,

How to Cash out Large Amounts of Bitcoin

Last Updated: February 19, 2022

In this article, we’ll discuss how to cash out large amounts of bitcoin.
How to Cash out Large Amounts of Bitcoin
EarthWeb is reader-supported. When you buy through links on our site, we may earn an affiliate commission.

BEST CRYPTO EXCHANGES

#1 Top Rated
Pionex

PRIVATE & SECURE
#1 crypto exchange in 2022
BUY CRYPTO SAFELY
#2 Top Rated
eToro

safe, secure & trusted

GET STARTED NOW
#1 Top Rated
Pionex

PRIVATE & SECURE
#1 crypto exchange in 2022

BUY CRYPTO SAFELY
#3 Top Rated
Uphold

buy & sell crypto

GET STARTED NOW

Cryptocurrencies are booming in popularity with each passing day. The crypto market has shown incredible growth in a short period.

Billions of people around the world have invested or are investing, hoping to gain massive returns.

This is because of some of many examples set by small-scale investors who turned into millionaires after investing in cryptocurrencies.

But there is a misunderstanding around this topic.

People see other people making significant money from crypto trading and believe it’s a straight road to success.

While the prospect of investing and earning quickly might seem exciting, it isn’t.

This is because you need to know what you are doing to get what you want. You can’t just invest a sum and expect to sell it for massive returns.

Cryptocurrencies are complicated yet simple.

The way you approach the matter is critical to your success. Now, there is one question that people seem to ask regularly.

How to cash out large amounts of bitcoin?

Well, Bitcoin rules the crypto industry and hence people see it as an excellent investment that is capable of massive ROI.

But most don’t know how to convert the cryptocurrencies they have into cash. 

Is there a way to convert large amounts of bitcoin into cash?

Of course, there are many ways to do this.

In this article, we’ll discuss the many ways how to cash out large amounts of bitcoin.

The Small vs Big

The concept of cryptocurrencies existing and people trading them regularly is still complicated to many.

If you are a newbie to crypto trading, this can become a headache.

Hence, it is critical to understand the basics before diving directly into the deeper concepts.

The “small vs big” discussion attracts a plethora of opinions to the table. This is because what you might consider a small amount, it might mean the opposite for someone else.

Hence, before discussing the ways to cash out large amounts of bitcoin, it’s critical to understand the meaning of large and small amounts.

How can you understand this?

Well, there are people who aim to cash out millions from bitcoins, while others aim around thousands.

All this depends on some factors, which are critical for anyone to understand before entering the market.

Let’s go through them quickly.

Taxes and Regulatory Measures

You need to pay some taxes whether you are buying or selling bitcoins. This is because of regulatory measures set by governing bodies and the platforms you are trading on. 

Most people take taxes lightly and suffer from a massive shock when they receive less than expected.

Hence, you must consult a taxation expert on the matter before rushing to cash out many bitcoins.

You also need to understand that converting digital assets into cash involves a series of steps carried out by banks.

The process isn’t simple and often triggers alarm.

Hence, if you want to avoid raising red flags, realize the regulatory measures of your financial institution.

Financial Limits and Risks

There are many financial limits set by crypto platforms. Mostly they govern how much you can trade, covert, withdraw and cash out at a time.

You might even come across rules that limit you from cashing out or trading to a particular number.

This is because the risks involved in trading increase with the amount of crypto you are pushing and pulling.

In simple words, risks involved in cashing out 500 bitcoins are more than cashing out only 1 bitcoin.

Process Parameters

Well, cashing out bitcoins is simple. But there are parameters that can make this complicated.

It’s critical to understand these parameters because they can sabotage the entire process and lose your hard-earned money.

You need these parameters in mind before starting any transactions.

Let’s breeze through them quickly.

Parameter one: Transaction Fees

Transaction fees are one of the biggest turnoffs for investors in the crypto world. Almost every process you execute on a trading platform charges a fee from you.

This is because online crypto marketplaces earn from the fee you pay.

Most people make the mistake of getting overexcited. They calculate the assets they have and rush to convert them into fiat without considering the transaction fees.

These fees can eat into your funds. Hence, you must know even the smallest fee cuts involved in cashing out the assets.

Parameter Two: Amount and Destination

Say, you have made-up your mind to cash out a certain number of bitcoins. You even know all the transaction fees involved. But this isn’t enough.

This is because, chances are, the platform you are using to cash out the bitcoin allows a user to cash out only a few bitcoins. Most platforms have rules that limit you to trade and withdraw only a few assets.

Hence, a quick research on the subject would help you make a decision on how much you should cash out.

The destination of the converted fiat is also a critical factor.

Do you want to send the fiat to your bank account or PayPAl or some kind of wallet?

You need to answer this question. This is because banks also charge a fee for such transactions. With PayPal, you might pay a tax to send the money to a bank account.

Parameter Three: Duration and Laws

The duration of the transfer also matters.

This is because many users wait for a long duration before receiving money in their bank accounts/wallets.

But this doesn’t mean every transaction takes long.

Typically, the duration depends on the platform from which you are starting the transaction and the destination of your converted assets.

Lastly, you must understand the crypto regulation laws of your country.

This is because many countries don’t entertain the concept of cryptocurrencies and hence institute strict laws and massive taxes against them.

