Bitcoin Taint Analysis Tools - dttodfe.com

An extensive guide for cashing out bitcoin and cryptocurrencies into private banks

Hey guys.
Merry Xmas !
I am coming back to you with a follow up post, as I have helped many people cash out this year and I have streamlined the process. After my original post, I received many requests to be more specific and provide more details. I thought that after the amazing rally we have been attending over the last few months, and the volatility of the last few days, it would be interesting to revisit more extensively.
The attitude of banks around crypto is changing slowly, but it is still a tough stance. For the first partial cash out I operated around a year ago for a client, it took me months to find a bank. They wouldn’t want to even consider the case and we had to knock at each and every door. Despite all my contacts it was very difficult back in the days. This has changed now, and banks have started to open their doors, but there is a process, a set of best practices and codes one has to follow.
I often get requests from crypto guys who are very privacy-oriented, and it takes me months to have them understand that I am bound by Swiss law on banking secrecy, and I am their ally in this onboarding process. It’s funny how I have to convince people that banks are legit, while on the other side, banks ask me to show that crypto millionaires are legit. I have a solid background in both banking and in crypto so I manage to make the bridge, but yeah sometimes it is tough to reconcile the two worlds. I am a crypto enthusiast myself and I can say that after years of work in the banking industry I have grown disillusioned towards banks as well, like many of you. Still an account in a Private bank is convenient and powerful. So let’s get started.
There are two different aspects to your onboarding in a Swiss Private bank, compliance-wise.
*The origin of your crypto wealth
*Your background (residence, citizenship and probity)
These two aspects must be documented in-depth.
How to document your crypto wealth. Each new crypto millionaire has a different story. I may detail a few fun stories later in this post, but at the end of the day, most of crypto rich I have met can be categorized within the following profiles: the miner, the early adopter, the trader, the corporate entity, the black market, the libertarian/OTC buyer. The real question is how you prove your wealth is legit.
1. Context around the original amount/investment Generally speaking, your first crypto purchase may not be documented. But the context around this acquisition can be. I have had many cases where the original amount was bought through Mtgox, and no proof of purchase could be provided, nor could be documented any Mtgox claim. That’s perfectly fine. At some point Mtgox amounted 70% of the bitcoin transactions globally, and people who bought there and managed to withdraw and keep hold of their bitcoins do not have any Mtgox claim. This is absolutely fine. However, if you can show me the record of a wire from your bank to Tisbane (Mtgox's parent company) it's a great way to start.
Otherwise, what I am trying to document here is the following: I need context. If you made your first purchase by saving from summer jobs, show me a payroll. Even if it was USD 2k. If you acquired your first bitcoins from mining, show me the bills of your mining equipment from 2012 or if it was through a pool mine, give me your slushpool account ref for instance. If you were given bitcoin against a service you charged, show me an invoice.
2. Tracking your wealth until today and making sense of it. What I have been doing over the last few months was basically educating compliance officers. Thanks God, the blockchain is a global digital ledger! I have been telling my auditors and compliance officers they have the best tool at their disposal to lead a proper investigation. Whether you like it or not, your wealth can be tracked, from address to address. You may have thought all along this was a bad feature, but I am telling you, if you want to cash out, in the context of Private Banking onboarding, tracking your wealth through the block explorer is a boon. We can see the inflows, outflows. We can see the age behind an address. An early adopter who bought 1000 BTC in 2010, and let his bitcoin behind one address and held thus far is legit, whether or not he has a proof of purchase to show. That’s just common sense. My job is to explain that to the banks in a language they understand.
Let’s have a look at a few examples and how to document the few profiles I mentioned earlier.
The trader. I love traders. These are easy cases. I have a ton of respect for them. Being a trader myself in investment banks for a decade earlier in my career has taught me that controlling one’s emotions and having the discipline to impose oneself some proper risk management system is really really hard. Further, being able to avoid the exchange bankruptcy and hacks throughout crypto history is outstanding. It shows real survival instinct, or just plain blissed ignorance. In any cases traders at exchange are easy cases to corroborate since their whole track record is potentially available. Some traders I have met have automated their trading and have shown me more than 500k trades done over the span of 4 years. Obviously in this kind of scenario I don’t show everything to the bank to avoid information overload, and prefer to do some snacking here and there. My strategy is to show the early trades, the most profitable ones, explain the trading strategy and (partially expose) the situation as of now with id pages of the exchanges and current balance. Many traders have become insensitive to the risk of parking their crypto at exchange as they want to be able to trade or to grasp an occasion any minute, so they generally do not secure a substantial portion on the blockchain which tends to make me very nervous.
The early adopter. Provided that he has not mixed his coin, the early adopter or “hodler” is not a difficult case either. Who cares how you bought your first 10k btc if you bought them below 3$ ? Even if you do not have a purchase proof, I would generally manage to find ways. We just have to corroborate the original 30’000 USD investment in this case. I mainly focus on three things here:
*proof of early adoption I have managed to educate some banks on a few evidences specifically related to crypto markets. For instance with me, an old bitcointalk account can serve as a proof of early adoption. Even an old reddit post from a few years ago where you say how much you despise this Ripple premined scam can prove to be a treasure readily available to show you were early.
*story telling Compliance officers like to know when, why and how. They are human being looking for simple answers to simple questions and they don’t want like to be played fool. Telling the truth, even without a proof can do wonders, and even though bluffing might still work because banks don’t fully understand bitcoin yet, it is a risky strategy that is less and less likely to pay off as they are getting more sophisticated by the day.
*micro transaction from an old address you control This is the killer feature. Send a $20 worth transaction from an old address to my company wallet and to one of my partner bank’s wallet and you are all set ! This is gold and considered a very solid piece of evidence. You can also do a microtransaction to your own wallet, but banks generally prefer transfer to their own wallet. Patience with them please. they are still learning.
*signature message Why do a micro transaction when you can sign a message and avoid potentially tainting your coins ?
*ICO millionaire Some clients made their wealth participating in ETH crowdsale or IOTA ICO. They were very easy to deal with obviously and the account opening was very smooth since we could evidence the GENESIS TxHash flow.
