Bitcoin Forum

Let's say you made some money through faucets, signature campaign, whatever, and you have 5 BTC.
You want to convert 1 BTC to fiat, to enjoy your vacation (unfortunately, Bitcoin is still underground and not enough merchants to pay directly with it).

How do I get the cash anonymously?

I still dont get whats the point of having a transparent blockchain. Why the fuck people has to be able to trace the history of my Bitcoins and know my total amount of BTC?

Let's say I want to use Chip Chap and withdraw some cash at an ATM (in case you dont know what this is:

http://bravenewcoin.com/news/4000-atms-bitcoin-enabled-through-chip-chap/)

I think in spain they got something similar called Bit2me or BTCPoint.

Anyway, let's say I want to withdraw that cash... you need to give your phone away so they will know the origin of your BTC and potentially be able to tell how much you got, where it came from etc, and potentially you are setting yourself to be taxed in the future, if they discover you are holding 5 BTC, or 100, whatever. They got your phone, they got the transaction, and they can easily look on the blockchain to inspect where it all came from. You know what I mean? That is just crazy. How can I avoid this shit?

I have thought about Localbitcoins, meeting with an actual person and getting the cash, but that is annoying as hell, I want to be able to withdraw money from an ATM instantly, without depending on some random person being available that may or not rob you.

I've thought about mixing, but I have no idea how that works and i have no idea if that even solves the problem.

To cash out you'd have to check localbitcoins and see if there's people near you that want to buy what you're willing to offload. The only downside to this is getting robbed or the police stinging and charging you with money laundering or some crap like that.

Some may disagree, but I don't think there is a truly anonymous way. You can, however, make it difficult to trace. I often use localbitcoins. You don't have to meet someone if you don't want to. Personally, I've met people at a local ATM, received money through moneypack, and I've also had cash deposited in my bank account from people on locabitcoins.

There is a certain risk with every method, so it's best to do some research first. Other than that, I don't know any other good ways.

Good luck.

Thats why I said I don't like localbitcoins.

I just dont know why satoshi made the blockchain like this. Who in hell is going to not do something about it if they can, to make it more anonymous?

I just want to cash a couple hundred USD to enjoy my vacations ffs.. but if I do, the blockchain will trace where all the bitcoin comes from and they can tell my total holdings. This is stupid. Everyone with half a brain is going to try to avoid this, so why not make it invisible by default?

I second the opinions above, localbitcoins is probably the best solution.

You could also try the link in my signature, Bit-X. They have a MasterCard debit card that can be used to withdraw fiat from your BTC balance. I've not used the debit card myself, so I don't know how well it works, and I doubt it would very anonymous. It is an option though.

Use an HD wallet. Your BTC will sit in a bunch of addresses that can't be linked to one another. If you currently have all your BTC in a single address, and you want to sell just some, transfer it to an exchange, then withdraw it into different addresses (of the same HD wallet), at different times, and it will be impossible to determine how much you started with.

I agree it can be inconvenient, but it feels good to walk into a public place of your choosing, check the buyer out, and release your coins when you see the cash, without even your name disclosed.


Because having hidden transactions on the blockchain make it much more complex. I understand how the blockchain works, but I don't know how you could modify it to make hidden transactions verifiable.

I agree and the money laundering laws aren't a problem if you're not unloading very large sums.

You may use mixer, but that would actually bring in more trouble to you. Because the coins that comes out of mixer are mostly traced back to some notorious source. If you can find any mixer that gives out freshly mined coins, that is a deal for you.

Once you get your coins, use www.localbitcoins.com or www.100bit.co.in for directly sell those coins. Do not need to meet anyone personally. Sell online. Just avoid to good to be true offers. That's all. It is super easy :)

The bank would know you received a transfer
what is the biggest amount of BTC to sell before it becomes a problem and raises alarm for the bank?

this still sucks compared to withdrawing cash from an ATM instantly.

I wish the devs would develop a method of connecting encrypted transference of a whole wallet to all the wallets. They might have to release Bitcoin Core 0.11.0 to do it. This is so that you could transfer an entire wallet with whatever bitcoins and addresses it contained. Once so transferred, the original owner could no longer access the wallet with his password.

The transfer would be done using something like a standard PGP address which would be incorporated into the wallet, so that only the recipient could use/access the coins and the addresses in the wallet once it was sent to him. It might be beneficial to have a second blockchain for the wallets, but it shouldn't be necessary.

:)

Such a process would have to start with encrypting a whole transfer set of private keys (that couldn't leak out of memory) to the recipient's PGP, then sending all the previously-backed up private key BTC to the transfer set, AFAIK.

Going directly to an exchange to convert your btc to fiat requires you to give your personal information due to KYC, so the viable option for me if I want to convert "anonymously" is by means of exchanging with another person. In this case, there would be no questions asked; show me your QR code for the address, you give me the money, I'll give you the btc. That simple. But there are cases when sometimes, the person that you're dealing with is a complete douche and tends to cheat you in the end (by means of robbery, this happened to someone I know when he dealt with someone)

there is only one way, chash out locally, meet the person in real life and do the transaction using a smarthphone, connected to a wifi preferably

https://www.bitquick.co/ allows you to get cash deposited directly into your bank account for your bitcoins. Of course you need to give your bank account number but only the site and the person buying will see the number.

http://www.cheapair.com allows you to book your flight using bitcoins.

http://www.expedia.com allows you to book your hotel room using bitcoins.

Unless you are doing something in-person, someone is going to need some information when you use the Internet to buy something.

