Cashing Out BTC in Exchanges Questions

[jerry0]

Well does the exchange freeze your account the moment you send a big amount of btc to your exchange account?  Or they might just ask questions only?  If someone never sends more than few hundred dollars at once or say 1000 dollars to their exchange account, but say they send 5 figures or even 6 figures to their exchange account because they want to cash out their btc that they held from a long time ago, does that usually happen?  Or the account gets frozen or get asked questions the moment you sell?  Or it's only when you cashout?


Like if someone only cashed out once or twice and it was for a few hundred dollars years ago.  Now they want to sell a big portion of their btc... let say someone wanted to sell 1 btc and let say its 50k usd to make it simple.  Would you say it's not safe for that person to send an entire 1 btc to their exchange account?  Or it's fine but don't sell that much at once?  But say they want to cashout to their bank account though.  I mean you don't want to wait because the price can go lower etc.



Or imagine someone who has a coinbase or gemini or kraken account.  Let say they have a verified account but never done a transaction ever though.  Say their account is verified and limits for deposits are 5k or 25k but either they never deposited or deposited 2k etc.  And say that person wants to cash out let say 5 btc that they held for a long time.  Say btc is worth 50k.  Say they got the btc from gambling or surveys or even working for btc years ago when it wasn't worth much.  How would that person send and cashout their funds to their bank account then without having their account getting frozen since they have no history in their exchange account of buying that much btc even though they are already verified with the exchange?  The big issue here is if they freeze your account, you obviously don't want to have more btc than you feel comfortable with when your account is frozen though. 



I mean can you ask them to send you more KYC before you sell and things like that?  I know the KYC they ask you typically for is your ID and possibly bank statement.  But the moment you want to cash out 5 figures and up, that is when they ask you for your employment history and things like that right?  The thing is well your income could be very low but if the reason why you have btc is because you got it when it was low price, well that is no issue right? 



The other issue is this.  If you get btc from gambling sites, well those gambling sites are sending btc to one person and receiving it from another.  But you should not have to worry about any tainted or fraudulent coins right?  I am sure many of you know gambling sites you deposit and withdraw crypto so any crypto you receive from the site is fine right?

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[nakamura12]

There's a way for them to cash out to fiat from BTC which is not to send all the funds to an exchange to avoid exchange sites to be suspicious of them because of large amount of money being deposited and withdrawn from their platform. Moving huge amount of money may seem like money laundering that's why they ask their customers to complete a KYC by submitting a documents which many people doesn't want to do it in the first place.

[Zanab247]

When ever you see some hodlers that is hodling their coins during the bull run, they always have a particular target they want the market price to reach before they will begin to release their coins to the market to make a good profits and, for you to be able to take such risk in your hodling, you must have other sources of income that will be making you to survive so that you will not touch the coins until the price hit the price of your choice.

I don't use to waste time to cash out fiat money when the bull run is flowing in the market because, I have a lot of things that am using fiat money to do in this season because I don't want to depend on only decentralized investmen alone.

[armanda90]

I don't familiar with withdrawal rule trough Coinbase exchange market with usually using Binance and my local exchange for huge amount withdrawing to the Bank account. I think you need to get local exchange currency with lower fees transaction than using Coinbase and looking for huge amount withdrawing limitation, difference viewed when depositing large amount in CEX exchange and keep secure our fund indeed the amount of transaction raise limitation daily day withdrawing.

There's a way for them to cash out to fiat from BTC which is not to send all the funds to an exchange to avoid exchange sites to be suspicious of them because of large amount of money being deposited and withdrawn from their platform. Moving huge amount of money may seem like money laundering that's why they ask their customers to complete a KYC by submitting a documents which many people doesn't want to do it in the first place.

I don't think so, the exchange market have required with KYC firstly before trading and huge amount depositing not make our account suspicious and eligible to withdraw during get daily day withdrawing limitation. In my local exchange can increasing the limitation withdrawal above $200k every day after passing some document added needed.

[GreenInk]

If BTC goes much higher, everybody is gonna have problems converting back.

[Smartvirus]

You might have exemplified quite a lot in the OP but, I find you trying to make the same point. Just having to repeat them severally but, all saying the same exact thing and that is;

Being a huge Bitcoin hodler and suddenly decides to cash in fiat for most or all of your hodlings rather suddenly. Either of your hodlings or deposit on the account from a wallet.

Well, I don’t think of that yo be much of a problem. Like it’s generally known, there isn’t any restrictions to the deposit amount except a minimum deposit amount but, there are restrictions on what volume that can be sold on the exchange, mainly based on what volume buyers are advertising to buy, other restrictions are due to your level of verification.
Most CEX operates a KYC system and as such, they leverage your level of verification. A good knowledge of this would put you in the best position on how to go about trading your coin on CEX.

Mind you, it’s better you understand what is said in there T&C to avoid the situation rather than finding solution when your in the solution.

[jerry0]

Put it this way.  Imagine btc goes to 1 million dollars.  Imagine people who got 5 btc from years ago even before the bitcoin talk that has been happening.  Isn't the issue when they go and send the btc to coinbase or gemini or kraken and even with a verified account, they will get asked questions?  The issue though is you don't want a lot of the btc frozen in your account when that happens.  So btc goes up a ton even more than now, everyone will have issues when cashing out then... assuming they didn't buy those specific btc from that specific exchange they want to convert the btc to fiat to right?