How Do Long Term Bitcoin Holders Sell Their Bitcoin?

[jerry0]

I know there are a lot of bitcoin holders from a while back.  Many have sold some of their btc because of the high prices.  There are some that either don't want to or need to or just want to hold it until it's big enough to where they want to cash some or all of it out.



The thing is for long term holders who did not buy the btc from an exchange which has a history of it... say they got their coins from filling out surveys years ago or from gambling sites and similar things years ago, what would be the proper way to sell it if you have no history of selling it on an exchange.  Say you could sell it on Coinbase or Gemini or kraken or whatever exchange you have access to.  But you didn't have a history of buying btc there.  Say you could have gotten the BTC free or got it at when it was $500 which.  



So to make the example simple.  Say someone has 5 BTC or 10 BTC.  We could use 1 BTC as an example even as well since 1 BTC right now is over $100,000 which is a lot of money.  How would someone with no buying history or very little for smaller amounts and same with selling on these exchanges do it safely without having an issue?  I read that exchanges will freeze an account occasionally.  So if someone has 5 BTC and wants to cashout say 0.5 BTC at $100,000 price for $50,000, should that person even send that much btc at once from whatever wallet they are holding it to coinbase?  The thing is if there is any freezing of an account, does it occur when their Coinbase receiving wallet receive the 0.5 BTC, or is it after they sell it for USD, or is it when they are going to do an ACH withdraw to their checking account?  The thing is if you get your account frozen and they ask you about your BTC, you obviously don't want this happening when you have a big balance there.  So having 5k on an exchange is already a lot of money.


The thing is when someone doesn't have a history of selling or buying BTC on their exchange and that person sends a big amount to their exchange account, will they always get a message for a new KYC even if they completed it back then?  Like when you do the KYC a while back, they do ask you how much you plan to trade.  So if years ago you say very little since you don't plan to around at the time or didn't have much btc, you fill that out.  But say you got a good amount of BTC from a while back on a gambling site and they pay you out in BTC and you hold it ever since and now want to cash out, what is the best way?  The issue if could any coins you receive be not clean because it could go from someone malicious to a gambling site and then to you?  What if you traded funds with someone for their btc a while back but not sure where they got their crypto from?  The issue is would that be an issue?  The other issue is would those coins you last receive from that person affect your earlier coins in the same wallet but it would go to a different BTC address in your hardware wallet though since it seems like another BTC you receive after another one, it goes to a new address or something like that?  Or is that only when you send?  The thing is someone who has 5 BTC could have 5 BTC in like 50 addresses even right or more?



It would seem to do it safely, someone who has no history of selling crypto and cashing any or much out at an exchange for real money to their checking account should do small amounts first and then go higher in increments  So say someone who wants to sell 0.5 BTC at a price no lower than $100,000 a coin and get $50,000.  They would send maybe 0.01 BTC or around 1000 dollars at once to Coinbase.  Then sell it.  Then after fees, the amount would be around $980 if directly with Coinbase right?  It would be $994 if on Coinbase advanced but as taker and $996 as maker?  So then ACH it to their bank account?  Then a week or so later, do around 0.03 BTC and now do $3,000?  Then the next one do 0.05 for $5,000?  Then the next one do 0.1 BTC $10,000?  Then finally do 0.11 BTC for $11,000.  Then the last one for 0.15 BTC for $15,000?  The thing is I know these sites have daily and weekly and monthly limits but are those for sending to your Coinbase BTC wallet or selling it to USD or cashing out to their bank account?  I assume it's bank account?



So what if someone wants to send 0.5 BTC total to their Coinbase wallet and cash out about $50,000 but has no history?  They should never send the entire 0.5 BTC at once right and do it slowly?  The thing is eventually they will get asked questions on KYC or some form right even if they do it slowly?  The other issue if I read people say you never tell Coinbase about gambling so how would someone who got BTC from a while back from gambling sites even answer this question then?  Well they can't lie about it because if they say something else, well aren't they going to freeze your account?  The main thing here is you don't want to have a lot of your BTC or cash on your account and it's frozen.  



