Best way to rotate assets in bitcoin

[user210822]

Have half of BTC at hand. Want to find a way for better investment rotation to be done. So far invented such a scheme. The whole amount to be exchanged for any local currency. Surplus since last investment to be converted back to BTC. Remaining - initial investment - to be spent on daily needs. Converted BTC to be put back into wallet. Two points of interest here.
First: Does this way of turnover looks reasonable at all?
Second: How to make sure I use "clean" BTC from source of exchange?

[Frankolala]

Have half of BTC at hand. Want to find a way for better investment rotation to be done. So far invented such a scheme. The whole amount to be exchanged for any local currency. Surplus since last investment to be converted back to BTC. Remaining - initial investment - to be spent on daily needs. Converted BTC to be put back into wallet. Two points of interest here.
First: Does this way of turnover looks reasonable at all?
Second: How to make sure I use "clean" BTC from source of exchange?

I didn't get what you are trying to say correctly. Why would you convert all your bitcoin to any fiat in the first place. Why don't you only convert the ones that you will be needing for your daily needs to your local fiat and leave the rest in bitcoin. There is nothing like clean bitcoin or tainted one. Government is only using those words to make it look scary. Bitcoin is bitcoin. Don't leave your bitcoin in an exchange for any reason.

[fikrett]

Have half of BTC at hand. Want to find a way for better investment rotation to be done. So far invented such a scheme. The whole amount to be exchanged for any local currency. Surplus since last investment to be converted back to BTC. Remaining - initial investment - to be spent on daily needs. Converted BTC to be put back into wallet. Two points of interest here.
First: Does this way of turnover looks reasonable at all?
Second: How to make sure I use "clean" BTC from source of exchange?

I didn't get what you are trying to say correctly. Why would you convert all your bitcoin to any fiat in the first place. Why don't you only convert the ones that you will be needing for your daily needs to your local fiat and leave the rest in bitcoin. There is nothing like clean bitcoin or tainted one. Government is only using those words to make it look scary. Bitcoin is bitcoin. Don't leave your bitcoin in an exchange for any reason.

Agreed. We don't need to give so much fees to the services that do the conversion process anyways

[peter0425]

Have half of BTC at hand. Want to find a way for better investment rotation to be done. So far invented such a scheme. The whole amount to be exchanged for any local currency.

What is a better investment if not bitcoin? You would not make any profit with any currency. Or have you given up on bitcoin and think that you have reached the peak of bitcoin? Personally, I would just keep on holding bitcoin but if you want to invest in something else with your bitcoin well that will depend on how much you have. You can get into real estate. Or any business.

Second: How to make sure I use "clean" BTC from source of exchange?

First of all, bitcoins are bitcoins. They are neither clean or dirty. They just exist as it is but if you really are keen on using only "clean" bitcoins then if you are using exchanges then I think you are pretty safe. If you really want to make sure then you can of course follow a trail. All bitcoin transactions are recorded you just have to follow it to see the source.

[BIT-BENDER]

Agreed. We don't need to give so much fees to the services that do the conversion process anyways

They aren't telling you to avoid leaving your Bitcoin on a exchange because of transactions fees, in fact you will have to pay a little fee for transaction on any platform.
The reason why you shouldn't leave your fund on an exchange is because of the fact that you aren't in full control of your funds on an exchange and if you are following the news many exchange are target for hackers and this could affect you.

[hd49728]

Have half of BTC at hand. Want to find a way for better investment rotation to be done. So far invented such a scheme. The whole amount to be exchanged for any local currency.

My advice is don't do anything, don't rotate your bitcoin with anything.

Simply hold your bitcoin in a safe place that must be non-custodial (self-custodial) and open-source wallet.

Second: How to make sure I use "clean" BTC from source of exchange?

Use KYC exchanges if you are ok with KYC.
When you use non KYC exchanges, you will interact with more tainted coins but if you submit a withdrawal from the non KYC exchange, they broadcast it for you and you will possibly have more cleaner coins but chance of tainted actually exists.