The miner Not so easy to proof the wealth is legit in that case. Most early miners never took screenshot of the blocks on bitcoin core, nor did they note down the block number of each block they mined. Until the the Slashdot article from August 2010 anyone could mine on his laptop, let his computer run overnight and wake up to a freshly minted block containing 50 bitcoins back in the days. Not many people were structured enough to store and secure these coins, avoid malwares while syncing the blockchain continuously, let alone document the mined blocks in the process. What was 50 BTC worth really for the early miners ? dust of dollars, games and magic cards… Even miners post 2010 are generally difficult to deal with in terms of compliance onboarding. Many pool mining are long dead. Deepbit is down for instance and the founders are MIA. So my strategy to proof mining activity is as follow:
*Focusing on IT background whenever possible. An IT background does help a lot to bring some substance to the fact you had the technical ability to operate a mining rig.
*Showing mining equipment receipts. If you mined on your own you must have bought the hardware to do so. For instance mining equipment receipts from butterfly lab from 2012-2013 could help document your case. Similarly, high electricity bill from your household on a consistent basis back in the day could help. I have already unlocked a tricky case in the past with such documents when the bank was doubtful.
*Wallet.dat files with block mining transactions from 2011 thereafter This obviously is a fantastic piece of evidence for both you and me if you have an old wallet and if you control an address that received original mined blocks, (even if the wallet is now empty). I will make sure compliance officers understand what it means, and as for the early adopter, you can prove your control over these wallet through a microtransaction. With these kind of addresses, I can show on the block explorer the mined block rewards hitting at regular time interval, and I can even spot when difficulty level increased or when halvening process happened.
*Poolmining account. Here again I have educated my partner bank to understand that a slush account opened in 2013 or an OnionTip presence was enough to corroborate mining activity. The block explorer then helps me to do the bridge with your current wallet.
*Describing your set up and putting it in context In the history of mining we had CPU, GPU, FPG and ASICs mining. I will describe your technical set up and explain why and how your set up was competitive at that time.
The corporate entity Remember 2012 when we were all convinced bitcoin would take over the world, and soon everyone would pay his coffee in bitcoin? How naïve we were to think transaction fees would remain low forever. I don’t blame bitcoin cash supporters; I once shared this dream as well. Remember when we thought global adoption was right around the corner and some brick and mortar would soon accept bitcoin transaction as a common mean of payment? Well, some shop actually did accept payment and held. I had a few cases as such of shops holders, who made it to the multi million mark holding and had invoices or receipts to proof the transactions. If you are organized enough to keep a record for these trades and are willing to cooperate for the documentation, you are making your life easy. The digital advertising business is also a big market for the bitcoin industry, and affiliates partner compensated in btc are common. It is good to show an invoice, it is better to show a contract. If you do not have a contract (which is common since all advertising deals are about ticking a check box on the website to accept terms and conditions), there are ways around that. If you are in that case, pm me.
The black market Sorry guys, I can’t do much for you officially. Not that I am judging you. I am a libertarian myself. It’s just already very difficult to onboard legit btc adopters, so the black market is a market I cannot afford to consider. My company is regulated so KYC and compliance are key for me if I want to stay in business. Behind each case I push forward I am risking the credibility and reputation I have built over the years. So I am sorry guys I am not risking it to make an extra buck. Your best hope is that crypto will eventually take over the world and you won’t need to cash out anyway. Or go find a Lithuanian bank that is light on compliance and cooperative.
The OTC buyer and the libertarian. Generally a very difficult case. If you bought your stack during your journey in Japan 5 years ago to a guy you never met again; or if you accumulated on https://localbitcoins.com/ and kept no record or lost your account, it is going to be difficult. Not impossible but difficult. We will try to build a case with everything else we have, and I may be able to onboard you. However I am risking a lot here so I need to be 100% confident you are legit, before I defend you. Come & see me in Geneva, and we will talk. I will run forensic services like elliptic, chainalysis, or scorechain on an extract of your wallet. If this scan does not raise too many red flags, then maybe we can work together ! If you mixed your coins all along your crypto history, and shredded your seeds because you were paranoid, or if you made your wealth mining professionally monero over the last 3 years but never opened an account at an exchange. ¯_(ツ)_/¯ I am not a magician and don’t get me wrong, I love monero, it’s not the point.
Cashing out ICOs Private companies or foundations who have ran an ICO generally have a very hard time opening a bank account. The few banks that accept such projects would generally look at 4 criteria:
*Seriousness of the project Extensive study of the whitepaper to limit the reputation risk
*AML of the onboarding process ICOs 1.0 have no chance basically if a background check of the investors has not been conducted
*Structure of the moral entity List of signatories, certificate of incumbency, work contract, premises...
*Fiscal conformity Did the company informed the authorities and seek a fiscal ruling.
For the record, I am not into the tax avoidance business, so people come to me with a set up and I see if I can make it work within the legal framework imposed to me.
First, stop thinking Switzerland is a “offshore heaven” Swiss banks have made deals with many governments for the exchange of fiscal information. If you are a French citizen, resident in France and want to open an account in a Private Bank in Switzerland to cash out your bitcoins, you will get slaughtered (>60%). There are ways around that, and I could refer you to good tax specialists for fiscal optimization, but I cannot organize it myself. It would be illegal for me. Swiss private banks makes it easy for you to keep a good your relation with your retail bank and continue paying your bills without headaches. They are integrated to SEPA, provide ebanking and credit cards.
For information, these are the kind of set up some of my clients came up with. It’s all legal; obviously I do not onboard clients that are not tax compliant. Further disclaimer: I did not contribute myself to these set up. Do not ask me to organize it for you. I won’t.
EU tricks
Swiss lump sum taxation Foreign nationals resident in Switzerland can be taxed on a lump-sum basis if they are not gainfully employed in our country. Under the lump-sum tax regime, foreign nationals taking residence in Switzerland may choose to pay an expense-based tax instead of ordinary income and wealth tax. Attractive cantons for the lump sum taxation are Zug, Vaud, Valais, Grisons, Lucerne and Berne. To make it short, you will be paying somewhere between 200 and 400k a year and all expenses will be deductible.
