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Crypto to fiat exit plan


Hopium
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I was thinking to prevent loss of profit due to currency conversion fee, because my home currency is not USD but the exchange is USD based.

So i went to open a USD bank account with my local bank for this purpose, but they're being a pain in the Axx, firstly they ask what's the purpose, as they say normally student study abroad can be eligible. When i mentioned my sole purpose is to cash out digital asset, they didnt understand a thing, at the end they asked me "is it bitcoin?", i answered "yes they belong to the same category".

After that their tone changed hostile and say unlikely they will approve my request, but they still let me try anyway, to submit proof, documents and so on to try to prove i got a legit purpose for it and it is not money laundering.

Can you imagine if i only find this out during the cash out event? My bank might have bounce back the transaction and cause hefty loss in cross border transaction sending money back and forth but without the money sitting in my bank. My country is so backward thinking, however one good thing is the SEC of my country approved a few exchanges locally, so i think my best bet is to use them as exit but what if my profit reached astronomical amount? Withdrawal limit of 300k per month is going to take forever, this is insane, it's like we're bound to be slave forever and prevented to become rich even if your crypto portfolio has skyrocketed. Can you imagine the despair?

For the next bank i'm going to visit, i'll not mention the key word "cash out investment" or "digital asset, crypto, bitcoin", they get alarmed hearing it and ask all sorts of questions. They asked me back "ok so what's the company you invested in? do you have the share cert?", "oh you cant realize your investment from personal wallet, it has to be a company", what a load of BS.

I'm thinking of trying the sentence: "a person is very interested in my digital collectible and willing to offer a large sum of money for it, i can prove how i acquired those collectibles in the past", i have a good feeling it will work much better.

Let me know the situation in your country, are the banks hostile to crypto cash out? Hope you find them out before its too late, otherwise your money is stuck if you cash out big sums after the bull run.

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1 hour ago, tulo said:

If your profit skyrocketed to withdrawal more than 300k a month do you really care about 1% fee on currency conversion?

i roughly calculated the % difference using my past data of buying items online paying in foreign currency, the diff is about 3%.

if the profit is 1 mil, 3% is 30k right there, in the grand scheme of things yes it is nothing compared to 1 mil, but in terms of normal spending that 30k is a huge amount im not willing and not comfortable of letting go, come on man, 30k in fees? the sound of it is uncomfortable

why i care? because this is a one off profit, i need as much as i can so live off it until i die, if i live frugally, i spend around 2.5k monthly, 30k means 12 months of frugal living, or 6 months of nice living, or 3 months of luxury living, every month counts, you live only once.

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I don't really understand the problem. Your exchange is USD based. Why not just create a XRP-account at an exchange in your currency.

You just move the XRP from one address to another and then sell in your local currency.

I once bought Monero at a Dutch exchange. A few months later they didn't support Monero anymore. I just opened an account at Kraken. I sold my Monero for Bitcoin and my Bitcoin for XRP. After this I just send my XRP from Kraken to my Nano Ledger so I can sell my XRP through my Dutch exchange in the future.

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If you trust the exchange, you can leave it in USD at that exchange for the time being. Who do you trust more, the exchange or the bank :lol: Until you find an exchange in your home country that fulfils your needs and then go back in crypto, send the crypto over to the other exchange and cash out in you own fiat. 

Another possibility if you trust USDT and e.g. celsius.network, park it over there (13.86% APY) 

Edited by jn_r
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59 minutes ago, ESCH said:

I don't really understand the problem. Your exchange is USD based. Why not just create a XRP-account at an exchange in your currency.

You just move the XRP from one address to another and then sell in your local currency.

I once bought Monero at a Dutch exchange. A few months later they didn't support Monero anymore. I just opened an account at Kraken. I sold my Monero for Bitcoin and my Bitcoin for XRP. After this I just send my XRP from Kraken to my Nano Ledger so I can sell my XRP through my Dutch exchange in the future.

I agree with your suggestion of simply moving XRP between exchanges, however taking multiple hops between different cryptos is not viable for many people as it would be considered taxable for them.

