Bitcoin Forum

I bought crypto coins during the winter of 2018-2019 when prices were bottomed out.  So when the next big price surge tops out, I'll have some nice PROFITS.  I've got accounts on several exchanges, like Coinbase, Gemini, and others.  All seem to be reputable with the FDIC banks, and I'm confident I can withdraw my cash from exchanges to banks and then get cash from the banks.

BUT -- I don't think I want the banks knowing all my business, and I certainly don't want to pay too much in taxes.  Some ok, but not everything.

So what are my options for transferring numbers in my exchange account to cash in my hand, nice and anonymous and tax-free like?  I've heard of gift cards being charged up with exchange funds and withdrawn from ATMs.

Any details to share?

Maybe you should have a look at debit cards which you can load with bitcoin. You can then just easily get your money at a ATM. Guess that's the best way do cashout your earnings.

I would just go with cash in the mail. Some users here are willing to do it, but your best bet is to head over to localbitcoins.com and request that, since it seems like you're from the USA. Lots of options there

What's the generally accepted procedure for cash in the mail?  I send my bitcoins off to someone on the internet, then cash never arrives?

That's what escrow is for. It's definitely hard to mediate, if the cash doesnt get sent, or there is cash missing, it can't be proven. And you could also claim that the cash didn't arrive, when it did. It's definitely a risk that you take if you want the reward of your bank not seeing it. You'd have to choose someone you really trust.

An alternative idea, is to ask a close friend to do it. You will sell the BTC through their bank, and they give you cash.

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I know where there is a bitcoin ATM machine, but the cut they take is ridiculous, like over 10%.  I'm not paying that.  Is there a normal debit card I can buy at a store which can be loaded with funds from coinbase, then cashed out at an atm?

I guess everyone just skipped what I was saying huh?

That's actually a brilliant solution. I wrote it down when I need it in the future. :)

You can use third-party services like localbitcoin or local sellers in around your city. I am sure they can help you to get your money but my advice is you don't have to withdraw all of your money in the one-time transaction because that will make your government gets the warn and they will investigate your account. But if you can give proof to your government that the money in your account comes from legal thing, then I don't think you need to worry about anything. I never used ATM to withdraw so I don't know how it works.

I don't know of gift cards, and the options are rather limited.
The best option should be localbitcoins, meet the buyer face to face and transact for cash. It's a bit risky imho (humans are unpredictable), but this is the best option.
Another option would be Bitcoin ATMs. Under certain amounts they *should* work without ID (but most probably they have video cameras, if that's a concern too).
And another option is Bitcoin "debit" cards, which again, under certain amounts (250 EUR lifetime?) can be used anonymously.

Options 2 and 3 usually work for small amounts and big fees, so it may be cheaper to simply pay the taxes.

I wonder if I could use funds from a big exchange, like Coinbase, to pay my credit card,  then just use the credit card to buy things and keep paying it off from Coinbase.

Yes, the buying gold idea is good, if my plan is to HODL the cash long term.  I have looked at Perth Mint for this purpose.

If this goes on, there is no anonymity anymore, 80% of all exchanges today require KYC. And with the transfer from crypto to fiat convertierung is anyway a weak spot in this chain.

Since You're from USA I don't think you can pass five houses without having friend/friends, neighbour or any people within your street  who involve into cryptocurrency no matter what crypto own just talk to negotiate the deal you got your cash without banks or government know in local bitcoin there is  kyc to proceed with transactions so not so safe as you being told

You can exact the fund to your bank and get it directly there. Else there is option called pay by cash option on localbitcoins. You can find the trader on localbitcoins.com in your location.
Once you find the trader you can select the best one having good review with this payment option.

So when you receiving cash that time you can release the bitcoins with the auth code there.

Please read the policies deal at there or check the dealers on here on this forum itself if you can.

Are you completely stupid?

You can use an exchange like Coinbase or Gemini to withdraw BTC back into USD. Otherwise, I would go with an exchange such as LocalBitcoins (https://www.smartbitcoininvestments.com/localbitcoins-review/) and find a reliable dealer which accepts large amounts.