Switzerland has adopted a very friendly attitude towards crypto currency in general. There is a whole crypto valley in Zug now. 30% of ICOs are operated in Switzerland. The reason is that Switzerland has thrived for centuries on banking secrecy, and today with FATCA and exchange of fiscal info with EU, banking secrecy is dead. Regulators in Switzerland have understood that digital ledger technologies were a way to roll over this competitive advantage for the generations to come. Switzerland does not tax capital gains on crypto profits. The Finma has a very pragmatic approach. They have issued guidance- updated guidelines here. They let the business get organized and operate their analysis on a case per case basis. Only after getting a deep understanding of the market will they issue a global fintech license in 2019. This approach is much more realistic than legislations which try to regulate everything beforehand.
Italy new tax exemption. It’s a brand new fiscal exemption. Go to Aoste, get residency and you could be taxed a 100k/year for 10years. Yes, really.
Portugal What’s crazy in Europe is the lack of fiscal harmonization. Even if no one in Brussels dares admit it, every other country is doing fiscal dumping. Portugal is such a country and has proved very friendly fiscally speaking. I personally have a hard time trusting Europe. I have witnessed what happened in Greece over the last few years. Some of our ultra high net worth clients got stuck with capital controls. I mean no way you got out of crypto to have your funds confiscated at the next financial crisis! Anyway. FYI
Malta Generally speaking, if you get a residence somewhere you have to live there for a certain period of time. Being stuck in Italy is no big deal with Schengen Agreement, but in Malta it is a different story. In Malta, the ordinary residence scheme is more attractive than the HNWI residence scheme. Being an individual, you can hold a residence permit under this scheme and pay zero income tax in Malta in a completely legal way.
Monaco Not suitable for French citizens, but for other Ultra High Net worth individual, Monaco is worth considering. You need an account at a local bank as a proof of fortune, and this account generally has to be seeded with at least EUR500k. You also need a proof of residence. I do mean UHNI because if you don’t cash out minimum 30m it’s not interesting. Everything is expensive in Monaco. Real Estate is EUR 50k per square meter. A breakfast at Monte Carlo Bay hotel is 70 EUR. Monaco is sunny but sometimes it feels like a golden jail. Do you really want that for your kids?
Dubaï
  1. Set up a company in Dubaï, get your resident card.
  2. Spend one day every 6 month there
  3. ???
  4. Be tax free
US tricks Some Private banks in Geneva do have the license to manage the assets of US persons and U.S citizens. However, do not think it is a way to avoid paying taxes in the US. Opening an account at an authorized Swiss Private banks is literally the same tax-wise as opening an account at Fidelity or at Bank of America in the US. The only difference is that you will avoid all the horror stories. Horror stories are all real by the way. In Switzerland, if you build a decent case and answer all the questions and corroborate your case in depth, you will manage to convince compliance officers beforehand. When the money eventually hits your account, it is actually available and not frozen.
The IRS and FATCA require to file FBAR if an offshore account is open. However FBAR is a reporting requirement and does not have taxes related to holding an account outside the US. The taxes would be the same if the account was in the US. However penalties for non compliance with FBAR are very large. The tax liability management is actually performed through the management of the assets ( for exemple by maximizing long term capital gains and minimizing short term gains).
The case for Porto Rico. Full disclaimer here. I am not encouraging this. Have not collaborated on such tax avoidance schemes. if you are interested I strongly encourage you to seek a tax advisor and get a legal opinion. I am not responsible for anything written below. I am not going to say much because I am so afraid of uncle Sam that I prefer to humbly pass the hot potato to pwc From here all it takes is a good advisor and some creativity to be tax free on your crypto wealth if you are a US person apparently. Please, please please don’t ask me more. And read the disclaimer again.
Trust tricks Generally speaking I do not accept fringe fiscal situation because it puts me in a difficult situation to the banks I work with, and it is already difficult enough to defend a legit crypto case. Trust might be a way to optimize your fiscal situation. Belize. Bahamas. Seychelles. Panama, You name it. At the end of the day, what matters for Swiss Banks are the beneficial owner and the settlor. Get a legal opinion, get it done, and when you eventually knock at a private bank’s door, don’t say it was for fiscal avoidance you stupid ! You will get the door smashed upon you. Be smarter. It will work. My advice is just to have it done by a great tax specialist lawyer, even if it costs you some money, as the entity itself needs to be structured in a professional way. Remember that with trust you are dispossessing yourself off your wealth. Not something to be taken lightly.
“Anonymous” cash out. Right. I think I am not going into this topic, neither expose the ways to get it done. Pm me for details. I already feel a bit uncomfortable with all the info I have provided. I am just going to mention many people fear that crypto exchange might become reporting entities soon, and rightly so. This might happen anyday. You have been warned. FYI, this only works for non-US and large cash out.
The difference between traders an investors. Danmark, Holland and Germany all make a huge difference if you are a passive investor or if you are a trader. ICO is considered investing for instance and is not taxed, while trading might be considered as income and charged aggressively. I would try my best to protect you and put a focus on your investor profile whenever possible, so you don't have to pay 52% tax if you do not have to :D
Full cash out or partial cash out? People who have been sitting on crypto for long have grown an emotional and irrational link with their coins. They come to me and say, look, I have 50m in crypto but I would like to cash out 500k only. So first let me tell you that as a wealth manager my advice to you is to take some off the table. Doing a partial cash out is absolutely fine. The market is bullish. We are witnessing a redistribution of wealth at a global scale. Bitcoin is the real #occupywallstreet, and every one will discuss crypto at Xmas eve which will make the market even more supportive beginning 2018, especially with all hedge funds entering the scene. If you want to stay exposed to bitcoin and altcoins, and believe these techs will change the world, it’s just natural you want to keep some coins. In the meantime, if you have lived off pizzas over the last years, and have the means to now buy yourself an nice house and have an account at a private bank, then f***ing do it mate ! Buy physical gold with this account, buy real estate, have some cash at hands. Even though US dollar is worthless to your eyes, it’s good and convenient to have some. Also remember your wife deserves it ! And if you have no wife yet and you are socially awkward like the rest of us, then maybe cashing out partially will help your situation ;)
What the Private Banks expect. Joke aside, it is important you understand something. If you come around in Zurich to open a bank account and partially cash out, just don’t expect Private Banks will make an exception for you if you are small. You can’t ask them to facilitate your cash out, buy a 1m apartment with the proceeds of the sale, and not leave anything on your current account. It won’t work. Sadly, under 5m you are considered small in private banking. The bank is ok to let you open an account, provided that your kyc and compliance file are validated, but they will also want you to become a client and leave some money there to invest. This might me despicable, but I am just explaining you their rules. If you want to cash out, you should sell enough to be comfortable and have some left. Also expect the account opening to last at least 3-4 week if everything goes well. You can't just open an account overnight.