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11 hours ago, Hopium said:

So i went to open a USD bank account with my local bank for this purpose, but they're being a pain in the Axx, firstly they ask what's the purpose, as they say normally student study abroad can be eligible. When i mentioned my sole purpose is to cash out digital asset, they didnt understand a thing, at the end they asked me "is it bitcoin?", i answered "yes they belong to the same category".

Don't know your location, but I would suggest looking at Transferwise's multi-currency account (50+ currencies) to see if it is an option for you.

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1 minute ago, jMusic said:

Don't know your location, but I would suggest looking at Transferwise's multi-currency account (50+ currencies) to see if it is an option for you.

means i treat transferwise as a bank? hold all my funds there? and withdraw to use as i please?

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1 hour ago, jMusic said:

Yes, use it to receive USD from exchanges, then either (exchange and) move it from there to a local bank or use it directly.

Well, assuming transferwise is not going to be a pain and ask lots of question about the purpose of fund etc, not sure if they let everyone do as they please with their money

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15 hours ago, Hopium said:

I was thinking to prevent loss of profit due to currency conversion fee, because my home currency is not USD but the exchange is USD based.

So i went to open a USD bank account with my local bank for this purpose, but they're being a pain in the Axx, firstly they ask what's the purpose, as they say normally student study abroad can be eligible. When i mentioned my sole purpose is to cash out digital asset, they didnt understand a thing, at the end they asked me "is it bitcoin?", i answered "yes they belong to the same category".

After that their tone changed hostile and say unlikely they will approve my request, but they still let me try anyway, to submit proof, documents and so on to try to prove i got a legit purpose for it and it is not money laundering.

Can you imagine if i only find this out during the cash out event? My bank might have bounce back the transaction and cause hefty loss in cross border transaction sending money back and forth but without the money sitting in my bank. My country is so backward thinking, however one good thing is the SEC of my country approved a few exchanges locally, so i think my best bet is to use them as exit but what if my profit reached astronomical amount? Withdrawal limit of 300k per month is going to take forever, this is insane, it's like we're bound to be slave forever and prevented to become rich even if your crypto portfolio has skyrocketed. Can you imagine the despair?

For the next bank i'm going to visit, i'll not mention the key word "cash out investment" or "digital asset, crypto, bitcoin", they get alarmed hearing it and ask all sorts of questions. They asked me back "ok so what's the company you invested in? do you have the share cert?", "oh you cant realize your investment from personal wallet, it has to be a company", what a load of BS.

I'm thinking of trying the sentence: "a person is very interested in my digital collectible and willing to offer a large sum of money for it, i can prove how i acquired those collectibles in the past", i have a good feeling it will work much better.

Let me know the situation in your country, are the banks hostile to crypto cash out? Hope you find them out before its too late, otherwise your money is stuck if you cash out big sums after the bull run.

Let me give you some advice:

1. Banks suck, but you are using their services. So suck it up, and play by their rules. If you really hate fiat, don't cash out and don't use it!

2. Banks have KYC/AML rules, so understand that if you say "I have untraceable money that I would like to cash out in your bank", they are going to say F U.

3. If you aren't honest, and then make a transfer of 10k-1M USD, it will be flagged. Worst case, they freeze your funds. Best case, they simply reject the transfer.

4. If you make 100-1000x profit, be legit. Declare your gains and pay the taxes. Be prepared to prove that all taxes were paid. This will include proving that you bought the asset at a certain price and proving all transactions afterwards. The "easiest" way is to buy, hold, and cash out, with no intermediary trades.

5. If you really hate the financial system and don't want to play by their rules, divide your crypto into two wallets: one for legit purposes, another for black (but be careful that they can not be linked be chain analysis, etc. This is harder than you think.).

6. If you really made that much money, do you give a shit about losing 30% in taxes and another couple percent for transaction fees? 30% is the normal volatility of crypto.  Just cash out one day later.

7. If you are really worried about volatility, park your crypto in a stablecoin. This will give you the time to figure out how to deal with your new wealth.

8. This is not a USD problem. Euro is just as bad. I presume that all developed countries have similar rules.

9. Once you get up to 500k+ USD levels, you are no longer a "normal" customer at a bank. They have special private bankers/wealth managers to deal with people like you. Do some research. You need to simply say that you speculated on some assets, just as people speculate on stocks. When you go to the bank, tell them the amount of money you are talking about, and they will put you in contact with the right person. If you try to open the account online or with the drop out in charge of savings accounts for students, they won't know what to do with you. Be prepared to befriend the employee and to explain how buy and trade cryptocurrencies.

