4 Ways You Can Cash Out Bitcoins Without Paying Taxes in 2024

Right now, when Bitcoin’s rates reached their highest values in history, most of the people who are owning some of them are trying to cash them out, and get the chance to be rich for a few years, or even for a lifetime. But, the taxes may affect all the calculations badly, and many crypto owners are looking for low-fee transactions or tax-free withdrawal.

According to experienced traders, if you keep your coins in your digital wallet, they won’t catch anyone’s attention, but if you want to cash them out, then you must calculate the fees and taxes. Sometimes, they are huge, and you may want to keep all the savings for the lifetime, but surely you don’t need to do that, since there can be some ways to take your money with the lowest fees possible.

The taxes depend on the country where are you based. Some amounts have taxes almost equal to zero, and you have to plan those activities very carefully. In the USA, cryptocurrencies are considered property, not income, and different tax calculations may be applied. Having a property of any type requires careful tax planning, and if you can do that, you can decrease the price a lot, since the default tax is 37% of the whole amount – which is really a lot.

But, let’s see if you can really exchange and trade, without paying taxes for your crypto belongings:

  1. Buy gold with Bitcoins

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As you know, gold is a tax-free asset, and both the crypto owners and gold holders know that fact. Now, they are offering their assets for exchange, and it was never easier to avoid the taxes than investing your cryptos in gold.

This is a nice solution if you want to keep your savings, without losing some amount through the transaction process. Also, gold is a great asset to prevent your money, and there is no sign of huge ups and downs.

  1. Checkup with your retirement fund or life insurance

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In the USA, people are allowed to have their Individual Retirement Account, and you can invest your Bitcoins in that, especially if you are eligible for ROTH IRA. Keep in mind that this option is available only in the USA, and if you come from another country, you may have different options, and not every retirement fund is tax-free.

Another option is to invest them in your life insurance, and offshore private placement insurance is heaven to those who want to pay a minimum amount of taxes. But, the catch is that you have to invest up to $2.5 million to open the account and become eligible for this type of insurance.

  1. Go to a tax-free area

img source: pexels.com

Some countries don’t charge taxes on crypto savings, or any income in general. So, if you have an option to move somewhere so you won’t need to pay taxes on your Bitcoins. Another option is to give up on your current citizenship and escape the taxes. For example, no matter where you are in the world, if you still have your citizenship, you will be anyway charged the taxes. So, taking a tax-free country’s citizenship is one of the solutions for this common problem.

This is not an easy solution, knowing that some countries require the person to live and work there for a few years until they become eligible for citizenship, or marry a native person. So, think twice before taking any risk, and see if it’s better to pay your taxes instead of giving up on yourself and what you are for a few hundred dollars’ savings.

  1. Start using your crypto savings

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In so many countries it’s completely legal to buy and pay for goods with your Bitcoins. For example, you can gamble online, pay for writing or freelance services, get paid with them… Once you start using your Bitcoins, you will be surprised how many possible options are there to use them. As you can see on www.advfn.com, this will be a good year for the altcoins, including Facebook’s Libra, which is waiting for the big launch. That means, the number of cryptocurrencies is still growing, and the best way to save on them is to actively use them for different purposes.

Some people claim that they successfully transferred their savings into their bank account, by direct exchanging some banks are offering. But, keep in mind that this option is not available everywhere, and in most cases, it will lead to huge tax charges. Also, if you “dig deeper” on the Internet, you will find a lot of options, including crypto debit cards, or an option to sync your Visa card with your digital wallet. But, be careful with your bank transactions, because the banks are the first instance that is fighting against the black and grey economy. Sometimes, some things may look too good to miss, and you must be careful with them too because if you transfer a significant amount of money to your regular bank account, that’s an alert for the country to take their part in a form of tax.

Img source: unsplash.com

You can try to over smart the system (not literally), by transferring small amounts of money or owning an account in a non-CRS jurisdiction bank. If you have a crypto debit card, it’s better for you to use it to pay for the products. You can even consider investing in real estate with your crypto savings. The safest way to spend your Bitcoins and other cryptocurrencies are not to get out a lot of the crypto world.

The most important thing, in this case, is not to take any risky action, that may lead to unpleasant outcomes. Plan your activities, see how much you can afford to spend, save the money in your digital wallet, and don’t trust those who are saying they will exchange your Bitcoins for money without a profit – that’s simply not true, and you must be careful with every step you take, especially if you own a significant amount of crypto coins.