The cash out logistics. Cashing out 1m USD a day in bitcoin or more is not so hard.
Let me just tell you this: Even if you get a Tier 4 account with Kraken and ask Alejandro there to raise your limit over $100k per day, Even if you have a bitfinex account and you are willing to expose your wealth there, Even if you have managed to pass all the crazy due diligence at Bitstamp,
The amount should be fractioned to avoid risking your full wealth on exchange and getting slaughtered on the price by trading big quantities. Cashing out involves significant risks at all time. There is a security risk of compromising your keys, a counterparty risk, a fat finger risk. Let it be done by professionals. It is worth every single penny.
Most importantly, there is a major difference between trading on an exchange and trading OTC. Even though it’s not publicly disclosed some exchange like Kraken do have OTC desks. Trading on an exchange for a large amount will weight on the prices. Bitcoin is a thin market. In my opinion over 30% of the coins are lost in translation forever. Selling $10m on an exchange in a day can weight on the prices more than you’d think. And if you trade on a exchange, everything is shown on record, and you might wipe out the prices because on exchanges like bitstamp or kraken ultimately your counterparties are retail investors and the market depth is not huge. It is a bit better on Bitfinex. It is way better to trade OTC. Accessing the institutional OTC market is not easy, and that is also the reason why you should ask a regulated financial intermediary if we are talking about huge amounts.
Last point, always chose EUR as opposed to USD. EU correspondent banks won’t generally block institutional amounts. However we had the cases of USD funds frozen or delayed by weeks.
Most well-known OTC desks are Cumberlandmining (ask for Lucas), Genesis (ask for Martin), Bitcoin Suisse AG (ask for Niklas), circletrade, B2C2, or Altcoinomy (ask for Olivier)
Very very large whales can also set up escrow accounts for massive block trades. This world, where blocks over 30k BTC are exchanged between 2 parties would deserve a reddit thread of its own. Crazyness all around.
Your options: DIY or going through a regulated financial intermediary.
Execution trading is a job in itself. You have to be patient, be careful not to wipe out the order book and place limit orders, monitor the market intraday for spikes or opportunities. At big levels, for a large cash out that may take weeks, these kind of details will save you hundred thousands of dollars. I understand crypto holders are suspicious and may prefer to do it by themselves, but there are regulated entities who now offer the services. Besides, being a crypto millionaire is not a guarantee you will get institutional daily withdrawal limits at exchange. You might, but it will take you another round of KYC with them, and surprisingly this round might be even more aggressive that the ones at Private banks since exchange have gone under intense scrutiny by regulators lately.
The fees for cashing out through a regulated financial intermediary to help you with your cash out should be around 1-2% flat on the nominal, not more. And for this price you should get the full package: execution/monitoring of the trades AND onboarding in a private bank. If you are asked more, you are being abused.
Of course, you also have the option to do it yourself. It is a way more tedious and risky process. Compliance with the exchange, compliance with the private bank, trading BTC/fiat, monitoring the transfers…You will save some money but it will take you some time and stress. Further, if you approach a private bank directly, it will trigger a series of red flag to the banks. As I said in my previous post, they call a direct approach a “walk-in”. They will be more suspicious than if you were introduced by someone and won’t hesitate to show you high fees and load your portfolio with in-house products that earn more money to the banks than to you. Remember also most banks still do not understand crypto so you will have a lot of explanations to provide and you will have to start form scratch with them!
The paradox of crypto millionaires Most of my clients who made their wealth through crypto all took massive amount of risks to end up where they are. However, most of them want their bank account to be managed with a low volatility fixed income capital preservation risk profile. This is a paradox I have a hard time to explain and I think it is mainly due to the fact that most are distrustful towards banks and financial markets in general. Many clients who have sold their crypto also have a cash-out blues in the first few months. This is a classic situation. The emotions involved in hodling for so long, the relief that everything has eventually gone well, the life-changing dynamics, the difficulties to find a new motivation in life…All these elements may trigger a post cash-out depression. It is another paradox of the crypto rich who has every card in his hand to be happy, but often feel a bit sad and lonely. Sometimes, even though it’s not my job, I had to do some psychological support. A lot of clients have also become my friends, because we have the same age and went through the same “ordeal”. First world problem I know… Remember, cashing out is not the end. It’s actually the beginning. Don’t look back, don’t regret. Cash out partially, because it does not make sense to cash out in full, regret it and want back in. relax.
The race to cash out crypto billionaire and the concept of late exiter. The Winklevoss brothers are obviously the first of a series. There will be crypto billionaires. Many of them. At a certain level you can have a whole family office working for you to manage your assets and take care of your needs . However, let me tell you it’s is not because you made it so big that you should think you are a genius and know everything better than anyone. You should hire professionals to help you. Managing assets require some education around the investment vehicles and risk management strategies. Sorry guys but with all the respect I have for wallstreebet, AMD and YOLO stock picking, some discipline is necessary. The investors who have made money through crypto are generally early adopters. However I have started to see another profile popping up. They are not early adopters. They are late exiters. It is another way but just as efficient. Last week I met the first crypto millionaire I know who first bough bitcoin over 1000$. 55k invested at the beginning of this year. Late adopter & late exiter is a route that can lead to the million.
Last remarks. I know banks, bankers, and FIAT currencies are so last century. I know some of you despise them and would like to have them burn to the ground. With compliance officers taking over the business, I would like to start the fire myself sometimes. I hope this extensive guide has helped some of you. I am around if you need more details. I love my job despite all my frustration towards the banking industry because it makes me meet interesting people on a daily basis. I am a crypto enthusiast myself, and I do think this tech is here to stay and will change the world. Banks will have to adapt big time. Things have started to change already; they understand the threat is real. I can feel the generational gap in Geneva, with all these old bankers who don’t get what’s going on. They glaze at the bitcoin chart on CNBC in disbelief and they start to get it. This bitcoin thing is not a joke. Deep inside, as an early adopter who also intends to be a late exiter, as a libertarian myself, it makes me smile with satisfaction.
Cheers. @swisspb on telegram
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[ANN] Mixtum.io - because your privacy really matters! New Bitcoin Mixer is launched.