What is not being said is that people want to keep their rewards and profits private from agencies that force you to give them a cut.
The only way is cash.

There are a number of ways to extract cash from exchanges with going through an intermediaries:

• You can use your debit/credit card.
• You can join an escrow platform which provide FIAT currency against your cryptocurrency. 

that's not the best way.
there are some ways that can be tried by OP.
OP can buy gift card and then sell it and it may takes a little fees but that's not a lot. that's only a few pennies.
for second way OP can try to sell his balance directly through this forum by used escrow service that provided by the DT numbers.
Both can become the best way to cash out OP's money without involving the banking service.
Used cart will charge you a lot of money.

I know what you mean, the simple answer to that: you can't run away from the government. But if you talk about insignificant amount of money then it does not matter much.

Very risky indeed if you are too forced to make individual withdrawals from everyone who wants to buy or exchange them, I strongly agree that we cannot be completely out of the scope of the government but I believe the government provides better security by withdrawing from the bank, where stay? maybe there is like a Bitcoin ATM or something like that if there isn't already there isn't too much to do and the bank is a good and safe choice than others for now.

I guess OTC exchanges may he your best choice. With that, you only find a peer to send your money to and you wouldn't need any bank as a medium. Also with OTC, you decide on the payment method you'd want to use. You should however check on your jurisdiction and how they treat OTC transactions. Some countries don't like it when they can't track your transactions.

Once an ATM is involved, the bank is. Just know this.

From my perspective, an easy way to go about such withdrawal without using the exchange directly to your bank is to sell directly to a buyer with whom you are in the same group or someone you know personally and the buyer pays the money into your account or hands it over directly to you. However, there is a risk involved in this if you don't use an escrow. There is a section of this forum where you can get such a services. Just browse through the Market place.

You can have a few cards of different banks, or use cards to your loved ones. Then you can divide your profit into small amounts and send it to these cards. Then no one will suspect you of anything.

You can ask your friends to withdraw the money into his account, and then he will go to the ATM to withdraw the money and give it to you.
In that case, you don't have to bother with the government at all, and besides that, the money will not go into your bank account, and your friend is your savior in that story ;D
But I am curious about how long you can hide from the government because they will investigate your friend bank account, especially if they found that your friend has already withdrawn big money to his account.

You can find a local exchanger that can pay with cash or just loading a prepaid card.
Check on your local board here on bitcointalk, there are always people that provide exchanges at reasonable rates even with escrow.

If you are only dealing with small amounts then i dont see a reason why would you bother too much on not dealing with banks when it comes to encashments of your crypto to fiat.
If you do have some serious cash amount there then they might really able to track you out.You can make p2p on your place which had been said by other members which you can
potentially make transactions between them but you should aware on possible risk.

Local bitcoins have alternative payment options as well along with bitcoin like western union or even you can meet the persons and can complete the transactions but those were risky compared to bank transactions.

This is the easiest thing you are looking for, that is why we have local exchanges that would do that for you, especially the ones that are directly operating in your country over the counter, where you can walk to and make your order.

If you use the online local exchanges, bank may still trace their deposit because whatever accounts those ones will use to transfer will be the one opened for cryptocurrency which may definitely have element of cryptocurrency in their registration. Over the counter, you can just request for cash which I am sure they will attend to such request.

Of course he can, he will perform his transaction in a clan way without the government tracing it to cryptocurrency, but hard cash will surely be involved, it is now left to him to explain to the bank when depositing how he got the cash if the amount is very significant for them to query.

All he needs to do is just involve a local exchanger, they will do all the dirty work for him, and then get him his cash once they get their own BTC. After all, government cannot even trace anything that is being done through the blockchain transaction, and since he will be depositing cash by hand, no one will be able to trace it too with that.

I don't know why people want to hide themselves from the eye of governments,if they are everything legally and obtained the money in right way then no need to worry about and also you have to pay the right taxes from the earnings or it also will be a punishble offence.

