Have you know anything about P2P(peer-to-peer/ person-to-person) trading on exchangers? Like Binance?
I used to do P2P trading on Binance and Kucoin for buying and selling cryptocurrency, Basically I don't but directly bitcoin with fiat currency firstly I buy USDT by fiat then transfer them to spot and buy ever I want. You can also check about P2p trady here-

HOW TO USE BINANCE P2P

I don't know about other what they do but in my country crypto aren't legalized yet but for p2p trading I haven't face any issue till yet, but I have followed some tricks to skipping them.
I thing the peoples of your locals can say more about this, you can also ask to your local peoples in your local board.
Use P2P trading. And know your region rules.

You can easily convert your Bitcoin to fiat using your calculator and after then the best way is to sell your coins on an exchange that is available in your country. There are different exchanges like coinbase, Binance, kucoin that offers these services. Don't get it all wrong these exchanges do not directly buy your Bitcoin or USDT they will match you with a buyer in the exchange through the P2P area there you will see merchants and their prices.  Although the amount of taxes depends on your country of origin.

I agree with your explanation, but the P2P transactions done on exchange doesn't incur tax deduction from the receiver of the fiat, because from my experience, the fiat it's mostly transferred from the bank account of the person you've been paired with by the exchange, so it's basically like a normal cash entering into your bank account, except from the OP's country they deduct tax from any money entering into his account, which I strongly doubt of that kinf of situation.

Why would you transfer money to a bank card and complicate everything? Exchange in exactly the same way, but in reverse order: bitcoin  - for money and no one will have any questions for you (unless you start throwing banknotes around ). Fiat money is 100% anonymous (a financial product of the traditional monetary system) so take advantage of this. Use the services of a well-known exchangers aggregator, because they had the direction of exchanging bitcoin for cash (and vice versa).

When I see advice on using centralized exchangers and KYCs on a forum where they talk about financial freedom and independence, I feel uneasy.

If you want to use their services, you will have to play by their rules: banks take your money, and you report to them for every penny and shake so that your account is not frozen.

If you want to do that, my advice is to process wd to fiat with an amount that is not too noticeable and if at the same time it is not impossible that the bank will ask about all of it with a note to you. Unless you are an entrepreneur who has run a large business and has booked a special customer card from the bank with a large turnover in your account on their platform.

If our people are ordinary people with ordinary account activities, it will be very strange if once money enters our account immediately fat, for example 1 BTC directly. That's pretty big.

I think, if the existing exchange is legal and can get permission, I think it's easy because there is a limit on the level that can be withdrawn daily and for ordinary taxes have been deducted directly when you process the sale of your BTC.

Selling through P2P is a perfect way to avoid tax, but we need to know that the traction can be tracked if the bitcoin in question was also purchased from Coinbase before the bitcoin price pumped up and there is a little profit gained from that purchase.
 
If it's in the US, where bitcoin and other currencies are taxed just like other properties in the US, if it's purchased from Coinbase, there will be a capital-gained tax attached to it.
 
You might think you have escaped the tax system until the regulatory authorities request your details from the exchange. As Coinbase has been known to be a good complainant, if the regulatory authorities are released, the person will be forced to face tax evasion charges.

Do you sincerely trust that a Bank would NOT ask where the Money came from only because it comes from Binance?  I would definitely not.

The best way is still trying to avoid Banks as much as possible.  If Banks are THAT necessary, maybe use a Bank that is semi Cryptocurrency friendly.

For amounts exceeding ten thousand Dollars, I would expect any Bank to ask me to prove where the Money came from.  It is how Banks operate pretty much.

Op did not really state which part of the world he is, there are countries right now that they can't use P2P platform base on the restrictions coming from their government in some exchange platforms such as Binance, Kucoin and OkEX, If truly that the money is actually coming from the profit op made from trading Bitcoin and cryptos, and in a case this money is huge and doing a single withdrawal would arise questions about the source of the money, then I suggest that op should do his withdrawals batches by batches or little by little, this way he's going to attract less attention about the incoming funds on his account and avert questioning.

I think the answer to this question should vary from one county to another, because here in Nigeria, bank accounts are sub divided into more than 3 categories, that is;
1. A kid's bank account, which could accumulate a highest amount from. #10 to #100,000 Naira, with a daily transaction limit of #10,000.
2. A teenager's bank account, which could afford amount from #100,000 to #1million Naira, and lastly
3. An adult or business bank account, which could accumulate from #1million and above (i.e unlimited).
So if by mistake you happen to send money to either a kid or teenager's bank account which has limitations of a certain amount it's likely to accumulate, then in that scenario, you are likely to be asked to come do account upgrade. Which is why here, it's always good to send huge sum of money to these business or corporate bank account. So as to avoid bank managers questioning where the money came from. And this may vary from country to country, so you just have to figure out what works in yours and apply it.

Fiats are unlike Bitcoin that could be checked on the Blockchain, which is why it's always good to use p2p market place, where you only release your coin after you have confirmed payment.