Do you evaluate your BitCoin amount as a large one? Probably you are a lucky guy who can join the list of the world’s wealthiest people. However, you can make the most of the money earned only after you convert your crypto to fiat money. Despite a big number of exchanges to do that, only some of them agree to cash out large amounts of Bitcoin.
You will agree that most of the popular crypto cash out methods have limits and it is an obstacle for holders of large amounts.
Good news: this article will offer you 6 reliable ways how to convert or exchange large amounts of BitCoin and how much it will cost to do that.
What is the Difference Between Cashing Out Small and Large Amounts Of Bitcoin?
Despite the fact that BitCoin has been a leading cryptocurrency for over a dozen years already, there are still some issues connected with it. One of them is challenges crypto holders may face cashing out large amounts of the coin. Though it may seem that there is no difference between converting small and large BitCoin amounts, in fact, these processes have much in common but do differ from each other in the following way too.
More responsibility
When a person converts a small amount of crypto to fiat, he or she is aware of the risks involved and supposes that this money may not be delivered to the final destination because of some reasons. Dealing with large sums, the level of responsibility grows significantly since big sums of cash are usually meant not only for the crypto holder but also for his family and relatives. The plans for such sums are also more extensive, so their cash out process requires more attention.
Withdrawal limits
Every exchange, broker, or even person who sells or buys Bitcoin has a maximum limit of the daily transactions. These sums can vary from hundreds to hundreds of thousand coins. Therefore, it is important to remember that exceeding any limit you must be ready that you might be deprived of the opportunity to take the excess or even a full amount out, so consideration of withdrawal or exchange limits is very important.
Frozen bank accounts
It often happens that clients should provide explanations about the source of their additional income, especially if these amounts are large. Otherwise, a bank can freeze customer’s accounts. Moreover, it is worth noting that income from crypto trading is not considered to be a legal source of revenue in some countries so you cannot mention it too. You need to decide what to tell bank representatives in advance not to lose money deposited.
Taxes
It goes without saying that taxes must be paid both from cashing out small and large amounts of tokens, but what is more interesting, taxes from large crypto amounts are higher and may take a good deal of your crypto earnings. That is why it would be reasonable to speak to a lawyer for tax and legal purposes to find out how to get the lowest rates possible.
Fees and commissions
Withdrawal of small and large crypto amounts differs in the amount of the commission paid. Most often, exchanges make discounts to users who trade larger sums, so it may be more profitable to cash out large amounts than do that multiple times with small ones.
How to Sell Large Amounts of Bitcoin
The most usual options to cash out cryptocurrency are limited to 3 methods:
- Crypto exchanges,
- OTC Brokers,
- Peer-to-peer sales.
All these ways of cashing out BitCoin can be used for dealing with large amounts, but the most convenient and secure one is selling BitCoin on reputable cryptocurrency exchanges. Every user can connect his or her bank account with the exchange and receive funds directly to the account. It is one of the fastest and most comfortable withdrawal methods for large amounts since there is no need to look for a broker or another person to deal with and people can exchange crypto without leaving the comfort of your home. It is difficult to name the only best exchange to sell large amounts of Bitcoin, so look through the top 6 and select the one suitable personally for you.
CEX.IO
This crypto exchange was established in 2013 and is considered considered be one of the oldest ones accepting BitCoin and other cryptocurrencies and making it possible to exchange them for fiat money including the US dollar, the British pound, Euro, and Ruble. If you need to withdraw large BitCoin amounts via this platform, you should know that you may do that only if you own one of four accounts: Identity, Address, Enhanced, and Corporate one. There are unlimited daily and monthly withdrawals in BTC with the commission of 0.0005 BitCoin. As for fiat money, Identity account has a daily limit of $1,000 and a monthly limit of $3,000 not supporting Swift and SEPA payment methods. All other accounts have no withdrawal limits and support such payment methods as Visa, MasterCard, Swift and SEPA. According to the terms of the exchange, it is forbidden to withdraw money within 48 hours after the account registration.
Coinbase
Coinbase is a trusted exchange, a platform available in 30 countries for selling, buying, and storing multiple cryptocurrencies including BitCoin. Registered users can both trade crypto on this service and store it in the wallet which can be created.
