How to anonymously sell BTC at a Bitcoin ATM in Poland

First check if and when to sell bitcoins. Anonymous selling is to protect the privacy of your finances, but it does not relieve you of the obligation to pay taxes.

Obligation to pay taxes

Regardless of how bitcoin is sold, there is an obligation to account and pay taxes.

As of February 2021, it will be 19% of income tax for natural persons, settled in PIT-38 by April 30 of the following year. For higher revenues, an additional "solidarity levy" of 4% may be due. It is therefore worth making sure that the sum of your income from all sources after the sale of bitcoins does not exceed the "solidarity" threshold.

Take into account that the Tax Office and most services have completely free access to your bank accounts (and similar), including those in other EU countries. Banking secret does not exist.

So if you are tempted by not paying your taxes, think again so you don't get into trouble.

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Relative anonymity

We will not strive for "absolute" anonymity. It is not very realistic and not really necessary.

As of February 2021, Bitcoin is completely legal in Poland, the best proof of which is official taxation and a dedicated column in PIT-38.

Rather, it is about protecting the privacy of your personal finances as much as possible.

We refer to this relative anonymity in this article.

Bitcoin ATM or a currency exchange, which is better?

For small amounts (PLN 1 - 30 thousand), city bitmates seem to be the best solution. For larger amounts (PLN 10 - 60 thousand), physical exchange offices may be the best solution. In short, machines offer more privacy, but are more unreliable and tend to have less cash in stock. There is more cash in the offices and staff to help you solve any problems.

How much can you sell?

As of February 2021, you can sell a maximum of PLN 60,000 at a time without identity verification. This is due approximately to the European AML thresholds, amounting to EUR 15,000 in this scenario. Verify this information at the source each time - thresholds can change at any time.

What is the procedure like?

Without leaving your home, you deposit bitcoins on the bitcoin website and wait for one network confirmation. You receive a cash pickup code with which you go to the bitomat. You withdraw cash based on the code.

All things that could go wrong

This article will turn out to be outdated

In the world of Bitcoin, practical advice - including those on this page - will quickly become outdated.

Verify whether the companies responsible for the Bitcoin ATMs and exchange offices are still operating and still enjoying a good reputation. This can be done, for example, by reading dedicated threads on the Polish Bitcoin Forum - bitcoin machines and exchange offices. Pay attention to the dates of entries.

Your IP address will be logged on the websites of Bitcoin ATMs and exchange offices

It may not be the end of the world, but it's better to be safe than sorry and not to bind your IP address to Bitcoin sales at a specific point in time.

Mitigation: as a minimum, use a foreign VPN permanently. Use Tor Browser temporarily.

Making an appointment at the exchange office will reveal the identity

Your Polish telephone number is practically synonymous with your name and surname. By calling the exchange office, you leave a clear mark on your visit in the billing and exchange office.

Unfortunately, you generally need to make an appointment for visits to exchange offices, you may also need to call for other reasons (verification of current conditions or a complaint).

Mitigation: call from VOIP (Internet telephony), which shows up to the recipient as a hidden number. For example, Skype works well in this application. After recharging, you can make calls to regular numbers. Optionally, you can go even further and set up a Skype account anonymously, paying with a voucher bought for bitcoins.

Your smartphone will reveal the visit to the Bitcoin ATM, the exchange office.

The GSM operator knows your precise location (even up to several meters) and is required to log it in. Naturally, all services have full access to this data. The data will be kept practically indefinitely. The location is calculated by triangulating the signal to nearby BTSs.

Notwithstanding the above, Google / Apple and some installed applications know your precise location based on GPS and WiFi network map.

Mitigation: do not take your smartphone with you.

To withdraw from bitcoins, all you need is the authorization code that you receive after depositing bitcoins from the comfort of your home.

When selling in real time at the exchange office, you can take your laptop and ask for WiFi access. Remember about a VPN.

You will be filmed with bitcoin ATM and industrial HD cameras.

Virtually all Bitcoin ATMs and bureaux de change are located in well-wired points so that they are not robbed. The Bitcoin ATMs themselves also have their own cameras, incl. for scanning QR codes.

Mitigation: follow sanitary recommendations - wear a mask. The cheaper and more popular the better.

You will be surprised with identity verification even with a small amount

According to procedures, operators should carry out identity verification if something makes them suspicious. This is independent of the amount.

Mitigation: do not wear tinted glasses and do not mask your image in any additional way beyond the mandatory mask in Poland. Look adequate for the season and weather conditions. Be comfortable. Fortunately, according to user reviews, situations with "surprise KYC" are rare.

What if a Bitcoin ATM does not work

Bitcoin ATM cash jam may run out. Random hardware jam may also occur.

