Do people straight up just deposit a million into their bank account once they get their gains?

I’ve always wondered this since I don’t understand it much nor have I been in the position lol

Say someone makes $500,000 off a token, decides to cash out, sends it to coinbase or etc wherever, then sells it on there, do you just then deposit it from there into your bank?

I mean I would assume the bank would be questioning where this came from or if it’s legal etc if you’re someone who just typically makes like 60k a year lol.

How does that work or what does one do?

Especially cause sometimes coins just skyrocket and people wanna take their profits fast

View Source

24 thoughts on “Do people straight up just deposit a million into their bank account once they get their gains?”

  1. Should be easy: go to your bank, inform about, transfer money, declare gains and pay taxes.

    Other way: cash out only a part and keep the rest in Bitcoin.

    Other way: use where you can have a card so you directly spend from the exchange

    Criminal option: turn all in Bitcoin and send to a secret wallet. You claim you have been hacked. Move to a ‘suitable’ country, cash out and live high life

  2. My uncle spent $5000 on bitcoin when it was under $1. I would ask him but no one in my family has seen or heard from him since it popped off. He straight up disappeared.

  3. If I had 1,000,000 I’d stake it in a stable coin and use the staked rewards and deposit into my bank account every 1-2 weeks while still working

  4. If I made $1,000,000 I would probably just hire an actual financial advisor instead of asking this sub for advice

  5. Yes and no.

    So what happens is simply this, each off ramp has a max amount of fiat you can withdrawal from per day/month/year. Look at the limits.

    Each exchange has a given amount of liquidity.

    So if you are stupid, you would try to sell all in one place at once and maybe lose 20% of the value or more due to liquidity. And then take the fiat out all at once from one place, and maybe get it locked up in limbo for a solid month or so.

    # Here is what you should do

    # Step 1

    Figure out how much money you’re worth, and where is your off ramps for that coin. Then split them up in several off ramps based on the limits. Try to go 20% below the limits because some off ramps are stupid.

    # Step 2

    WARN THE OFF RAMP ABOUT WHAT YOU ARE DOING. In you are in a binance US situation. Good luck on that. Swap to another crypto like ALGO and send it to something like Kraken that is worth a damn. Like you can notify Binance US, but their current customer support might not get back to you in 3 years, and the best you will get is a copy paste answer to a question you never asked.

    # Step 3

    WARN THE BANK. This lets them know they are about to get a bit of money and for them to not lock it up. Or at least be ready to unlock it pretty quickly and maybe you can ask them for advice.

    # Step 4

    Start selling. Part of the reason for warning the exchange is so they would give you a heads up on how to go about this. Like can their system stand you dumping $500k, or do you need to baby step it. On the off chance they are an idiot or lied, personally I could sell $20k every 15 to 30 min. Watch to see if the price really dumps, and then stop when that happens.

    See, what you are doing is looking to see if the liquidity is really there. Lets say you are on exchange A and doing this and exchange B you aren’t. Watch both charts and if you see the price just drop in exchange A, you are going beyond what their liquidity will allow. Your choices is to wait long and/or sell less per time. Or try another off ramp.

    (Most BTW sell $45K per go per hour)

    # Step 5

    Pull whatever amount out. Hopefully your bank isn’t an idiot, and hopefully the exchange isn’t an idiot. Don’t go to the limit because most exchange will “screw up” in locking the transaction because they might not have the money or because they really did screw up. This is also a major reason for step 2.


    # Step 6

    Go cry in the corner because after all of that, you now owe the IRS half of that.

  6. With that much money it would be wise to inform the bank you deal with before you deposit that much money. Especially if you don’t have a history of making those deposits.

    I made around 600k off of Tesla calls via Webull during their run up in 2020. Once I cashed out, I called Chase to inform them on the transaction then, got ahold of an accountant to calculate the short term capital gains tax I needed to pay and put that (plus a Lil bit over just in case) to the side when it was time to file taxes.

  7. This is a very interesting question. If someone could “lend” me $500,000 I’ll be happy to test it and let you all know what happens.

  8. >Say someone makes $500,000 off a token

    You lost me already. Could you reframe the example with “Say someone makes $1.25 off a token” ?

  9. Idk anything about this but isn’t it crazy how like 2 years ago you could make all the money you wanted with crypto and noone cared. Then all the sudden the government notices like woah woah these guys are making money and didnt give us a cut? We better go bust some kneecaps call the IRS. Our government is basically a nationwide mafia. Give us our money or spend a long time in prison and we will take it anyways your choice bitch.

  10. I recently withdrew more than my annual salary from [email protected] and had 0 issues. Arrived the next day just like any $100 transfer would.

    Your bank almost certainly will report a large transfer like that to the IRS, so pay your taxes.

  11. Not that I’m even close, but I prepared for this situation. I requested high limits at the CEX in advance. E.g. Kraken has $10MM/day fiat withdrawals. My bank has no problems with a high amount, because it’s transferred from the CEX’s regular bank account. Not suspucious for money laundering.
    When I reached my goal, I have to evaluate the current situation. Actual plan is to withdraw 80% and shift it to stocks with high dividends. 20% stays in crypto, mostly staked. This should generate enough passive income for my monthly spendings.

  12. Everybody here planning on Portugal should know that staking income is taxable right now, and that the exemption for capital gains is due to essentially laziness on the part of the government rather than a pro-crypto stance. They will almost certainly tax it in the next couple years once the EU issues guidance, they’ll fall in line.

    Also, US residents are taxed on worldwide income. If you cash out in Portugal and pay no cap gains, sorry, still gotta pay in the States and it’s unlikely your regular PT tax credits will offset that amount.

    Also, many other countries have ordinary residence rules that apply to capital gains within a few years of changing primary residence state.

  13. convert the shit coin to a L1 Token

    OTC trading with your DEX

    then wire the money to your bank

    declare the gains and pay taxes

    enjoy the blow and the hookers


Leave a Comment