Bitcoin Forum

I wonder how I am supposed to sell bitcoins on an exchange. I have been considering several and have gone through the KYC/AML process for three exchanges. The problem is once I sell my coins they might ask me to prove where I got them from. Keep in mind I am not intending to withdraw the FIAT, I just want to sell high and rebuy lower, and withdraw the coins.

The problem with proving the source of my coins is, how the hell do I do it? I bought them on MtGox and they can't ask MtGox for verification. Even if they did, the coins have gone through several addresses over the years. I can't even trace it back to the MtGox purchase since they went through other exchanges (and got mixed).

So what is one supposed to do here?

I never saw it before. Maybe you should use another exchange site. It's not nice when the exchange wants to know from where the BTCs came, because it can came from many different places and nobody had the obrigation to say!

Let's minimize the work first. First we startup at those three exchange you are talking about that you do a KYC thing process but still having a problem. Can you named those three exchanges?

As far as my own idea is concerned, the one who are strict to the source of the coin is the local exchange that legitimately operating in a certain country. But they are not putting that in a so much research since there it's hassle to do some deep research about where the coins came from.

How are they going to know where the coins came from?  Does any bank ever ask where you got the cash you're depositing?  No, they don't.  And I certainly haven't been asked by Circle, Coinbase, Yobit, or Poloniex where my bitcoin/Dash/Doge came from.  Whatever answer I gave them wouldn't be verifiable anyway.

Good luck.  I recommend Circle.  They've been damn easy to use, and they're reliable.  Or you could sell what you have on this forum.  Be careful of the scammers, though.  They're everywhere.

An exchange will never ask you where you got the coins from. If they do, then you are clearly on the wrong exchange. Only the government may ask you about the source of that exchanged money after the trade, and you can always tell them you had bought it from Mtgox. They might ask you how you paid for it, and you should be able to provide that proof.

it seems you're just choosing the wrong exchanger, the purpose of people using bitcoin is because they want privacy even if bitcoin is not fully anonymous you still have a chance to keep your privacy,only government have the right to ask you such important thing,if the exchangers are trying to violate your privacy then just get away,they're not worth for exchanging for now and in the future

Actually trust me. Most of the real fiat world exchanges like Paypal,Netflix,Skrill all do this. They will suddenly block your account and ask you for ID, and then will ask you for the source of the cash. If you fail to provide a convincing reason, they will freeze your funds and you will be the big loser. I believe even Cryptsy had a case like this in the recent year.

Why not use an exchange like poloniex where you can freely buy and sell without giving too much information? They have a USDT which is a US dollar tether that represents the price of US dollar.

As long as you are not intending to withdraw fiats and for deposit/withdraw you always stick within cryptocurrencies, many exchanges will not bother your documents. Just email and mobile verification are enough.

Karaken is such exchange. I guess they do not need mobile verification too for "only cryptocurrencies" traders.

Maybe you can exchange BTC/USD. You can do that in any trading platform. You have to bid low on buying USD to BTC then sell BTC when the price of BTC/USD pumps. Then withdraw it. As simple as that.

its really if there is an exchange that asked to you where you get your bitcoins because like other members said, i never have this experience and so far i am have bitcoin on polo, yobit, btc-e, huobi, kraken, they don't asked me where i get my bitcoin although my bitcoin is not big in that exchange. that exchange i have join just want me to get verified so i can increase the limit withdraw, only that and not to clarify where and how i get the bitcoin so maybe you can try with other exchange.

The bitcoin arbitrage website, once prominent, has been
 shut down amid accusations of fraud. ... the Bitcoin Trader leadership to
 publish financial audits, though such a disclosure has not been issued

May anyone suggest me a safe minor exchange to begin trading? We have some altcoin to sell. Most of them originated from mining.
We don't care cashing out for USD.

Selling bitcoin through exchange website is one among the method more traders prefer than the common users. Traders hold good number of bitcoin into the exchange websites expecting for the price variation and when price increase happens or with some profit margin post the selling for the buyers.

Op, do you know anyone who was asked to provide proof that bitcoin he is selling are obtained in a 'good' way?
I use exchanges frequently, and I never encountered anything like this. There is literally no way to give valid explanation about your BTC.

For example - if I earn my BTC through signature campaign and later decide to sell it, but exchange will ask me to tell then how I obtained my BTC.
I am afraid that there is actually no way of proving that. Plus, I think no one will be interested - unless you will be dealing with really HUGE number of coins.

even though if someone explain from where they got those bitcoins,the exchangers can't know whether the person is lying or not,the question is actually pointless,uselss,and violating their client's privacy,especially if they're forcing about it

Maybe OP does not want to go through the hassles of verifying his ID because asides that, I've never heard of an exchange asking where any coin came from.

