Let's say you have a large amount of BTC and you

[boumalo]

Let's say you have a large amount of BTC and you want to spend it / invest it / transform it in fiat but you do not want the BTC to be traced to exchanges or to you, how would you do it ?

It's not for me, it's to further my understanding of the space.

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[Hamphser]

Let's say you have a large amount of BTC and you want to spend it / invest it / transform it in fiat but you do not want the BTC to be traced to exchanges or to you, how would you do it ?

It's not for me, it's to further my understanding of the space.

Actually cashing out in one go is really a headache for someone who does have lots of bitcoins into his stash and knowing that only centralized platforms

aside from p2p could only be the chance for you to make it out. Even myself do really think on how i could get out those funds without triggering some alerts from your bank.

One thing on my mind is to cash out or make out conversions on gradual manner and that might possibly work imho.

[jackg]

There's 2 main ways I'd consider:
One of them is peer to peer or over the counter where you'd do multiple smaller trades.
The other would be to buy a stablecoin/stock derivative and wait with that until you find a good time to sell.

There are a few companies that'll allow you to convert crypto to stocks positions and a few that'll hold cash on your behalf from their own issued currency (the main one I can think of is etoro but it might not be the only one - primexbt, bybit and binance also would allow you to take out a 1x long on stocks or the dollar for your crypto.

[jossiel]

I wouldn't sell huge amounts but I'll sell in small amount in batches so that there won't be any problem if I'll sell it in P2P. I guess if you want to have that fully cover of anonymity, it's with p2p or converting it to Monero.

I wonder if swaps could be another choice for this.

[Upgrade00]

The issue with P2P is you still have to submit bank details for payment, which would create a link between the source of the Bitcoins and you. If for example you get your funds through this forum, then your forum profile could be linked to your real life identity. For better privacy, you should use a mixing service like chipmixer, or coinjoin the funds to blur the flow of the transaction.
If it's a large sum, it could be flagged by your bank, so smaller transactions would be better.

want to spend it / invest it / transform it in fiat

Converting to Fiat is not an investment, spend it feels more appropriate (even though Bitcoin is also a form of money)

[LoyceV]

Let's say you have a large amount of BTC and you want to spend it / invest it / transform it in fiat but you do not want the BTC to be traced to exchanges or to you

It depends: if you're trying to hide your money from government (to avoid taxes), selling a large amount of Bitcoin will just get you a pile of money you can't spend. Assuming a "large amount" means many millions of dollars, you'll get questions you can't answer if you use it to buy a house (or jet).

[nelson4lov]

Let's say you have a large amount of BTC and you want to spend it / invest it / transform it in fiat but you do not want the BTC to be traced to exchanges or to you, how would you do it ?

It's not for me, it's to further my understanding of the space.

I haven't been in such a situation before so it's kinda hard to give a direct answer but in the past, I've seen people using Bitcoin mixers as a way of getting around the privacy issues that abound with using other methods like P2P or even going straight to an exchange to do it. Another option would be to transfer the BTC into a wrapped BTC you can use on decentralized exchange which you can then change to an altcoin and then send to a different wallet before finding moving it to wherever you want. Bitcoin mixers seems like the most effective that's why govt has been trying to crack down on them recently.

[semobo]

Let's say you have a large amount of BTC and you want to spend it / invest it / transform it in fiat but you do not want the BTC to be traced to exchanges or to you, how would you do it ?

It's not for me, it's to further my understanding of the space.

To break the traces of Bitcoin transactions then you need to use mixers which will work as long as you want to spend bitcoins in Bitcoin form but if you want to transfer into fiat then you need to go to an exchange where you will lose your privacy or else you can use decentralized p2p like localcryptos but its not actually recommended for big amount of conversion for two reasons.

One is you may not find enough amount of liquidity even in the whole country and another one is you have chances of receiving funds from hacked bank accounts.

