It’s no secret that cryptocurrencies have become wildly popular in the last few years. The glaring success of coins like Bitcoin and Ethereum has turned the crypto market into an appealing investment opportunity where people can earn a significant profit. Of course, at some point, you will want to cash out those profits and need to find a reliable, fast, and secure way that doesn’t cut a big chunk of your earnings. If you’re not that familiar and are unsure of how to choose, keep reading this article to see how to cash out Ethereum in Canada, and learn a few things to consider before withdrawing your crypto.
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Exchange vs. OTC Desk
Choosing the right platform to withdraw Ethereum can lift a heavy burden off of your shoulders. First, let’s discuss how crypto exchanges can help you withdraw Ethereum.
Crypto Exchanges
Crypto exchanges have been around for a long time and are an established part of the crypto industry. While some may comply with basic standards and regulations, there are many exchanges out there that take advantage of inadequate oversight and the lack of consumer protection laws. Plus, you won’t always get the best rates with exchanges, and they mainly offer limited options in terms of withdrawal methods.
They also operate rather slowly because of their lengthy verification process, during which they ask you for your personal information to establish and serve you as their customer.
What’s worse is that many of them charge unfavorable fees for trading coins. Some of them may even manipulate prices using duplicate listings!
OTC Desk
OTC Desks have become a reliable option in recent years offering hassle-free solutions for people to trade or withdraw crypto. You can withdraw, buy, or sell significant volumes of Ethereum that could easily go beyond +$100,000. That cannot happen with crypto exchanges as they provide limited liquidity and impose withdrawal limits.
Moreover, there’s no third party involved in OTC crypto trading, which means no unnecessary hang-ups or additional fees during the process. You can contact the other party without worrying about keeping your financial and personal details private.
In a nutshell, OTC desks are the safer, faster, and even cheaper option compared to traditional exchanges. Now, the next question is how to cash out Ethereum in Canada with OTC desks.
How to Cash Out Ethereum in Canada With OTC
You can cash out your Ethereum and a variety of other cryptocurrencies using OTC desks. But before you do, you need to open an account with the OTC desk and deposit your desired amount of Ethereum. You also need to complete the Know Your Client (KYC) onboarding process and verify your account.
Once the amount is fully deposited in your OTC account, you’re now free to cash out, buy or trade Ethereum with other cryptocurrencies. How is crypto taxed in Canada? That’s outside the scope of this article, so please tune back in the future. If you choose to withdraw, you can have the money transferred to your bank account via wire transfer or other methods. That’s it!
Elements to Consider
When it comes to selling crypto for another crypto or fiat money, you need to consider a few things:
Taxes
According to the Canada Revenue Agency (CRA), you’re required to pay taxes if you trade cryptocurrencies. You either have to pay a business income tax or capital gains tax.
Make sure to consult with an expert to review the specifics of your case.
Fees
As you transfer Ethereum into your bank account, you’ll pay an exchange fee in most, if not all cases.
Crypto exchanges are known for charging variable rates that can drain your profit, especially on large transfers. But OTC desks charge a fixed rate of 0.3-0.4% on all trades.
Also, It’s good to know that some OTC desks don’t charge any deposit/withdrawal fees!
Price
Keep an eye on Ethereum exchange rates to avoid underselling your coin. The ideal time to sell or withdraw would be when there’s a price spike.
While it’s hard to predict the next Ethereum peak point in the market, historical data can give you valuable insights into the market trend.
Bottom Line
In the last several years, OTC desks have grown significantly in both scope and structure. There’s a wide variety of these providers helping individuals and businesses trade millions or even billions of dollars a year. If you want to sell Ethereum for Bitcoin, OTC is still a great option and worth investigating.
The fact of the matter is they have managed to create an established customer base by offering unique advantages. OTC desks have removed barriers such as low liquidity, lengthy transaction times, variable fees that frustrated crypto owners previously. Moreover, you don’t need to worry about protecting sensitive financial and personal details, as there’s no third-party involved.
If you’re wondering how to cash out Ethereum in Canada, there’s no better place than a reliable OTC desk. Whether you’re looking to cash out your profits or if you want to keep playing the game, contact us right now! We will get you onboard in no time and take care of everything!
