How to sell bitcoins on an exchange

[Anastasios]

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?

[mrcash02]

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!

[chaser15]

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?

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.

[The Sceptical Chymist]

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.

[erpbridge]

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.

[TastyChillySauce00]

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

[erpbridge]

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.

[outatime1]

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.

[streazight]

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.

[Mark02]

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?

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.

[traderethereum]

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.

[yakdivine]

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!

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

[CGC Project]

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

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.

[n0ne]

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.

[Slark]

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.

[X-ray]

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

[Dassi]

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.

[clickerz]

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.

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.

[neochiny]

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.

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

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?

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.

[Victorycoin]

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 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 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 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.