How to Cash Out Altcoins: All Withdrawal Options
How to Cash Out Altcoins: All Withdrawal Options
There are two main withdrawal methods for those eager to know how to cash out altcoins. The simplest method is to convert your altcoins to any preferred fiat currency using an exchange service that supports fiat conversions. However, not all altcoins could be converted directly to cash. Moreover, there are only a few exchanges that provide fiat money conversions.
So, there is the second withdrawal method for cash-out, which implies the conversion of tokens to Bitcoins. Since Bitcoin is a quite stable currency accepted by all crypto exchanges, it is easy to convert it to cash. It is also possible to cash out altcoins by exchanging them for better-known tokens like Ethereum or Litecoin.
Why Investors Sell Altcoins
Investors shed their crypto assets when they need funds for more profitable deals or believe that holding altcoins is no longer beneficial. The crypto market is not similar to traditional markets, which are quite stable. Its main feature is volatility. So, if you want to get income from your crypto investments, you need to be active in manipulations with your crypto funds all the time.
If you buy altcoins, it is obvious you need to know how to sell altcoins. Traders watch prices go up and close a profitable sale deal.
What Is the Best Time to Sell?
The best time to sell altcoins is when the price is rising. More often, this period happens in the first 10 days of each month, but it is not a rule, of course.
It is necessary to monitor the current situation in the crypto market and keep track of changes that relate to tokens you own. Although the price of each altcoin is influenced by industry trends, it still has individual peculiarities. In addition, it is important to notice when a big demand for a particular token emerges.
How to Cash Out Altcoins
There are two options: the use of the fiat conversion service on an exchange and conversion of altcoins to Bitcoins or more stable tokens, such as Ethereum and Litecoin.
Direct Withdrawal
The simplest way to cash out altcoins is by choosing an exchange service of fiat conversions. To perform a withdrawal by this method, you need to follow the guide below:
Yet, it is necessary to know how to cash out altcoins directly from the exchange account and how to withdraw fiat money through altcoins conversion to Bitcoins. The point is that there are not so many crypto exchanges that allow users to convert altcoins to cash. In addition, only a few tokens could be converted directly to fiat currency.
Therefore, there is another method to cash out altcoins. To implement it, users need to exchange altcoins for Bitcoins or more known coins, such as Ethereum or Litecoin, and then convert them to cash.
The process includes the following steps:
This withdrawal method is considered to be the cheapest way to cash out altcoins.
Online Exchanges
When it comes to direct cashing out of altcoins, the best online exchanges are:
These crypto exchanges are also used as fiat-compatible platforms if it is necessary to transfer altcoins converted to Bitcoins from another exchange.
Possible Risks
Of course, it is possible to make money on buying and selling altcoins, but it is necessary to remember that the crypto market’s main feature is volatility, which is also typical for any investment industry. So, there are certain risks for altcoin traders.
First of all, it is challenging to control altcoin prices because of their volatility even for experienced traders, not to mention beginners. In addition, the altcoins market does not have strict regulations. Usually, if a company wants to sell shares to the public, it needs first to register its IPOs with the Securities and Exchange Commission. On the other hand, registration with the SEC is not mandatory for cryptocurrency coin offerings.
What Is the Cheapest Way to Cash Out Altcoins?
The cheapest method to cash out altcoins is a two-part process. First, it is necessary to exchange altcoins for Bitcoins or such tokens as Litecoin and Ethereum. The second step is a conversion of the new coins to a preferred fiat currency. This method allows avoiding fees if you use a system of personal contacts (you are an active BTC user and have at least one crypto friend with whom you can conduct the transaction).
In addition, it is beneficial to use the services of Coinbase and Kraken because they provide a maximum charge of only 2% of a transaction sum.
Common Recommendation for Safe Altcoins Cashout
If you wonder how to cash out altcoins safely, choosing reliable and authoritative crypto exchanges is necessary. If you cooperate with a broker, find an experienced specialist with a good reputation. Besides, consider safe tools like a highly-protected and convenient-to-use blockchain wallet.
Account Verification
It is better to choose crypto exchanges that require a registration procedure and account verification. A verification system like KYC ensures better security for users’ personal data and financial information while the users are not obliged to provide supporting documents in person. However, if you want to trade anonymously, some exchanges allow users to avoid verification. Engaging in anonymous crypto trading with credit cards, bank transfers, PayPal, and Western Union is possible.
Licenses and Feedback about Exchanges
It is important to deal only with official online exchanges to ensure the security of your funds. It is possible to check the availability of an official license on the home page of every crypto exchange. The document means that the platform functions in accordance with international industry regulations. Moreover, some exchanges, such as Coinbase, carry crime insurance that additionally protects their users’ assets.
What is more, consider reviews of exchanges to avoid becoming a victim of fraud. There are certain websites that publish reviews from real users and post current ratings of all exchanges.
Withdrawal Amount At One Time
Crypto exchanges provide different limits for the amount users can withdraw, so it is necessary to find a platform with appropriate rules, especially if you are interested in how to withdraw all altcoins at one time. More often, exchanges establish daily limits. For example, most exchanges establish a limit of 10 BTC for 24 hours.
Country Laws and Taxation
Nowadays, most crypto transactions are transparent, especially regarding operations with Bitcoins. So, crypto exchanges provide anti-money laundering requirements to avoid government extra attention.
What is more, cryptocurrency is taxed. Thus, the list of taxable transactions with crypto includes:
Not taxable transactions are:
Conclusion
Although crypto trading is quite a risky activity, it is possible to make big money in the industry. To become a successful crypto trader, it is necessary to take into account all factors of the crypto market, constantly track prices changes, and choose the best ways to sell altcoins based on your specific goals and tools available for you.
FAQ
Why Do Investors Sell Altcoins?
Investors prefer to sell their altcoins when there is a rise in the price. The crypto market is volatile, so there is no reason to hang on to a particular coin no matter what. Only active buying and selling of altcoins could bring income to investors.
How to Cash Out Altcoins?
There are two methods to cash out altcoins: join a crypto exchange that provides fiat conversions or exchange altcoins for Bitcoins or more trusted coins like Litecoin and Ethereum.
What Is the Best Time to Cash Out Altcoins?
There is no fixed period perfect for altcoins selling, but the best time to cash out tokens is when their price is high. Of course, the price rising could be caused by a big demand or current crypto market changes.