[Despairo]

First: Does this way of turnover looks reasonable at all?

Reasonable, as long as you enter and exit at the right time. It's faster to make a lot of money using this strategy compared to lump sum or DCA. But I don't have balls to flip my money, so I choose to invest with DCA strategy.

Second: How to make sure I use "clean" BTC from source of exchange?

Make sure:
1. Never use instant exchange.
2. Whenever anyone want to send coins to you, ask them send them directly from centralized exchanges.
3. Never do P2P.

[aoluain]

Have half of BTC at hand. Want to find a way for better investment rotation to be done. So far invented such a scheme. The whole amount to be exchanged for any local currency.

What is a better investment if not bitcoin? You would not make any profit with any currency. Or have you given up on bitcoin and think that you have reached the peak of bitcoin? Personally, I would just keep on holding bitcoin but if you want to invest in something else with your bitcoin well that will depend on how much you have. You can get into real estate. Or any business.

Not quite sure what the OP is posting about but anyone here in this space will agree that there
is no better investment than Bitcoin, or s Michael Saylor would say: "There is no second best"

First: Does this way of turnover looks reasonable at all?

Reasonable, as long as you enter and exit at the right time. It's faster to make a lot of money using this strategy compared to lump sum or DCA. But I don't have balls to flip my money, so I choose to invest with DCA strategy.

Same as yourself, I recon in order to do this correctly one needs to be quite proficient at
reading charts and and analysing market data. I dont have the expertise or time to sit
at the computer screen waiting for optimal timings.

Second: How to make sure I use "clean" BTC from source of exchange?

Make sure:
1. Never use instant exchange.
2. Whenever anyone want to send coins to you, ask them send them directly from centralized exchanges.
3. Never do P2P.

I personally use two methods: HODLHODL and PeachBitcoin

[PrivacyG]

So far invented such a scheme. The whole amount to be exchanged for any local currency. Surplus since last investment to be converted back to BTC. Remaining - initial investment - to be spent on daily needs.

What is the point of exchanging every Satoshi into Fiat if the profit is converted back to Bitcoin?  Then simply sell the initial investment for Fiat and keep the rest.  Your scheme is too complicated in my opinion.

First: Does this way of turnover looks reasonable at all?

It is reasonable, but only as long as you make a profit.

Second: How to make sure I use "clean" BTC from source of exchange?

Bitcoin is non fungible.  If you are afraid of using a platform because they may start treating you like a criminal, you better simply stay away from it and find an alternative.  Preferably, a platform that does not see their customers as criminals.

[EL MOHA]

First: Does this way of turnover looks reasonable at all?

Reasonable, as long as you enter and exit at the right time. It's faster to make a lot of money using this strategy compared to lump sum or DCA. But I don't have balls to flip my money, so I choose to invest with DCA strategy.

If you spot the market correctly then yes this method will work and be profitable, but what is the success rate of this method I will say it low. I know many will argue with me that having a very good knowledge in both technical analysis and fundamental analysis will make it a success but I put it that no matter how good you’re at this analysis the risk of it getting wrong is still high, bitcoin is not that predictable no matter how you use those analysis, take for example even successful traders who trade daily they will tell you that their losses are mostly more than the wins. So DCAing and Holding as you have said is the best way to go

Second: How to make sure I use "clean" BTC from source of exchange?
Make sure:
2. Whenever anyone want to send coins to you, ask them send them directly from centralized exchanges.
3. Never do P2P.

2. If the don’t have bitcoin to send from centralized exchanges then you can simply give them a custodial wallet address first to send the coin into and then you can actually transfer it yourself to an exchange, this reduces the risk of receiving tainted coins directly into your exchange

3. There is nothing bad about the P2P if only it is done on that exchange, the exchange will have not allowed the P2P with tainted coins on their platform

[Die_empty]

Have half of BTC at hand. Want to find a way for better investment rotation to be done. So far invented such a scheme. The whole amount to be exchanged for any local currency. Surplus since last investment to be converted back to BTC. Remaining - initial investment - to be spent on daily needs. Converted BTC to be put back into wallet. Two points of interest here.
First: Does this way of turnover looks reasonable at all?
Second: How to make sure I use "clean" BTC from source of exchange?

