Cashing out large amounts of bitcoins?

[ktabb]

.09% of 1 million is $900 not $9000.

That's still a ridiculously expensive transaction fee though. If I want to sell $5,000,000 of some stock through my brokerage then it is $4.95. Doesn't matter how large the transaction is. Bitcoin needs an exchange that works with flat fees because percent-based fees are detrimental to trading significant amounts of money. It is good if you are trading like $100 at a time, but most people want to make much larger transactions than that.

[1715018383]

1715018383

[cellard]

Go to a regulated exchange that is trusted. Don't do anything stupid like trying to avoid taxes. If you want to cash out that much, make sure you give them all of your details. Pretty sure there are exchanges out there ready to let you cash out millions without problems.

Of course, make sure your bank will not freeze your account. Let them count in before hand. They may flip out if they see a +5,000,000 transaction!

[allbitcoinprofits]

That is a very large amount to cash out at once. I see most exchanges giving you problems unless you cash out in smaller amounts. Of coarse that will take much longer.

[Astvile]

$9,000 in fees are just a very very small amount if you will go and cashout 5 million dollars in bitcoins,its just like tax the smaller version of governments tax on our salaries.If you dont want to get fees then sell it to other user personally no fees but no person will buy your 5million dollars on bitcoin at one time

[cr1776]

Coinbase limits you to 100,000/week.

Use a well known, regulated exchange. Cash out, say, 10% at a time so if something goes wrong, you aren't completely screwed.

If you are in the US and are concerned about taxes, are they short term or long term gains? (< 1 year or >= 1 year?). If long term, they are then 15-20% depending on your bracket.  If they are short term, how close are you to a year because it can save a lot. If you bought July of 2016, you are nearly there. (And, what is your basis?)

At 20% that is $1 million.  Have you talked to an accountant about things like splitting across tax years?  How have you titled them? E.g., perhaps you held some for kids or grandkids (perhaps in trust) who you intend to leave money to in several decades?

Have you considered some of Puerto Rico's tax benefits for US citizens? Again, best talk to an accountant who is familiar with it, but perhaps it could save a lot in taxes.

Edit: and don't forget, they could decrease, depending on Congress and the President.

[cr1776]

And if you are truly cashing out that much, think about talking to an asset protection attonery who can combine it with an estate plan so that if you become a target of a lawsuit - e.g. car wreck, slip and fall on your property etc - you will be able to protect at least some of your wealth. A domestic (US) asset protection trust or off-shore (e.g. Cook Islands etc) are options, but a non-triggered US trust is probably the best.  

With that kind of cash, it is easy to be a target, so (a) don't discuss it with a lot of people and (b) take some steps to protect it from vultures.

And of course there are the guys who might try to get your pregnant if your are female or get pregnant by you if you are male...

[rytyr]

You can expect that any exchange will freeze your withdrawal to do a due diligence, as such large withdrawal from newly created account will trigger all kind of red flags.

So apart from fees, it's a matter of how smooth is the verification process and how fast/experienced is the staff in dealing with such issues.

It's best to simply get in touch with the exchange support, tell them what do you intend to do and ask what should you expect. You should do the same with your bank.

I'd also consider splitting the amount into smaller tranches and possibly between 2-3 exchanges.

Ps. Stay away from btc-e. They're shady as fuck. See their trust rating: https://bitcointalk.org/index.php?action=trust;u=33012

Would an exchange such as bittrex be more better suited to do this for him without as much of a stringent process to get your bitcoin cashed out to fiat?

Any experience with them before?

If so, what are their levels of verification so to be steered in the clear of any delays and they possibly freezing funds in your account like what those exchanges in China did by the government officials requests.

[bauvil2003]

I love trading bitcoin much more better than holding it just for the fact that I do not see how I will cash out when bitcoins worth 1 million. I will have to rely solely on withdraw from the exchangers.

[Omega Weapon]

How does some one go about cashing out 5 million dollars worth of bitcoin?

IS there a trust worthy exchange that doesn't have low limits.. and high fees?

Bitstamp allows any amount it seems at .09% fee so for 1 million dollars it would be $9,000 fee.


Does anyone have any experience cashing out large amounts that does not take a year to do?

thanks

It is possible but such a high transaction is bound to bring attention and you will need to verify your identity and how you earned those coins, since we are talking about such a huge sum of money that is one case where being willing to lose some anonymity is fine, just don’t try to cash out all of that money at once, try to withdrawal 100k at first and keep doing that until you withdraw the 5 million.