But lot of loopholes and underworld market available where we can pay extra and can get everything done in the way want.

It's not about paying the taxes all the time. You can't believe how a govt can interfere in all of your funds, it depends on the country where you live though.

Good point,but when we earned all this money in right way then they can't take our money from us and if you still thinks that they will take your money then better keep it as cryptos in the way they can never take anything from us without our permission and for sure we can use cryptos for paying many things even now and in some years it will be everywhere so there will be no need of conversion.

I don't know about him, but sometimes in some countries the governments have not yet decided what kind of approach to take about cryptocurrencies and some people prefer to keep their privacy in case their government suddenly decided to take an aggressive approach in which case those with a lot of cryptocurrency related transactions can face a hard time and a lot of legal fees to solve something that could have been avoided.

What you need to is to buy it in any department store that accept online currency. Then, sell it on your community. By that, you did not withdraw it in a bank but you just pass it through a business. However, you cannot withdraw your cryptocurrency without any access of the bank. We are all centralized and banks have their important role in regulating currency.

Erm, if you're signed up to the big exchanges then your details will be there for the tax man to tap in future if they decide to look a little closer. You may get away with it. You may not. Either way you've already marked yourself and it's not as if they're going to get more relaxed as the years go on.

Pay the tax and save yourself ball ache and risk.

If you're determined then the only real way is a cash in hand trade in person. I can't see many posting cash in the mail.

There are plenty of safe and secure digital wallets from various blockchain/crypto projects that also pair debit cards with their corresponding wallets - these cards instantly convert your coins to fiat at little to no transaction/exchange fees so you can use them to pay for purchases at physical stores, for example. This is probably one way to 'extract' and use cash from exchanges and also bypassing the bank.

There are options where OP can run away from government as well as their taxes so it is not mandatory needed to pay the un-expected taxes just for trading our crypto coins. OP is been holding coins since a long time and also the time he/she bought coins was the time when all major coins were at a dip so until now, OP might surely be landing into high profits and I can deeply understand his/her concern that they won't wish to lose their winnings into the taxes. From my end, I think that the government can deduct a fixed percentage of amount from your total amount depending on your country and taxes ratio but by taking some efforts, you can minimize that.

It happened with some countries earlier like Bangladesh I guess where holding any crypto currencies will be a punishable act but now knowing the current situation there,they might change their activity later as well even after they said they are going to ban it.

But when we want to avoid these cases then we might have to find a buyer locally and the prices also will be lesser from the current price,if people are ready to do this to keep their privacy then no problem for them.

You can purchase a Virtual Credit Card were you can load the funds from the exchanges and then simply cash that out through ATM's or bank directly without actually revealing your identity and also bypassing the taxes. There are also many other ways to bypass the taxes or to be anonymous but it would certainly take your time and transaction fees. You can anonymize your coins before you send them to your bank account so that their root source is undetectable and hence the government cannot actually understand where and how to apply taxes to your money. You will surely have to pay some minimum tax over there but I am sure that you would save major tax which can be implied onto cryptocurrency trading.

I think that crypto debit card is the best way to cash out. Yes, there are some fees and limits for withdrawal, depending on card issuer, but this is still the most convenient and fastest way to get your funds. Thus you might avoid taxes but you can't avoid KYC so don't count on that.

There is always localbitcoin if you want to use that? I mean it is certainly not as trustworthy as the exchanges but at least you can definitely get money from localbitcoin with cash, you can use bank too but banks will see that money coming in and that is paper proof of you getting that. Now there are places with bitcoin atm machines which basically gives you local currency in cash so you do not have any paper proof of you buying or selling bitcoin neither.

Those are the clear choices right now, I have even seen currency exchanges in foreign countries (basically places that change local money to dollar or vice versa) that does bitcoin as well which I think could be great as well. If none of this exists you can search for local ways to do it without paper proof.

