Most traders exchange cryptocurrency for rubles through exchangers and exchanges. These options are popular, but there are pitfalls. You can, for example, lose money on hidden fees or become a victim of scammers
The majority of users need to cash out cryptocurrency. But at this stage, you can make a lot of mistakes that will lead to partial or even complete loss of money. For example, you can lose part of your capital on hidden commissions or become a victim of scammers. We are talking about the most popular ways to withdraw digital assets and the possible risks.
Most often, exchangers are used to cash out cryptocurrencies. These are services where you can buy or sell the most popular digital coins for fiat money. You can receive funds to e-wallets, bank cards, cash at ATMs or by phone number.
To cash out cryptocurrency through exchangers, follow these steps.
- Select the asset that you want to exchange, for example, for rubles
- Choose a method of receiving rubles: card, electronic wallet, etc.
- Enter the number of the card or account to which the rubles will be credited
- Specify withdrawal amount
- Provide personal information. In most cases, an email is sufficient, but sometimes the full name is also asked
- Confirm withdrawal request
Then the service will offer a wallet to which you need to transfer the cryptocurrency. It is very important to send exactly the amount indicated in the application. You can be wrong here if you do not take into account the commission charged by the exchange for withdrawing funds. In case of an error, the service does not recognize the transaction, and it "hangs" indefinitely. This problem can be solved only by contacting technical support.
It is even more important not to be mistaken with the wallet number. If you transfer funds to a different wallet, which was indicated by the exchanger, the coins will be irretrievably lost, since operations in the blockchain cannot be canceled.
After you send the funds to the wallet specified by the exchanger, you often need to click the "I paid" button on the service website. If this is not done, the transaction will also hang. In this case, only technical support can help.
There are many exchangers, and everyone takes their commission for their services. Usually its size is 2-5%. The commission is included in the rate at which the cryptocurrency will be sold. You can find the most profitable option using special aggregators or monitoring. They allow you to sort exchangers by offers, reviews and other parameters.
It is not safe to use exchangers. There is a risk of using the services of scammers. Therefore, before starting to work with the service, it is important to check its reputation on the Internet. It is also safer to withdraw small amounts through unfamiliar exchangers.
There are other risks, Nikita Zuborev, senior analyst at Bestchange.ru, warned. For example, the risk of account freezing if you receive money related to illegal activities. To avoid this, you should clarify before the exchange with the details of which bank the transfer will be made.
“If the transfer is made from cards belonging to electronic payment systems (Yandex.Money, Qiwi, etc.), then the risk of receiving a dubious transfer increases sharply. We advise you to avoid such money transfers in order to minimize the risks of account freezing, "Zuborev recommended.
He advised looking for exchangers with a cash-in option, when funds are transferred to a card or wallet through an ATM. At the same time, sometimes it can be done anonymously, then the recipient will receive many transfers of 15 thousand rubles. This is not a cause for concern, such operations are not of interest to the bank's security service, the analyst said.
In addition, when withdrawing cryptocurrencies, he recommends using antiviruses that protect your computer from malware that can spoof wallet addresses on the exchanger website. Also, when choosing a service, Zuborev advised taking into account its reputation, age and duration of work, the number of public disputes, the availability of Russian-speaking support, and noted that on unfamiliar and small exchangers you can encounter hidden fees.
Now, many exchanges offer the possibility of cashing out cryptocurrencies. From them, you can withdraw funds directly to a bank card or to third-party payment systems, mainly foreign. The commission can be 2-5% and depends on the trading platform and the method of withdrawing money.
To cash out cryptocurrency through the exchange, you should:
- Select the appropriate function
- Specify the coin sold and the withdrawal method
- Indicate the amount and account to which the funds will be received
- Confirm the operation, including by email
Using large, well-known exchanges for cashing out cryptocurrencies is safer than exchangers. This reduces the risk of stumbling upon a fraudulent service. However, another risk arises – any, even the most popular, platform can go bankrupt, be hacked or embezzle client funds.
