Jump to content

How to cash out XRP for restricted American residents


Recommended Posts

Ok, this is how to cash out your XRP via the XUMM wallet: for dummies edition. You will need a Bitstamp account for this method to work. I assume Gatehub also works, but for the purposes of this guide I will be using Bitstamp as the example because it's the one I have experience with and have tested to work. You will also need a Phone. Special thanks to @RobertHarpool for presenting the idea and pointing me in the general direction in the first place. This is assuming you either don't want to use Uphold or can't for whatever reason. I finally went through the trouble a few nights ago but never came back here to update the post and write the guide. The "cashing out" will be done using the XRPL's built in DEX. Sounds complicated but it's very, very simple and I will lay down the instructions step by step so you can do it.

1. Download the app " Xumm - your xrp wallet". This can be done in your phone whether you are on iOS or Android. Use your respective operating system's app store to download it. This guide will be assuming you're on your phone, because it's convenient and u take it with u everywhere.

2. Follow the instructions and read thoroughly everything that the XUMM app takes you through. I suggest making a new account as opposed to importing one, for simplicity's sake. It also adds a layer of redundancy/safety since you will have an extra stash for your assets.

3. The last step on the XUMM setup when creating a new account is to write down your "secret numbers". This will be displayed on the app for you to write down (offline!) and keep it stored safely. The secret numbers are 8 rows labeled A through H and contain 6 digits each. I highly encourage you to write it down in more than once paper and hide the different copies in different locations, two should be enough. You could type it out and print it instead if you're afraid of the ink either getting wet for some reason or smudging and becoming illegible. If you do so, I'd recommend you do so in an offline machine that never goes online and also use a printer that never goes online. You never know. Once you write them down, you will be asked to enter them to confirm you copied them correctly.

4. After you write down the secret keys I believe you get to create and name your account, do that and go to the next step.

5. You will now be able to fund your account. If the screen is not already there, tap on "Home". Since your account isn't funded, there should be a message that says ur acc is empty and you can tap on it to get the public address so you can send your funds to that address. You can simply tap on the "copy" function and then E-mail it to yourself if you access the exchanges through a computer. If you access the exchanges through your phone, then voila, you already have the public address copied and ready to be pasted.

6. Ok now that you have your recipient public address copied, go to wherever it is you have XRP stored (Wallet, exchange, etc) I will use Coinbase as an example. Login to Coinbase, click on Portfolio and then click on  your XRP. On the right hand side you will see the option to send or receive, and send should be pre-selected. If it's not, click on send. Where it says "To", click on that and then paste the public address you copied from your XUMM account. You will leave the XRP tag empty because it's not necessary. The minimum amount you can send is 20 XRP because that's what's needed to activate your wallet. Of course you can send less for testing purposes, and if you feel unsure then by all means, send less. Once you confirm you did it correctlly and receive the XRP and it's reflected on your XUMM app (it should take seconds), then you can go ahead and send the remainder to activate the wallet and some extra to do a test sell with.

7. Ok, your XUMM wallet is now funded with some XRP, now what? How do I get USD for this? Well, in your home page, under the XRP balance that has the Send and Request buttons under it, under THAT you should see something that says "Other tokens" and a little further right of that there's a button that says "+ Add". Tap on it and you should see two columns. The one on the left says Exchanges and the one on the right says Tokens.  You're interested on the one on the left. Tap on Bitstamp and it will now appear on your homepage under the "Other tokens" section as "US Dollar, Bitstamp USD" These are Bitstamp USD IOU's which is what you will be trading your XRP for.

8. Ok, now tap on the "US Dollar Bitstamp USD" and a window will pop up with two buttons: Send and Exchange. Tap on Exchange, enter the amount of XRP you wish to sell and then tap on Exchange in the bottom. Voila! You will now have a balance on the right side next to the Bitstamp USD showing how much you have.

9. Ok now it's time for the juicy part. Log in to your Bitstamp account, click on deposit, and on the left click on "IOU (BTC,USD" and you will get a screen with a QR code to scan and You'll also see the public address and destination tag in case you have to enter it manually. 

