How To Cash Out Large Amounts Of Bitcoin – The Ultimate Guide

Last updated on 4th January 2021

Cashing out major, valuable digital assets is one of the best experiences an investor can have. However, the details can dampen our enthusiasm.

• Which is the best Bitcoin exchange for performing a cash out trade?
• How do we get cash for Bitcoin?
• Do we transfer the crypto to a bank account or are there any alternatives to this, like Fintech accounts or PayPal?
• Finally, do we leave a fiat balance on the exchange of our choice?

We attempt to answer all of these and other questions in this article.

Best Platforms to Cash Out Bitcoin

This comparison table shows how much you would pay in fees at the listed exchanges when you cash out your Bitcoins there. For comparison we have taken 3 different cash out amounts as an example.

*Fees: The platform’s general trading fee ranges (Maker and Taker fees); fees depend on trading amount. For our examples we took the maximum fees (Taker) that can apply with the example exchange amount. Usually you don’t know if you’re going to be Maker or Taker in your trade. Being Maker means your order first gets placed in the order book before being “taken” by a matching order from someone else later (Taker).

If you become Maker, your fees will in some cases even be nearly half.

Becoming Maker and not Taker can be forced at the following exchanges in the order settings:

• Kraken: set checkmark at “Post limit order” at trade setup
• Bitfinex: set checkmark at “post-only” in order widget
• Okex: set checkmark at “post-only” in order widget
• Coinbase Pro:  set checkmark at “post-only” in order widget

In this section, we’ll be covering all those exchange platforms, their fees on Bitcoin to fiat exchange, their withdrawal options, and the countries supported or restricted by each one.

Kraken

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Fees for BTC/fiat exchange

With Kraken we need to distinguish whether you are trading “normally”, i.e. executing regular trades in the “Trade” section, which are then subject to the Maker/Taker Fee Model – or whether you are doing a so-called Instant Sell with your Account Balance.

Instant Buy / Sell is a special feature of Kraken. Instant Sells are not subject to any fee, only the current spread is applied. At the time of writing there would be a price difference of more than 1.5%, which would be about $15,000 less in total when selling for one million. Also, Instant Orders are always market orders.

If you sell in the “Trade” area, you pay the Maker or Taker fee, depending on the execution of the trade:

The following is valid for 30-day volumes: On exchanges of Bitcoin worth $50,001 – $100,000, Kraken charges a maker fee of 0.14% and a taker fee of 0.24%. The respective fees are 0.12% and 0.22% on amounts from $100,001 to $250,000, 0.10% and 0.20% on $250,001 – $500,000, and 0.08% and 0.08% if you’re exchanging between $501,001 and $1,000,000.

Note that payment card transaction fees are very high: 3.75% + €0.25, which would sum up in an insane fee for larger transfers. So it’s not a good idea to use credit card for the money transfer from Kraken to your bank account.

Withdrawal options

Kraken offers withdrawals via bank transfer, debit card, and credit card. To make a withdrawal, you need to sign in, go to Funding, and select Bitcoin under Assets. Choose “Withdraw”, then choose an address next to the “Address” field. If you want to add one, click on “Add Address” and confirm it.

That’s almost it. Choose the amount you would like to withdraw and proceed.

Supported countries

Kraken restricts users from Cuba, Iran, Congo, Tajikistan, Iraq, Afghanistan, Syria, Libya, and North Korea. In addition, its services are restricted in Namibia, Somalia, the Central African Republic, Mali, Eritrea, Guinea-Bissau, Yemen, and Sudan. Clients in the states of NY and Washington, US do not have access to the exchange.

BitFlyer

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Fees for BTC/fiat exchange
Bitflyer offers instant buy or sell offers without an extra commission. However, there is a spread of 0.1% up to 6.0%, which can be quite high. Also, those are market orders, meaning the actual price you get may be different to the one stated in the moment when you send the order, as the trading engine will just run through the orderbook and take the closest matches possible at that moment. And with large sell orders the price different with market orders can be quite high. So this is not really recommended for large cash outs.

It’s likely better to use Bitflyer’s trading area called “bitFyler Lightning”. There the following fees apply: For the BTC/USD pair, BitFlyer’s fees range from 0.10% to 0.07%.

Withdrawal options

You can withdraw to a bank account (SEPA, SWIFT) or bank card. Euros can only be sent to a bank account that supports SEPA. There is a fee of EUR 10.00 on withdrawals equivalent to EUR 250,000.00 or more.

Supported countries

Japan, all European countries, US.

