The editors of Profinvestment.com offer detailed instructions on how to legally and safely cash out Bitcoin in 2022. This can be done in different ways, let’s consider the most comfortable of them: cryptocurrency exchanges, crypto exchangers, wallets, electronic payment systems, peer-to-peer platforms, Telegram bots, as well as Bitcoin ATM, also called cryptomats. We will also touch on the topic of how legal it is to conduct such operations in the Russian Federation, the Republic of Belarus and Ukraine.
Legality of Bitcoin
Different countries treat cryptocurrency differently, from a complete ban to active support.
In Russia
In February 2022, the State Duma adopted in the first reading a bill on the taxation of transactions with cryptocurrencies. Digital assets are now officially property, and therefore income from them is subject to regulation of the Tax Code. The advantage is that now the owner of the coin has the right to defend his rights in court and count on legal protection.
Features of the project:
- Income from transactions with digital assets is subject to income tax or personal income tax. Citizens who make transactions with cryptocurrency worth less than 600,000 rubles per year are exempt from taxation.
- Cryptocurrencies are not subject to depreciation and are not subject to VAT.
- There is a fine of 40% of the amount in case of incomplete payment of tax.
- There is a fine of 10% of the amount for missing or incorrectly filling out a declaration.
- A fine of 50,000 rubles is provided for failure to comply with declaration deadlines.
The State Duma Committee on State Construction believes that it is also necessary to include the concept of cryptocurrency in the Civil Code in order to determine its relationship with concepts such as money or digital rights.
In Belarus
On December 21, 2022, Decree No. 8 “On the development of the digital economy” was signed in the country. According to its provisions, a preferential legal regime for residents of the Hi-Tech Park will remain in effect until 2049. It creates comfortable and relatively free conditions for resident companies. The mode is aimed at working with companies in the IT sector and the digital economy.
In particular, until 2023, citizens of the Republic of Belarus do not pay taxes on income from their cryptocurrency transactions, and companies are exempt from VAT and income tax, and their income tax rate is also reduced. Instead, a park management fee of 1% of gross receipts is applied.
In Ukraine
In December 2022, the Rada approved the bill “On Virtual Assets” in the first reading. From this document it follows that this market will be regulated by the Ministry of Digital Transformation. Legal regulation of the sphere will allow cryptocurrency organizations to legally operate in Ukraine.
Based on the bill, digital assets are an intangible benefit, the nuances of its use are determined by the Civil Code of Ukraine. Thus, virtual assets can certify property or non-property, and all the restrictions that apply to the use of other objects of civil law are applied to them.
Procedure
1. Choose a direction. For example: bitcoins (you give) => to a Sberbank card (you receive).
Or like this:
2. Enter the amount to be withdrawn and indicate personal data (valid E-mail, card number, recipient’s full name). Click on the “Pay” or “Proceed to Payment” button.
Sometimes, to complete the operation, you need to confirm that you are not a robot and check the “I agree to the terms” box. Some services, before withdrawing cryptocurrency in rubles to your card, may require you to confirm the debiting of funds from your BTC wallet (in this case, just follow the instructions). After confirming the transaction, you will receive an SMS notification that the money has been successfully credited. The process takes from 5-20 minutes (usually) to 3 days (rarely).
In the same way, you can withdraw funds to Yandex.Money, WebMoney, QIWI and other electronic payment systems.
Withdrawing cryptocurrency through exchanges
For withdrawal, you can use exchanges where digital coins are traded and exchanged between platform users. First, let’s list the cryptocurrency exchanges with withdrawals in rubles:
Deposit “Growing Interest” UBRD, Individuals. No. 429
up to 9.5%
per annum
from 50 thousand
300 days
Make a contribution
- KUNA;
- bitport;
- CRYPTONIT;
- BTC-E;
- Livecoin;
- Exmo;
- CEX.IO;
- ECOIN.
The algorithm of actions in this case is more complicated:
- Create an account;
- transfer crypto coins to the exchange wallet;
- exchange them for fiat currency (rubles);
- convert into codes and cash out at the exchanger or withdraw in another convenient way offered by the selected exchange.
Step-by-step instruction
Let's take a closer look at how to withdraw bitcoins into rubles, using the example of the well-known EXMO exchange.
Step #1. Registration.
Step #2. Registration confirmation (follow the link from the letter sent by email).
Step #3. Transfer of cryptocurrency to the address of the created wallet on the exchange.
Step #4. Exchange digital coins for fiat currency (rubles).
Step #5. Withdrawal in a convenient way (each option provides for a certain limit and commission).
- Option A – on the card:
- Option B - create EX-CODE,
and then cash it in an online exchanger.
How to withdraw cryptocurrency anonymously?
Bitcoin can be withdrawn anonymously (legally) using the Advanced Cash payment system. Some cryptocurrency exchanges (Livecoin, WEX, EXMO) provide the opportunity to directly withdraw fiat money to the Advanced wallet. The principle of action in this case is quite simple.