I agree since buying and holding bitcoin alone is one safe investment people used to do. Selling them in exchanges is a proper way to get rid of scammers and having a clean and safe transaction.If you have a coin on your personal wallet, you send it alo in exchanges to sell. Create an account and observe first how the exchanges functions.

WHAT. Really? He has already stated that he has gone through/did the KYC/AML with three exchanges.


OP, please stop worrying that top exchanges would actually ask you where you got your coins. They won't. Unless there is some Huge problems with your trades(way too high,complaints), but this is still highly unlikely.

I have used a number of exchanges and never came across any that asks for source of coin before honoring my orders, so it is either OP is having something to hide or the association of the coins with Mtgox raised a red flag. I fault the op choice of words, they sound like half truth to me.

I suppose you deposited though a wallet, it history should be a pointer to the source if that is really how it got to Mtgox in the first place.

You just send them a platform, like Kraken or Huobi and press the sell button. As simple as that :D !

this is ridiculous,asking for the origin of coins I mean
no,seriously,wtf
bitcoin is supposed to be decentralised and anonymous
what you should do is go to any bitmixer service and just mix your coins
so no further questions asked by overzealous exchanges
have a look in the service discussion section,I would suggest bitmixer as the oldest and the most reliable one

I never had any issues while selling bitcoins on any exchange, I usually prefer yobit and localbitcoins to sell my bitcoins. You can try these sites, you won’t have to provide your KYC details or anything like that. You can transfer your bitcoins on these sites (with the personalized wallet address you receive) and then sell your bitcoins without any problem. Make sure that you are adhering the limits of the exchanges and dealing within prescribed limits otherwise they may ask you to verify your identity.

Well u can sell ut bitcoins at zebpay or coinsecure .which ever u prefer it will be the best for u .and remember there are many scams out in the market .so be careful while selling the bitcoins .its better to trade with people with some trust .happy bitcoins ..kudoos :)

trading with an individual is indeed risky and i suppose to trade with a company which proven having good service and trusted for a long time
even though you can always negotiate with the price if you trading with an individual but the safety is the most important thing
prefer having little lower amount of money than losing whole bitcoin

Yes you are right and i think the OP must sell bitcoins to cash money or he can try selling bitcoin on localbitcoin, paxpul or other exchangers that doesn't need verification ID. Because the OP has problem with verification ID and wanna be anonymous.

Yes that is a a fact that there is never an issue while buying or selling bitcoin, I think that is more as easy to buy or sell bitcoin using an exchange, as there are so many exchanges and al most all are trusted, you can sell your bitcoin on the spot at  market rate and can also put your order and when the price of bitcoin reach to that limit it automatically sell in the market.

Selling bitcoins on exchange is not a rocket science but still it takes 5 to 10 trades to learn how the exchange works (in terms of user friendliness, pricing etc) and call, put options works great but to be honest, I use it rarely. I believe in on spot trading and even though most of the times I prefer automation for doing regular tasks,  I love to watch chart movements and thus I manually trade instead of triggered one. 

In fact it is not such a difficult job to sell bitcoin but if you have done it before, if you are a brand new in an exchange and visit a exchange it will be really confusing for you in start, as for every new job you need some guidance to start and same in the case of exchange, you need a proper guidance about exchange.

I think you should be patience to try every address you made. Also, if you beed help just communicate in their site and tell what is you problem. They would solve it immediately.

Absolutely agree, to be honest I am great believer of good design and as a result I cannot tolerate badly designed websites (and even lower fees doesn’t matter when it comes to attracting customers like me).  I have used many exchanges so far but very few of them had good design and rest was pure crap. User friendliness is most important thing because ultimately it affects our each trade in one or another way. You don’t wanna lose a good opportunity by wasting time in how to buy or sell on a particular website.

For me ive never experience a problem in selling bitcoins on an
exchange. I used ccex, and coins.ph where Im selling my
bitcoins always.

i have an experience with localbitcoin and not selling bitcoins on an exchange because i don't like with the fee but i am prefer to sell my bitcoin with friends and its because i really trust him and he will help me to accept my bitcoin. and the best thing is he don't make the fee too much for me so i can save the money.

There are so many other exchanges that are reliable and trusted, and whose transaction fee is also reasonable, I think selling bitcoin without an exchange is highly complicated and lot of practical risks involved. I will always recommend you to always use a trusted exchange for your bitcoin selling or buying.

On Yobit you don't need to prove anything, you deposit your bitcoins and then you can sell them for dollars, rubles, euros or some alt coin maybe.
When you decide to trade, you need to finish that and withdraw the coins. Golden rule never hold your coins  in some exchange wallet longer then its necessary. Good luck my friend, it will be hard to catch when bitcoin is going up or down.

there is many exchange to sell your bitcoin with easily and i recommend the localbitcoins because i  always buy and sell my by localbitcoins and i feel that localbitcoins is really too much safest exchange and i never face to to any scam with localbitcoins.

