6 ms·

So how do these very large bitcoin holders cash out now? Is there somebody that provides a service to slow sell them?

by nodata 13y ago

gibybo 13y ago
You can set a limit order on your favorite exchange. It will sit there and sell them off for the price you specify as people are willing to buy them. Of course, if anyone is selling them cheaper than you, yours won't sell until theirs are gone. Alternatively you can just place a market order a few times per day for a week. It's more work, but we're really only talking about ~1 minute of work per $200k or so. MtGox handles more than $10M in Bitcoin sales per day and they represent a minority of all exchange volume.
- dcc1 13y ago
  The problem is getting paid by Mt Gox in dollars, euro etc as many horror stories exist of people not being paid for months or ever Other exchanges would also have similar issues, and would hit you with all sorts of antimoneylaundering questions if you try to withdraw too much
  - imdsm 13y ago
    Increase granularity, decrease risk magnitude.
  - gibybo 13y ago
    Fair enough, but Bitstamp is also doing close to $10M/day. You are probably right about the AML hurdle, but that is orthogonal to needing a service to sell them off slowly for you.
    - dcc1 13y ago
      See here for an example questions they ask personal customers trying too withdraw above certain limit (not sure what it is exactly or what criteria is used to trigger this) https://bitcointalk.org/index.php?topic=356026.msg3835542#msg3835542 https://bitcointalk.org/index.php?topic=356026.msg3835542#ms... As KYC questionnaire a company has to answer here is alot longer than above, I am not sure if allowed to post it, but it is very thorough
nadaviv 13y ago
There are also some high-volume sales that are done off the exchanges, mainly by big investors who don't want to disturb the market and buy directly from early adopters. One company that does that is http://epiphyte.us http://epiphyte.us (which I happened to speak with today, but I'm not affiliated with them): We provide customers who are looking to enter the digital asset space with deep, off-market pools of liquidity. Through these liquidity pools, we operate as broker/dealers for large blocks of digital assets. Edit: Also, a thread on Reddit about what appears to be a big off-exchange sale of 117,000 BTC that was supposedly related to Fortress's Bitcoin fund: http://www.reddit.com/r/Bitcoin/comments/1u4fc6/record_number_of_bitcoin_days_destroyed_and_10/ http://www.reddit.com/r/Bitcoin/comments/1u4fc6/record_numbe...
smtddr 13y ago
coinbase.com definitely has this feature[1]. 1. http://i.imgur.com/ZvLEsvO.png http://i.imgur.com/ZvLEsvO.png
dobbsbob 13y ago
There's a few groups trying to make a Bitcoin ETF who are amassing coins from private buyers in large purchases done as dark trades that don't manipulate the overall price of BTC. All those new cashing out corp/merchant services like Bitpay and Coinlab don't have any limits either to the amount you can turn into fiat

So how do these very large bitcoin holders cash out now? Is there somebody that provides a service to slow sell them?

by nodata 13y ago

So how do these very large bitcoin holders cash out now? Is there somebody that provides a service to slow sell them?

You can set a limit order on your favorite exchange. It will sit there and sell them off for the price you specify as people are willing to buy them. Of course, if anyone is selling them cheaper than you, yours won't sell until theirs are gone. Alternatively you can just place a market order a few times per day for a week. It's more work, but we're really only talking about ~1 minute of work per $200k or so. MtGox handles more than $10M in Bitcoin sales per day and they represent a minority of all exchange volume.

dcc1 13y ago
The problem is getting paid by Mt Gox in dollars, euro etc as many horror stories exist of people not being paid for months or ever Other exchanges would also have similar issues, and would hit you with all sorts of antimoneylaundering questions if you try to withdraw too much
- imdsm 13y ago
  Increase granularity, decrease risk magnitude.
- gibybo 13y ago
  Fair enough, but Bitstamp is also doing close to $10M/day. You are probably right about the AML hurdle, but that is orthogonal to needing a service to sell them off slowly for you.
  - dcc1 13y ago
    See here for an example questions they ask personal customers trying too withdraw above certain limit (not sure what it is exactly or what criteria is used to trigger this) https://bitcointalk.org/index.php?topic=356026.msg3835542#msg3835542 https://bitcointalk.org/index.php?topic=356026.msg3835542#ms... As KYC questionnaire a company has to answer here is alot longer than above, I am not sure if allowed to post it, but it is very thorough

nadaviv 13y ago

There are also some high-volume sales that are done off the exchanges, mainly by big investors who don't want to disturb the market and buy directly from early adopters. One company that does that is http://epiphyte.us http://epiphyte.us (which I happened to speak with today, but I'm not affiliated with them): We provide customers who are looking to enter the digital asset space with deep, off-market pools of liquidity. Through these liquidity pools, we operate as broker/dealers for large blocks of digital assets. Edit: Also, a thread on Reddit about what appears to be a big off-exchange sale of 117,000 BTC that was supposedly related to Fortress's Bitcoin fund: http://www.reddit.com/r/Bitcoin/comments/1u4fc6/record_number_of_bitcoin_days_destroyed_and_10/ http://www.reddit.com/r/Bitcoin/comments/1u4fc6/record_numbe...

smtddr 13y ago

coinbase.com definitely has this feature[1]. 1. http://i.imgur.com/ZvLEsvO.png http://i.imgur.com/ZvLEsvO.png

dobbsbob 13y ago

There's a few groups trying to make a Bitcoin ETF who are amassing coins from private buyers in large purchases done as dark trades that don't manipulate the overall price of BTC. All those new cashing out corp/merchant services like Bitpay and Coinlab don't have any limits either to the amount you can turn into fiat