Mitigation: before the visit, check the amount of cash in a specific bitomat on the company's website.

Mitigation: try a few times to make sure the problem is persistent. If so, take time to write down the hour and minute the problem occurred, and any code and error message on the screen. You don't have a smartphone, so unfortunately you won't take a picture. When you return home, call the operator to file a complaint. Don't be stressed. Despite some chaos and delays, according to user reports, in general, complaints can always be successfully finalized and cash collected.

Your bitcoin transaction will be confirmed in a month, and by that time the company will cease to exist;)

If you give too little transaction fee, your transaction may not be confirmed for weeks or even never.

Mitigation: don't regret the transaction fee. We want to minimize the period in which we trust the company to pay us cash and not go away with bitcoins. So we aim for tens of minutes, a maximum of several hours - not weeks. Understand transaction fees and target the next block when selling bitcoins. After confirmation, go to the Bitcoin ATM.

An email address will reveal your identity

In some sales scenarios, you will be asked for an email address. For example, in FlyingAtom, your authorization code will come to this address.

Mitigation: create a one-time, dedicated e-mail address for each sale. However, do not use "burner emails" as you may need this address many days later. Create a real, persistent email, for example at https://protonmail.com/ - it only takes a moment.

Each transaction requires a separate e-mail address - otherwise all sales will be linked as belonging to one person.

When asked in the exchange office, you spell your name and surname.

No verification means exactly: no verification. It does not mean that there are no questions from the currency exchange service. Some exchange offices will routinely ask you for your name on every transaction.

Mitigation: routinely give a random first and last name, different every time. Have these details ready to help you feel at ease. Of course, check with the local law if it is allowed to do such a thing first. In some places, it is a crime to say incorrect personal details. It is always a crime to use someone's else personal details - do not do that.

Consider the fact you could get attacked after using an exchange office or Bitcoin ATM

Mitigation: categorically, never take a cold storage wallet with you.

In the sales scenario, we do not take a bitcoin wallet into the Bitcoin ATM at all. The funds are sent in advance, from the comfort of your home. On the other hand, in the exchange office, sell bitcoins from another wallet, with the amount deducted.

If the location and amount of cash require it, ask someone you trust to assist.

Handle cash discreetly.

It is probably best to return by car, parked maybe not directly under the Bitcoin ATM/ exchange office, but not far away.

Use this trick before you try to sell BTC anonymously at a Bitcoin ATM

First, sell as little as possible, under the Bitcoin ATM operator's lower limits. Do this to "test the waters".

Approximately, for Bitcoin ATMs it may be, for example, PLN 500, for exchange offices it may be PLN 5,000 due to the very unfavorable fees for small transactions. Naturally, check the current fess on the company's website. Also, take into account that a Bitcoin transaction itself can cost dozens of PLN if it is to be confirmed quickly, so it makes no sense to sell bitcoin for PLN 100 - those times are gone. Putting very small amounts into a Bitcoin ATM might backfire, as Bitcoin ATM charge both the operator's fee and the miner's fee, and then they are not able to give you coins. Investors looking for profit use Bitcoin ATM for amounts bigger than 4000 PLN, so keep that in mind.

This way, you will test both the Bitcoin ATM / bureau de change and your own understanding of the procedure and best practices.

Checklist and procedure

Preparation

[_] an anonymous e-mail address

[_] semi-anonymous VOIP phone

[_] Purchase and permanently set up a foreign VPN

[_] Install the Tor browser

[_] Verify the current rules of bitomat / currency exchange on the official website and check the opinions on the forum.

Send funds to the Bitcoin ATM

[_] Check if the VPN is turned on

[_] Use Tor Browser to go to the bitomat website (preferably from your tabs). Check for phishing. Fill out the exchange form in accordance with the instructions on the site. Make a note of the authorization code / cash pickup code displayed. Alternatively, the code will not appear until the funds have been transferred.

[_] In the bitcoin wallet, set RBF and "priority" or a similar option of a generous transaction fee. Double check everything and send funds.

[_] Wait for the transaction to be confirmed ("confirmed", "1 confirmation"). You'll see it in your wallet, in history.

Take with you to the Bitcoin ATM

[_] Cash pickup code

[_] Anonymous e-mail address dedicated to this transaction

[_] paper and a pen

[_] Trusted assistance if you think the place and amount require it

[_] Leave smartphone, smartwatch and other electronics at home.

Other

[_] If you need to contact the operator, remember to call from your semi-anonymous VOIP.

[_] If you plan more transactions, spread them over the next days and for different companies. Do not visit a bitomat or exchange office of the same company twice a day.

[_] Describe your experiences (anonymously) on the bitcoin forum in a thread dedicated to the topic. Also the positive ones!