[eaLiTy]

$9,000 in fees are just a very very small amount if you will go and cashout 5 million dollars in bitcoins,its just like tax the smaller version of governments tax on our salaries.If you dont want to get fees then sell it to other user personally no fees but no person will buy your 5million dollars on bitcoin at one time

What are you talking about,what kind of tax and who do you think is charging all those. .09% of 1 million is $900 and OP made a mess with the calculation.The problem is that you are not able to withdraw or cash out this huge amount at a single exchange at a given time because there are restrictions in place on whether how much amount you can withdraw every day and it might take a long time to cash out all your amount despite saying that check out kraken,i think you could cash out everything with that exchange,just talk to their customer support and make sure what all documents are  needed to get things verified .

[coynedterm]

How does some one go about cashing out 5 million dollars worth of bitcoin?

IS there a trust worthy exchange that doesn't have low limits.. and high fees?

Bitstamp allows any amount it seems at .09% fee so for 1 million dollars it would be $9,000 fee.


Does anyone have any experience cashing out large amounts that does not take a year to do?

thanks

I think you are joking , because 0.09% is not a big fees and secondly you are making cashout of your Bitcoin in bank money so you should think that the amount of 9000$ is not a big amount of fee according to your total 1 million dollars .
Here I will suggest you to sell at different different exchange and with controlled amount , since here I already read that you are saying it should not take one year to do so .
If you are really having problem to spend 9000$ then I will suggest you to wait one month and left it until the price get up , if the price of the Bitcoin will rise only 0.1% then you will recover easily your fee of 9000$ .
So wait until your mentility get changed for the fee .
Beside of this idea , I will suggest you to sell in offline , I mean make direct deal in the cash .
If you want make.offline hand to hand deal then I can help you in my country India .

[CryptoBry]

That is actually a not so big amount if we are talking about exchangers...am sure they can handle that well and of course the best thing to do is not to encash it one time and not to use just one service provider. There are so many ways to do it. Goodluck then if you have that amount.

[rhamzter]

I always do it, I just cash out everytime the bitcoin were gets the large amount. However for now I just save my bitcoin and wait for the big increasing of price in the market. I do it because I was expecting that their price were continue to increase.

[qiwoman2]

What about also opening an account with PAYZA? They are used to handling tons of money because many online peeps use it, especially all those online MLM GURUS and now they have a bitcoin wallet as well. They even have a debit card as well and you can take out also straight t your bank, takes a few days, that might work with some of it.  . Also a bit congratulations on your earnings and I hope you don't get a ton of beggars harassing you in pms and social media.. 

[crazyivan]

How would you explain to your bank or your tax administration where does the money come from? In lots of countries, there re strong AML laws where people start asking lots of questions in order to make sure your money did not come from illegal sources.

[zedicus]

There are some users i think that already cashed out that huge amount and already done that big transactions in different exchange available now in the online market.That thousand dollar fee are just small compared with your money so dont mind that fees

[zidanw]

1 million is very much, they don't want to get a small fee for that much money they have to provide to you, it's very difficult to change the money from virtual to be made real money especially with that much money.

[clickerz]

I'd not withdraw that lot of money at once if I were you.

Distribute the money into like four phases, and simply use an exchange like localbitcoins.com.

Yea I wouldn't cash it all out at once. I'd rather do it in batches (x amount of bitcoin per week). You might even catch another spike in the bitcoin price.

I prefer this kind of strategy also, slowly cashing it out. Though its time consuming but its worth it in my opinion. What if you got a mistake on first transaction? then all btc is gone? One time big time transaction will get notice to exchange too.

[European Central Bank]

The people suggesting exchanges or localbitcoin are nuts. You need professionals who aren't gonna panic or kyc your ass. I wouldn't depend on bitstamp not to shut me down over $20000 let alone millions.

Find an OTC buyer via a broker like Cumberland mining or talk to Gemini about their daily auction.

[pawel7777]

...

Would an exchange such as bittrex be more better suited to do this for him without as much of a stringent process to get your bitcoin cashed out to fiat?

Any experience with them before?
...

I registered with bittrex only recently to ride the shitcoins pump & dumps. I haven't even made a crypto withdrawal yet, not to mention fiat withdrawals, so I wouldn't know.

How would you explain to your bank or your tax administration where does the money come from? In lots of countries, there re strong AML laws where people start asking lots of questions in order to make sure your money did not come from illegal sources.

He could tell the truth? Why would you assume there's something wrong with the legality of how he got his bitcoins. For all we know he could got in early or be a successful trader.