I heard people back then sold Bitcoin on localbitcoins but you then would be selling to someone who would be paying you by bank transfer or cash.  Isn't that a bad idea since you aren't using a regular exchange so it looks shady?  The thing is, are you even allowed to do that?  But if you have trouble cashing out as an exchange, that might be your only way?



The thing is if you have an issue with one exchange, the other exchange you most likely won't have problems right?  The main thing here is you gotten your btc or coins legit from whatever it maybe years ago.  It could be from mining or filling surveys or giveaways.  How do you make sure to not have your account frozen at some point since you do not have a history of buying any btc at the exchange.  Now if you bought 5 btc years ago from that exchange and now send 5 btc at once back to the same exchange, well you probably not going to have an issues as there is a history of it and a trail.  But if you got it from other things, what do you do to try to avoid any issues?  Like you don't mind having 1k worth of btc or usd frozen for a while but not 10k worth of btc or usd frozen a while where you can't access it.  



How do long term holders who never bought any Bitcoin from the exchange they are selling do this?  Like it could be on Coinbase or Gemini or kraken as these are the most popular exchanges in the US.

[Sim_card]

It's good to send 0.5btc in smaller quantity and not once to avoid the exchange from freezing your account. Since, you haven't used your account for big transactions before, the exchange can freeze it. It's the moment, you want to withdraw it after converting to usd is when I believe that the exchange will freeze it.

[Pumpsta]

I guess the safest way isn’t a CEX anyway so frozen funds won’t be a trouble. I’d do it in P2P ways or I’d just pay with BTC directly.. if you don’t have proof for your own funds then yeah it’d be stupid to pick a CEX with KYC. I know options are limites when paying in BTC but it can work and you don’t need no payment processors who choose to fuck up your plans. The other way around.. idk, use a CEX in small chunks just to minimize loss if KYC’s triggered?

[jerry0]

So any freezing of a Coinbase or Gemini or kraken account is only when you are about to cash out ACH to your bank account?  It isn't when you send it to your Coinbase wallet and receive it?  So you can still keep it there or sell it to USD.  It would stay like that?  It's only when you do a cash out is when you might have an issue?  That is important but that still is similar to the amount you have at risk at once since if they freeze your account, whatever you have in btc or crypto or USD is frozen.  So you don't want to have an amount you don't feel comfortable in.


So if someone wants to send 0.5 btc total to cash out for $50,000 or so, they should always do smaller amounts first?  Of course you want to cash out each time just to make sure there is no issue.  But eventually you have to have a KYC no matter what right?  Like it might come when you going to do your last transfer of 0.15 BTC and try to withdraw that to your bank account?  Or it can happen even before that right when you do 0.05 BTC and try to withdraw that to your bank account?



The thing here in my example is your Bitcoin or crypto you have is legit.  The thing is what about if you did a trade with someone a while back and say you transferred them some bank funds or gambling funds or wire and they sent you BTC but it might not be legit?  Wouldn't that be a big issue though?  Is there a way you can find out before you send it to an exchange?  The thing though is in that example, would your remaining coins still haven no problem?  The thing is when someone sends you BTC, that BTC is added to your BTC balance but that BTC would be in a different BTC address though from the others. The issue is when you send that BTC, it seems to break the BTC to another address and now you have a tiny amount of BTC in another new address right?  



The thing is any BTC you got from a gambling website years ago, if coins from someone not legit got to the site and to you, that isn't your business right?  I mean there is a trail but your cash out is legit though.  So there are no concerns on this right?  Gambling sites are sending and receiving coins from tons of users so it's like getting cash as change at the grocery store and that cash probably has been handled by a lot of people before you.  The coins you receive from a survey years ago, how would you know if those are legit when filling out a survey?


Coinbase, Gemini and kraken I know are CEX.  But isn't anyone selling crypto for big amounts of money doing it this way?  I mean, that is the legit way to do it right?  I can't imagine someone doing P2P with other people for this?  By P2P, what payments you mean exactly and what forms of payment?  You mean like a bank transfer or wire transfer?  I could see that but wouldn't that not be legit or look good if someone does several transfers like that with someone to your bank account compared to doing it the normal way of Coinbase to bank account?  The other thing is you don't mean cash for crypto right?  Are you even allowed to sell crypto for cash?  If it is allowed, wouldn't these be small amounts?  I mean doing that isn't safe when doing transactions usually and if so, you are depositing cash in your bank account which isn't like an ACH bank transfer from Coinbase which looks legit.  


