How Do Long Term Bitcoin Holders Sell Their Bitcoin?

[jerry0]

The thing is do people get ask for more KYC when they send btc to Coinbase or Gemini?  Or when they sell it?  Or only when you cash out to bank account?

[Nwada001]

The thing is do people get ask for more KYC when they send btc to Coinbase or Gemini?  Or when they sell it?  Or only when you cash out to bank account?

I don't use Coinbase and Gemini, but one thing I know about centralized exchanges like Binance, which I make use of, is that they can ask you for KYC anytime they see a need to ask for it, not when you want to sell, but mostly I have been asked for more verification each time I send in some deposit from places that they don't understand, like a casino or an address that is somehowlinked to a mixer. At times they could also ask for more information about KYC if you send more deposit than your account usually receives.

[Stalker22]

So, the thing is, some exchanges or other centralized services might hit you up for more KYC checks whenever they feel like it.  Im all about services with clear rules, so you know whats coming.  Like, there are local Bitcoin ATMs that dont require KYC if you are under a certain limit.  If you are not in a hurry, you can skip KYC altogether by taking out smaller chunks over a few days or weeks.  Honestly, thats how I like to do it.

[Josefjix]

The thing is do people get ask for more KYC when they send btc to Coinbase or Gemini?  Or when they sell it?  Or only when you cash out to bank account?

Any centralized platform needs KYC before initiating withdrawal option, so long as BTC is leaving the system, it needs verification, you can actually buy and sell without KYC because the funds is still in circulation within the platform.
Cashing out you mean is withdrawal also, it needs KYC to deposit on any platform be it coinbase or Gemini or wherever.

[RockBell]

The thing is do people get ask for more KYC when they send btc to Coinbase or Gemini?  Or when they sell it?  Or only when you cash out to bank account?

Any centralized platform needs KYC before initiating withdrawal option, so long as BTC is leaving the system, it needs verification, you can actually buy and sell without KYC because the funds is still in circulation within the platform.
Cashing out you mean is withdrawal also, it needs KYC to deposit on any platform be it coinbase or Gemini or wherever.

centralized exchanges are always concerned about kyc because the moment registration is made it is a compulsory policy that you most do kys because when there is no kyc then there is no withdrawal, and because of the kyc that is people dont really like the idea of kyc and that is the decentralized is the best, there is no kyc  required, and all this is for data protection and this is they are frowning at kyc. and another thing is that it is there choice to make and for holders making use of your wallet will keep your fund in a safe place.

so that when ever they want to sell they can make use of any exchange of there choice but they should still make use the wallet and holding and selling does not really have a time frame if they want to sell then they should, any time they want to sell.

[juttsab@]

The thing is do people get ask for more KYC when they send btc to Coinbase or Gemini?  Or when they sell it?  Or only when you cash out to bank account?

Any centralized platform needs KYC before initiating withdrawal option, so long as BTC is leaving the system, it needs verification, you can actually buy and sell without KYC because the funds is still in circulation within the platform.
Cashing out you mean is withdrawal also, it needs KYC to deposit on any platform be it coinbase or Gemini or wherever.

centralized exchanges are always concerned about kyc because the moment registration is made it is a compulsory policy that you most do kys because when there is no kyc then there is no withdrawal, and because of the kyc that is people dont really like the idea of kyc and that is the decentralized is the best, there is no kyc  required, and all this is for data protection and this is they are frowning at kyc. and another thing is that it is there choice to make and for holders making use of your wallet will keep your fund in a safe place.

so that when ever they want to sell they can make use of any exchange of there choice but they should still make use the wallet and holding and selling does not really have a time frame if they want to sell then they should, any time they want to sell.

Long term Bitcoin holders can sell Bitcoin at any exchange because there are thousands of exchanges which are trading the Bitcoin and people are buying at that place because they want to hold this . Market trend matters a lot and it there are more buyers then BTC price will be go up and we will see candle up but if sellers are more in the market then it's price will go down . People want to get more profit and it could be if any person is interested to take Bitcoin as he know that you have Bitcoin and he want to take Bitcoin from you  , you can get more money from him because you will send the Bitcoin and he will play safe at that point. He has no information how to bat that and you will do the transaction.

[Rgram]

So, the thing is, some exchanges or other centralized services might hit you up for more KYC checks whenever they feel like it. 

A friend of mine did make similar complaints about Binance, where they tend to be more scrutiny on the source of funds, not only requiring you to update your KYC documents but also provide proof for source of funds, requiring the sender to present certain details and all.

