Posted 6 months ago | by Catoshi Nakamoto
It’s pump season and profits are coming your way. But how do you take profits? Well you start by moving your profits to stablecoins but that’s not where you stop. What if you need to turn those stablecoins into fiat? So you can pay bills, get out of debt or buy a Lambo? What then. Well… you’ll need to use a fiat offramp something to convert tokens to money in your traditional bank account…and that isn’t as easy as it sounds.Read More
Let’s get it.
Moving Profits To Your Bank
Welcome to BitBoy Crypto. Home of the Bitsquad, the largest crypto community in all the interwebs. My name is Ben. Every day on this channel I show YOU how to MAKE MONEY in Crypto. If you like money and crypto then make sure to hit that subscribe button. In this video we take a look at Stablecoins an asset that is pegged to a fiat currency. Be it with actual units of that currency, an asset that has the same value as the fiat currency, or a combination of those two and some other assets. It’s a growing technology that has traditional finance scared to death. Back in the olden days of crypto you used stablecoins to buy crypto. It was faster than banks and was available 24/7. Nowadays stablecoins have become their own sort of Defi ecosystem with staking and lending offering fantastic returns compared to investment like a 401k. Tether of course was the first stable coin. You in in 1 dollar and you got 1 Tether back. It was that simple…kind of . Tether has had it’s problems but the stablecoins ecosystem has gotten very sophisticated in the last three years. Coins like PAX Dollar, DAI, True USD and more have been adopted along with major coins like USDC and Binance USD. But the tale of the tape with stablecoins is going to be the network they are on and the ease that they can be converted.
So you’ve been a wise degen and your bags are now full. You want to start taking profits so you go to your exchange and start swapping for Tether right? Not so fast. The offramp you choose is important. You need to make sure the exchange or service you are using is approved by country, state or province that your bank is in. If you try to move money using a service that hasn’t passed the regulations required to exchange funds, then you could run into some serious troubles. Check the help or FAQ section of the exchanges website to see where they have set up relationships and gotten approval for money transfers. THIS IS THE FIRST STEP when taking profits. We’ll use Gemini for an example. They have a whole page that lays out their availability by country and state. Keep in mind if your bank is in, Australia; a country that is open to Gemini, but you are on vacation in Morocco, a country that isn’t…you’ll need to use a VPN to do your business. Morocco why are you so anti-crypto? Anyone from around the world is able to join the Bitsquad just by smashing that like and subscribe button. That puts you in the best crypto community on the interwebs and keeps you in the loop in the latest in crypto news and opinions.
Now that you’ve found the right exchange that can move money to and fro; The stablecoin you choose can make a world of difference when it comes to avoiding fees. Don’t just default to Tether; if the exchange has it’s own stablecoin like Binance USD or Gemini Dollar, you’ll want to use that instead of picking a stablecoin willy nilly. Here is what you HAVE to keep in mind. If you are moving around money on an Ethereum based ERC20 token…you’re going to get walloped with fees. With gwei at all time highs with no signs of letting up…This can seriously take a bite out of your gains. Move your coins into stablecoin that has the lowest transaction fees, usually anything other than ERC 20. You can do this by changing the default network that you are transferring too. For example Tether defaults to ERC 20, but you can choose to move your Tether on the TRON network, which is a way better value.
It’s worth mentioning that there are other networks and services that provide off-ramping. Transfers services like Moonpay for Simplex allow you to turn crypto into fiat for your bank, but Bitboy Crypto hasn’t used them very often so we can’t recommend them to you. Comment below with your experience with these services and let us know how it went.
We use all sorts of exchanges to swap, trade and buy tokens. But at the end of the day when it’s time to buy a Lambo…we use either Coinbase or Gemini to turn crypto profits into fiat. We have an established relationship with these companies and have been doing transfers for awhile, but it wasn’t always sunshine and rainbows. There were speedbumps along the way. So before you go and transfer thousands, tens of thousands or millions of dollars in a stablecoin to your bank…do a few test transfers first. Usually banks aren’t that concerned about money coming IN to your account, so the likelihood of your account getting locked or the transaction bouncing is low, but it’s worth it to send $50 or $100 to test the waters. Slowly ramp up your deposits, checking that they are clearing properly after a few days. Profits are fun, but don’t get wrecked. Follow this guide but also do research that is specific to where you live. Crypto is new to a lot of people and ole’ FI is still struggling to wrap their brains around it.
That’s all I got. Be Blessed. Bitboy out.