Contribution “Only advantages. Promo" Loko-Bank, Lits. No. 2707
up to 8.7%
per annum
from 50 thousand
up to 1100 days
Make a contribution
Step #1. After registering in the system, you need to top up your account with bitcoins.
Step #2. Open the “Funds Transfer” tab and select the appropriate option:
- through exchangers;
- to a bank card;
- to ADVcash card;
- between wallets within the system;
- into electronic currency (Payeer, Perfect Money, etc.);
- in cash.
For those who plan to use the service to withdraw cash regularly, it is better to order an ADVcash/MasterCard card (EUR or USD). This will make it possible to withdraw crypto coins at the right time, since money can be cashed out at any ATM, in any fiat currency (an additional commission is charged for exchanging euros or dollars for rubles).
Use a VPN
The average person sometimes thinks that to use a VPN you need to have certain technical skills. In fact, this is not true - most secure connection programs have a clear design and allow you to activate all functions in just a couple of clicks.
Let us remind you that the Opera browser has a built-in VPN solution, available to users of both desktop and mobile versions of the software. A VPN will provide an additional layer of protection when logging into your account on the exchange, which will significantly reduce the chances of your password being stolen.
Ledger Nano X and Ledger Nano S
Ledger is considered the leading manufacturer of hardware wallets. They are packaged in the form factor of a standard USB flash drive and are known all over the world, especially the Nano X and Nano S models. Both models are distinguished by increased security and versatility. The list of supported cryptocurrencies includes several hundred items, including tokenized assets.
The filling works according to the NIST certificate for generating random numbers and protecting signatures. In fact, inside you are allowed to create another 100 wallets with millions of unique addresses. Some of them can be switched to hidden mode, and the data will become indistinguishable from system information. Only the owner will know about their existence. The copy is created using a 24-word mnemonic password and can be activated if the device breaks down.
Ledger Nano X costs 144.5 USD, and Ledger Nano S costs 71.66 USD.
BitLox Wallet
“Portable, safe, chic” - these are the words that greet us on the main page of the manufacturer’s website. In addition, the wallet is also miniature - only 4 mm thick and weighs 25 grams. At the same time, the metal case is waterproof and shockproof. A standard microUSB connector is used for charging. You can carry it with you always and everywhere without worrying about the safety of your data.
Anonymity and confidentiality are top priorities. BitLox offers several pin code settings separately for the device itself, wallets and transactions. It also supports NIST and generates random wallet addresses, making transfers as secure as possible. The hidden wallet even has the ability to decline transactions. Several languages and BIP 32/BIP 39 standards are available in the settings.
Can be yours for 148 USD.
Keep your passwords safe
Where do you store your two-factor authentication keys and exchange account passwords? Are they written out on paper, separated and in safe places? Or hidden in a .txt file on your computer? You might be surprised, but many people prefer the second option.
Source: Newegg
But in vain - getting to digital files is much easier than breaking into your house and looking for hidden notes with treasured combinations. Most importantly, do not forget to install stronger door locks.
Create a separate email
Remember, decentralization must be observed in everything. If you have only one mailbox through which personal and work correspondence passes, then if it is hacked, hackers can cause very serious damage to both your reputation and financial situation.
Source: Memeburn
The safest thing to do is to allocate a separate e-mail for the needs of the crypto. Use highly secure services (like Tutanota). Don't forget to come up with a complex password that uses mixed-case letters and numbers.
Edge Wallet
This is one of the most famous crypto wallets. It is implemented in the form of a mobile phone application and is available for Android and iOS. The list of supported digital assets includes more than 30 items, ranging from BTC to Hercules. Edge guarantees complete asset security. All information is available only to the owner and cannot become visible to third parties, companies or websites. The owner is not required to go through an identification procedure: no email. email, phone number, passport photo, etc.
At the same time, Edge's source code is open and anyone can review it to ensure that the wallet does not copy user information. The verification was carried out by the Open Bitcoin Privacy Project, which sets standards for anonymity in the world of digital assets. A clear and user-friendly interface completes the picture, making Edge Wallet the standard for anonymous storage.
It's free to download, but the developers charge a fee when making transactions.
How to exchange cryptocurrency for Binance?
Since I already said above that the most profitable way to cash out crypto in Russia is to sell it on Binance, I’ll tell you in more detail how to do this:
- Register on the exchange
- Go to “trade” – “P2P”
- Select the “sell” tab
- We select the cryptocurrency that we want to cash out and click “sell”
Register using referral ID: AHJUCEJW and receive a discount of up to 40% on Binance commissions for all transactions.
Registration with benefits
Of course, initially you will need to deposit tokens into your Binance account; I tell you how to do this with Metamask here. Then indicate the card or account number where to withdraw the rubles. I talk more about P2P trading on the corresponding page. Below I will leave video instructions.
