Not only do I want to avoid exchanges but also banks, which is currently the most convenient way to withdraw money, but if I were to move funds to a bank account, they'd get taxed at 24%, which is a huge percentage. I've also thought about Bitcoin ATMs, but the majority of them here require some sort of KYC and feature expensive fees, although they may still be a better option than bank transfers. Is there an actual, reliable way to exchange bitcoin for cash in hand? My best guess would be a P2P transaction in person, but that's quite unlikely.
One of the most difficult aspects of getting started with bitcoin is converting it into fiat currency. Those who live in countries that have strict regulation of bitcoin and collect large taxes from them have harmed the crypto world. A peer-to-peer transaction is the best option right now because exchanges have made it easier to do those transactions where they serve as the escrow.
Even so, one must be extra cautious when dealing with them because some of them can easily steal your coins, which would not be at the expense of the exchange. If bitcoin becomes a legal tender, almost everyone will have a wallet you can do transaction to without having to change it to fiat currency first.