Cryptocurrencies are easy to be bought, but the confusion sometimes arises when you want to cash out.
I remember, I once hodl’ed (In simple terms held without trading) some Bitcoin in one of my Bitcoin wallets for about a year and completely forgotten about it.
It was good that I forgot about it, as it rose almost 800% when I next saw the amount it was worth.
When it was time to convert this Bitcoin to Fiat Currency (In my country it is Indian Rupees) it took me a little while to understand the best method to ensure that it was safe and with fewer transaction fees.
Here I will explain the number of methods you can withdraw your Cryptocurrencies like Bitcoin and the bumpy challenges you will face.
Best Ways to Convert Cryptocurrencies to Cash
1. For the Trader – Cryptocurrency Exchanges
If you have been buying and selling cryptocurrencies for a while now you will understand the basic fundamentals of cryptocurrency exchanges. However, the question of the hour is how the profits can be used in paying your bills and shopping for your wants.
When creating the cryptocurrency exchange account you will need to link up your bank account or credit/debit card. In the cryptocurrency exchange, you can change your altcoins (Ethereum, Ripple etc) into Bitcoin and then make the withdrawal.
Once you have converted the altcoin profits, you will need to click on the withdraw Bitcoin option and enter the number you wish to. According to the Fiat currency chosen you will see the conversion rate and see if it’s a good idea to withdraw now, or keep trading till it’s worthwhile.
Coinbase makes life simple in terms of withdrawing straight to your bank account. However certain exchanges like Cryptopia which is very easy to use, you will need to use a Bitcoin wallet to transfer the money from where it can then be transferred to your bank account.
Issues that you will face
- Delays in withdrawals as it takes almost 2-4 days for processing of funds
- Fees are affordable but if your profit is not worthwhile and you need urgent cash it can end up being a loss
2. P2P Exchanges
There are countless P2P marketplaces like
These types of Bitcoin exchanges allow you to purchase and sell to and from people directly. When buying and/or selling Bitcoin with the use of Fiat currency it can be paid for and received through Cash, Western Union, Gift Cards, Banking facilities and Mobile Applications such as Paypal.
The good part of P2P exchanges is it is usually faster as the type of payment can be decided. This is the best option for people who want to trade with people from their own country as banking is usually faster in the same country.
Issues faced in this regard
- Trust of Users
- Time and Effort for Finding a Person interested in your Bitcoin
- Delay if payment/receivables from another country
I personally don’t like this as I don’t have much time to sit down and negotiate however there are people who have negotiated well for immediate transfer.
3. Bitcoin Debit Cards
With Bitcoin becoming ever so popular, there are now cards which you can top up and use similar to debit cards. This is the quickest way if you need your profits to be used for paying for necessities and wants. Even if you don’t have profits, it does not matter, as it can be used anytime and anywhere. These are now based with the best Card companies such as Visa or Mastercard.
Since the growth of Debit Cards and Credit Cards, the ease of use is high along with the numerous places you can use it in. Cashing out is possible at worldwide Bitcoin ATMs, with an instant conversion from BTC to fiat currency.
Some Bitcoin ATMs have both options of buying and withdrawing Bitcoin. It is similar to kiosks and is always connected to the internet to gain access to the database of registered Bitcoin users for the ATM facilities.
There are 800 Bitcoin ATMs in the United States as of the end of 2017.
The easy to use top-up facility will even help reduce the extreme volatility faced by Bitcoin users.
- Immediate payments can be done
- Security is high with Pins and Chips in place
- Future of Payments after consideration of various standards and policies
- Only Certain countries have promoted Bitcoin Prepaid Cards
- Limits to Withdrawals/Spending
- Thorough Customer Verifications (KYC- Know Your Customer)
Some of these best Bitcoin Cards are:
BEWARE – Certain ATM may charge very high transaction fees as high as 7%.
A major issue with Bitcoin withdrawals is the confusing taxation policies. There are several countries which tax the capital gains from Bitcoin and other cryptocurrency profits. You must read our previous article on Bitcoin Tax Havens to know which countries which give tax freedom.
The most recommended advice is to speak to a local Chartered Accountant for the taxations of capital gains from Bitcoin. This will keep you ready for the taxations due to the government if you are one to follow rules and want to live a peaceful life.
However, there are various other methods which you can use to escape from taxations.
Bitcoin can be exchanged to Litecoin and Ethereum where the IRS and other tax bodies will not have any chance of declaring tax obligations. (However certain changes to existing clauses have been made to constraint from this escape)
By transferring the profits from Bitcoin as a gift to a relative or friend in another country. (According to latest updates this too has been caught up by financial regulators.)
Which Cryptocurrency Cashout is best?
One really great website is Payza which is an easy to use website to convert your cryptocurrencies to fiat. It is already a popular global payments platform which makes it very trustworthy.
It also had the added benefit of uploading the converted funds into your Payza Cards for instant use.
Firoz Patel, CEO of Payza commented;
“Giving our members the option to sell altcoins to Payza is one more step in the direction of complete Bitcoin and altcoin support within the Payza platform, and another step closer to developing a robust and inclusive global payments system.”
Keep an eye out for parties and individuals promising new ways of withdrawing your cryptocurrencies. As the first move would be from your side to deposit cryptocurrency in their accounts, however don’t expect any withdrawals as most of it is fraud.
So it is always vital to go with reviews and information available online. Plus using the traditional methods is safer than trying to save a couple of bucks or a day more for the withdrawals.
Use an escrow when needed as they are a great guarantee in case the other party or person is a fraud looking at taking advantage of your beginner level in cryptocurrency.
Remember to keep reading Coinscage for the latest news and information. Who knows we might expose ways of withdrawing which may be faster, safer and cheaper than the traditional methods above.
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