[DarkDays]

The issue with P2P is you still have to submit bank details for payment, which would create a link between the source of the Bitcoins and you. If for example you get your funds through this forum, then your forum profile could be linked to your real life identity. For better privacy, you should use a mixing service like chipmixer, or coinjoin the funds to blur the flow of the transaction.
If it's a large sum, it could be flagged by your bank, so smaller transactions would be better.

Agreed, you could run the funds through a mixer and then take out small chunks but then even with that depending on the security of your country you might still be flagged up because of the mixer. At the end of the day you'd still have to pass those funds however small they might be (specially if the small amounts are regular) through your bank so there's risk there also. Best way is to try to find assets to buy with crypto and then sell those assets for fiat.

One hopes that expenditure with crypto becomes common place.

[sheenshane]

If you will convert it all at once into cash, you will really have a headache about how to get your money in the bank, you might need to explain to them the source of the fund and the worst is might they will freeze your fund since let assume it is about millions of dollars, it could be suspected you as a money laundering.

Probably it is good if you will convert it little by little or into a small chunk per day.  Using Bitcoin mixer service could increase your anonymity when you decided to cash out your large amount of Bitcoin and then transfer it into different addresses that under manage by the holder.

[xSkylarx]

P2P is the best choice if you want to convert your bitcoin into fiat. Find someone that is reputable or someone you know that buys a lot of bitcoin in exchange of fiat. This is also the main problem of people who holds a huge value of cryptocurrency. For me if I want to convert it into fiat, I would not do it in one day. I would divide it into an amount that will not alert the bank make them investigate your account. If you managed to convert it into fiat without being traced then the government found out you bought some assets that cost very expensive then you would be suspicious to them. As long as you got it legally, I think there is nothing you should be scared of.

[Dadan]

If you will convert it all at once into cash, you will really have a headache about how to get your money in the bank, you might need to explain to them the source of the fund and the worst is might they will freeze your fund since let assume it is about millions of dollars, it could be suspected you as a money laundering.

Probably it is good if you will convert it little by little or into a small chunk per day.  Using Bitcoin mixer service could increase your anonymity when you decided to cash out your large amount of Bitcoin and then transfer it into different addresses that under manage by the holder.

I guess it depends on the bank if they are crypto-friendly. There is one bank in my country accept bitcoin, and I didn't worry if my account was frozen or locked as they are also investing in bitcoin/cryptocurrency.
All banks in my country except for the one I mention will ask you or interview about where the funds come from, and when they found out about bitcoin/crypto, they will lock your account and ask you to move different bank.

[boumalo]

There's 2 main ways I'd consider:
One of them is peer to peer or over the counter where you'd do multiple smaller trades.
The other would be to buy a stablecoin/stock derivative and wait with that until you find a good time to sell.

There are a few companies that'll allow you to convert crypto to stocks positions and a few that'll hold cash on your behalf from their own issued currency (the main one I can think of is etoro but it might not be the only one - primexbt, bybit and binance also would allow you to take out a 1x long on stocks or the dollar for your crypto.

De-risking by going into a stablecoin is an idea

Let's say you have a large amount of BTC and you want to spend it / invest it / transform it in fiat but you do not want the BTC to be traced to exchanges or to you, how would you do it ?

It's not for me, it's to further my understanding of the space.

I haven't been in such a situation before so it's kinda hard to give a direct answer but in the past, I've seen people using Bitcoin mixers as a way of getting around the privacy issues that abound with using other methods like P2P or even going straight to an exchange to do it. Another option would be to transfer the BTC into a wrapped BTC you can use on decentralized exchange which you can then change to an altcoin and then send to a different wallet before finding moving it to wherever you want. Bitcoin mixers seems like the most effective that's why govt has been trying to crack down on them recently.

Mixers are definitely a tool to consider.


I found an article about the subject : https://www.vice.com/en/article/7xdzqa/criminals-are-racing-to-cash-out-their-bitcoin-heres-how-theyre-doing-it
They are talking about the option to buy prepaid debit cards, you need an address to receive it which will be a point of contact between your bictoins and you, and you will probably pay up to 10% in fees and would probably not be able to cash out more than 500$ or 1000$ per card.

