Converting bitcoin to fiat without problems

bitterguy28

full member

Activity: 2170

Merit: 182

“FRX: Ferocious Alpha”

Quote from: tajimas on May 25, 2024, 07:15:22 AM

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

-Regards

Have you decided what to do? or have you withdrawn the funds already because you did not completely explain where are the funds stays now , is it in your personal wallet or exchange wallet?
because from that we can conclude and explain to you what to do specially that you seems to be scared about banks asking
you about the funds from where it comes .

Ludmilla_rose1995

full member

Activity: 1680

Merit: 169

Buzz App - Spin wheel, farm rewards

Quote from: tajimas on May 25, 2024, 07:15:22 AM

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

-Regards

why do you have to worry about this, currently there are many ways to exchange bitcoin to fiat and vice versa, one way is to trade person to person but you have to be able to find a trusted person because there are many fraudsters out there, you can look for them on your local board for the start, for now in my opinion the safest way to avoid being detected when making bitcoin to fiat transactions or vice versa is with P2P

btcinfo891

jr. member

Activity: 52

Merit: 20

I want to comment on the suggested use of P2P exchanges to avoid the attention of the tax authorities. Some people seem to believe that personal (non-business) bank transfers are not scrutinized by the bank, especially if the transfers involve small amounts.

In the general case that is not true. The algorithms used by the banks to detect suspicious transactions and/or accounts are quite complex. They vary one jurisdiction to another and even from one bank to another. And you don't really know what is suspicious to the bank. Multiple small transfers coming from various unrelated people can easily flag your account as suspicious and it could be locked until you provide more information about the sources of these transfers, or you could just be silently reported to the tax authorities.

Also remember that all bank transactions are kept for at least 10 years and potentially forever. So they can easily come after you in 5 years.

The only kind of transfer that leaves very few traces is when the two parties meet face-to-face and exchange crypto for physical cash. And of course it has its own set of problems already mentioned by the other posters, the $5 wrench attack and fake cash being the most serious ones.

leonair

sr. member

Activity: 1400

Merit: 420

Quote from: tajimas on May 25, 2024, 07:15:22 AM

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

-Regards

Basically i use p2p service from different centralized exchange platform like Binance, Kucoin there also Bank transcation is available. you can sell big amount of bitcoin, USDT or some valuable crypto currencys. But after depositing the money in the bank, if the bank authority asks you where the money came from, if Bitcoin is legal in your country, then show the truth. And if illegal then you have to handle these transactions very carefully at your own risk.

coolcoinz

legendary

Activity: 2814

Merit: 1192

I have to be honest here that I was really afraid they might treat me like a money launderer, so I did extensive research, looking into banks that don't ban clients for transferring money from and to bitcoin exchanges. For that I've contacted a guy that I knew who was a localbitcoins trader for a few years and asked him which banks gave him problems and which did not and I made an account with the bank he told me about.

When it comes to taxes, there was completely no problems since bitcoin is considered a legal investment in the EU, so as long as the bank accepts the money and you pay tax, the government will not interfere.

That said, I no longer declare my bitcoin and prefer to exchange it for cash p2p.

zabzob

member

Activity: 86

Merit: 26

OP might want to consider bisq. I'm surprised no one has already mentioned bisq in this thread. It's a decentralized P2P trading platform that lets users trade bitcoin for fiat through banks and various other methods. You can receive bank transfers not from known crypto exchanges, so your bank won't know it's bitcoin-related. As long as you do amounts under 10k your bank probably won't ask questions, unless you're living in a totalitarian country.

Gladitorcomeback

hero member

Activity: 812

Merit: 619

Quote from: Unity for Humanity on May 28, 2024, 11:30:26 AM

Some people messaged my telegram account and they told me that they buy bitcoins and they are ready to pay any currency against bitcoins. I don't have any bitcoins right now so I can't tell you how to sell bitcoins and convert them to local currency but maybe I can convert my bitcoins to local currency when I have bitcoins through those who messaged me on telegram.

You wouldn't want to do that, my friend. Telegram is the most famous place for scammers, and you shouldn't believe anything you see, hear, or receive there, make sure that you are not interacting with unknown people who try to approach you with offers and stuff in your DM because they don't go around and help people or help them make money but they are looking for preys and vulnerable people whom they can scam and run away with their funds.

Whenever you need to convert your assets to fiat, make sure you use a trusted P2P platform where your assets will be escrowed until you receive the funds in your account, and then you can release the assets yourself so that you don't get scammed. Don't try to use online services offered by unknown people.

sunsilk

hero member

Activity: 3038

Merit: 634

Now that you have mentioned that you own it and you're asking for some help, someone might sneak out on you and try to convince to help you privately.

