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In recent years, the cryptocurrency market has become popular in Ukraine. Platforms, and not just one, have been created where the buying or selling of virtual currency takes place. However, it is important to know how to withdraw crypto correctly, quickly, and safely.
In this article, we will discuss methods of cryptocurrency withdrawal, their advantages, and disadvantages. One of the most common types of crypto is Bitcoin, so we will consider ways to withdraw crypto into cash using it as an example.
How to convert Bitcoin to cash in Ukraine?
Methods of withdrawing Bitcoin to cash.
To withdraw Bitcoin into cash, it is essential to choose the most advantageous method. There are several such methods. For example, through a cryptocurrency exchange, through an exchange to a hryvnia (UAH) card or Bitcoin. There are also crypto ATMs available for cash withdrawal. These are also called crypto-ATMs or Bitcoin ATMs.
For cryptocurrency exchange, including Bitcoin, Telegram bots have been created. Through P2P cryptocurrency exchanges, users can exchange crypto on “Telegram” using bots. This service acts as an intermediary between those buying and those selling crypto. It is quite easy and convenient to convert Bitcoin into fiat money using it.
Advantages of this method include similar wallet functions, availability of fiat currencies, and minimal transaction time.
Disadvantages of this method include unfavorable exchange rates, undisclosed fees, and no penalties for clients who cancel the transaction.
Each of these methods has its advantages, but there are also drawbacks, some of which are significant.
Let’s take a closer look at each of the options mentioned above.
How to convert Bitcoin into cash through a cryptocurrency exchange?
An online service that allows the exchange (buying/selling) of cryptocurrencies, including Bitcoin, is called a cryptocurrency exchange or crypto exchange.
It is better to choose leading cryptocurrency exchanges because they operate transparently, and their activities are monitored by specialized organizations. To begin with, you need to choose a platform through which the conversion into cash will be carried out, undergo registration, and verification (verification of the authenticity and reliability of the provided documents, identity verification).
To withdraw cryptocurrency through this service, you need to choose one of the options.
The first option is to select and buy fiat money using a specialized buying/selling service at the exchange rate at the time of the transaction. Then withdraw to your bank card or by bank transfer. Withdrawals are also available to cards with the currency being the Ukrainian hryvnia (UAH).
The second option is P2P (person-to-person). P2P is the exchange of bitcoins through an exchange order. To use the P2P method, you need to replenish your balance with bitcoins, find a buyer among the users of the platform, wait for the order to be executed, and withdraw the funds to your card. In other words, the user must find or create an order for exchange, wait for its execution.
You can also create a cryptocurrency wallet and replenish its balance with Bitcoin or convert it to USDT. Today, there is an opportunity to pay online as well as offline with cryptocurrency. There is also a bank card that can be linked to a crypto wallet without converting Bitcoin to hryvnia or another fiat currency.
Advantages of this method of cash withdrawal of cryptocurrency include speed, meaning that withdrawal of funds takes very little time, and the sale is instantaneous. Exchange fees on the exchange are insignificant compared to other withdrawal methods. You can choose the most favorable exchange rate. Leading exchanges offer several withdrawal options, such as to a personal card or by bank transfer. The withdrawal system is not complicated and transparent. There is a high speed of crediting funds to the bank card. Also, a significant advantage is the availability of technical support in case of questions or difficulties.
Disadvantages include the fact that many exchanges only work with selected money transfer systems. And there is no possibility of transferring funds to a particular currency. Also, when replenishing your balance on the chosen platform, you may be charged an additional fee. Verification will take some time. The main disadvantage is that orders are created and executed by the same users of the platform as you. And this means spending time searching for the right order and waiting for the one that suits you.
How to withdraw Bitcoin to a card via an exchange?
Transferring Bitcoins to a card via an exchange is one of the methods of exchanging cryptocurrency for fiat money.
Advantages:
- Ease of use. Most exchanges offer an interface that is easy to understand and use, making the process of transferring Bitcoin to a card convenient for many users;
- Ability to use most types of cards. Many exchanges allow cryptocurrency to be transferred to various types of cards.
Disadvantages:
- High fees. Cash exchanges often charge high fees for withdrawing funds to a card, which can significantly reduce the overall amount of money received by the user;
- Limited limits. Many cryptocurrency exchanges set limits on the amount of funds that can be withdrawn at once or within a certain period of time.
How to withdraw Bitcoin to UAH via an exchange?