I often to cash out my btc to fiat, and I enjoyed although I need to write my ATM identity, also I can use different Addy(I'm used local exchange). Used localbitcoin without use escrow or show identity is very risky right. But why op so hard want to he's transaction untraceable :-\

I have used two different methods to convert my BTCs to fiat, anonymously.

1. Sell your coins for Western Union, through localbitcoins.

2. Sell your coins for hard cash (USD, EUR or CHF). This was easy earlier, when Bitmit was there. There was a reputed seller there, who would barter bank notes for coins. But Bitmit closed down last year.  ;D

There is a point in having a transparent blockchain, IMO. But there are other coins that are trying to solve the anonymity problem with the transparent blockchain. Some of the bigger ones are Darkcoin (now called DASH, I think) and Monero (XMR). Another I've heard people talk about is Shadow Cash (SDC).

Disclaimer: I am in no way endorsing the above altcoins. They may be scams or pump and dumps or whatever else, buy at your own risk. However, just for the example in the OP, say a 5 btc vacation, any of the coins above should have a big enough marketcap to do that no problem.

So many people are trying to convert their fiat to bitcoins.

You already have bitcoins. Spend them. Put them to use.

Localbitcoin will be a great option for you, ask the person to send you money via western union
choose a person who gives good rate and has high rating https://localbitcoins.com/sell-bitcoins-online/western-union/
you collect the cash and release the bitcoins.

When you withdraw cash from ATM, your pic remains in CCTV. But, when your are selling directly to someone, bank does not get to know for what he is paying you. There is no way bank can co-relate the transaction with your bitcoin unless the person you are trading with is reporting himself, which is very unlikely.

but they know that you've withdrawn from an atm, and they will ask you where that amount was used for, if it was a big amount, otherwise they usually don't bother with anything below 1k(this is different from country to country)

You can try using localbitcoins and ask people to send you money via moneygram, or you can also use https://bit-x.com which you can find the link in my signature, they have an awesome debit card which you can use to withdraw cash in atms or use in pos and shop online. Cheers!

One on one trading is always a good choice, however you will get a fair bit of markup.

I use Gyft and get gift cards for BTC. That's anonymous.

Following the money is much easier on the blockchain than it is with fiat, that's by design. Transparency is a vital characteristic of any functional public ledger. Satoshi's design decisions will be easier to understand after Bitcoin adoption increases a few more orders of magnitude, when any technically literate individual will be able to monitor the ledger, track, and publicize the wealth movements of the world's socioeconomic elite. The jig is up for all the crooks at the top. It's going to be the printing press all over again, only this time it'll be banksters and politicians getting the boot instead of feudal royal families and their sworn Lords, insofar as there is any difference. I hear you thinking, "but why would the elites use Bitcoin when they have their own legitimate currencies they can freely print?", and my reply is that the days of indulging governments with misplaced trust are numbered.

This was Satoshi's true genius, s/he has hard-coded an unstoppable revolution. A proverbial doomsday clock for the masters of the financial universe that began counting down the moment the genesis block was mined.

http://www.gq.com/blogs/the-feed/mcconaughey-wolf-of-wall-street-gif.gif

That sounds good, but its far fetched to think Bitcoin is going to replace any national currencies. Besides that, there is always mixers etc, they would take measures to anonimize their movements.

However the process of spending the Gyft cards is not truly anonymous. For example you can buy a $2000 Amazon card from Gyft fairly anonymously, but when you use it to purchase items you could possibly leave some kind of trail back to you.

But as long as you give your phone number,you are not anonymous anymore,
The only method is to exchange it in person fiat transactions, electronics always leaves tracks

Good point.

Go to a BTC meetup. Those happen in many countries, and declare you have BTC for sale right away.



Not sure how much of a newbie you are, but you'll never make 5 BTC through faucets and signature campaigns. You'll have to work to get that much, or buy them at an exchange.

To someone inexperienced with Bitcoin trading I do not recommend moneygram or western union or any of those things. Meet someone in person at a public place like a cafe, physically get the cash, and transfer the coins. For a few hundred dollars you aren't going to get robbed unless maybe you are in a very bad part of town.

The far bigger risk is trying to do something that doesn't involve cash being placed into your hand and getting scammed somehow where you transfer the coins and don't end up with the payment.

Its true about faucet but I think signature campaign can earn that lot. Let say if you get 0.4 per week then 2.5 month should be 1 btc so you do signature campaign for around 12.5 months then you will get it, and its a long way to go but he really can have it like that and here I didnt count others that you collected it from the start you using bitcoin may be you can get 5 btc lower than 12.5 months

I think you can get 5BTC through sig campaigns. Buy some accounts, sign up, and get working! Treat it like a job! Faucets on the other hand are worthless for the most part.

Trading is done with another human.  Find a localbitcoins dealer near you with a good reputation.  Tell him how many Bitcoin you want to trade, and determine his exchange rate.  Meet him in a location with wifi.  Show him your Bitcoin balance in your wallet.  Ask him to show you the fiat.  If you are still concerned, ask to do the trade incrementally.  You send him some Bitcoin, he pays you some cash.  (it is easier if you always deal in round numbers of fiat, and determine the fractional Bitcoin equivalent, rather than the other way around) Repeat if necessary.

That is trading Bitcoin for fiat, the way nature intended it.

localbitcoins or a bitcoin ATM

Another option is that you could buy some commodity with your btc at a brick and mortar vendor and then sell that commodity. It would be a lot of work and youd probably lose some but you could probably do it 100% anonymously!

Bitcoin ATMs comply with KYC / AML, they still need your photo and fingerprint and a copy of your driver's license.