there are guys who had transactions over the years, but then they might want to move those coins or even figure out ways to create more hops with their transactions, yet if they take coins off of an exchange and then they move the coins back to the exchange to sell them, then it may well be easier to tell them that the coins were taken off of the exchange earlier, if they are asking you from where you got the coins..so sometimes having too many hops could work against you when an exchange is asking you to verify your source of funds for coins that you send to them. It is not fair, but it is part of our current world and some of the challenges that we might have when we are dealing with third parties, so we have challenges dealing with third parties and we have challenges dealing directly with people, yet we still have to decide whether we are going to save and/or accumulate wealth in bitcoin or if we are going to hold our wealth in other ways. Some people may get scared out of their BTC if they believe it is too burdensome to try to hold it.
True talk, too many hops can sometimes raise more red flags instead of hiding anything. That’s the problem with KYC exchanges once you touch them, they can question every move probably why they call it centralized exchange and I don't see difference between it and normal banks though....
Best way is to minimize the back and forth and just focus on holding your coins in self custody, which is safer and more secure.If I had invested into bitcoin over a couple of cycles and I accumulated 10 bitcoin or more, then maybe I had been moving those bitcoin into private wallets, and so if I want to use them, then I can look for places to spend them, yet if I want to get cash, then I might need to go back to the same exchange that I bought them. and yeah, maybe I am selling 0.0075BTC at a time or it might even be a smaller amount of BTC depending on the future bitcoin price. If the future bitcoin price goes to $500k, then maybe I am only selling around 0.0016 BTC at a time... and maybe I had paid around $60k or $70k for the 10 BTC that I have but if I am cashing out a couple thousand every few months through the exchange/bank and then maybe also trying to find places to spend my BTC in those smaller amount kinds of ways, and yeah, maybe after a while i might start to spend $10k per month, since my BTC will start to become worth so much... yet I still might be struggling to find places to spend my BTC in direct ways.