So it seems if your coins are legit, you still need to send small amounts and cash out smaller amounts and do it that way?  I am asking about legit coins and not any bad coins or anything like that.  The thing is if you don't have a history of buying coins from that exchange that you plan to sell and you acquired it years ago from whatever it maybe legitimately, how do you do so without your account getting frozen is what I want to know.  The thing is it's from gambling sites since they use crypto to deposit and withdraw, you have to say from gambling sites right?  You are telling the truth but they have an issue against gambling.  I know that Coinbase bans accounts if you send directly from gambling sites to them so people use an intermediary wallet to prevent this.  But they will eventually ask you where you acquired your Bitcoin at some point right assuming you had no history of buying from them?  There should be no issue if you tell them it's from gambling sites years ago or surveys or similar? 

[BitMaxz]

I don't think it's a good idea if you suddenly withdraw and exchange your BTC that you just earned from doing some task like doing captcha from faucets and get rewarded. That was a pretty common way to earn BTC before. If you got them free and have a large amount like the above said, don't deposit them on exchanges; try to deposit them gradually. Meaning you need to split your BTC depending on how big this amount is.
Maybe $500 in BTC might not trigger a freeze of your account. We do not know since in exchanges there is no specific transaction amount or limit, but before, they usually said 1 or 2 BTC, but this is for the withdrawal limit.
So if this is a big amount of BTC and you have multiple exchange accounts with KYC verified, split them; don't deposit them all in a single exchange, or if you are only using Coinbase or Gemini, then withdraw them gradually.

[jerry0]

Well in my example, I mean like for people that earned BTC from doing captcha form and surveys years ago or it could be from gambling sites or anything like that but it's legit.  They might have kept the BTC in whatever wallet from years ago and now want to cash out.  So if they got say 1 BTC from that and held it the entire time, well that is 100k or so. 



So say someone wants to cash out 0.5 BTC but has 1 BTC total.  That person should send smaller amounts and do it gradually no matter what right?  So you are saying $500 to start off small and go bigger.  But someone with 0.5 btc who wants to cash it out, shouldn't do it with my example?  Like 0.01 BTC and then 0.03 BTC and then 0.05 BTC and then 0.10 BTC and then 0.11 BTC and then 0.15 BTC?  That would still be a lot right with the gradual amounts?  I mean you are going from $1,000 to $3,000 to $5,000 and then $10,000 and then $11,000 and $15,000.  I mean that is gradual but those are still big amounts. 



The thing is eventually, an exchange like Coinbase or Gemini or kraken will eventually KYC you right even if you do it casually?  They might do it after $1,000 or $5,000 or $10,000 or $50,000 or $100,000?  But the main thing here is if you have no history of buying from that site, it probably will be a lower amount?  So if you do a $500 transfer to your Coinbase wallet and sell it and withdraw ACH to bank account, probably no problem.  You do another one for $1,000 then maybe you get one now?  Maybe not until you do over $5,000 in one calendar month or what that number maybe?  The issue is if you want to sell 0.5 BTC and get about $50,000 and you keep doing it slowly and gradually, BTC price going down and then you can't even get $50,000 because of it.  You would prefer to sell it all at once but you shouldn't do that when you first start selling especially if you have no buying or selling history on coinbase or gemini right?

[kotajikikox]

It's good to send 0.5btc in smaller quantity and not once to avoid the exchange from freezing your account. Since, you haven't used your account for big transactions before, the exchange can freeze it. It's the moment, you want to withdraw it after converting to usd is when I believe that the exchange will freeze it.

The bank or digital wallet you will use to take out the converted USD might also question if an unusual large amount enters or exists your account. They might try to halt your transaction and ask for more information about the source of the money. It’s inconvenient but just do it in smaller batches and preferably in different platforms.