Be careful with those people because you will never know if they have genuine intentions.

Going back to cashing out your BTC into fiat. I think that has done it in the past knows that if there's a sudden big deposit on your bank account, that will trigger them to have some spot on you and will serve as a red flag without proving where it came from.

With that, whether you trade in cex, dex or p2p, don't withdraw it all at once. Do it in several batches.

Faisal2202

hero member

Activity: 1414

Merit: 513

Payment Gateway Allows Recurring Payments

Quote from: tajimas on May 25, 2024, 07:15:22 AM

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?

I do p2p trading whenever I need fiat I send crypto like BTC or USdt and receive fiat in my third-party finance app, like Paypal, Payoneer, Easypaisa, JazzCash, etc. And when I receive funds on these financial applications, I then withdraw funds from these apps to my bank account and I only send funds from this app to banks whenever I have to withdraw them and I am already in the ATM. I send funds from here, and they are reflected in my bank account I am already in the ATM. So I withdraw them. I this phase I don't have to give answers to my bank managers. I mean come on, for a little money like 100$ to 200$ who asks questions?

If you think you need to withdraw more money then use multiple accounts and multiple banks I don't think it's illegal as they allow us to do it so it's legal. Using multiple banks, means you have to withdraw little funds from it, then they won't ask you from where it's coming, I mean they did not ask me. I don't know where are you living, or what's the policy there. But the best way is to pay tax, if its legal and if any imposed if not then try not to do it.

Synchronice

hero member

Activity: 882

Merit: 792

Watch Bitcoin Documentary - https://t.ly/v0Nim

Quote from: tajimas on May 25, 2024, 07:15:22 AM

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

-Regards

The best way is to have a friend, buddy who wants Bitcoins and will have a deal with you, i.e. will buy these Bitcoins from you. This way, no one will question where does the money come from unless it's a lot of money.
If you are from the USA, I wouldn't risk it because recently Roger Ver was arrested for not paying taxes and I think that he would put more effort into it than you (nothing personal). If you are from a developing country where laws are strictly protected, it might turn into a big headache if you don't pay taxes.

Jawhead999

legendary

Activity: 1862

Merit: 1209

Anything has a risk.

If you sell your coins in centralized exchange, you might have a problem about data breach, wrongly accused and any other centralization problem.

If you sell your coins in decentralized exchange or no KYC P2P, you might have a problem with banks and government because they view Bitcoin as non fungible coins.

If you sell your coins via direct P2P, you have a chance to get $5 wrench attack or get scammed by receiving fake cash.

GiftedMAN

hero member

Activity: 1008

Merit: 622

Watch&Pray.

Quote from: Spaceman1000$ on May 25, 2024, 08:15:53 AM

Quote from: Agbamoni on May 25, 2024, 07:37:35 AM

You can easily convert your Bitcoin to fiat using your calculator and after then the best way is to sell your coins on an exchange that is available in your country. There are different exchanges like coinbase, Binance, kucoin that offers these services. Don't get it all wrong these exchanges do not directly buy your Bitcoin or USDT they will match you with a buyer in the exchange through the P2P area there you will see merchants and their prices. Although the amount of taxes depends on your country of origin.

I agree with your explanation, but the P2P transactions done on exchange doesn't incur tax deduction from the receiver of the fiat, because from my experience, the fiat it's mostly transferred from the bank account of the person you've been paired with by the exchange, so it's basically like a normal cash entering into your bank account, except from the OP's country they deduct tax from any money entering into his account, which I strongly doubt of that kinf of situation.

You are right but I have got some experience when doing a p2p transactions the said amount the buyer was supposed to pay me was a bit different from what I received this experience happened on kucoin, sometimes the exchange charges you indirectly I may not be 100% sure about this but I know that apart from the fact that people don't include the (KOBO) payments in transaction for people in my country Nigeria, sometimes we don't receive the amount that is equivalent to the value of the coins we are selling, does it means the exchange is not aware of this or people see it as tax because personally I habe not made the complain since sometimes the amout difference is usually not up to $1. I think the merchants are taxed by the exchanges that's why they mostly don't pay the exact amount when p2p trade is initiated.

jrrsparkles

sr. member

Activity: 2520

Merit: 280

Hire Bitcointalk Camp. Manager @ r7promotions.com

Quote from: tajimas on May 25, 2024, 07:15:22 AM

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

-Regards

Converting a lot of bitcoin in a lot of transactions may not trigger the security measures of banking sector. Still, it all depends on your bank account and how much balance you maintain usually, and if you receive 100x of the amount will definitely flag your account. You will be reviewed if it's due to glitch or actual funds were transferred in that case if you did from centralized exchange there won't be any problem. Still, if it's from p2p then you might be asked for source of these funds, so don't convert crypto to fiat in all of a sudden unless you have a bank account that can maintain the cash flow as a normal thing.