You can also withdraw Bitcoin to cash through a virtual currency exchange. To do this, you need to choose a reliable cash exchange with a high rating of positive reviews to avoid falling for a site created by scammers and not lose your funds. In exchanges, there is a large number of asset pools, so Bitcoin can be instantly converted into UAH on a card. And then withdraw cash.
The algorithm for receiving cash is as follows. Choose a reliable cryptocurrency exchange, enter the required amount of bitcoins, enter the details of the hryvnia card to which you need to withdraw funds. After the transaction is approved, the cash funds will be credited to the hryvnia card. But there are nuances here as well. It lies in choosing the order processing mode. When choosing manual mode, it should be borne in mind that the transaction is verified by an operator. With a large number of incoming orders, this will take some time. But the risks of failures, errors, etc. are minimized.
Choosing automatic mode reduces processing time to a few minutes because it excludes verification by the operator. But at the same time, the risks of technical failures increase.
Based on the above, it can be considered an advantage that there is no need to create and search for orders. In automatic mode, the exchange takes place very quickly. And finding a reliable cash exchange that withdraws to a hryvnia card is not difficult. The main thing is to pay attention to customer reviews who have already used a particular exchange.
The downside is that exchange in manual mode takes quite a long time. Due to a failure, error, or technical problem, the exchange can be canceled altogether. And even worse, if Bitcoin hangs during the cash withdrawal operation. Another drawback is that no tools have been created to regulate exchanges. And this means the absence of any guarantees.
How to withdraw Bitcoin to cash via a crypto ATM?
You can also withdraw Bitcoin to cash using a crypto ATM. Crypto ATMs look like regular ATMs to the average citizen, with a screen and a bill acceptor. Through them, you can buy/sell cryptocurrency for fiat money. Cash is also suitable for buying or selling Bitcoin at a crypto ATM.
The algorithm for selling Bitcoin and receiving cash is as follows. Press the “Withdraw” or “Sell” button, specify the desired amount of cryptocurrency in Bitcoin to be withdrawn in cash. The crypto ATM will print a receipt with the electronic wallet address where Bitcoin should be sent. The receipt will have a QR code. Make a cryptocurrency transfer to the specified address. Processing the request will take some time. When the transaction is processed, press the “Pay the check” button. Scan the QR code, and the crypto ATM will dispense cash.
The advantages of this method of receiving cash include: exchanging Bitcoin for hryvnia without double conversion, and cash withdrawal takes only a few minutes.
The disadvantages of this method are: high transaction fees for buying/selling cryptocurrency, and crypto ATMs are not widespread in Ukraine, which cannot be said for the United States.
In Ukraine, crypto ATMs or Bitcoin ATMs are currently installed in several cities: Dnipro, Odesa, Kharkiv, Kryvyi Rih, Lviv, Poltava, Vinnytsia, and of course, Kyiv.
A special map of Bitcoin ATMs – locations in Ukraine has been created. It can be found online. This online map allows you to quickly find the address where a crypto ATM is installed if it is installed in your city.
Is cryptocurrency taxed in Ukraine?
In 2023, the law “On Virtual Assets” came into force, legalizing Bitcoin and altcoins. The market of virtual assets is regulated by the National Securities and Stock Market Commission and the National Bank of Ukraine. Therefore, cryptocurrency traders in Ukraine must pay taxes. But only for sales; buying cryptocurrency is not taxed. According to the provisions of Art. 165.1 of the Tax Code of Ukraine, which contains all the information regarding the income of citizens that is not subject to taxation. But the sale of cryptocurrency is subject to taxation, as it is considered that income is received from this operation. Therefore, buying cryptocurrency is not considered a source of income and is not subject to taxation.
Tax returns must be filed for the previous year by May 1 of the current year. The tax for the previous year must be paid by August 1 of the current year. Penalties are imposed for late payment or filing of the declaration, and failure to pay taxes may result in criminal proceedings.
In conclusion, among the mentioned methods of withdrawing Bitcoin to cash in Ukraine, the safest method is through a cryptocurrency exchange and withdrawing cash using a crypto ATM. Each of these methods has its pros and cons. It is necessary to study the feasibility of each, taking into account all the pros and cons, and tailor them to your situation. The main thing is to carefully consider all aspects of withdrawing Bitcoin to cash and thoroughly consider each option, taking into account the fees, reliability, and speed of each of the listed options.