Kucoin

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Fees for BTC/fiat exchange

The fees range from 0.1% (maker and taker) to -0.005%/0.025% (maker/taker) for amounts greater than or equal to 80,000 BTC. A full overview of the fee structure is available here. Currently, the exchange supports the following fiat currencies:

• United States Dollar (USD)
• Singapore dollar (SGD)
• Euro (EUR)
• Canadian dollar (CAD)
• Russian ruble (RUB)
• Czech koruna (CZK)
• Hong Kong dollar (HKD)
• Turkish lira (TRY)
• Polish złoty (PLN)
• Pound sterling (GBP)
• Swedish krona (SEK)
• Danish krone (DKK)
• Norwegian krone (NOK)
• Australian dollar (AUD)

Withdrawal options

You can withdraw via credit card, SEPA transfer, POLi, iDEAL, and Faster Payments. You can enable email confirmation and Google authenticator for withdrawals to ensure a high security level.

Supported countries

The exchange supports 197 countries.

Cex.io

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Fees for BTC/fiat exchange

Cex.io charges taker and maker fees of 0.25% resp. 0.16% on volumes less than or equal to 5 BTC withdrawn over a period of 30 days. These rates drop to 0.23% resp. 0.15% if the amount is less than or equal to 30 BTC over that same period, 0.21% and 0.13% on less than or equal to 50 BTC, and 0.20% and 0.12% on less than or equal to 100 BTC.

Withdrawal options

You can withdraw via bank transfer or bank card. There are limits to observe according to different user classification levels. Users on the “Identity” and “Address” levels can withdraw amounts equivalent to up to $10,000.00 a day. For “Enhanced”, “Unlimited”, and “Corporate” users, withdrawals are unrestricted.

Supported countries

Cex.io supports the following countries:
Cyprus, Czech Republic, Denmark, Austria, Bulgaria, Croatia, Estonia, Finland, Germany, Ireland, Liechtenstein, Lithuania, Greece, Hungary, Iceland, Norway, Poland, Portugal, Luxembourg, Malta, Netherlands, Slovenia, Romania, Slovakia, Sweden, Spain, United Kingdom.

Coinbase

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With Coinbase we have to distinguish if you use the normal exchange or the trading platform. A cash out is possible on both. The fee structure of both platforms differ significantly.

Coinbase Fees for BTC/fiat exchange

As statet in this page, Coinbase charges a standard fee of round about 0.5% on purchases and sales. The exact percentage depends in the current spread. But that’s what you have to expect round about. Additionally, they charge another fee that depends on the amount you sell. But it’s hard to say what that would be for a large sell amount, as their examples only refer to tiny transaction amounts of $200 maximum. So be careful with Coinbase. The exact fee amount however should be clearly stated in the moment an order is being set up.

Coinbase Pro (Pro Trading Platform) Fees for BTC/fiat exchange

The maker and taker fees range from 0.50% on withdrawals under $10,000 to 0.15% resp. 0.05% on cashing out $10 to 50 million. No maker fee is charged on withdrawals of more than $50 million.

Withdrawal options

You can withdraw via SEPA bank transfer, bank card, 3D Secure Card, Sofort, Ideal, or PayPal. The exchange points out that SEPA transfer is best for large amounts. Withdrawals are processed within 1-3 business days. These withdrawal options are available to customers in a supported European country.

Supported countries

More than 100 countries are supported. You can view the full list here: https://www.coinbase.com/places.

BitPanda

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Fees for BTC/fiat exchange

BitPanda charges a 1.49% premium to exchange Bitcoin.

Withdrawal options

You can sell BTC and withdraw via BitPanda’s Fiat Wallet at any time. It doesn’t matter how long it will take to process the transaction. You can react to any market changes quickly. Fiat wallets are available in US dollars, Euro, British Pound (GBP), Swiss Franc (CHF), and Turkish Lira (TRY).

Supported countries

Only EU residents within the SEPA area can purchase cryptos at this time. This includes most EU countries and Monaco, Iceland, Norway, Liechtenstein, and Switzerland. If you’re located outside the EU, you can store and send cryptos from your bank account as well as get payouts or sell cryptos via Neteller. All countries except China and the US can trade cryptos on BitPanda Pro.

CoinMama

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Fees for BTC/fiat exchange

CoinMama’s fees are calculated according to a specific formula, which is by adding the following:

• A sell fee ranging from 0.1 to 0.9%
• Standard deviation of 2% from the XBX index average
• The XBX index average

The exchange categorizes three types of users: Believers, Enthusiasts, and Curious. The rate and fee depend on the type. It is lowest for Believers – 2.1%, following by Enthusiast with 2.5% and Curious with 2.9%.