[coupable]

I guess the safest way isn’t a CEX anyway so frozen funds won’t be a trouble. I’d do it in P2P ways or I’d just pay with BTC directly.. if you don’t have proof for your own funds then yeah it’d be stupid to pick a CEX with KYC. I know options are limites when paying in BTC but it can work and you don’t need no payment processors who choose to fuck up your plans. The other way around.. idk, use a CEX in small chunks just to minimize loss if KYC’s triggered?

But doing it p2p is the most dangerous way considering the big sum of money involved. Even though when think to split the amount to make smaller transaction since it would require dealing with many people and that makes it risk higher.
If the funds are source clean, i don't see a big problem using cex at the sole condition to be a reputed one with significant liquidity. Some of the big whales use CEX they trust to hold their funds (yes i know this is stupid at some extents but this is the reality).

[Pumpsta]

But doing it p2p is the most dangerous way considering the big sum of money involved. Even though when think to split the amount to make smaller transaction since it would require dealing with many people and that makes it risk higher.
If the funds are source clean, i don't see a big problem using cex at the sole condition to be a reputed one with significant liquidity. Some of the big whales use CEX they trust to hold their funds (yes i know this is stupid at some extents but this is the reality).

P2p doesn’t mean face to face and if you have 10BTC you don’t have to swap all of it. You’re funny about the clean sources though, what do you think this is, bottled water? If a CEX wants to believe your gambling funds sound weird they’re gonna freeze them until you prove what they ask you to prove. Imo.. even moving this much over to the CEXs is already a bigger risk than making safe p2p transactions in batches. Ask yourself how many people just deposited their money over at Binance or whatever other exchange minutes or seconds before a hack. Then you’ll wish you had full control

[jerry0]

So when you do P2P, what payments are you talking about?  Do you mean online bank transfer or wire or you mean like meeting person to person and exchanging cash?  Because that wouldn't be that safe.


The thing is if someone has say 0.5 BTC they want to sell, how would they do it on a CEX then if they have no history of selling or buying at that CEX then?  So you obviously have to do smaller amounts to start?  The thing here is you did get your BTC legit whether it was through surveys or gambling or whatnot. 



The thing is if they do freeze your account or ask for KYC, you don't want to have a lot of BTC or USD funds stuck when this happens.  So if they ask KYC, you prefer them to do it when it's a smaller amount.  The thing is they eventually will ask for it right?  The thing is can't they check the history of the coins though since there is a digital train of it anyway?  Or it's the fact that okay you never bought BTC from our exchange we so have to ask for the history?  So the thing same thing would apply if this same person bought that amount of BTC buy say they bought it from Gemini or Kraken but using Coinbase to sell right?  Or is that different because that would look different somehow?

[coupable]

But doing it p2p is the most dangerous way considering the big sum of money involved. Even though when think to split the amount to make smaller transaction since it would require dealing with many people and that makes it risk higher.
If the funds are source clean, i don't see a big problem using cex at the sole condition to be a reputed one with significant liquidity. Some of the big whales use CEX they trust to hold their funds (yes i know this is stupid at some extents but this is the reality).

P2p doesn’t mean face to face and if you have 10BTC you don’t have to swap all of it. You’re funny about the clean sources though, what do you think this is, bottled water? If a CEX wants to believe your gambling funds sound weird they’re gonna freeze them until you prove what they ask you to prove. Imo.. even moving this much over to the CEXs is already a bigger risk than making safe p2p transactions in batches. Ask yourself how many people just deposited their money over at Binance or whatever other exchange minutes or seconds before a hack. Then you’ll wish you had full control

- First, P2P doesn't only mean using P2P plarforms. Dealing can also be face to face especially for significant sums of money. I don't neglicate the risk involved in this kind of deals.
- Second, what i meant when saying clean source is that someone can prove an exact source with valid proofs. Authority ask about this in FIAT money and in cryptocurrencies as well. If someone didn't get his savings from a hack, i guess he can prove that the funds are source clean.
- Third, yes i can consider how much it's riskier to use exchangers as personal wallets, and i would never do it or advice anybody to do so. However we know how many people hold their investments in exchangers by ignorance of potential risks.

[jerry0]

So the thing is if you never bought or sold any or much BTC at the exchange you want to cash out from, just do it slowly in case they freeze your account or ask you for KYC right?  This is assuming your coins are legit.  The thing is you don't want your account frozen and then you have to wait until the whole process is resolved right?


