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OTC desks for cash best practices

Mercury

Mercury

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Feb 17, 2021
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#1
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In order to avoid disclosing your entire crypto worth via chain analysis, what are the best practices when using KYC OTC desks to cash out small amounts (< US$10K)?

Is using a one-time disposable wallet address with XMR swaps for each cash-out the most sensible approach? How do you handle it?
 
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#2
Mercury said:
In order to avoid disclosing your entire crypto worth via chain analysis, what are the best practices when using KYC OTC desks to cash out small amounts (< US$10K)?

Is using a one-time disposable wallet address with XMR swaps for each cash-out the most sensible approach? How do you handle it?
Click to expand...
yes this works, with the caveat of xmr being a shitcoin.
* Additionally you can use lightning with swap in / out as well.
* You can also use liquid network (might be easier than lightning) on https://sideswap.io, it has a built in tether swaps and peg in/out to btc in case the otc desks does not support liquid network directly
 
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#4
Find an exchange that has high daily withdrawal limits without KYC (there are many), deposit from your main wallet A, withdraw to fresh wallet B, only send to OTC/KYC sources from wallet B. This will not protect you from a state actor but will break the link between your main wallet(s) and your transactions to (potentially snooping) counterparties.
 
#5
Mercury said:
In order to avoid disclosing your entire crypto worth via chain analysis, what are the best practices when using KYC OTC desks to cash out small amounts (< US$10K)?

Is using a one-time disposable wallet address with XMR swaps for each cash-out the most sensible approach? How do you handle it?
Click to expand...
do I understand it correctly that you have your entire holdings (or significant portion) on one address and now you want to cash out let say 1% from that address?
 
#6
RickWolf said:
Find an exchange that has high daily withdrawal limits without KYC (there are many), deposit from your main wallet A, withdraw to fresh wallet B, only send to OTC/KYC sources from wallet B. This will not protect you from a state actor but will break the link between your main wallet(s) and your transactions to (potentially snooping) counterparties.
Click to expand...
Do you mean OTC desks/KYC CEXs knowing your for instance MEXC wallet B address are not able to trace it back to your MEXC main wallet A address?

void said:
do I understand it correctly that you have your entire holdings (or significant portion) on one address and now you want to cash out let say 1% from that address?
Click to expand...
Nope I use different wallets.
 
#10
Mercury said:
In order to avoid disclosing your entire crypto worth via chain analysis, what are the best practices when using KYC OTC desks to cash out small amounts (< US$10K)?

Is using a one-time disposable wallet address with XMR swaps for each cash-out the most sensible approach? How do you handle it?
Click to expand...

Would an OTC desk take such a small amount?

Life is easier when you have a big stack of XMR in your portfolio. Just sell or swap from that and buy back what you sold later.
I look at XMR as a stable coin these days. It loves the $150 level.
 
#11
Mercury said:
Do you mean OTC desks/KYC CEXs knowing your for instance MEXC wallet B address are not able to trace it back to your MEXC main wallet A address?
Click to expand...
Exactly. Unless they have access to MEXC which is highly unlikely, and even then likely against T&Cs. For simplicity sake I assuming you're using the ETH network, but principle applies to BTC, TRON, etc. Try it yourself, when you deposit to NONKYC exchange, you deposit to a personalized address just for you. However when you withdraw it comes from their huge hot wallets which is processing withdrawals for all their customers. You can view all this onchain. Common sense applies; even though a 10K deposit and then a 10K withdrawal 5 minutes later is not definitely linkable between both addresses; switch it up, deposit 10K, withdraw 9K, or withdraw 10K the next day, etc.
 
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#14
RickWolf said:
Exactly. Unless they have access to MEXC which is highly unlikely, and even then likely against T&Cs. For simplicity sake I assuming you're using the ETH network, but principle applies to BTC, TRON, etc. Try it yourself, when you deposit to NONKYC exchange, you deposit to a personalized address just for you. However when you withdraw it comes from their huge hot wallets which is processing withdrawals for all their customers. You can view all this onchain. Common sense applies; even though a 10K deposit and then a 10K withdrawal 5 minutes later is not definitely linkable between both addresses; switch it up, deposit 10K, withdraw 9K, or withdraw 10K the next day, etc.
Click to expand...
Thanks, I'll set up a dedicated wallet to punctually transfer from CEX accounts coins I want to cash out.
 
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