FinTech How to

How to Withdraw a Huge Amount of Bitcoin Safely

Women Withdrawing Bitcoin

Just recently, Finance Magnates noted that 99.02% of Bitcoin supply is now in profit. The implication of this is that there will be a huge number of early investors and adopters who will be interested in withdrawing huge amounts of Bitcoin in a safe, anonymous and scam-free manner.

You might be new to cryptocurrency but you have a significant amount of digital currency and are wondering how to securely withdraw fiat money now that it is bullish. 

As we approach a period where 100% of World’s Bitcoin supply falls back into profit, this piece is for you. We’ll provide a guide you can follow without falling prey to the antics of scammers and hackers. 

How do you know you are withdrawing a huge amount of Bitcoin?

Your concerns should be security, anonymity, taxation, and the financial limit of your exchange and that of your bank. If your bank account usually holds a modest amount of money, then there is a sudden deposit, your bank may be concerned and they might go to the length of freezing your account.

Furthermore, the amount of tax you will pay on huge cash out will be enormous. In the same vein, the security of your account should be paramount if you have a huge amount of Bitcoin. If your withdrawal does not trigger any of these, you are probably withdrawing a lower amount of Bitcoin.

Now that you know that your Bitcoin is worth millions of dollars and you want to cash out, how do you go about it?

Inform your Bank

If there is a possibility of a huge amount of money entering your account, you might want to let your bank know to avoid any suspicion of illegal activities or yet, freeze your account.

Depending on your region or country, if your bank does not accept such deposits, consider opening an account with a different bank.

Acquaint yourself with the local law

Knowing your region’s regulatory law on cryptocurrency will protect you against any hitch down the road. To avoid breaking the law on money laundering and taxation, you might need to get a lawyer.

Choose your exchange platform

There are many cryptocurrency exchange platforms out there. To decide which platform to use, understand the process involved, how guaranteed is your security including the transaction fees you have to pay to cash out. If you want to be anonymous, you should choose a platform that does not require too many personal details.

What are your options for exchange platforms?

Centralized Exchanges

These are third-parties brokers with a limit on how much you can withdraw daily, weekly, and monthly. Choose centralized exchanges that trade in fiat currency such as Coinbase and Kraken. Then proceed to creating and verifying your account.

These exchange platforms usually have different tiers for the different amounts you can withdraw. You need to add more KYC information to upgrade to your desired tier.

Alternatively, you can divide your Bitcoin among different centralized exchanges. CoinText has a comprehensive list of these exchange platforms in addition to detailed lists of cryptocurrencies to mine which you can explore. 

Once you have your account set up and verified, you can cash out your Bitcoin from there. Note that it might take up to five days before the transaction can be processed by a centralized exchange.

Peer-to-peer Exchange

Peer-to-peer exchanges (P2P) are known to bring buyers and sellers of Bitcoin together for transactions. They serve as an intermediary between a prospective buyer and seller. The payment on a P2P platform is directly from your buyer into your bank account.

During the transaction, P2P exchanges like Paxful and Localbitcoins hold your coins in escrow until the seller pays. After you have confirmed the receipt of the fiat currency, your digital currency is then released to the buyer.

This kind of exchange guarantees a certain level of anonymity as the information the exchange requires is not as much as that of a decentralized platform.

Over-the-Counter and Decentralized exchanges (DeXes and OTC)

Decentralized exchanges are similar to peer-to-peer exchange but while peer-to-peer platforms are centralized and keep your personal information on a server, decentralized exchanges do not.

More so, peer-to-peer exchanges hold your Bitcoins in escrow until you confirm payment receipt but decentralized exchanges create a multisig smart contract where the escrow will be held.

Over-the-counter exchanges or off-exchange is directly between the buyer and the seller without any intermediary. The two parties typically agree on the price and apart from them, no other party knows the volume of cryptocurrency or the amount paid.

Instead of selling your Bitcoin in pieces across different platforms, you can sell over the counter to one or more people. The problem with OTC is the security issues around it.


Withdrawing a huge amount of Bitcoin can only become an issue if you do not plan it properly. If you have millions of dollars worth of Bitcoin in USD, you need to pause and be thorough when you want to offload it in order to not to fall victim to fraud or be caught carrying out illegal activities by the authority.

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