bank movements, taxes and the trusted ways to cash out. Concerning crypto exchange limits, you should know that digital asset exchange companies have daily limits for withdrawal, so if you choose Coinbase, you can expect to withdraw 10,000 USD daily.
On the other hand, the limit for Kraken is 5,000 USD. Of course, if you upgrade your account level, you can expect that your limit will increase up to an incredible 500,000 USD. Some users decide to combine withdrawals from several accounts rather than upgrading because, in order to withdraw the money, the user must provide additional personal information which may not be acceptable for some people. Logically, along with earning big goes the need of people to protect their privacy and anonymity.
Also, the amount is not the only thing you need to be aware of. Banks follow our activities with the goal of preventing breaking the law by money laundering. If you have steady incomes for a long time and all of a sudden, the flow increases by a huge amount, the staff from your bank may start asking questions. You may even find out that your bank account is frozen until they check with you the reason for this sudden change.
The only way how you can prevent these unpleasant consequences is to talk to the director of your bank and explain the situation. While some banks won’t be ready to accept deposits connected to cryptocurrency trading, others will accept it without issues. In case your bank refuses the deposit, you can simply open an account in a different bank.
Pay your taxes
Every income must be reported and the tax for it paid because it is the only legal way. The tax laws may differ depending on the state, but one thing is for sure – one part of the income must be given. If you are not quite familiar with the rules and laws concerning the taxes, then consulting with a tax consultant or a lawyer would be the wisest thing to do. Find a person who is familiar with the crypto taxes, so you can be sure that you are doing everything by the book and not breaking any laws.
How can you cash out?
Well, there are a few ways how you can do that, so you need to assess each way and find the one that suits you the most. Two ways that are used the most are on-exchange and off-exchange. On-exchange means that your transaction will be secure, reliable and fast. Make sure you ask if you can link directly to your bank account, so you can have the amount you want on your account transferred directly. Also, be familiar with the withdrawal limit so there are no unpleasant surprises.
Off-exchange occurs between people and can be done in two ways – peer to peer trading and OTC (over the counter) broker. The important thing is that instead of using a software, you are actually communicating with a person. Even though this way gives the person more privacy and anonymity, there is still a risk involved. Lately, there is one new option called decentralized peer-to-peer exchange which is the merge of the best options of both ways.
When it comes to actual cashing out after you’ve made all the other preparations concerning on-exchange, you need to choose a crypto exchange that allows the users to trade for fiat currencies. Most users opt for Bitstamp, Coinbase or Kraken. First, open up an account and follow the signing process until you can withdraw the wanted amount. If you want to try them all, you can do that as well and simply split the amounts and withdraw at the same time if you want. In some cases, you will be asked to deposit a certain amount of fiat currency. If it’s necessary, make sure you provide the amount asked, so you can proceed.
When you set everything up, you can select the wanted amount and then withdraw it to your bank account. You will be able to see the funds. The time necessary for the transfer may vary, so you may end up waiting for up to 5 days. On the other hand, if you prefer off-exchange, find a good OTC broker.
Get recommendations from your accountant or a lawyer, so you can be sure that your choice is good. There is also the option of peer to peer marketplace. Users usually choose Paxful or Localbitcoins because they are pretty simple to use. You will need to open up an account and after that look for a person who is interested in buying the number of Bitcoins you want to sell.
These were the main things that you need to know about cashing out large amounts of Bitcoin. However, if you want to make an even bigger fortune, check out btcrevolution.io. It is software that will work for you while you will be able to do something else. Bitcoin trading keeps changing the market and gives more and more opportunities for the people who want to try and earn big with a relatively young currency.