Today on August 27, 2018 - we are pleased to announce the launch of MixTum.io - a Bitcoin mixer, which really allows you to protect your privacy.
It is a brand new project, but it's based on proven technologies. We use ‘Bitcoin Mixer 2.0’ algorithm to shuffle bitcoins. Unlike most classical mixers we don't mix your BTC's with others (cryptocurrency from other users) in the same pot. Moreover, we even do not use two or more pots for that. MixTum.io works in a different way and eliminates the risk of shuffling your bitcoins with some which might be of a questionable origin. And this makes our approach special. To put it simple, we exchange your bitcoins with those which we purchase from cryptocurrency stock exchanges, verify them with scoring system, and by means of innovative algorithms we outwit most of well known deanonymization technologies, like blockchain volume analysis, cluster analysis, taint analysis, etc. As a result, your privacy is at no risk, because you receive your bitcoins in various independent parts at random time intervals and to,if needed, at the different addresses and, so they have no connection to you.All this makes our approach totally different.
As it is common to the cryptocurrency market we offer both Clearnet and Tor versions. We require no registration and we store no logs. All the transactions are digitally signed with letters of guarantee. You can always check them with a PGP fingerprint published on MixTum.io. Our tech support is 24/7.
---MixTum.io - Because your privacy really matters!
Clearnet: https://mixtum.io/E-mail: [mixtum_[email protected]](mailto:[email protected])
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The intelligent investors guide to cryptocurrency: Part 4 - Sell the rumour, buy the news

