I had a discussion with a friend in finance who has been helping early Bitcoin adopters cash out. Dudes that have made millions. It got me to thinking…
Is it as simple as pressing a button?
What should someone be aware of. (Risks, potential pitfalls?)
Any tips or tricks or hints?
Several friends have told me that when it comes time for you to cash out, it isn't as simple as pressing a button and waiting for a bank transfer.
Someone has to accept your cell price, correct? Any risk that nobody will?
Is bitstamp pretty much the only exchange people are using for this?
Coinbase has a 50 BTC per day limit. If you have large quantities of Bitcoin, it could take you weeks to sell it all. Obviously that's an unacceptable situation.
How did it go for you when you sold a large amount? Any surprises? Anything people should know?
Bank issues?
If you find yourself in such a position, cashing out will become a full time job.
You would probably sell on multiple exchanges, since you can only sell as much as people are willing to buy (buy orders).
Again, this would be a process that would probably take months, not as simple as hitting a button.
Try making an account and looking at the actual exchanges order books to get a feel for it.
Once you have converted BTC to fiat, you will want to move it as quickly as possible from the exchanges to your bank (done to avoid hackers stealing all your money, as has happened to some exchanges).
Of course you will want your bank to be aware that you will have many incoming deposits for larger amounts, so they do not flag you.