10. If all of the above apply to you: don't be a greedy ass. Make a hefty donation to a cause that you care about. If you can't donate 10%, you deserve no respect.

STOP

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8 hours ago, mrak said:

Let me give you some advice:

1. Banks suck, but you are using their services. So suck it up, and play by their rules. If you really hate fiat, don't cash out and don't use it!

2. Banks have KYC/AML rules, so understand that if you say "I have untraceable money that I would like to cash out in your bank", they are going to say F U.

3. If you aren't honest, and then make a transfer of 10k-1M USD, it will be flagged. Worst case, they freeze your funds. Best case, they simply reject the transfer.

4. If you make 100-1000x profit, be legit. Declare your gains and pay the taxes. Be prepared to prove that all taxes were paid. This will include proving that you bought the asset at a certain price and proving all transactions afterwards. The "easiest" way is to buy, hold, and cash out, with no intermediary trades.

5. If you really hate the financial system and don't want to play by their rules, divide your crypto into two wallets: one for legit purposes, another for black (but be careful that they can not be linked be chain analysis, etc. This is harder than you think.).

6. If you really made that much money, do you give a shit about losing 30% in taxes and another couple percent for transaction fees? 30% is the normal volatility of crypto.  Just cash out one day later.

7. If you are really worried about volatility, park your crypto in a stablecoin. This will give you the time to figure out how to deal with your new wealth.

8. This is not a USD problem. Euro is just as bad. I presume that all developed countries have similar rules.

9. Once you get up to 500k+ USD levels, you are no longer a "normal" customer at a bank. They have special private bankers/wealth managers to deal with people like you. Do some research. You need to simply say that you speculated on some assets, just as people speculate on stocks. When you go to the bank, tell them the amount of money you are talking about, and they will put you in contact with the right person. If you try to open the account online or with the drop out in charge of savings accounts for students, they won't know what to do with you. Be prepared to befriend the employee and to explain how buy and trade cryptocurrencies.

10. If all of the above apply to you: don't be a greedy ass. Make a hefty donation to a cause that you care about. If you can't donate 10%, you deserve no respect.

STOP

2. how is it not tracable? it is not moreno? i keep all my purchase logs and bank historyand always be ready to get audited if the need arises, to prove my money is clean, my payslip can prove how much i can buy every month, nothing extraordinary, so thats why im so frustrated if i still cant get my money even if im clean

3. i was trying to be honest in first try mentioning digital asset, but looking at their tone changed after that, my next bank visit i'll say "cash out collectibles", technically it's not dishonest? That person really wants to buy it from me (if im using OTC of course, otherwise i cant prove the buyer's name, i have a few OTC signed up just in case)

4. my country dont have capital gain tax, so i wont pay a dime and i will prove how it is Capital in nature, because i was only buy and hold, never make frequent "Buy and Sell" transactions. however, if they want to play dirty and force me to pay tax on it in order to make it clean and usable, maybe i'll have no choice by then, but for now, i stick to what the rules say

5. come on, i am clean as the soup, why i want to act like a fugitive and hide things? i intend to cash out in daylight and use the money as i've earned it / deserved it, i didnt rob anyone

6. i dont understand this point of yours, cash out 1 day later can have a huge difference if the day before you hit your target but the next day retrace 50%, you're joking right?

7. yes, in continuation of my point 6, if i dont really get things sorted out yet if i reached my target, i will park in stablecoins

9. thats what i mentioned, i speculated on digital assets and made money and wanted to cash out, but they're very traditional minded and was thinking i have some company share cert or something to prove my investment, they dont know shit about crypto, all they know is bitcoin, and bitcoin is for criminals, tough luck

10. strongly disagree with this point of yours, dont try to impose your moral on others, my money i do as i please, and to be honest im a selfish person, i do everything in my power to please me and myself only, however, im curious why you have this mindset, as well as some other forumers here enthusiastic about making donations, care to explain what's in your head?

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