Introductions: I'm joskye. A cryptocurrency investor and particl holder.
...
 
Hi again. This is the fourth part in our ongoing series on how to trade better and determine intelligent investments in cryptocurrency for the future.
 
 
In part 4 I go back into psychology and discuss the importance of buying into facts not rumours i.e. "Sell the rumour, buy the news."
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I've had some amazing luck in the cryptocurrency world. I've not invested into any scam ICO's, I've not been hacked and by making the right picks for the right reasons, I've managed to land a portfolio which has seen a decent return within 9 months of starting.
 
Granted that return could have been made better had I not done some panic swing trading, selling low what I bought higher on certain assets and generally learning the emotional control that comes with holding decent assets but also recognising when to sell those assets to buy even better one's for long term holding.
 
But I haven't done this enough and as aggressively as I should have, often buying smaller volumes of very cheap assets with good upsides by selling much smaller volumes of existing appreciated assets when they are close to, or just post peak. In that sense I've missed out on lots of serious profit and a 9 month portfolio which is overall 440% up could be much higher had I followed one basic rule:
 
 
You've all hopefully heard the phrase, "buy the rumour, sell the news". It's what smart traders do; buy a promising asset when it's young and under priced, establish the possibility that a significant development is occurring in that asset within a given time frame and start perpetuating the belief that this development is occurring within the social circle of potential buyers for that asset.
You suddenly have a rally of people looking to buy that asset; it quickly drives up demand leading to a surge in price. The managers/developers of that asset may come out and make an announcement that something is indeed happening; in some instances it may be exactly what the rumour is, in other cases it may be something entirely different from the rumour yet the original rumour persists in both cases driving up the price further.
The managers may even issue a denial of the rumour yet belief and thus demand persists.
 
Finally the day comes, the date of announcement relating to the rumour arrives and the news is released.
 
 
Buy support on a product is not perpetual. It can only self sustain itself for so long, and unless the news is something remarkable which can confirm much larger and sustainable appreciation of the asset in question, that buy support will eventually fizzle and give way to the sell pressure of the select few who bought that asset early at the lowest possible price prior to the rally.
 
The news has been sold. A few people profit. The majority who didn't sell at the top on time are left bag holders.
 
It happened to me once. It was costly.
 
Anyone who has read the previous original parts of this guide knows that when I started writing this, I was a huge fan of Shadowcash (SDC). Truth is that it had all the elements of a project with the type of characteristics that appeal to me; It was dark, edgy, innovative, had a non-speculative value proposition and revenue stream, low supply, staking, low inflation rate.
Indeed anyone who bought Shadowcash from the point I originally wrote this series in December 2016 up to 3rd March 2017 (bottom SDC price $1, peak $2.20) when I effectively predicted via accidental discovery that a rocketing up of the SDC price was imminent had an opportunity presented to them between 8th March 2017 and 17th March 2017 to exit with up to a 600% return (bottom SDC price $2.20, peak $6.00).
30 minutes after 10pm UTC 17th March 2017 when the expected announcement regarding the future of SDC was due price went from $4.16 to $3.30. By 3am the price had reached $1.90.
Having had 40% of my holdings in SDC up to this point with an average entry of $1.30 and having been among those who believed and perpetuated the idea that the much wanted and potentially very valuable SDC marketplace might be released at this point, I got caught out. I experienced the euphoria of the high, and the utter despair of both the news which was devastatingly disappointing to me (announcement of a rebrand, token swap, and a 9 months delay to my expectations) and the loss of unrealised earnings meant that I had truly bought the rumour and sold the news: I sold half my SDC stack at $2.30.
 
In that sense I truly knew I had been over leveraged in SDC by 100% of the position I should have held; A position I had accumulated by following the rumours perpetuated by the SDC slack channel by certain members of it's community. If the backlash was real, it was because expectations had been set so high for the news by those representing the devs without clearly defining what those expectations were.
There were months of teases from January to March claiming big things were happening in SDC; never before seen features in cryptocurrency were going to debut, scaling issues were going to be addressed, a rumour that a mobile client was potentially on the way, belief that the marketplace would be revealed in CLI form and that it only needed to be linked to the GUI which itself was already developed.
In short the expectations set by the rumours never matched up to the reality posed by the news.
It was a disaster waiting to happen.
And the backlash the SDC developers experienced and their response at the time about how their news was going to be received in the context of rumours that had flourished on their channels for months and were never outright shot down, showed a total lack of project awareness that this was worrying on my part.
 