Cool down mate, nothing to get so much angry and if won't help newbies/jr members then who would ? huh anyways
Dear Anastasios you can try selling and buying bitcoins at btc-e or any similar exchange, usually most of the sites don't ask verification and if any exchange is asking for such proofs then either they intend to scam you or they want to know something which you should not share, like how you earned them.

And yeah please tell us which exchanges asks verifications so we can open them here at bitcointalk and save others.

Well I think you chose a wrong exchange platform. Those legitimate exchange site such as poloniex, bittrex, c-cex, coinbase, and other's are don't have any issue like that. why not try to other exchanger pal. thanks in advance.

although there are so much good and trusted exchange where you can sell your bitcoins, but to me i personally using Urdubit, that is our local exchange and is realy reliable to trust on them. i using it for a long time and never  experience any problem.

You can sell bitcoin actually at any exchange site platform.  Every time you get in the trading platform you will they have buy and sell, so if you like to buy bitcoin just deposit it first and then put the price you like sell it in the platform and make a sell wall then wait.

yes that is easy to use exchange platform for buying and selling bitcoin  you can also do that using local board, but still exchanges lie yobit is still the best option to use for buying and selling bitcoin. you should try to select a trusted and reliable exchange for exchanging your bitcoin or fiat to bitcoins.

You can buy and sell in bitcoin trading site like c-cex. Ut is a good trading site which you can trade bitcoin in instant. And I will suggest if you want to trade your bitcoin trade it in legit coins. But if you just want to buy and sell bitcoin you can use any trading site. Look for a trading site that has a low fee for every trade. And last one thing Don't trade bitcoin with people like peer to peer trade only at trading site.

i will offer you yobit for this purpose. as yobit is a trusted and reliable exchange that give you fantastic service, with good exchange rate. i personally using yobit for a long time.

For me the best way to sell bitcoin is by not selling them, I personally don’t trust exchange sites, for me anything that is on the internet might turn scam at any time, that is why I use the bitcoin credit card that my wallet provides it has many benefits in which when the bitcoin price rises I won’t regret selling it.

I agree that there are some scam sites are there to cheat us in online. But I found a best online website in my country they will charge for each transaction, but they are genuine. And they will not charge high percentage they take only small % for every transaction. So I didn't find any other way to sell my bitcoins. There is one more method is order card you will get bitcoin debit card.

Same here but we can use this local exchange only here in my country just like on india they had zebpay that i think they can just use this wallet in their area.. to withdraw and exchange their bitcoin..  also here in my country they are release a vcc which is creditcard will nearly to release too in the future.. they are adopting bitcoin here gradually and i hope some stores like 7/11 will accept bitcoins too..

If you trade on exchanges like Poloniex or BTC-e, they don't need any identification other than what you need to set up the account. Cashing out could be where you come in to that problem.

you are right that there is many trusted exchange for selling and buying your bitcoin with easily and i prefer that Bitsane exchange and localbitcoins exchange is very secure and safe and i personally use these exchange to trade my bitcoin.

yes yobit is really a good exchange for that purpose. i also using yobit. it is really a trusted exchange but you still need to be careful and never try to put all your money in exchange.

Can you specify what are those 3 exchange are you talking about? So that we can know where the problem start came from, then regarding you bought from mtgox, you can't trace it back, don't expect that it will go back to you. Much better for you to shift in another exchange to start a new one. Just make sure the exchange sites you are going to trade in is legitimately legal.

Actually don't use that type of exchanger . Use https://localbitcoins.com/

Yes, I almost agree with this answer, and you ought to be mentioned where exchangers so that we can help, what is your changer it.
Others will be difficult to help if the OP did not provide other clues. Because there are some places we redemption request ID to verify the data as it is, but if get asked from where and for what, I guess it then becomes the question.

In addition to this, if you need to convert your bitcoins to the local currency, you can also use localbitcoins. There you also get to know which persons are nearby you and are more trusted.

You are definitely correct, even the exchanger had no rights to ask you personal about your personal handling in bitcoin. Only they're job is to allow anyone and accept the player to do some trade to their platform. Because, we knew all here that bitcoin is giving us a security and and to protect our privacy.

Hey bro! one way or another you'll have to provide your documentation and prove your identity whether in a local exchange or international service.
So stop bi*ching around :D you just use a mixer service first for no one to be able to track your source.
If you need to sell stolen bitcoins you should try to sell to someone face to face or trade with trusted members here to receive paypal but know that stolen money will not go down easily from your throat.
For day trading purposes if some exchange isn't asking for your ID verification just stay away from them because legit services doing legal business wont deal with you without first knowing who you are and saving your information, so if you are not trying to trade for illegal purposes and have no fear of law enforcement I'd suggest is better to provide what they ask.