10. On your XUMM app, tap once again on the "US Dollar Bitstamp USD" and then tap on Send. A screen will pop up where you enter the amount and then tap on "Next". This is where you tap on the square looking thing which is for scanning QR codes and scan the QR code on ur bitstamp acc. You should now see a box under "Search results" that says Bitstamp (and Bithomp to the right of it  in smaller text) and your Bitstamp public address should be typed in automatically. Tap on "Next" and the next screen will say "This address requires a Destination Tag". Scan the QR code or enter it manually if the scanner doesn't work for whatever reason (It doesn't work when I try it, so I assume the destination tag just isn't there). You might have to write it down in your notes and then copy it. MAKE SURE YOU WRITE DOWN THE DESTINATION TAG PROPERLY. Once done hit Next until you're done.

11. Congrats! You have successfully cashed in XRP for USD through the XRPL! Give it a few moments to transact and then click on "Account" on Bitstamp and you should now see the USD from the transaction be reflected in your balance.

 

If you have any further doubts or need help, don't hesitate to post in this thread and I will do my best to help (and maybe other members might even chime in before me). This forum is full of very knowledgeable and nice people :)

Edited by Neurotoxin
Changed the original post completely from a question to a guide.
Link to comment
Share on other sites

Uphold limits me to $10K per day. So, that's weird you're experiencing that. Lord only knows :-S 

---

Coinloan works well. I've used them these last 9 months and without any problem ... Buy/Sell XRP for USDT or USDC in blocks of up to 50K. Then send that stable coin to Kraken or Coinbase for cash out. (Note: Coinloan only does withdraws at certain set times of the day ... so don't panic if hours have passed and ur USDC hasn't made it to Coinbase yet)

Obviously u can run the same play on Bitrue as well. 

In terms of the XRPL ... the problem with USD:Bitstamp is that there isn't much liquidity on the order books. BUT .. I've found/experienced on multiple occasions that Bitstamp has linked their exchange's internal order book with the XRPL's order book in such a way that it doesn't show and is not readily apparent the XRPL. (This is not a 'fact', but a subjective experience) ... so an order that should be too great for the XRPL's order book price points is still being fulfilled. Obviously you need to tread cautiously here ... If you don't understand EXACTLY what I'm saying, then don't play with numbers over a few hundred XRP. 

Anyhow, sell ur XRP for USD:BItstamp on the XRPL using ur preferred access method (XUMM, old RippEx Wallet, etc.), then log into your Bitstamp account ... go to Deposits ... IOU (BTC & USD) and deposit the USD:Bitstamp from your XRPL account into Bitstamp. Voila... u now have USD at the Bitstamp exchange to do with as you please .. trade for other cryptos, withdraw to your bank, etc. 

...

FWIW I recently did the following experiment simultaneously across several exchanges ... (the ways I waste my time!!) 

I sold N XRP on Uphold and transferred to my bank. 

I sold N XRP on Bitrue for USDT, transferred to Kraken and then to my bank.

I sold N XRP on Coinloan for USDC, transferred to Coinbase and then to my bank. 

The Uphold method was faster and cheaper. There was no statistical difference between the latter two options. All three hit my bank account the same day. 

Screen Shot 2021-04-26 at 10.10.39 PM.jpg

Link to comment
Share on other sites

24 minutes ago, RobertHarpool said:

Uphold limits me to $10K per day. So, that's weird you're experiencing that. Lord only knows :-S 

Hmmmm, perhaps it was a spelling error when they sent me the e-mail? I'll give it a try later since I already reached my cap, and that'll confirm whether or not they worded it correctly.

 

26 minutes ago, RobertHarpool said:

Buy/Sell XRP for USDT or USDC in blocks of up to 50K. Then send that stable coin to Kraken or Coinbase for cash out.