 
What sucked was that the announcement outlined the details of the new project which was actually very good. It effectively would deliver everything I asked for in the original SDC project and more. It solved all the problems relating to releasing SDC marketplace on it's current chain and added some additional features I couldn't help but find useful and valuable.
That I had built up months of expectations only to be told that I would need to wait longer to get exactly what I asked for was heartbreaking, and made me felt I'd invested a lot of emotional and intellectual time on SDC when I could have been scanning the broader market and making smart deals and trades elsewhere to build up my wealth.
 
 
 
It took me 2 days to evaluate the Particl project with the 50% of SDC I hadn't sold and convert it to Particl via their crowd swap mechanism + donate the BTC required for the bonus (they needed a development fund and effectively admitted they were broke).
In reality had I been told the SDC devs needed significant funds to advance the project, that a crowd fund via token swap was imminent, that I could do a 1:1 swap of SDC:PART but since the base PARTICL token supply would be 15% greater than SDC supply, I'd need to donate 15% of my SDC value in BTC to make up the difference and had the roadmap for particl been sequentially disclosed and presented to me during January to March prior to the March 17th announcement I'd have had more time to process the events and I'd probably have swapped within 5 minutes of the particl crowdfund launch.
 
Also more importantly the price of SDC wouldn't have risen so high prior to March 17th as most SDC holders and the cryptocurrency community would have then known about the PARTICL crowdfund and token swap and there would have been more time for the news to be priced in, meaning a more even distribution of buy demand and a longer period of on-ramp for it and hype and speculation actually relevant to the proposed news (instead of the rumour) to develop.
I suspect the SDC/PARTICL devs wouldn't have occurred nearly as much bad blood had they done it this way. Indeed every bag holder created from 8th to 17th March 2017 when some of their members said the news would be incredible is someone who may never trust the Particl devs again and indeed may bad mouth them in the future.
 
Even if you are transparent and give full disclosures with your rumours, news and numbers after such an event, buyers may not trust you and the markets may act accordingly; meaning the price of your asset may not rise even if the news around it is incredible.
This happened to the ICONOMI team in Feb 2017 when the rumour mill spread that a conference which the ICONOMI (ICN/ICNX) team was presenting at would be used to announce the launch of the ICN open fund management platform. Price went from 20 cents to 60 cents; the ICONOMI team didn't make it outright clear enough that this was definitely not happening and didn't definitively squash the rumour mongers who perpetuated the idea it was (driving up the buy demand and ICN price at the time). The rumours flourished; bag holders were created, not enough was done to suppress an FUD campaign about ICN concurrently running on the ETHtrader reddit (a very large cryptocurrency trading forum). ICN became tainted.
Even today although ICN has assets worth $21 million (that are actively appreciating in value) with a marketcap of $41 million, active revenue streams and a fixed token supply i.e. a P/B (Price to book) ratio of "2" (that is actively decreasing), the price of ICN is not sky rocketing up as it should. This is because the inertia is there from previous bag holders and there is a lack of awareness in the cryptocurrency community about how to value stocks.
 
But that's the rumour. Here's the thing; I bought the news. I swapped that remaining SDC for PART and paid the BTC premium.
The devs have to deal with the fallout from the rumour. I have to deal with the fallout from the rumour. I did my analysis of the PARTICL project and cautiously bought in and moved past my resentments over what had happened. Soon really I didn't care.
It was a good 2 weeks later where I regained most of those psychologically unrealised profits as I'd bought some PIVx low and sold very high; There is always opportunity in swing trading for those of you smart enough and looking.
And I remind myself; At least I hadn't bought the rumour. In the sense that I didn't buy during the rumour period when the price was increasing. I'd have lost a lot of money that way. Learn to ignore assets based on rumours when their price is increasing; there is always opportunity elsewhere. Only deal in facts.
 
Repeat that mantra with me.
 
...
 
Fact: The Ethereum enterprise alliance is real. Fact: There are now actively deployed dApps running on the Ethereum mainnet using gas i.e. ETH tokens have an actual non-speculative demand. Fact: Many of the proposed use cases for Ethereum are real but the majority are still in proof of concept or early development phase. Fact: ICN has a P/B of 2 which is a) Calculable P/B ratio in a field where 99.9% of tokens are valued purely on speculation (i.e. P/B & P/E of infinity) and b) A P/B of 2! Fact: The Bitcoin scaling debate hasn't been solved for 3 years and currently no solution appears definitively present.
 
Fact: Particl will be a crypto-agnostic (supporting multiple crypto-currencies for trading/conversion into PART via integrated shapeshift functionality) privacy centric communications and trading platform for settlement of non-speculative goods that will incorporate an updated Bitcoin core code-base, ready activated with Segwit and is incorporating Ring-CT into it's anonymity tx structure as well as built in governance and reputation systems, marketplace transaction reward fees for stakers in addition to stakes and a community centric decentralised cryptocurrency project that aims to bring much needed non-speculative use to multiple cryptocurrencies. The Particl devs (formerly SDC devs) have promised to be and so far are much more transparent about progress, developments and news.
 