So if a long term holder wants to cash out 0.5 BTC, they have to go really small and then go higher slowly.  The thing is eventually they will get KYC no matter what right?  This is with someone that has no history of buying any or much BTC on the exchange?

[Obim34]

So when you do P2P, what payments are you talking about?  Do you mean online bank transfer or wire or you mean like meeting person to person and exchanging cash?  Because that wouldn't be that safe.

You do P2P (Peer-to-Peer) online within an exchange.

You click on the ad, place your order with a merchant who wants to buy and he pays to your bank while the exchange automatically freezing your order till you've confirmed and release to the buyer.

You don't meet physically to carry out P2P, though some exchanges have it as options.

The thing is if someone has say 0.5 BTC they want to sell, how would they do it on a CEX then if they have no history of selling or buying at that CEX then?  So you obviously have to do smaller amounts to start?  The thing here is you did get your BTC legit whether it was through surveys or gambling or whatnot. 

Equivalent, 0.5 BTC will give $53K. It will be better off, splitting into portions and selling at interval, moreover it doesn't stop the exchange from noticing the intervals at which you spread them, if they grow suspicion they will also ask about further KYC, anyone using CEX should always be ready to undergo KYC at any moment required.

The thing is can't they check the history of the coins though since there is a digital train of it anyway?  Or it's the fact that okay you never bought BTC from our exchange we so have to ask for the history?  So the thing same thing would apply if this same person bought that amount of BTC buy say they bought it from Gemini or Kraken but using Coinbase to sell right?  Or is that different because that would look different somehow?

Bitcoin is recorded on a digital ledger, it stores data in chains, that makes it traceable but they still can't know the origin of the transaction, what was the deal between you and the sender.

Using Electrum, there is a section when sending they ask for description, I can't tell how this part might help when answering KYC since it doesn't show on the blockchain or the receiver. No exchange deems it a must to particularly buy from them before allowing P2P, a new exchange account is eligible to trade any amount based also on KYC level.

[boyptc]

So the thing is if you never bought or sold any or much BTC at the exchange you want to cash out from, just do it slowly in case they freeze your account or ask you for KYC right?  This is assuming your coins are legit.  The thing is you don't want your account frozen and then you have to wait until the whole process is resolved right?


So if a long term holder wants to cash out 0.5 BTC, they have to go really small and then go higher slowly.  The thing is eventually they will get KYC no matter what right?  This is with someone that has no history of buying any or much BTC on the exchange?

Just think of it that any exchange will require you KYC at all, whether you're a big seller or not, they'd still do it for their sake because the government told them to do so.

And it doesn't matter whether you've got some history or none with the exchange where you'd to the sell off.

No one can skip the KYC and verification process unless they truly are standing firm with their policy of being a non kyc exchange. If you're not asked for it, that's good but for your sake and mental process, it's best to expect them to do it since almost all of them does.

[joniboini]

So if a long term holder wants to cash out 0.5 BTC, they have to go really small and then go higher slowly.  The thing is eventually they will get KYC no matter what right?  This is with someone that has no history of buying any or much BTC on the exchange?

Well, they can be smart and use multiple platforms to do that, I guess. If they don't want to do any KYC, then they have to spend the effort to do it. It's not like they need to start from selling 0.0000001 BTC and increase it slowly from there anyway. I'm pretty sure most long-term holders know this. Hard to imagine someone who holds BTC for the long term being ignorant and just sending their coins to any platform with a promo and so on. I've never heard of someone getting KYC'd because they sent money from an address with a huge balance (not related to hacks etc). No harm in being careful, though.

[Versatile_choice]

So when you do P2P, what payments are you talking about?  Do you mean online bank transfer or wire or you mean like meeting person to person and exchanging cash?  Because that wouldn't be that safe.

P2P simply means( peer to peer) which in other word can be seen as online bank transfer Because if you're trading a coin using P2P the vendor will transfer the money direct to your bank before you can release coin which some people can also decide to do it face to face but physical trading has a high level of risk Because you don't know if the person you're trading with have a bad intention towards you maybe after trading with him he can eventually ask some group of people to confront you to take everything away from you which is why investors don't like engaging themselves in physical trading instead they will prefer doing it in exchange. i know that This also involves some level of risk but I think the risk differs.