This is what confuses me.  People say you could sell bitcoin for cash using local bitcoin.  But when you do this, the other person is usually paying you either cash or depositing cash in your bank account.  But i read article that someone got arrested for selling bitcoin without a license?  Can someone explain the difference between someone selling bitcoin to another person for cash in person or cash deposit into bank account vs using coinbase/gemini?  Example if you could sell 5000 dollars worth of bitcoin to coinbase/gemini and pay like 25 dollar fee... but selling it to another person for cash deposit in bank or bank transfer/wire and they offer you more cash than you get from coinbase/gemini is that legal or not?  I understand if you do it a few times, that is fine.  But at what point do you need a license to sell bitcoin?  I mean if you are trading bitcoin in different exchanges and buy or sell or do it on same exchange, that is legal.  But you cannot sell it to people for cash if you deposit that cash in the bank account or they deposit cash in your bank? 

Wow, I didn’t know that some countries have even gone to the extent of making cryptocurrency holding a punishable offense, these are government that cannot really survive without taking from their citizen’s purse and yet, they pay little respect to their citizens like they are criminals without using their funds properly.

If I was in such country, I would pay less attention to them because I don’t know how they will get to know I am using cryptocurrency when the system has an inbuilt shield that makes it impossible for anyone to trace any transaction to one, but I hope that one day, they will see the reason to eventually lift the ban before they lose their citizens to crypto nations.

What do you mean LBC is not as trustworth as exchanges? A lot of people would highly disagree with this. If you take proper precautions you will be safe. exchanges have no escrow, LBC does. And you are getting it peer to peer so you can build trust with traders instead of a random platform.

By the way are you referring to money changers (currency exchange) who accept Bitcoin? Where is this? Curious!

You can withdraw money through Epayments system

You should be able to do that by spending bitcoin one-on-one or peer-to-peer or on exchange like localbitcoin,  paxful.  You could use either exchange to sell bitcoin physically to the buyer

Most of the bitcoin debit cards right now are not functional or redirected to some countries since late 2017, and that was due to the fact that visa and mastercard  have stooped supporting those companies that issue them, besides using them will have more fees to load up the card and than cashing them from ATM, my suggestion is to find someone who is willing to exchange bitcoin to cash for peer to peer websites like localbitcoin, where there are a lot of cashing out method western union and money gram, but the best would be to find hand to hand cause you won't lose any fees while doing so.

Cards are slowly filtering back. The ones that exist probably have better fees than any ATM. The Coinabse card which is UK only for now is 2.49%. Wirex probably adds up to a similar amount. I'd much rather take that hit than meet up with some creep in a cafe.

Why does no one work with cash I will never understand. 3 simple steps is all you need, withdraw the bitcoin (doesn't require bank at all since you are withdrawing bitcoin), find someone willing to buy that bitcoin, give that bitcoin to him and he gives you cash. End of freaking story.

I have seen too many people trying to work bitcoin on their privacy and do not want everyone to know about their bitcoin life but that was literally the idea of whole of bitcoin, having some privacy and not having banks control over your bank, how the hell can't you find a way for something that literally is the whole reason why it was created. Nobody should be lazy enough to not even google something, if you google "selling bitcoin for cash" or something you would have found a million results.

You may wish to meet up with sweating creeps in dark alleyways after a few hours of flirting online. I would pretty much prefer to do anything other than that. I presume others feel the same way.

I have some of my coins on my Ledger Nano, and it wouldn't be hard to transfer other coins that the Nano can't store (Stellar, Tron, Cardano, etc) into Bitcoin for putting it on the Nano, if the Nano has a way to debit card the funds out of it.  There is a Bitcoin ATM in my area, I could cash out there.

you cannot because if you want to withdraw you fund on exchange cryptocurrency you must sell your altcoin after you sell you can directly with your bank account

Give a specific example, where is the escrow service you are talking about?
OR the gift card service?

You mean to sell bitcoins from person to person face to face ?  Isnt that risky ? You will never know if the person that you are dealing is a criminal and what if they will beat you up upfront after sending them the coins ?   I think its better if we can only sell our bitcoins online and nowadays there are now alot of service , some are from wallets/exchanges and they allow multiple cash out options without the need of banks  .

An example would be very helpful!