Idk it might be difficult to do if your new to ll of this




Have you ever thought of selling them to people in person?

What are that "three exchanges"?

Actually exchanger does not need to ask Where and how did you get your bitcoin. Most exchanger that i evet use never ask me about that shit thing. You should find another exchanger, and leave the current exchanger. I agree that it is a privacy from bitcoin user.

yes using exchange is the right decision, i think there are so many exchanges who give you service to buy or sell bitcoin or any other currency that is added in the exchange.

I don't know what your talking about your story experience, but the only things I know when I'm selling my bitcoin in yobit exchange platform I do trade it in dollar usd.

Indeed, you are right! I will support your statement. Anyone has the right to buy bitcoin in any exchanges. But if they insist to get your privacy that's the sign for you to avoid it and stay away from it because Bitcoin was decentralized.

The question is being you going to get taxed on it, I mean for some people and some countries you are not allowed to exchange any foreign currency, and that includes bitcoin, and receiving money from sources that are not stated and for things that are not real is illegal, this is the current problem of bitcoin that it is not stated in a law directly, because it is not considered real money.

That is for the countries which doesn't consider bitcoin as a legal currency. However, in mamy countries, there are bitcoin exchangers than can be used to buy and sell bitcoin using fiat money. If a country can have this exchanger, then bitcoin would be consider as legal currency for that certain country.

I never experience that up to the present since I've sold bitcoin many times before. why don't you try to do in the other exchange exchange so you may not encounter that kind which is something fishy going on. Try Poloniex or bittrex.com

This is the something I want to said you experience is very strange. Have used poloniex to transfer before and I was never ask to prove how I generate my bitcoin or other crypto currencies! I think try others exchangers again outside the one you done before and I think you will successfully convert you coins.

You can sell bitcoin in exchangers site by just depositing it and just selling it to the bids of the buyers. But before you do that make sure that you will choose the best and safest exchanger site that will suit to you. You can use localbitcoins because it is very trusted site and i already do a lot of transactions with it and i can say that it is one of  the best and safest site for me.

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that's sounds fishy, an exchange asking where does your bitcoin came from. That's not good I think, you better stay away in that exchange. besides there are many other exchange site where they are asking where you bitcoin come's from just important is you buy bitcoin on their exchange site platform

When exchanges are dealing with fiats, I guess those KYC information are mandatory for preventing money laundry.

That is the reason some exchanges are asking the source of bitcoin from which it was earned from. I'm not finding anything wrong with this action of some exchanges because we need to comply with government regulations on preventing money laundry.

Are you saying bitcoin is coming from exchanges who sell it? Every bitcoin is generating via the mining process and it will consumes the network fees for the every transaction. Via exchanges you can just buy or sell bitcoin as normal person or you can be start trading as trader and make profit.
Best selling places to get fiat for bitcoin are Yobit, localbitcoins, polenix and coinbase.

i think it is not such a difficult job i think everyone has their own choice. to me i personally using urdubit for selling my bitcoin for my fiat currency, i am using this service for such a long time and for every time i found it as reliable and trusted and will always like to continue it in future also.

I agree with you, I also use this service. I had no problems with the sale of coins. Everything is very simple and reliable. I love such services that work without problems

Never had sush problem on poloniex or bitfinex. USed liqui and cryptopia as well without the hassle. They ask you for id verification when there is credit card or bank account involved, never been asked where the funds come from.
You can always say the "tipping" in bitcointalk as been great lately:)

There are exchanges asking mobile number verification as basic one. I remember livecoin.net is having mandatory rule like that. Still I will go for producing some of my information as I do not feel any uncomfort on sharing those details because sometimes I just use my only verification alone mobile number not my personal one.

Yes you need to do specific thing to sell your exchanges properly without problem. You will need to know your costumer to have a background on selling because it is a part of trading. Decision making is a must. Just think on the thing you will need to consider as people out there want easy money and like to deceive people on value. So if we are going to sell bitcoin is better to have an experienced and always transact on the people you trusted as much you trust you exchange.

I agree with you, you always need to choose a reliable exchanger. You can look in the ranking and choose the best one. Let it not give the highest price, but it will be reliable. This is the easiest way to sell bitcoin and stay not deceived

In that case, I'm not experiencing that already even I am trader. I trade in many exchanges site but not kind of issue. So for the advice, you need to give what they want like what he said, 'where it came from'. Tell him the truth even short words or long words. And it is for your security also why that is happening to prevent lost your money from scammers or hackers.

In my country, I should not report on where I got money from. I'm not sure that banks have the right to ask this. There are always exchangers who will not ask such questions