cryptocurrencies
With a significant decline in the value of cryptocurrencies over the past two years, some may wonder how their investments can be exploited in this context. Despite the decline in prices of cryptocurrencies, traders can use several methods to convert their digital money into US dollars, and although some institutions have prevented investors from withdrawing and transferring their cryptocurrencies. For real money, there are other options available.
If you decide to sell your digital assets, you must be aware of the tax implications and you may be obligated to pay taxes on capital gains. The tax rate will depend on how long you hold the asset, in addition to other factors. For example, if you sell your assets at a loss, you may have the opportunity to claim a tax deduction, but If you think the value of cryptocurrencies may rise in the future, it may be better to hold them and wait for the market to recover.
1. Use an exchange to sell cryptocurrencies
One simple way to transfer your cryptocurrency or Bitcoin is to use a central exchange such as Coinbase, as this platform provides you with the ability to “buy and sell currencies” with ease.
Using this method, you can quickly convert cryptocurrency into cash which can be accessed from your cash balance in your Coinbase account and after that, you can easily transfer the funds to your bank account if you wish.
However, you should note that Coinbase is not the only exchange available and it is a good idea to use any exchange that hosts your coins if you do not have custody of the keys to access your personal wallet.
2. Use a broker to sell cryptocurrencies
If your cryptocurrencies are held by a broker, it will be much easier to rely on that broker to place your trades. For example, if you are a client of Robinhood or Webull, both of which widely offer cryptocurrency trading services, you will have the ease of executing and completing trades via their platform.
After carrying out trading operations, you will find yourself with cash in your account, which allows you to prepare for further trading operations.
3. Trade directly
You can also adopt direct trading to sell your cryptocurrency directly to someone else via a third party. A common way to do this is to use online peer-to-peer trading platforms that allow sellers to find the best offers through these exchanges, although it is also possible to do this in person if necessary.
With online peer-to-peer trading, you can sell your cryptocurrencies online directly for dollars or other currencies. These transactions are usually facilitated by well-known online exchanges. Platforms such as Binance may operate peer-to-peer services online.
4. Cash out money from a Bitcoin ATM
Withdrawing cash from an ATM can be equivalent to selling your cryptocurrency. Bitcoin ATMs are a way to instantly access cash using your cryptocurrency and it is important to know that these machines do not work in the same way as traditional ATMs.
To make a cash withdrawal and sell your Bitcoin from an ATM, the machine will provide a QR code which you have to send to the machine and after that, you just have to wait for a few minutes until you receive your money.
You should keep in mind that commissions on Bitcoin ATM trades can be very high, so you should pay attention to the amount you will pay in commission and evaluate whether it is better to look for other methods if this fee is too expensive.
**Also know: How do you invest your money properly?
5. Trade one cryptocurrency for another and then cash out
Some exchanges may not allow certain cryptocurrencies to be converted or sold directly into dollars, which is why you will need to take an indirect route to access your funds.
Depending on the exchange you use, you may have to convert or exchange your cryptocurrency to another stablecoin such as Tether, and then finally convert it to dollars or the desired local currency.
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