This system will be profitable if you can predict accurately the best time to buy and sell. This is just Bitcoin trading to me. I don't all the time to monitor the market, maybe you can consider it if you have time. My best option remains hodling Bitcoin for a long time through DCA.

I don't understand when people say clean or dirty coin. Do we have clean or tainted fiat? People use fiat for diverse criminal activities but I have not seen someone asking for KYC because of physical money. Maybe you might consider buying your coin from auctions conducted by the government. The U.S. Marshals Service conducts the selling of mainly seized Bitcoin for the US government. The German government also sold recently, maybe they can be considered as clean coins.

[Dunamisx]

Have half of BTC at hand. Want to find a way for better investment rotation to be done. So far invented such a scheme. The whole amount to be exchanged for any local currency. Surplus since last investment to be converted back to BTC. Remaining - initial investment - to be spent on daily needs. Converted BTC to be put back into wallet. Two points of interest here.
First: Does this way of turnover looks reasonable at all?
Second: How to make sure I use "clean" BTC from source of exchange?

To your first question, you can try to use DCA in making this turnover, just the common way we invest, hold and sell and then reinvest again and the process continues.

Regarding the second question, You cant be sure of preventing yourself of such because you're buying and selling and cant predict which is tinted or not, just know that as long as you're using a centralized exchange, your identity can be seen and they can track your history to know your identity and apprehend you of any involvement in dirty asset, i will advise you make use of  decentralized exchange like bisq to avoid any unnecessary traces.

Snip

I didn't get what you are trying to say correctly. Why would you convert all your bitcoin to any fiat in the first place. Why don't you only convert the ones that you will be needing for your daily needs to your local fiat and leave the rest in bitcoin. There is nothing like clean bitcoin or tainted one. Government is only using those words to make it look scary. Bitcoin is bitcoin. Don't leave your bitcoin in an exchange for any reason.

He is trying to know if possible that one can get involved in buying or selling of tinted bitcoin and the consequences while use on an exchange, we cant know whether the seller or buyer is having a dirty coin or not, as long as its a centralized exchange, we are not safe irrespective of the amount of coins involved.

[Redley555]

Have half of BTC at hand. Want to find a way for better investment rotation to be done. So far invented such a scheme. The whole amount to be exchanged for any local currency. Surplus since last investment to be converted back to BTC. Remaining - initial investment - to be spent on daily needs. Converted BTC to be put back into wallet. Two points of interest here.
First: Does this way of turnover looks reasonable at all?
Second: How to make sure I use "clean" BTC from source of exchange?

I always tell people not to rotate their bitcoin, bitcoin is good for long term so what’s the point rotating when it could head for a bullish run anytime

[Despairo]

I personally use two methods: HODLHODL and PeachBitcoin

Those are P2P exchange, there's always a risk you might receive tainted coins, since @OP looking to avoid received tainted coins, unfortunately he need to avoid it.

2. If the don’t have bitcoin to send from centralized exchanges then you can simply give them a custodial wallet address first to send the coin into and then you can actually transfer it yourself to an exchange, this reduces the risk of receiving tainted coins directly into your exchange

It's true if you gave them your self custody wallet, the coins will not be directly send to the centralized exchange.

But, that's called as "concealing transaction", few centralized exchanges stated they do take action against people who try to concealing their source which linked to illegal thing. So there's no point for doing it.

3. There is nothing bad about the P2P if only it is done on that exchange, the exchange will have not allowed the P2P with tainted coins on their platform

That's correct, KYC P2P will not have any problem.

[Potato Chips]

1. I'm not sure I understand but are you trying to sell high and then buy back again when it dips? if so, it's a good one as long as it works lol. Because it's not as easy and you could totally fail to time it. Alternatively, you can just continue holding as bitcoin is pretty promising in the long run.