It presents certain risks in the event that, the sender isn’t complaint with the requirements and you could be stock in what could have been a simple transaction.

[dimonstration]

A friend of mine did make similar complaints about Binance, where they tend to be more scrutiny on the source of funds, not only requiring you to update your KYC documents but also provide proof for source of funds, requiring the sender to present certain details and all.

It presents certain risks in the event that, the sender isn’t complaint with the requirements and you could be stock in what could have been a simple transaction.

Maybe your friend has a huge capital or have funds coming from source that raise concern to exchange.

Updated KYC procedures is a must since valid ID do expires but asking for a source of income is not the procedure I remember completing on any exchange.

This is a pain in the ass sending documents for source of funds if you accumulate all your crypto holdings during the early days of crypto.

[hmbdofficial]

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.

does that mean that it could not be traced and verified that you actually got the coin through a particular means?

if that is so why do they say every transaction are public and traceable?

[betswift]

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.

does that mean that it could not be traced and verified that you actually got the coin through a particular means?

You can see how much you've got, but not from where you got it. If it's not a CEX service, that is.

[suzanne5223]

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.  

You don't need to have a history of buying BTC on every CEX before you can sell your BTC on their platform, unless you're pointing this out because you need to handle the BTC tax, which I believe you will need advice from a crypto legal practitioner.
But, if that's not the case and you still consider the use of Coinbase, Gemini, etc to be problematic, why not use a P2P trading platform?

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?

Yes, but most CEX have a tiered KYC, which determines the amount you can withdraw from your account. If you have activated the tier 2-3 KYC, withdrawing the funds after you have traded the BTC could be restricted.

 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.

Every CEX has its model of operation, but in this case, I will suggest you don't use Coinbase due to its high KYC requirements. It is certain that if you have executed KYC for the tier that can handle such an amount, and your account is not flagged for illicit transactions, there's no reason whatsoever for CEX to freeze your account.

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?

No, if you have once completed the KYC for a tier that can handle to high amount you sent, and this is why I never recommend Coinbase for such activity based on past experience.

[Jostern]

I think if you have gotten to over accumulation, it would make a whole lot of sense to sell some little part of your profits and you don’t sell all your bitcoins just some little portion, probably 0.05btc wouldn’t be a problem or a challenge, but the challenge would possibly selling all your bitcoins which I think it’s a very bad idea to be selling a bitcoin, but in a situation that someone haven’t gotten to over accumulation stages it’s just better to keep buying and accumulating bitcoin when you are still in your accumulation stages, well I also think everyone have their way of selling bitcoin that suits themselves.

[Stormisover]

I think if you have gotten to over accumulation, it would make a whole lot of sense to sell some little part of your profits and you don’t sell all your bitcoins just some little portion, probably 0.05btc wouldn’t be a problem or a challenge, but the challenge would possibly selling all your bitcoins which I think it’s a very bad idea to be selling a bitcoin, but in a situation that someone haven’t gotten to over accumulation stages it’s just better to keep buying and accumulating bitcoin when you are still in your accumulation stages, well I also think everyone have their way of selling bitcoin that suits themselves.

If we can tell ourselves the truth we will always acknowledge that there are planting season and harvesting season and all of these are based on When you planted and not just planted there was enough caring and nursing of your plants, it is very simple and logical to understand that our plants which is our investment will definitely need time to grow and mature enough before considering consumption, a prematured products can not be as good as a matured one, my stake is that it is very wrong to be selling at when we are supposed to accumulating though anyone can have their choices to do whatever pleases them at any point.

[DiMarxist]

If we can tell ourselves the truth we will always acknowledge that there are planting season and harvesting season and all of these are based on When you planted and not just planted there was enough caring and nursing of your plants, it is very simple and logical to understand that our plants which is our investment will definitely need time to grow and mature enough before considering consumption, a prematured products can not be as good as a matured one, my stake is that it is very wrong to be selling at when we are supposed to accumulating though anyone can have their choices to do whatever pleases them at any point.

You actually explained it perfectly. Investing has its own seasons, and people who don’t understand that end up harvesting too early and then wondering why their results are poor. Just like in farming, the effort you put into planting, and waiting patiently is what determines the quality of the outcome. And selling during the season of accumulation is basically cutting the process short  and the investment has not matured yet. Everyone is free to make their own choices, but those who respect the timing of the market usually end up with the best results. Patience really is one of the strongest tools an investor can have.