Personally, I've found the fees for USDC to be astronomical. I remember having done a test sending USDC from Coinbase to Uphold. I sent 10 USDC, of which around 5 was sent another 5 was spent on fees. Maybe it's because it was such a small amount, idk, maybe it would scale better with bigger amounts but I then tried using ETH instead and it was MUCH cheaper, and it was pretty quick too, so ETH is now my preferred method of transfer between exchanges.

 

33 minutes ago, RobertHarpool said:

In terms of the XRPL ... the problem with USD:Bitstamp is that there isn't much liquidity on the order books. BUT .. I've found/experienced on multiple occasions that Bitstamp has linked their exchange's internal order book with the XRPL's order book in such a way that it doesn't show and is not readily apparent the XRPL. (This is not a 'fact', but a subjective experience) ... so an order that should be too great for the XRPL's order book price points is still being fulfilled. Obviously you need to tread cautiously here ... If you don't understand EXACTLY what I'm saying, then don't play with numbers over a few hundred XRP. 

Anyhow, sell ur XRP for USD:BItstamp on the XRPL using ur preferred access method (XUMM, old RippEx Wallet, etc.), then log into your Bitstamp account ... go to Deposits ... IOU (BTC & USD) and deposit the USD:Bitstamp from your XRPL account into Bitstamp. Voila... u now have USD at the Bitstamp exchange to do with as you please .. trade for other cryptos, withdraw to your bank, etc.

Hmmm, I might just have to get that XUMM wallet that I've seen mentioned so much here. Thanks a lot for that info. Would you care to write a step by step guide using the XUMM wallet for swapping XRP for Bitstamp IOU's? You know a "for dummies" type of guide with numbered steps so even those that aren't tech-inclined could follow it and not get lost or screw up. I'd do it myself if I had the knowledge but truth is I've never used anything outside of Coinbase, Bitstamp and now, obviously, Uphold. I'd edit the original post to show the steps and make it look nice and of course, credit you for making the guide. Idk if I'm asking for too much but I think a lot of fellow members would appreciate it and it would be a valuable "sticky" to have around for veteran users of this site and newbies who will join the forum in the future alike. Again, thank you for taking the time to reply and provide information.

Link to comment
Share on other sites

You could also use kucoin - very easy to get an account there.

Then...

Transfer your XRP to kucoin, trade it for ADA (for example), send the ADA to your Bitstamp account (cost is one ADA), sell for fiat, transfer to your bank account. 

BTW: I checked some of their withdrawal fees:

  • ADA ($ 1.25)
  • ETH ($ 20)
  • BNB ($ 5)

Maybe there are even cheaper pairs, here's their fees page:
https://www.kucoin.com/vip/level?lang=en_US 

Link to comment
Share on other sites

On 4/27/2021 at 2:16 PM, JASCoder said:

You could also use kucoin - very easy to get an account there.

Then...

Transfer your XRP to kucoin, trade it for ADA (for example), send the ADA to your Bitstamp account (cost is one ADA), sell for fiat, transfer to your bank account. 

BTW: I checked some of their withdrawal fees:

  • ADA ($ 1.25)
  • ETH ($ 20)
  • BNB ($ 5)

Maybe there are even cheaper pairs, here's their fees page:
https://www.kucoin.com/vip/level?lang=en_US 

Doesn't the trade for ADA restart the clock for short term vs long term capital gains?  This is assuming you're in the US and have held xrp for over a year.  Taxes on short term capital gains are disgusting.

Link to comment
Share on other sites

6 minutes ago, arguably12bee3 said:

Doesn't the trade for ADA restart the clock for short term vs long term capital gains?  This is assuming you're in the US and have held xrp for over a year.  Taxes on short term capital gains are disgusting.

You only pay taxes on the profit. So you would pay long term gains on the profit between what you bought the XRP for and sold it for. And then short term gains on profits in the few minutes you held the ADA - I can't imagine that would be much.

Link to comment
Share on other sites

12 hours ago, arguably12bee3 said:

Doesn't the trade for ADA restart the clock for short term vs long term capital gains?  This is assuming you're in the US and have held xrp for over a year.  Taxes on short term capital gains are disgusting.