[Justbillywitt]

The thing is when someone doesn't have a history of selling or buying BTC on their exchange and that person sends a big amount to their exchange account, will they always get a message for a new KYC even if they completed it back then?

As long as you have completed kyc with the exchange, you won't receive a message for a new kyc if you have receive a big amount in your account with the exchange. I am talking in respect of reputable exchanges, and not all these scamming mushrooms exchanges. Any exchange that ask you for another kyc after passing initial kyc when you receive a deposit irrespective of the amount in your account is a fraudulent exchange.

Like when you do the KYC a while back, they do ask you how much you plan to trade.  So if years ago you say very little since you don't plan to around at the time or didn't have much btc, you fill that out.  But say you got a good amount of BTC from a while back on a gambling site and they pay you out in BTC and you hold it ever since and now want to cash out, what is the best way?  

Kyc are in tiers, and each tiers has their maximum daily withdrawal, if you want to increase your daily withdrawal size in an exchange, all you have to do is upgrade to another tier and that will enable you withdraw a higher amount. But in the aspect of deposits, you can deposit any amount in all the kyc  tiers it is only the daily withdrawal limits that varies. This was how it is back then when I did kyc with some exchanges back then. I don't know if they have changed

[Onyeeze]

Holders of Bitcoin hold their Bitcoin due to the target they have, they are people who has being holding their bitcoin for long-term and they forgot their bitcoin, that's why someone who is aged is not supposed to hold bitcoin more than 3 years, must at times the reason people hold bitcoin is to make profit, and this reason is generally accepted by 80% of people who is into bitcoin investment, why some people the reason why they hold bitcoin is because they are saving their money with bitcoin so the money will not be spend unnecessarily or stole by thief's, so many people have their reasons to hold bitcoin for long-term, but anyone who holds bitcoin have a target if I'm not mistaken.

[coolcoinz]

My greatest concern as a long term bitcoin holder is that if I sell on exchanges with KYC, eventually the government will come knocking to check if my bitcoin doesn't come from crime, like drug trading, prostitution, or theft. That's why I've stayed anonymous throughout the years and whenever I wanted to turn my bitcoin into something physical, I chose to buy stuff with it, or sell P2P.

In the EU, they can confiscate your money if you can't prove the origin of funds and they want you to prove this. No proof means it may come from crime and gives them freedom to do as they please. This really sucks if you have BTC that comes from defunct exchanges. On the other hand, you're 100% anonymous, unless you fuck it up.

[jerry0]

So my Coinbase and Gemini account I been KYC a while back.  This is with me not even buying or selling on it though. 



The thing is once someone sells a good amount of BTC or crypto, aren't they going to get some KYC?  Like if you sell a few hundred every month, most likely not.  But say you start selling 5k a month and then go to 10k and higher.  Wouldn't you get a KYC?  imagine someone selling 1k a few times in a few months.  Then they want to sell 100k.  Well aren't they going to get a KYC at some point though?  I guess it depends on how much you withdraw?  So someone could sell 100k worth of BTC for USD.  Say they have 99000 USD balance.  If they only withdraw say 5k or 20k and not 30k, then they might not get KYC?  Then you withdraw another 20k the next month?  So the entire time your USD balance is the same?  What if someone who is a long term holder and has no history wants to llke sell 500k worth of BTC and finally cash out?  They eventually will get KYC right?  The thing is say they want to sell fast and not wait because if they do it slowly with 1k this month and 5k next month and do it slowly, by the time they sell 5 BTC in many months or a year or longer, well that 500k could be sold for 300k only if the prices drops that much.



Does Coinbase or Gemini KYC you once you sell over x amount of USD per month?  Like okay this person sold 50k worth of BTC with no history of buying from us, we going to KYC him.  So you don't want the KYC to last that long as you don't want that much money in your account when getting KYC.  But once they get that KYC, could they sell the entire amount just like that so they don't have to be concerned about the price dropping?  Imagine someone with 5 BTC and wants to get at least $500000 for it.  The more they wait or do smaller cash outs, well the price might go lower.