Withdrawal options

You can use bank transfer (SEPA, SWIFT) and debit and credit card to withdraw BTC. You do this by choosing “Sell” from the main account page on the platform. Select the amount you want to sell and check the conversion rate in your fiat of choice. You can also enter a fiat amount (EUR or USD) to see what you’d get in Bitcoin.

Before you can withdraw, you need to create an order. To do so, enter your personal details and bank account data, including your country. Then, scan the QR code from your wallet app or send the BTC value of your choice to the wallet address. The payout will be transferred once the exchange gets your coins.

At present, Coinmama’s limits are quite high. If you’re using bank transfer, you can carry out daily transactions of up to $15,000. You also have access to your account around the clock and there are no hidden fees.

Supported countries

Coinmama supports all but the following countries or territories:

• Iran
• Israel
• Cuba
• Crimea
• Lebanon
• South Sudan
• Sudan
• North Korea
• Palestinian Territories
• Syria.

In addition, the states of Hawaii and New York are restricted. So are the US territories of Guam, American Samoa, Puerto Rico, Northern Mariana Islands, Virgin Islands, and US Minor Outlying Islands

BitStamp

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Fees for BTC/fiat exchange

This exchange charges a flat rate of 2% on withdrawals of more than $1,000. If you use credit card, you’ll be charged 5% of the transaction amount.

Withdrawal options

You can withdraw via bank transfer or card. Select the withdrawal method of your choice on the withdrawal page. Choose Withdrawal in the main menu or follow a designated link to withdraw cryptos. Select BTC in the drop-down menu and type in your address as well as any memos, destination tags, or other information if required. It usually takes one to three business days to credit a SEPA transfer, excluding weekends.

Supported countries

Currently, BitStamp supports all EU member states and most US states. Some US states might require further ID verification.

In addition, the following countries and territories are supported: Monaco, Montenegro, Serbia, UK, Switzerland, Norway, Gibraltar, Iceland, Greenland, Turkey, Andorra, Moldova, Åland Islands, San Marino, Hong Kong, Liechtenstein, Isle of Man, Faroe Islands, South Korea, Australia, New Zealand, China, Singapore, Taiwan, Israel, South Africa, Chile, Japan, Argentina, Brazil (post-Liveness), Kuwait, Cayman Islands, Qatar, Peru, Madagascar, Mozambique, Saudi Arabia, India, Puerto Rico, Dominican Republic, Curaçao, Bahrain, French Polynesia, Dominica, Jordan, the Bahamas, Trinidad and Tobago, Barbados, Brunei, New Caledonia, Guadeloupe, Réunion, Jamaica, Paraguay, Martinique and Sint Maarten.

Bitfinex

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Fees for BTC/fiat exchange

You need to bring your account up to full verified level to withdraw any fiat currencies following exchange. The options are USD, GBP, EUR, CNH, and JPY. Then, go to the withdrawal page, choose one of these currencies, and proceed to withdraw the amount of your choice. You’ll find your name and bank details pre-filled.

The exchange processes withdrawals within five days to two weeks on average. There is a minimum fee of $60.00. The fee on fiat withdrawal is 0.1% of the respective amount. You can also order an express withdrawal if you need to. These come with a 1.00% fee and are processed within one business day.

Withdrawal options

You can withdraw via bank transfer (SEPA, SWIFT) as well as credit and debit card. The process is relatively straightforward. You must fill in an external address to send the money, choose the amount you want to withdraw, and choose one of three wallets to withdraw from. A list of the wallets available is here.

Supported countries

Clients from Ecuador, Kyrgyzstan, Bangladesh, and Bolivia may not use the exchange. In addition, no US persons may use their services, neither directly nor indirectly.

Okex.com

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Fees for BTC/fiat exchange

Okex makes a distinction between users based on trading volume. There are regular users and VIP users. Regular ones are distributed in tiers based on how much they hold on the exchange. VIP users are differentiated by the volume of their trades. The tiers determine the exchange fee. You’re entitled to a discount based on the highest fee tier. Generally, the fees range from -0.010% to 0.150%.

Withdrawal options

You can withdraw to a bank account, debit card, credit card, or PayPal.

Supported countries

244 countries are accepted. The US is a notable exception.

