How can I withdraw cryptocurrencies?

Cryptocurrencies are purely digital currencies. These digital currencies generally function like conventional means of payment. However, one big difference is that they are not controlled by a government. This means that you can make transactions without any restrictions. Trading cryptocurrencies has become quite easy on different platforms. However, there are still uncertainties related to payouts.

Exchanging and withdrawing cryptocurrencies can be done through various channels. In this article you will learn all the necessary information to safely hold your winnings in your hands.

How to pay out Bitcoin or any other cryptocurrency

Since you are probably already in possession of cryptocurrency at this point, you are generally familiar with the process for acquiring it. If not, this article will help you. In most cases, Bitcoin and co. are acquired on well-known exchanges and then stored in private wallets. When withdrawing a cryptocurrency, however, there are other options than reversing this process. Here we describe the most popular possibilities.

Cryptocurrency exchanges

This is the most common method you can use to exchange your cryptocurrency for fiat currency. Cryptocurrency exchanges serve as money exchange centers where you can sell cryptocurrencies in exchange for fiat currency. Basically, they convert the cryptocurrency you provide and give you the currency you want in return. In doing so, the exchanges give you the current rate of the respective currency and add a certain fee on top. This varies depending on the provider. Then you can transfer your fiat currency to your account. This usually takes a few days.

Ethereum Icon
Ethereum
Dogecoin Icon
Dogecoin
Bitcoin Cash Icon
Bitcoin Cash

Bitcoin credit cards

Bitcoin credit cards work just like regular credit cards and can be used wherever they are accepted. It is one of the fastest ways to convert your cryptocurrency into fiat currency or goods and services. Bitcoin credit cards are usually issued by websites that act as exchanges as well. The money in this case is debited from your crypto wallet and not from your bank account. The card is charged every time you make a transaction with your credit card.

Warning Sign

Caution: In general, it is important to keep an eye on tax obligations when withdrawing cryptocurrency. Especially with credit cards, every transaction represents a taxable event in many countries. Accordingly, it may become difficult to pay this off correctly in the future. Therefore, think about a strategy beforehand, how you want to deal with this and inform yourself about the laws in your country.

Peer-to-peer exchanges

This is another quick way to convert your cryptocurrency into fiat currency. However, you need to find someone who is willing to buy your cryptocurrency at a defined price.

The big weakness of peer-to-peer exchanges: before you engage in such a transaction, you have to make sure that you trust the other person. Once the transaction is completed, it cannot be reversed without consent. Do not send your cryptocurrency to strangers from the Internet without careful verification.

Metal Pay

This app acts as a crypto exchange, but it has focused on trading on your smartphone. With this mobile app, you can exchange your cryptocurrency for fiat currency. In order to use the app successfully, you need to complete a KYC verification. After that, you enter your bank details and can start transferring funds.

Bitcoin ATM

Bitcoin ATMs generally work like normal ATMs. However, transactions are not made from your bank account, but from your crypto wallet. The ATMs are largely anonymous, but have certain daily limits. Bitcoin ATMs are only available in a few cities. Please inform yourself about the exact locations in your country.

Available cryptocurrency exchanges

Below you can find some more popular cryptocurrency exchanges that you can use to exchange.

Coinbase

Coinbase is arguably one of the most popular cryptocurrency exchanges available on the market. The company makes it easy to trade cryptocurrencies, whether you want to buy or sell. You can trade various cryptocurrencies like Bitcoin, Ethereum and many more. Coinbase allows you to link your bank account to your account at the exchange. This makes it easy to deposit money from your bank to your Coinbase account or vice versa. The transaction usually takes place within a few days. Coinbase has a mobile app to simplify the entire process on your mobile devices. Coinbase is also currently the only provider that allows you to link your PayPal account and transfer funds directly to it.

Bitstamp

This company is similar to Coinbase, but it does not allow you to link your bank account, which makes it a bit more cumbersome to use. However, the basic functions like buying and selling cryptocurrencies are of course given. When comparing Bitstamp with Coinbase, the user interface also stands out negatively. The handling is a bit more difficult and we did not find our way around easily. However, the provider convinces with lower fees in return. So, if you take a few hurdles, you will end up with a fuller wallet.

Bittrex

Bittrex is an American crypto exchange that was founded back in 2015. As with the other providers, buying and selling cryptocurrencies is part of the core business. Even though the user interface leaves something to be desired compared to larger portals, it is a solid provider. Fair fees with all necessary security standards convinced us in the test.

Kraken

Kraken is known in the scene for a huge selection of cryptocurrencies. The provider lists most of the new projects and is thus especially popular among risk-taking experts who are looking for the next bitcoin. The fees as well as the handling are user-friendly throughout. This makes the provider a good choice.

How to choose the best cryptocurrency exchange

Although there are many cryptocurrency exchanges on the market, they work in different ways and offer certain advantages and disadvantages. You should consider some factors before choosing an exchange.

Withdrawal fees

Fees

Fees are charged by exchanges for almost all transactions. This is of course legitimate, as the providers finance themselves through this. At this point, however, you should definitely consider a comparison. Some exchanges have a fixed withdrawal fee, which is a flat rate for each of these transactions. For others, the fees increase depending on the amount of money and are thus fixed as a percentage. Deciding which provider is the best fit for you is very personal. Depending on your financial situation and investment plan in cryptocurrencies, different providers can bring benefits.

Withdrawal limits

Performance

Withdrawal limits come in many forms. Some exchanges allow you to withdraw money daily. On others, you can only withdraw money once you reach a certain amount. These limits vary depending on the exchange. Again, you need to decide which crypto exchange best suits your investment plans.

Simplicity of use

Wheels

Almost all providers appear in the form of a website. In addition, larger crypto exchanges offer a mobile app that can be used to conduct transactions on the go. The user interfaces differ greatly in some cases. If ease of use is important to you, you should go for large providers like Binance or Bitpanda. These meet all the requirements for a customer-oriented interface. However, this is unfortunately also reflected in somewhat higher fees.

Customer service support

Support

Customer service is a more important factor when looking for a crypto exchange provider. After all, your assets are at stake. Since cryptocurrency exchanges make newbies feel uncomfortable, we believe that helpful support is an important factor when choosing a provider.

Conclusion

The exchange of cryptocurrencies into fiat currencies is simple in gerneal. The most common way is to make a withdrawal at a crypto exchange. However, it is important to invest some time in research beforehand. You should be clear about what kind of investor you are and what characteristics a crypto exchange should bring with it.

Withdrawals with credit cards look tempting at first glance, but can cause difficulties due to possible tax obligations. So be careful and ask about the legal regulations in your country.

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