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Will Exchanges pay out during bullrun?


Staigera
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This thought has been haunting me for awhile. I read stories about people getting denied withdrawal for BS reasons KYC etc, mostly as a way to shut the doors during a bullrun. And in some cases the exchanges got hacked and people who wanted to withdrawal their converted cash ended up losing it all.

So my question  is do some of you think the exchanges are going to f around and make our lives a hell when the next bull run comes, because they can't afford to pay out huge volumes.

Especially Bitstamp since from what I know are the only one who allows withdrawals up to 1mill+ 

Just curious what some of y'all think.

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46 minutes ago, Montoya said:

It pays to be cautious, but in my experience the major exchanges paid out very reliably with minimal headache for those who were already properly KYCed. People trying to KYC during the crazy bullrun is what caused delays. Get it done now and save the headache.

This. Get verified now while you’re stacking or your zerps are gathering dust, then if one of the exchanges is having problems you have options. 

I think it’s going to be a lot better this time around though, the investment industry noticed what happened during last years bullrun, I believe we’re experiencing a reset of sorts so the crypto industry can “get it right” the next time around. We are still in the early stages. 

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1 hour ago, Staigera said:

This thought has been haunting me for awhile. I read stories about people getting denied withdrawal for BS reasons KYC etc, mostly as a way to shut the doors during a bullrun. And in some cases the exchanges got hacked and people who wanted to withdrawal their converted cash ended up losing it all.

So my question  is do some of you think the exchanges are going to f around and make our lives a hell when the next bull run comes, because they can't afford to pay out huge volumes.

Especially Bitstamp since from what I know are the only one who allows withdrawals up to 1mill+ 

Just curious what some of y'all think.

it would be wrong to say that exchanges never pay out... because they do.

but the issue still remains the KYC's. there are several articles out there talking about this issue. the major concern exchanges such at bitstamp  have is accidentally releasing funds to people/organizations who plan to use those profits for crime. because of this, many exchanges have upped their KYC's to extreme levels. 

https://bitcointalk.org/index.php?topic=3183238.0

if you plan on selling profits through an exchange be prepared to pretty much give any and every bit of identifiable information to them. and even then, there is no guarantee those funds will be deposited to your bank account in a timely manner. 

and again, the issue here is for someone trying to withdraw $100,000+ to their bank account

Edited by XRPto50dollars
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2 hours ago, Staigera said:

This thought has been haunting me for awhile. I read stories about people getting denied withdrawal for BS reasons KYC etc, mostly as a way to shut the doors during a bullrun. And in some cases the exchanges got hacked and people who wanted to withdrawal their converted cash ended up losing it all.

So my question  is do some of you think the exchanges are going to f around and make our lives a hell when the next bull run comes, because they can't afford to pay out huge volumes.

Especially Bitstamp since from what I know are the only one who allows withdrawals up to 1mill+ 

Just curious what some of y'all think.

The following was all done on bitstamp.net.  I cashed out in late January this year (six figure GBP sum) - though I DID cash out "small" amounts of £3000 to £5000 during the bull-run itself. Smaller amounts didn't require KYC.  The big cash out required a manual KYC (questions asked via online form) and took about 10 days to complete from my request to cash out to my bank account to the money appearing in my bank account. 

Next time around, I'll try to see if I can just do "smaller" cash outs of less than £5000 as I want to be taking profits more regularly (something I regret with the last bull-run).  However, if XRP does go crazy, then you might find yourself with a big lump sum of cash sitting on bitstamp.net or wherever so I don't think you can avoid some level of scrutiny if that's the case.  Having said that, I am still not sure if doing twenty £5000 cash-outs is any less "under the radar" than doing a £100,000 cash-out.  You probably hit a manual scrutiny trigger when you hit an accumulative number. 

I'll use bistamp.net again for my future cash outs.

Just as an aside, the next time around, I will still keep a significant amount of cash on bitstamp.net for any pull-backs in price. That's my one regret with what I did last time - I cashed out, then immediately withdrew from bitstamp.net to my bank.  I've since bought back into XRP and that's meant I've paid fees I didn't really need to.  Sure, the exchange could get hacked, but I take that risk.  For sure, a big portion will be cashed-out and put into my bank anyway.

Good post by the way!

Edited by 2ndtimearound
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51 minutes ago, BibleChronologyXRP said:

  Is better to wait the waters calm down after a bull run and withdrawn when price is stabilized, withdrawn during a bullrun is something  greedy and unaesthetic  I will never withdrawn on a bullrun or after it

For sure.  Never good to walk through any door in any market when everyone else is heading for the same door.  It's a great piece of advice: buy when very few people are, sell when very few people are.

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37 minutes ago, 2ndtimearound said:

For sure.  Never good to walk through any door in any market when everyone else is heading for the same door.  It's a great piece of advice: buy when very few people are, sell when very few people are.

Some one else here, not sure who, suggested that once you cash out, the cash sitting on the exchange can't be hacked unlike the crypto. Do you agree with this. I think he was suggesting to cash out at a certain price point then let your cash remain on the exchange and withdraw in a phased manner. Do you agree with this? Thank you

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1 hour ago, 2ndtimearound said:

Next time around, I'll try to see if I can just do "smaller" cash outs of less than £5000 as I want to be taking profits more regularly (something I regret with the last bull-run).  However, if XRP does go crazy, then you might find yourself with a big lump sum of cash sitting on bitstamp.net or wherever so I don't think you can avoid some level of scrutiny if that's the case.  Having said that, I am still not sure if doing twenty £5000 cash-outs is any less "under the radar" than doing a £100,000 cash-out.  You probably hit a manual scrutiny trigger when you hit an accumulative number. 

 

Just wanted to point out that structuring deposits, as in your example of twenty smaller transactions, will draw more scrutiny than that one big one in the U.S. Sure, banks have to follow the law and will most likely (there are exceptions) fill out a CTR on the big deposit. That’s no problem.

The twenty smaller transactions are possibly going to trigger a SAR (Suspicious Activity Report). The bank may wonder if there’s money laundering going on. They of course do not let a customer know when they file one. What would really draw attention is, let’s say, ten transactions of $9999 versus one for $100,000. Even if you didn’t do anything wrong, the feds can freeze your funds until they’re satisfied you’re not Al Capone or something.

Of course, I’m just describing U.S. banking procedures here. I’m sure other countries have similar laws but I don’t know specifics. I mention all of this just to say to forum members, don’t make yourself look suspicious or overcomplicate things.

Edited by Deeznutz
Grammar.
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