Gemini

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Fees for BTC/fiat exchange

This exchange only supports US dollars as fiat. There are no withdrawal fees. There is a 1% exchange fee, which varies depending on the 30-day trading volume. It is lower on higher volumes.

Withdrawal options

Gemini offers bank withdrawals via SWIFT or SEPA transfer and debit card withdrawals. They have introduced ActiveTrader for the ETH/EUR, BTC/EUR, ETH/GBP, and BTC/GBP trading pairs.

Supported countries

You can see the full list of supported countries (extensive) here: https://www.gemini.com/areas-of-availability.

Cash Out to Banks

SEPA (EUR) and ACH (USA) transfers from your bitcoin exchange to your bank are free, or nearly free in the case of SEPA transfers. International wire transfers can be relatively expensive, depending on the amount you withdraw. With BitStamp withdrawing 1 million USD via int. wire transfer will cost $1,000, as they charge 0.1% for that.

When you withdraw to a bank, the bank will typically want to check the origin of your funds. It’s important to be prepared. You need proof of the source, be it an earlier purchase, gift, or earned. If it was earned, you need to provide information about the company. The bank might ask for a screenshot of your wallet transactions.

If you have held the Bitcoin for a long time, a screenshot of your wallet showing that you had BTC on your wallet at a low price years ago may suffice.

With more and more major investors now investing in Bitcoin, and Bitcoin even being recommended by reputable financial advisors as part of a modern portfolio, it is very likely that banks will become increasingly crypto-friendly.

Withdrawals via Bank Card

Credit card transfers are always very high on Bitcoin exchanges (if supported), it would be around 3.5% of your withdrawal amount. This really makes no sense at all, you don’t want to throw your money down the throat of Visa and Mastercard.

Fintechs

Fintechs such as TransferWise, Revolut, and Skrill tend to charge high fees on bigger transfers. Accessibility is poor as they don’t have any real world branches, only their websites/apps and, what’s more, these services can block online accounts due to anti-money laundering measures.

Transferwise

You can transfer Bitcoin from an exchange to an account with TransferWise. While receiving the money from the exchange may be free, transferring the money from TransferWise may incur high fees. For example, the fee is around 0.31%. This is more than EUR 3,100 on a transfer of EUR 1 million. Then again, if you have a million, this might not be a problem! There is a limit of $250,000 per transaction and per day, but no limit on currencies other than US dollars.

Revolut

You can cash out with Revolut and transfer the money to your bank. Standard plan clients are charged a 2.5% cryptocurrency exchange rate. Metal and Premium plan clients are charged 1.5%.

The fee on SEPA transfers is £0.5 per transfer. On SWIFT transfers, it is £5 or £3 if it’s in US dollars. Local transfers in base currency are free.

Bitcoin ATMs

Bitcoin ATMs can potentially be used for cash outs. It’s possible to make daily withdrawals until you’ve cashed out your total amount. On the downside, the fees are very high, and you can’t always rely on the ATM’s having been replenished sufficiently. So if you’re unlucky you may only be able to cash out a small portion that way. But after all, this would be the only “anonymous” way to get your money in your hands.

Tax Laws

Payout time can be important depending on the tax law in the respective country. In Germany, payouts are tax-free within a year of buying Bitcoin. We provide an overview of the tax laws in the US, UK, Canada, and Australia.

USA

If you hold Bitcoin as a capital asset, it is considered property for tax purposes and general tax principles will apply. Any gain is taxed as a capital gain or loss. Bitcoin miners have to report the crypto as income. The IRS mandates that taxpayers mining BTC are to include it in their gross income following determination of the value in US dollars on the day they received it. Self-employed miners are liable to pay self-employment tax on gross earnings minus any applicable deductions.

UK

In the UK, there are no taxes on purchasing or holding crypto. However, any sale is subject to profit tax and every different crypto is considered a separate asset subject to Capital Gains Tax. The sales price is the market value of the crypto you get. The market value is used if this crypto cannot be valued for whatever reason. ICO tokens are a case in point.

Canada

According to Canadian law, a barter transaction is one where taxpayers pay for something using BTC. Thus, BTC is subject to tax either as capital gains from property disposition or income from a business source.

Australia

Like in the UK, there are no taxes on holding or buying cryptocurrencies. Selling cryptos is subject to capital gains tax. If you make a profit of 1,000 AU dollars, it will be subject to this tax. Exchanging or trading cryptos is taxable as well. The market value of the coins you buy forms the basis of the capital gain.

You have a question? Let us know in a comment and we’ll try to answer it.