Best way to cash out large sums

[Sportist]

Hi there 

I am a crypto newbie and have bought a good amount of XRP as an investment, I am not a trader. If XRP increases in value as we hope, I am wondering what the best way would be to exchange large amounts into GBP on a particular day and withdraw into my bank account?

 

[at3n]

I can't tell you which exchanges are good for GBP, but some general advice I'd suggest:

Do a test withdrawal to your bank of some smaller amount, to make sure that they will accept it from your exchange.

Be aware that large withdrawals may trigger money-laundering checks from both the exchange and the bank. Verify yourself with your exchange in advance to the highest level possible, and be prepared to prove to the bank where your gains have come from. Keeping accurate records of all transactions would be helpful to at least help you remember where everything came from.

Be aware of your laws around capital gains tax - if you sell after a large gain then immediately work out how much tax you owe and get it off the exchange asap.

Become familiar with your exchange's trading platform, and if you don't know the difference between market and limit orders then read up and experiment with small values to learn how they work. You'll need to decide which one to use at the time you sell, and knowing the pros and cons of each and how to use them effectively will help you get the most money out of the sale.

[Zerosh]

Market orders usually rip you off by charging you much higher fees, sell it using limit order but set the price very close to the current price, the exchange will think you are using limit order to sell instead of market order, save yourself quite a big sum if you are selling very large amount, because % from large sum can translate into disgusting fees.

[Sportist]

Thanks guys! That’s really helpful, very much appreciated. I’ll go have a read-around 😊

[at3n]

6 hours ago, Zerosh said:

Market orders usually rip you off by charging you much higher fees, sell it using limit order but set the price very close to the current price, the exchange will think you are using limit order to sell instead of market order, save yourself quite a big sum if you are selling very large amount, because % from large sum can translate into disgusting fees.

True, just need to be careful if the price is on a steep downtrend when trying to sell, might end up chasing it down with multiple limit orders and end up missing out on better prices. Having the understanding is key to making a good choice depending on the situation.