On the 31st of October, 2008 an anonymous and a mysterious person/group of persons named published a white paper. This historical document described a decentralised, peer-to-peer electronic cash system. Today it is known as bitcoin. This system also gave birth to so many cryptocurrencies today, some of which are Ethereum and Ripple. But their leader remains Bitcoin, the original and the first cryptocurrency company. Though it wasn’t socially accepted at once, its prices have been on a rise.
But what is cryptocurrency and why cryptocurrency? To answer simply, cryptocurrency is the digital currency, often referred to as the digital equivalent of gold. It can be used for two main purposes. One being an investment option where you can increase your capital by buying cryptocurrency and waiting for its price surge. Another being for direct transactions between two cryptocurrency users. But it’s mostly used for the first purpose among the general public.
The biggest advantage cryptocurrency has is that it is decentralised. Meaning, it is not controlled by a third party or an institution or any central authority. No banks or governments in the world have control over it. This is the biggest difference between cryptocurrencies and Fiat currencies.
All cryptocurrency users’ computers are connected through a shared ledger called a ‘blockchain’. When a transaction happens, it gets recorded in this ‘blockchain’. The ‘mining’ process involves a lot of supercomputers that calculate these transactions and keep records of the same. Miners verify these transactions from all over the world, and get awarded with bitcoins.
Cryptocurrencies have also found immense use in international transactions. A bank would take upto 3 days for transferring money from one country to another and would charge a hefty amount of money as the processing charge. Whereas the cryptocurrency companies take not more than 20 minutes and charge way less for transactions compared to the banks.
How to Cash Out Large Amounts of Cryptocurrency
Cashing out cryptocurrencies might bring up a lot of questions. Security, reliability, time, feasibility are some of the factors that ought to be taken into consideration. To know which option you should consider to transact huge amount of Bitcoin for cash, take a look below:
1. Third Party Exchange
The best way to earn cash for your crypto coins is a third party exchange. That is, you can trade your cryptocurrency through an online platform for fiat currency. You can do it through exchange companies like Kraken, Bitfinex or Coinbase.
This method is very convenient because it is very reliable and there is little to no risk of hacking. It also offers a customer-friendly experience. Though it charges you some fees, it is highly secure and very fast.
All you have to do is link your bank account to the exchange company and the cash will be deposited into your bank account. To look at the cheapest exchanges, click on the link below:
The next most feasible and viable option is OTC. It is an over-the-counter cryptocurrency trade facility. One of the main perquisites of this method is that it offers anonymity. That is, the seller, the buyer and the sale details always remain private. The intermediate who facilitates these transactions is also known as the OTC broker. The broker connects the buyer and the seller by matching the requirements and conditions of the clients.
This service is cheap and offers you the best deal if you are patient and trade at the right time. Kraken is one such company which deals in OTC services. To know more, visit their site by clicking here – OTC Bitcoin and Crypto Trading Exchange
Peer-to-peer, or P2P is another such method that helps you in converting crypto to fiat currency. These transactions can be facilitated with the help of apps like LocalCryptos or Paxful.
One big advantage of this service is it maintains anonymity.
Apps like Localbitcoins take crypto from the seller in escrow. In this way, it is neither with the buyer or even the seller but the company. Once the seller confirms that the fiat currency has been received, the intermediary company will send the bitcoins to the buyer.
There is also flexibility in the mode of receiving your payment, that is PayPal, bank transfers or cash deposits.
But this might be very risky due to scammers. So, another better option is to find someone who is interested in the trade. It is better if you look through the buyer’s background details to ensure they are not a fraud. It is better to take help of lawyers or accountants who are experts in crypto exchanges.
4. Cryptocurrency ATMs.
These are quick and reliable. They are not available everywhere and hence can be availed only if you live near one such ATM. Visit Bitcoin ATM Map – Find Bitcoin ATM, Online Rates to see if you have got one in your proximity.
Although we provided you with four choices to cash out large sums of cryptocurrency, you can choose one which satisfies your needs and is convenient for you. Even though these sound easy, you should also consider the limits for withdrawal, taxes and bank movements before you cash out cryptocurrency. It is better you educate yourself on all the possibilities and options before you choose on making a decision in haste.