[Yaunfitda]

If we can tell ourselves the truth we will always acknowledge that there are planting season and harvesting season and all of these are based on When you planted and not just planted there was enough caring and nursing of your plants, it is very simple and logical to understand that our plants which is our investment will definitely need time to grow and mature enough before considering consumption, a prematured products can not be as good as a matured one, my stake is that it is very wrong to be selling at when we are supposed to accumulating though anyone can have their choices to do whatever pleases them at any point.

You actually explained it perfectly. Investing has its own seasons, and people who don’t understand that end up harvesting too early and then wondering why their results are poor. Just like in farming, the effort you put into planting, and waiting patiently is what determines the quality of the outcome. And selling during the season of accumulation is basically cutting the process short  and the investment has not matured yet. Everyone is free to make their own choices, but those who respect the timing of the market usually end up with the best results. Patience really is one of the strongest tools an investor can have.

And that's why we will always hear that investors should have "patience" because that's what we needed in this market, specially on how volatile it is and then we have the cycles: bulls/bear. So we can't choose any, but we need to go to that season before we can make profits. And after that, investors should also learn from that kind of process. So it's not that easy to know when to sell, when to time the market unless you really have undergone the whole learning curve. But after that, it's going to be smooth sailing as you have at least understood how everything works and then you just have to adjust your strategy.

[WhoYouCantKill]

For those who have held Bitcoin for years and now want to cash out safely, the best way is keeping everything transparent. Regulated exchanges normally request for source of funds when the amount is a big one or your recent activity is minimal. Small test deposits, slow sales, and clean documentations would help. Be ready to tell the source of the coin with all truth. Mixing, hiding sources, or making use of shady buyers can create risk. All exchange has it own limits and rules, therefore expect checks occasionally. Holder for long-term generally cash out gradually, keeps records, and ignore moving everything at once.

[MinoRaiola]

The thing is do people get ask for more KYC when they send btc to Coinbase or Gemini?  Or when they sell it?  Or only when you cash out to bank account?

Any centralized platform needs KYC before initiating withdrawal option, so long as BTC is leaving the system, it needs verification, you can actually buy and sell without KYC because the funds is still in circulation within the platform.
Cashing out you mean is withdrawal also, it needs KYC to deposit on any platform be it coinbase or Gemini or wherever.

You are probably right about that. Exchanges become regulated in last years, and they have more regulations in Europe with MiCa and DAC-8 at 2026. So it will become more difficult for sellers and buyers. With these strict requirements, P2P trading will become more popular i think. This is what stand in the whitepaper, without a 3th party. When we buying Bitcoin online, everyone should make a note and keep the receipts in case for the future, there ist proof required.

[Cookdata]

The thing is do people get ask for more KYC when they send btc to Coinbase or Gemini?  Or when they sell it?  Or only when you cash out to bank account?

Ckinbass and Gemini with Kyc are 5&6, no Kyc no verification and you wouldn't be able to use the exchange. There is no further verification to do with your bank because without you have done it while opening your account details.

Most exchanges required Kyc, if there is an exchange that doesn't ask for Kyc do your investigation before you send money to such exchange reason is that I have had my coins lock on many exchanges, they are scam. They  not ask for any verification, deposit address will be open and you will be allowed to sell but as soon as you want to withdraw, you will be requested to do  a Kyc verification and a tough one for that matter, the ones I did were rejected many times and I lost my coins on those exchanges, I can't even remember their names again.

[Onyeeze]

There are people who sold their bitcoin because the price of Bitcoin were high, so immediately the price is higher than what then bought the Bitcoin they will no longer holding their bitcoin they will sell in order to make a profit so what I'm saying is that there are some people who hold bitcoin because of the one to make a profit that is why you see some people holding for long time and they also say some people holding for long time so any person who is holding bitcoin neither long time or short time that person have a plan or a target so some people who is into short and Investment don't like to hold their bitcoin for long time because they have a plan

[Nwada001]

For those who have held Bitcoin for years and now want to cash out safely, the best way is keeping everything transparent. Regulated exchanges normally request for source of funds when the amount is a big one or your recent activity is minimal. Small test deposits, slow sales, and clean documentations would help. Be ready to tell the source of the coin with all truth. Mixing, hiding sources, or making use of shady buyers can create risk. All exchange has it own limits and rules, therefore expect checks occasionally. Holder for long-term generally cash out gradually, keeps records, and ignore moving everything at once.

How about those who earned those coins from back in 2009, when you could get a bunch of bitcoin easily? How do you document such, and how do you expect those sharks that call themselves regulators to believe you when they are already looking for any slight opportunity to take advantage of your statement? Coming clean with the right document is nice, but how seriously will they take those data?.