2. It depends entirely on who passes the judgement lol. Because each platform could have their own set of rules on what triggers taint. One rule of the thumb though, is CExs dislike mixers.

[SquirrelJulietGarden]

Make sure:
1. Never use instant exchange.
2. Whenever anyone want to send coins to you, ask them send them directly from centralized exchanges.
3. Never do P2P.

You can not ask any person to use a centralized exchange just to finish a deal and a transaction with you. If your trade partner does not use centralized exchange or don't want to trade with you and leak his privacy, your request will not be accepted by your trade partner.

P2P has KYC platforms and no KYC platforms and generally you can have tainted coins from them. If you don't want to have problems, you will have to move your bitcoin (received from your trade partners) to one or two more wallets of yours, before making a deposit to a centralized exchange. It takes more time, costs more on chain fee but if you want to take care of privacy you will have to pay some cost.

[BABY SHOES]

Have half of BTC at hand. Want to find a way for better investment rotation to be done. So far invented such a scheme. The whole amount to be exchanged for any local currency.

My advice is don't do anything, don't rotate your bitcoin with anything.

Simply hold your bitcoin in a safe place that must be non-custodial (self-custodial) and open-source wallet.

The OP method with its explanation is quite complicated to rotate Bitcoin maybe so that it can produce better... but for me with HOLD it's better just maybe they have different thoughts from us.
Because the majority of us invest in Bitcoin only by HOLD in a personal wallet with our own control.

[user210822]

Thanks a lot to all commenters in this thread! Yes I do fully non-custodial storage. And no, I don't have opportunity to avoid private owned exchanges. Like literally on the next corner. The trick is I use to switch countries for that. And last but not the least. So many experienced posters have missed the point. By "clean" I mean that BTC was not involved into criminal based transactions whatsoever. Which is a broken highway even in the case of USA tradeoff from Silkway and German Government after criminal seizures funds.
Conserning the strategy. It looks like straight line up in the perspective of 2010 - 2020 isn't it? So I consider a halving to halving term is sufficient for small bargains to make. Not quite sure about the policy but if you consider the fact that private propety prices have changed gradually from 666666BTC down to 66BTC and not long to wait it to be 6BTC per house. That makes my plan quite reasonable isn't it?

[Zoomic]

Thanks a lot to all commenters in this thread! Yes I do fully non-custodial storage. And no, I don't have opportunity to avoid private owned exchanges. Like literally on the next corner. The trick is I use to switch countries for that. And last but not the least. So many experienced posters have missed the point. By "clean" I mean that BTC was not involved into criminal based transactions whatsoever. Which is a broken highway even in the case of USA tradeoff from Silkway and German Government after criminal seizures funds.
Conserning the strategy. It looks like straight line up in the perspective of 2010 - 2020 isn't it? So I consider a halving to halving term is sufficient for small bargains to make. Not quite sure about the policy but if you consider the fact that private propety prices have changed gradually from 666666BTC down to 66BTC and not long to wait it to be 6BTC per house. That makes my plan quite reasonable isn't it?

I am still trying hard to understand your strategy. Could it be because I am just getting to know about Bitcoin rotation for the first time today?

I have a question for you: Is your strategy profitable, or are you only rotating these Bitcoins because of volatility? I will appreciate it if you can respond to this question and give me clarity in basic  English.

However, for now, I still think simply hodling your Bitcoins will be more beneficial, as you are most likely going to get more returns than transferring all of them every now and then. What if you miss a big opportunity to sell and make some good profits?

[Mrbluntzy]

@user210822, It was difficult to comprehend your post but what I understand is that you want to invest into Bitcoin and after you have made some profit, you want to hold back the profit you made from the Bitcoin, then you will spend your initial capital on your daily need. If I understand you rightly, holding only your profit and spending your capital is not a good way to rotate your Bitcoin investment, if you are rotating your investment, you should be making more profit and not spending your capital and only keep profit.