I guess there are options available on the dark net. Finding a dark OTC to cash out large sums is very risky bc you could get scam.

P2P is the best choice if you want to convert your bitcoin into fiat. Find someone that is reputable or someone you know that buys a lot of bitcoin in exchange of fiat. This is also the main problem of people who holds a huge value of cryptocurrency. For me if I want to convert it into fiat, I would not do it in one day. I would divide it into an amount that will not alert the bank make them investigate your account. If you managed to convert it into fiat without being traced then the government found out you bought some assets that cost very expensive then you would be suspicious to them. As long as you got it legally, I think there is nothing you should be scared of.

The legal route is the safest.

[janggernaut]

Unfortunately not many people can do that as most of us don't have large amount of bitcoins. So all of the answer of this question only like "a dream" which never can be turn to reality.

[Upgrade00]

Agreed, you could run the funds through a mixer and then take out small chunks but then even with that depending on the security of your country you might still be flagged up because of the mixer.

If you use a peer to peer platform, than bank would be unaware of the source of the funds, the only information available would be that Mr Joey sent a certain amount of fiat to Mr Billy, with no detail about Bitcoin or mixing services. Only when using a centralized exchange can the bank interfere.

Best way is to try to find assets to buy with crypto and then sell those assets for fiat.

This is a quite complicated for some people, except in places where Bitcoin is not that popular. You could risk with other digital assets, binds or futures.

[leea-1334]

The best is always P2P then, which country are you in? If you are in USA then too bad you cannot use localbitcoins without license but if you want, just go online and try decentralized P2P platforms like localcoinswap and localcryptos. I know in Asia a lot of Whatsapp and Yahoo groups:) You can try ask some of them,,, some people do not mind sending overseas for bigger fees.

[Mpamaegbu]

Mixers are definitely a tool to consider.

I was wondering why no one mentioned mixers earlier. If the hypothetical scenario OP painted were a reality, then it should be better to go through mixers first. Then begin to do piecemeal purchases of privacy coins with it and P2P sales. If you're a Forex or Binary trader you can fund your account with BTC (or other acceptable cryptos) without trace and then withdraw from it in bits after a while of trading, whether in profit or not.

[Wexnident]

P2P trading, or just hire someone. Though the hiring part is gonna be in the pain to set up due to trust issues, it is one way to actually sell your coins, especially a large amount, without them knowing who you are. I hardly doubt that a large amount of BTC can be traded in one go, so multiple trades would probably be the best option you'd have.  There are also mixers but I don't really know if you're able to actually mix a large amount in one go or if they can, but you can try multiple trades.

[btc78]

Let's say you have a large amount of BTC and you want to spend it / invest it / transform it in fiat but you do not want the BTC to be traced to exchanges or to you, how would you do it ?

It's not for me, it's to further my understanding of the space.

Depend in which place you live because if there is a option in yours ? then you can at least use a Mixing site for hiding your coins.
also some you can convert in altcoin that requires no KYC because bitcoin nowadays requires kyc everytime you wanted to transfer in Fiat.

P2P trading, or just hire someone. Though the hiring part is gonna be in the pain to set up due to trust issues, it is one way to actually sell your coins, especially a large amount, without them knowing who you are. I hardly doubt that a large amount of BTC can be traded in one go, so multiple trades would probably be the best option you'd have.  There are also mixers but I don't really know if you're able to actually mix a large amount in one go or if they can, but you can try multiple trades.

or using fake KYC? sorry but i don't give consent on this kind but OP is asking how to hide personality so that is one of the option i see..

[irsykes]

Maybe change to other coins, and then deposit in gambling site, and then play a little, withdraw into another exchange or maybe sell that altcoins to people. I think for common coins still accepted in a community, and in a country usually have their community which can make us to sell or buy coins p2p, and of course must use trusted middleman.