Fact: Of the last 6 facts, 5 point out fundamental realities happening right now that likely affect the price. 1 of these facts is actually a cleverly worded speculative statement.
 
Fact: Fundamentals always play out over time. That's true even if the price doesn't always reflect them in the moment.
...
 
References:
1. Iconomi price history: https://coinmarketcap.com/assets/iconomi/ 2. PIVx price history: https://coinmarketcap.com/currencies/pivx/ 3. Shadowcash price history: https://coinmarketcap.com/currencies/shadowcash/ 4. Iconomi will speak at the Blockchain Event Conference Feb 9th 2017 (a real example of how rumours can be tacked to the news): https://np.reddit.com/ICONOMI/comments/5rjwcw/iconomi_will_speak_at_the_blockchain_event/ 5. Enterprise Ethereum Alliance: http://entethalliance.org/ 6. Iconomi Financial report Q1 2017: https://medium.com/iconominet/iconomi-financial-report-q1-2017-a1b9dff59e2c 7. The Bitcoin scaling debate (browse through): bitcoin, btc 
...
 
Further articles in this series:
 
"The intelligent investors guide to cryptocurrency"
 
Part 0 -
Part 1 -
Part 2 -
Part 3a -
Part 3b -
Part 4 -
Part 5 -
Part 6 -
Part 7a -
 
"The intelligent investors guide to Particl -"
 
 
Full disclosure/Disclaimer: At time of original writing I had long positions in Ethereum (ETH), Particl (PART), ICONOMI (ICN), Augur (REP), Factom (FCT), Swarm City (SWT), Renos (RNS), Wetrust (TRST). All the opinions expressed are my own. I cannot guarantee gains; losses are sustainable; do your own financial research and make your decisions responsibly. All prices and values given are as of time of first writing (4th-May-2017).
 
Second disclaimer: Please do not buy Shadowcash (SDC), the project has been abandoned by it's developers who have moved on to the Particl Project (PART) (www.particl.io). The PARTICL crowd fund and SDC 1:1 token swap completed April 15th. You can still exchange SDC for PART but only if it was acquired prior to 15th April 2017 see: https://particl.news/a-community-driven-initiative-e26724100c3a for more information.
 
Addendum: Article updated 23-11-2017 to edit references to SDC (changed to Particl where relevant to reflect updated status) and clean up formatting.
submitted by joskye to Particl [link] [comments]

Unmasking anonymity

Every cryptocurrency owner should be aware that there is the possibility their identity and activity once considered perfectly secure may be revealed/ de-anonymized at some point.
Since decentralized Bitcoin cryptocurrency came into existence in 2008, people have been hoping that fast convenient and anonymous money not controlled by anyone would be used. Indeed, promising revolutionary ideas and technical solutions at the time were embedded in the Bitcoin concept. Today Bitcoin is the most popular cryptocurrency throughout the world. It carries a reputation for allowing users to operate in the shadows, but is Bitcoin completely anonymous? Almost a decade after its introduction, no additional anonymity mechanisms were implemented in Bitcoin.
The most important anonymity principle of cryptocurrencies is not only impersonality of a cryptocurrency wallet but also an impossibility of tracking connections via blockchain.Bitcoin, unlike a common bank account, provides its users with an opportunity to become a system member and manage financial resources regardless of anyone. An impossibility of blocking or confiscation of funds from an owner's wallet is a crucial advantage of decentralized cryptocurrencies.
However, the anonymity provided by Bitcoin is rather vulnerable. As well as the majority of well-known cryptocurrencies it is tied to distributed blockchain technology, which records every transaction and traces them back to their origin.
In other words, a privacy form which today is offered by Bitcoin, is confined to pseudo-anonymity: an individual is represented by an alias in a blockchain. Anyone can create a new and completely random Bitcoin address at any time, without the need to submit any personal information to anyone. However, this does not guarantee that connections cannot be revealed. When any payment is executed, its amount, remaining credits and all the previous and following transactions of the participants become available to everyone. Until the link between an analyzed address and a real identity is established, this information is abstract. But once an interaction with real world takes place (for example, IP-address, stock account, delivery address, etc. is identified), transaction history of a particular person can be definitely tracked. Moreover, there are other methods used for deanonymization, namely taint analysis, cluster analysis and volume analysis.
Therefore, the problem that every Bitcoin owner faces is that this cryptocurrency, as well as many others, is pseudo-anonymous rather than anonymous and lacks privacy. If you are interested, please stay tuned and in the next posts we'll discuss defenses against deanonymization attacks.
Jambler.io - Bitcoin's anonymity is our business
submitted by Jambler_io to u/Jambler_io [link] [comments]

Bitcoin Q&A: Blacklists, taint, and wallet fingerprinting Sans limites TV - YouTube Antje-Gesine Marsch - YouTube Bitcoin NEXT PRICE TARGET = $10,000?! -LIVE Crypto Trading Analysis & BTC Cryptocurrency News 2019

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Bitcoin Q&A: Blacklists, taint, and wallet fingerprinting

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