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How to Withdraw Your Cryptocurrency Or Bitcoin

November 17, 2022

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Considering that the value of cryptocurrencies like Bitcoin will drop sharply in 2022, you may be thinking about how to get out of your investment. Even though the crypto market is decreasing, traders have many ways to turn their digital currency into U.S. dollars. However, some organizations have made it difficult for investors to convert crypto into fiat currency.
If you sell an asset, you should know the tax consequences. You may have to pay a lot in taxes if you have a capital gain. Among other things, the tax rate will depend on how long you hold the asset. If you’re selling something at a loss, you may be able to get a write-off. But if you think crypto will come back, you should wait out the downturn.
Here are five ways to turn your crypto (Bitcoin) into cash.

1) Sell Your Cryptocurrency On An Exchange.

A simple option is to use a centralized exchange, like Coinbase, to sell your Bitcoin or another cryptocurrency. The “Buy/Sell” button on Coinbase is easy to use and lets you choose how much and what cryptocurrency you want to sell.

You can quickly convert your cryptocurrency into cash using your Coinbase cash balance. You can move the money to your bank account if you want.

And while Coinbase is a popular choice for selling bitcoin, if you don’t have custody of the coins yourself, it’s best to use the exchange that currently holds them. Among the leading exchanges are Binance, FTX, and Kraken.

2) To Sell Cryptocurrency, Contact Your Broker.

If a broker holds your crypto coins, the easiest thing to do is stick with that broker. For example, if you’re a client of Robinhood or Webull, which both offer a wide range of crypto trading options, it will be easiest for you to trade on their platform and be done with it.
After the trade is made, the money will be in your account, and you’ll be ready to trade again.

3) Choose A Peer-To-Peer Trade.

You can also do a direct trade, selling your cryptocurrency to another person directly rather than through a third party. The most common method is an online peer-to-peer platform that allows sellers to find the best offers through an exchange, though it can also be done in person if necessary.

You can sell cryptocurrencies in return for cash online through a peer-to-peer exchange. These kinds of transactions are often made possible by an exchange. Binance runs a popular online peer-to-peer platform called Binance P2P. After confirming a trade, the platform holds your cryptocurrency in escrow. Once the transaction record in the payment account has been verified, and the buyer’s payment has been received, Binance will send the cryptocurrency to the buyer on the platform.

Paxful, an online marketplace, is another popular alternative. Sellers can set their prices and select from more than 300 payment alternatives, including cash, gift cards, and digital currencies. According to the platform’s website, clients can sell directly to over 3 million customers globally.

 

4) Cash Out At A Bitcoin ATM

Hermes Bitcoin, a California-based Bitcoin ATM provider, equates withdrawing funds from an ATM to selling bitcoin. Bitcoin ATMs enable instantaneous access to cash using bitcoins. Bitcoin ATMs operate differently than conventional ATMs. The ATM provides a QR code to which you transmit your bitcoin to make a cash withdrawal or sell your bitcoin. You only have to wait a few minutes to obtain your money.

The charges on Bitcoin ATM trades can be exorbitantly high, so it’s vital to keep track of how much you’re paying and consider whether another method would be more advantageous.
 

5) Exchange One Cryptocurrency For Another, Then Cash Out

Some exchanges prohibit the conversion or sale of some cryptocurrencies to dollars. Therefore, you will need to find an indirect means of obtaining dollars. Depending on your exchange, you may need to transfer or convert your cryptocurrency to another popular currency, like the stablecoin Tether, before you can trade it for dollars.

Bottom line

There are numerous options for traders to sell their cryptocurrencies. Popular cryptocurrency exchanges are always good because they are trusted and well-known, but peer-to-peer networks may give you more payment options. You can conveniently use a Bitcoin ATM to get your cryptocurrency quickly, but for a substantially higher commission
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