But there are countries in which you can trade cryptocurrencies paying no taxes.

How to Cash out Large Amounts of Bitcoin

Now, let’s address the prime question: How to cash out large amounts of bitcoin? 

There are many ways you can achieve this. 

But only a few provide a profitable process.

Binance

transfer coinbase to binance 1edit

Binance is one of the biggest and trustworthy cryptocurrency trading platforms in the world.

In fact, most beginners choose Binance. Now, Binance allows you to cash out bitcoin based on your account level.

If your account is at level one, you can withdraw a maximum of 2 Bitcoins in 24 hours, whereas for level two account holders, the limit jumps to 100 Bitcoins.

You can do this using wire transfers and credit cards.

BitPanda

Bitpanda

BitPanda is another platform you can use to cash out large amounts of bitcoin. They allow you to trade using popular fiats around the world like USD, Euro, British pound, etc.

What is the limit?

Well, with BitPanda you can make 5 million withdrawals using the SEPA method or 100K euros with online payments per day.

Coinbase

Coinbase

Binance and Coinbase are always up against each other for the share of audience.

This is because Coinbase is simple and provides you with all the tools to execute excellent trading strategies.

Coinbase offers two types of accounts. You can either choose a free account or upgrade to the pro version.

Trading and withdrawal fees are high for free account holders, while the pro account holders enjoy lesser fees.

If you have a Coinbase pro account, you can withdraw a maximum of $50,000 worth of ETH (Ethereum) per day.

KuCoin

KuCoin

Kucoin makes the process too simple for its users.

They have divided users into three categories, and depending on it, allow the limit of withdrawals.

The first category includes the unverified accounts, with a limit of withdrawing 5 BTC per day.

This limit applies to the second category accounts called KYC1 level users.

Lastly, the third category accounts aka KYC2 level users have a withdrawal limit of 200-3000 BTC per day.

They offer you a plethora of ways to carry out the withdrawal. You can use SEPA transfer, credit cards, faster payments and more.

Gemini

Gemini

Gemini is another platform people trust to execute cash out operations.

This platform allows you a daily limit of $5,000 and monthly limit of $30,000.

You can also withdraw up to $100,000 per day with a personal account.

They also have institutional accounts with a daily limit of $10,000 and monthly limit of $300,000.

Peer-to-peer

Peer-to-peer marketplaces are a popular destination for investors who want to cash out cryptocurrencies and get the fiat directly into their bank accounts.

How Does This Work?

Well, the process is simple. All you have to do is choose the currency in which you intend to trade, then select the cryptocurrency and set the amount you wish to sell.

This will connect you to peers who wish to buy the crypto (bitcoin). Hence, you can sell them and get the fiat.

OTC Brokers 

What are OTC brokers?

They are over-the-counter brokers and help you find the best buyers. But such a process involves risk and asks massive trust.

Hence, you must look for licensed vendors. This is because unlicensed vendors might lose all your money and get in trouble with the law.

Back Alley Trading

You can use back alley trading to cash out your bitcoins. Although this method is attractive, it isn’t promising. Here, you might deal with unscrupulous traders, which can turn ugly.

This is because they pose a risk to the assets you are trading. Most people stay away from back alley trading and seek safer alternatives.

DEXes

Dexes offer one of the most promising platforms to sell your cryptocurrencies under your terms. But there is only one issue.

These platforms have low liquidity. This means you’ll have to wait to sell all your assets. Loaclcryptos, Bisq and Hodl Holdl are some popular Dexes platforms people use.

On & Off Exchange

Cashing out bitcoin results from two kinds of exchanges.

The first one is on-exchange. In this type, you need to verify your account details, hold the crypto, and choose a payout method.

The second one is off-exchange. This type of exchange helps you keep your anonymity. You cash out digital assets through OTC brokers who trade in millions daily.

DEXes platforms act as a middleman. This means you deposit the coins, and they hold it for you until you find a suitable buyer.

After receiving the payment from the buyer, you can tell the platform to release the coins to the buyer.

FAQs

In this section, we’ll address some frequently asked questions by people who want to know how to cash out large amounts of Bitcoin.

How Much Bitcoin Can I Cash Out?

Well, there is no straightforward answer to this question. This is because the limit of cashing out depends on the platform on which you are carrying out the process.

Some offer top limits, while others have low limits. You also need to abide by the rules and regulations of the platforms.

Where Can I Sell Large Amounts of Bitcoin?

You can choose an on-exchange or off-exchange process to sell your Bitcoin.

On-exchange processes include online trading platforms that ask you to complete the KYC verification and then assign you a limit.

Off-exchange processes include OTC brokers and DEXes Platforms, where you can sell large amounts of Bitcoin by maintaining anonymity.

Conclusion

There you have it. Now, you know all about how to cash out large amounts of Bitcoin. You also know the various on & off exchange routes you can take to cash out Bitcoin.

There are many factors you need to consider before jumping into any process. This will help you avoid massive losses and make a calculated decision.

I hope this article helps.

Written by Thomas McGovern

I have over a decade of experience with blockchain and cryptography. I also hold a master’s degree in Mathematics.
4.8/5

Buy & Sell Crypto with FREE trading bots