When cashing out cryptocurrency through an exchange, it is extremely important to know the passage of your funds. If they were previously involved in illegal activities, the site can block the coins as soon as they go to the wallet. It is difficult to verify the purity of assets, but when it comes to Ethereum and tokens issued on its basis, it can be done using the Etherscan blockchain explorer. If you find your wallet using it, the built-in ETHProtect function will check the funds on it.
Dmitry Volkov, CTO of the CEX.IO cryptocurrency exchange, warned that difficulties may arise when withdrawing money from the exchange. For example, the site may refuse to provide you with services if you do not provide the necessary information to verify your identity (KYC).
Also, funds sent by the exchange can get stuck in payment channels, Volkov added. For example, one of the banks in the chain of transactions may wish to suspend the transfer in order to verify the legality of the funds, or the bank, for some reason, will not want to accept such an operation. In this case, the money will not disappear; sooner or later, it will either reach the recipient or return to the exchange. But it will take time.
Volkov warned that there is a risk of losing money, having indicated his data on a fake site, copied by scammers from the site of a real exchange. Therefore, it is necessary to check how the web page looks, check its name and certificate.
The expert recommended not to use exchanges that do not have a support service, and where conditions for exchange are too good, this should raise suspicion. It is also best to avoid sites with low security standards, such as those lacking two-factor authentication (2FA). It is important to check the registration of the site, if it is not there, possible problems cannot be resolved through the courts.
“The exchange must operate legally, have a registration and legal address, the necessary licenses, certificates and reputation. When working through not completely legal exchanges, in case of problems, you will have almost no means of influence on the exchange. There is no one to sue or complain to the regulator against, ”explained Volkov.
You can also cash out cryptocurrency using p2p platforms, where transactions are carried out from person to person. On such services, the user leaves a request for the sale of coins for a certain amount, and waits for a buyer. The site acts as a guarantor that the parties to the transaction will not deceive each other.
But p2p platforms have drawbacks. For example, a relatively small number of users, which is why you have to wait for a cryptocurrency buyer to appear. Also, on such services, as a rule, there are few ways to withdraw funds, since it depends directly on users – they indicate how they are ready to pay for the purchase of assets.
You can also exchange cryptocurrency for rubles and other currencies in person with another person. But when it comes to a stranger, this is an extremely risky option. There is a high risk of losing funds. The counterparty can buy coins at an undervalued rate, disappear after receiving funds, or embezzle them. Once the coins have arrived in his wallet, there will be no way to return them without the buyer's consent.
Cryptocurrency transactions can generate income. Taxes should be paid from it, said Antonina Levashenko, a teacher at the Moscow Digital School, head of the Russian Center for Competence and Analysis of OECD Standards RANEPA under the President of the Russian Federation. She clarified that there is no separate law regulating the taxation of crypto assets, but the Ministry of Finance of Russia, in a Letter dated May 17, 2018 No. 03-04-07 / 33234, explained how such transactions are taxed.
The holders of the cryptocurrency must pay tax on their own, Levashenko emphasized. To do this, you need to deduct from the amount received from the sale of assets, the amount spent on their purchase. From the result obtained, pay personal income tax in the amount of 13% by filing a tax return.
“According to the Ministry of Finance … individuals must independently calculate the tax and submit a declaration to the inspectorate; the tax base for transactions in the sale and purchase of cryptocurrencies is defined in rubles as the excess of the total amount of income from the sale of cryptocurrency over the total amount of documented expenses for its acquisition; before the legislative regulation of issues related to the circulation and taxation of cryptocurrencies, "Levashenko said.
She added that from 2021 the law "On digital financial assets" will come into force, which already contains requirements for the need to submit a declaration in connection with transactions in cryptocurrency. But at the moment, a clear declaration procedure, as well as the moment from which the declaration procedure will operate, have not been established. However, the Ministry of Finance has already developed a draft amendment to the CFA, which may require submitting the first tax returns as early as next year.