Coinbase withdrawals are unlimited only if you transfer funds to the wallet created on the platform. Users can withdraw funds to the bank account only after you sell crypto to your wallet. In this case, withdrawal limits depend on the type of account possessed on the platform. The maximum daily withdrawal amount is equal to $10,000 for individuals and up to $50,000 for businesses. Regarding withdrawal fees, an ordinary Coinbase account will have to pay up 3.99% fee on credit/debit card transfers and a 1.49% fee on bank transfers in addition to the standard BTC transaction fee of $0.10. Coinbase Pro fees are much lower ranging from 0.1% to 0.25% for take traders only.
LocalBitcoins
This platform is a peer-to-peer one and it supports BitCoin next to other crypto coins. Its headquarters have been located in Helsinki, Finland since 2012 and now this platform works successfully in 248 countries. The main goal of this service is to connect people who want to buy and sell cryptocurrency on the terms suitable for both parties. There is no maximum withdrawal limit there since every seller provides his own minimum and maximum amount. Every transaction made through the platform will cost a seller 1% of the total amount.
If to consider payment methods suitable for getting funds, their list is quite extensive, but every seller suggests those methods which are suitable for him.
Coinmama
One more reliable brokerage company appreciated by many traders is Coinmama. It was established in 2013 and operates in 188 countries now. This service is suitable for withdrawing large BitCoin amounts, but the withdrawal limits depend on three important factors: state regulations, payment method, and account verification level.
There are 3 verification levels on Coinmama. All of them feature overall account spending limit, daily and monthly limits and numbers of transactions allowed. Level 1 features the overall account and monthly spending limit of $15,000, while a daily spending limit is $5,000 for credit cards and $12,000 for bank transfers. The highest limits are offered in Level 3, where the overall spending limit is $1,000,000, while a daily spending limit is $7,500 for credit cards and $30,000 for bank transfers. The fee taken by the platform is counted on the basis of the XBX Index, plus a 5.90% fee. There is an additional 5.00% processing fee for credit and debit card transactions.
Bitstamp
The title of the world’s longest-standing exchange was given to Bitstamp platform and it is not occasionally. It is located in Luxemburg and supports several basic cryptocurrencies and fiat money.
Bitstamp is a perfect solution for cashing out large BitCoin amounts since it is one of a limited number of platforms that have no limits for verified users. It is a great solution but only for those users who have completed the verification process. Moreover, it is necessary to pay a certain fee for BTC cash out which depends on the type of withdrawal preferred. If it is SEPA withdrawal, there is a fixed €0.90 fee for converting funds to EUR (if necessary). International withdrawals via International Wire Transfer are charged a 0.09% fee and the minimum fee is $15.00.
Kraken
It is a crypto exchange which is famous for trading the largest Euro trading volume despite the fact that it is located in the US. However, Kraken is also one of the most experienced platforms founded in 2011. Today, it is a leading crypto exchange that supports fiat money as well and allows users to exchange large amounts of Bitcoin to USD and other currencies.
Withdrawal limits of the platform both for fiat and cryptocurrency depend on the verification level. There are three basic types of accounts distinguished and each of them has a certain daily limit for crypto withdrawal: Starter $5,000, Intermediate $500,000, and Pro $10,000,000. Monthly withdrawals are unlimited for all accounts. Fiat withdrawals are available only for Intermediate and Pro accounts and the daily limits are $100,000 and $10,000,000 respectively. There are also exclusive limits for the US residents to look through at the official website.
Kraken transaction fees depend on the currency chosen for withdrawal and payment method and start from €0.09 and can reach 35 GBP + 0.125%.
How to Stay Safe While Selling Millions in Bitcoin
If your crypto asset value is worth millions, it is of utmost importance to think twice about the safety of your funds or you may lose everything in a matter of seconds. There are several things you can do planning a huge sale:
- Select exchanges with several levels of verification since they are more secure.
- Inform the exchange of your plans to convert a big BitCoin amount beforehand to prevent any issues.
- Don’t exchange the whole sum, break it into smaller portions to avoid losing all your savings.
- Report your taxes not to be caught and punished in the future. Even if you do that anonymously, your bank can provide information to the government.
- Don’t hurry and check the information you enter to prevent life-changing mistakes.
Conclusion
Everyone dreams to be a holder of large BitCoin amounts, but only risky people invest in digital assets and feel more confident withdrawing their earnings. It has become clear from the article that large BitCoin amounts must be cashed out on trusted exchange platforms. However, it is necessary to remember about possible limits, so experts advise breaking them in smaller portions when you withdraw them.