glendall

legendary

Activity: 2156

Merit: 1018

Buzz App - Spin wheel, farm rewards

I think if the funds entering the bank are within normal limits, the bank will not ask where your funds come from, especially if you make frequent transactions.
P2p transactions also mean they have a special account and often use a firm name or CV (in my experience, they don't do using their real name when sending money to my bank) so why be afraid of questions from the bank?
I think people will not be able to avoid the tax problem. If they are found to have excess assets, a tax letter will definitely come to our house and we will be required to pay taxes

Catenaccio

full member

Activity: 420

Merit: 120

Quote from: yazher on May 28, 2024, 06:54:16 PM

I don't think it's a good idea for you to sell your bitcoins at once when you have a huge amount of it and the best thing you can do about it is to diversify it whenever you want to convert them to fiat by using multiple exchanges and cash them out in each one of them.

If these centralized exchanges are all KYC mandatory, it's not big different if you cash out from one centralized exchange or from multiple centralized exchanges. They all know who you are by your KYC documents submitted for verification.

Quote

the best thing to convert it is using P2P in some known exchanges which most people do nowadays.

The most common P2P exchanges are like a most favorite targets for banks and governments to put these platforms under their radars.

P2P can be traded through a P2P platforms that increase risk for your privacy.

P2P can be traded in person, it's good for privacy because you will complete your trade in cash, in person but it has another risk. You can be robbed, physical attack or you can receive faked cash.

adpinbr

sr. member

Activity: 1078

Merit: 254

First of all it, depending on the amount you converted when you mean conversion, we don’t know the particular amount it may be something that the bank may not even look into unless the amount is stated, and secondly, most of the exchange that you can convert bitcoin to cash is always Centralized exchange that require you to do some verification and uploading on documents, which is the kyc and with this you may not have because the bank have already align with the order things you needed to do so you don’t have a problem

yazher

hero member

Activity: 2268

Merit: 588

You own the pen

I don't think it's a good idea for you to sell your bitcoins at once when you have a huge amount of it and the best thing you can do about it is to diversify it whenever you want to convert them to fiat by using multiple exchanges and cash them out in each one of them. Local exchanges already have rules and regulations and just make sure not to violate them because they will surely hold your account and prevent you from withdrawing your money if they find something illegal with your account. the best thing to convert it is using P2P in some known exchanges which most people do nowadays.

Silberman

legendary

Activity: 2534

Merit: 1338

Quote from: tajimas on May 25, 2024, 07:15:22 AM

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

-Regards

We get questions like that from time to time on the forum, but there is no way to give you an accurate answer as your specific circumstances are unknown to us, we do not know if bitcoin is legal to own where you live, how much bitcoin we are talking about, if you want to sell on installments or sell all your coins at once, and without that information we cannot give you a good answer, so you should try to find people where you live which went through a similar experience and see what they did.

Cryptomultiplier

full member

Activity: 980

Merit: 237

Quote from: Abu-Naim on May 28, 2024, 07:42:21 AM

Quote from: tajimas on May 25, 2024, 07:15:22 AM

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

-Regards

To do this without any task from either government of your bank suspense since some of these banks also have bitcoin regulations, you need to sell your Bitcoin the same way you bought it which is through p2p.

P2P can be physical the same way you buy your BTC, and it can be through the use of centralized exchanges that offers p2p service.
If you don't have someone to trade with physically, you can download a centralized exchange like Bybit to be using them as your market just to buy and sell your coins with them; don't leave your coins in the exchange.

Since the use of P2P trading has been made aware to this question asked by OP, there should be the need for him to know that withdrawal of the funds could be done in bits for regions were it becomes flagged and a suspicious act, also, it could be possible to buy BTC ETF and do the needful from there having waited a while before diversifying or withdrawal of funds to ones bank account.

Using a good wallet during the period of trying to convert Bitcoin to fiat is necessary inorder not to lose funds that wasn't planned and a good hardware wallet for large red funds sounds appropriate enough to ensure that funds don't get lost during and after withdrawal.

Unity for Humanity

jr. member

Activity: 28

Merit: 0

Some people messaged my telegram account and they told me that they buy bitcoins and they are ready to pay any currency against bitcoins. I don't have any bitcoins right now so I can't tell you how to sell bitcoins and convert them to local currency but maybe I can convert my bitcoins to local currency when I have bitcoins through those who messaged me on telegram.

Topic: Converting bitcoin to fiat without problems (Read 435 times)