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with the immersion CRYPTOCURRENCIES Starting at the end of 2021, you may be wondering how you can get more bang for your buck. Despite the slowdown in the cryptocurrency market, the good news is that traders have several ways to get US dollars for their digital money, although some organizations have prevented investors from exchanging their cryptocurrencies for real money.
If you are selling any assets, you will want to understand the tax implications. You may owe a lot of money if you are recording a capital gain, and The tax rate will depend on the holding period, among other things. Of course, you may be able to claim a cancellation, if you are selling at a loss. But if you think cryptocurrencies can recover, it would be better to stay and wait out the recession.
Here are five ways you can withdraw your cryptocurrencies or bitcoin.
1. Use an exchange to sell cryptocurrency
One of the easiest ways to withdraw your cryptocurrency or Bitcoin is to use a centralized exchange like Coinbase. Coinbase has an easy-to-use “buy/sell” button and you can choose which cryptocurrency you want to sell and the amount.
You’ll be able to quickly exchange cryptocurrencies for cash, which you can access from your cash balance on Coinbase. From there, you can transfer the money to your bank account if you wish.
And while Coinbase is a popular option for selling cryptocurrencies, it’s probably more useful to go with whatever exchange currently has your coins, if you don’t have custody of the coins. Some of the major exchanges include binance and Kraken.
2. Use your broker to sell cryptocurrencies
If a broker holds your cryptocurrencies, then the easiest route is to simply go to that broker. For example, if you are a customer of Robin Hood either Webullboth of which allow extensive cryptocurrency trading, then it will be easier for you to simply execute a trade on their platform and be done with it.
After completing the trade, you will have the cash in your account and are ready to trade again.
3. Opt for peer-to-peer trading
You can also conduct a direct trade, selling your cryptocurrency directly to another person through another entity. The most popular way is through an online peer-to-peer platform that allows sellers to find the best deals through an exchange, although this could even be done in person if necessary.
With online peer-to-peer trading, you can sell cryptocurrency online for dollars. These transactions are typically facilitated by an exchange, and Binance runs a well-known peer-to-peer online platform called Binance P2P. After accepting an exchange, the platform escrows your crypto. Once you verify the transaction record in the payment account and ensure you have received the buyer’s money, Binance will deliver the crypto to the buyer on the platform.
Another popular option is the online platform Paxful. Sellers have the ability to set their own rates and choose from over 350 payment options, such as cash, gift cards, or other digital currencies. Customers can sell directly to more than 12 million users worldwide, according to the platform’s website.
4. Withdraw money at a Bitcoin ATM
Cashing out at an ATM is the equivalent of selling your Bitcoin, says California-based Bitcoin ATM company Hermes Bitcoin. Bitcoin ATMs are a way to get immediate access to cash using your bitcoins. Bitcoin ATMs do not work like traditional ATMs. To make a cash withdrawal and sell your Bitcoins from the ATM, the machine provides a QR code to which you send your Bitcoins. Simply wait a couple of minutes and receive your money.
Commissions on Bitcoin ATM operations can be tremendously highHowever, it is important to consider how much you are paying and whether it is worth taking another route.
5. Exchange one cryptocurrency for another and then withdraw the money
Some exchanges do not allow the conversion or sale of some cryptocurrencies to dollars, so you will have to take an indirect route to get your cash. Depending on the exchange you use, you may need to transfer or convert your cryptocurrency to another popular currency, such as stablecoin Tether, before finally being converted to dollars.
Traders have several ways to sell their cryptocurrencies. Popular crypto exchanges are always a good bet as they are reliable and well-known, while online platforms with peer-to-peer sales can allow for payment flexibility. You can take the convenient route and use a Bitcoin ATM to get quick access to your cryptocurrency, but with a significantly higher fee.
However, if you sell your cryptocurrency, it is important to understand that you could be creating a tax liability, so you will want to make sure Consider taxes in your decision to sell.