Yes. For US citizens, one year held assets are taxed either not at all, or more favorably. 
ANY trade is a "taxable event." (note, not a transfer, and you can opt to "pool" assets separately for purposes of segregating the assets for their "long term" status)
( NOT FINANCIAL ADVICE, ALWAYS CONSULT A PROFESSIONAL FOR ALL FINANCIAL DECISIONS, NOT RANDOM FORUM POSTERS ) 

:)

Link to comment
Share on other sites

Can someone explain why uphold order book for XRP is at least 2cents negative difference regardless if you are buying or selling? This amounts to several thousand dollars even on moderate orders. This is not the case on coinbase or kraken. Is uphold pocketing the difference?

Link to comment
Share on other sites

25 minutes ago, Mr-Montana said:

Can someone explain why uphold order book for XRP is at least 2cents negative difference regardless if you are buying or selling? This amounts to several thousand dollars even on moderate orders. This is not the case on coinbase or kraken. Is uphold pocketing the difference?

Maybe it’s the spread? I’m not sure cuz their user interface is so bad that it’s hard to tell. It’s probably somewhere in their T&C or in the FAQ section but spreads are usually low, like 1% or less so Idk.

Link to comment
Share on other sites

Yeah I guess but it's an artificial spread because it is not that way on any other exchange. Makes it impossible to play the dips and rises because you have to overcome $4000 dollar hit on both sides on a 100k trade... They are suppose to be plugged in to a bunch of exchanges so that difference has to be going somewhere.  I can have a sell order when price is $1.58 and it shows sell for 1.56 and immediately cancel that and place a buy order at 1.58 and it shows by buy price is $1.60... I guess that's why they don't offer limit orders. They have to be taking the difference on both sides... If they are that is a huge commission rate... Maybe I'm missing something idk.

Link to comment
Share on other sites

3 hours ago, Mr-Montana said:

Yeah I guess but it's an artificial spread because it is not that way on any other exchange. Makes it impossible to play the dips and rises because you have to overcome $4000 dollar hit on both sides on a 100k trade... They are suppose to be plugged in to a bunch of exchanges so that difference has to be going somewhere.  I can have a sell order when price is $1.58 and it shows sell for 1.56 and immediately cancel that and place a buy order at 1.58 and it shows by buy price is $1.60... I guess that's why they don't offer limit orders. They have to be taking the difference on both sides... If they are that is a huge commission rate... Maybe I'm missing something idk.

If you’re gonna be actively trading, Uphold is definitely not your best option. Their user interface alone should hint at that. I haven’t used a ton of exchanges nor am I a trader so Idk what to recommend, but I am sure Uphold’s definitely not the place for that. 😂

Link to comment
Share on other sites

Here is a very CSC centric video about using Xumm to trade on the DEX with xrptoolkit.  You can just skip over the CSC info if your not interested and use different pairs for trading.  There is also Sologenic which is just a more familiar overlay of the XRPL DEX but is used just the same. They plan on issuing a bunch of tokenized assets there so it could be a different way to move out of XRP into a stock or something of the sort instead of fiat.

You would have to set the trustline to the IOU you are trading.

If you were not aware there is a different company that will be using the Flare network called https://trustline.co and they plan on issuing a trustless stable coin called Aurei on the XRPL DEX pegged to USD.  Not sure when this will actually happen but could be be another method in the near future.

Quick coil article about solo/xumm etc... https://coil.com/p/macropolo/XUMM-CBDCs-and-the-XRPL-DEX/lh8D5jlSj

Hope that helps a bit...

Link to comment
Share on other sites

15 hours ago, Hydnum said:

Here is a very CSC centric video about using Xumm to trade on the DEX with xrptoolkit.  You can just skip over the CSC info if your not interested and use different pairs for trading.  There is also Sologenic which is just a more familiar overlay of the XRPL DEX but is used just the same. They plan on issuing a bunch of tokenized assets there so it could be a different way to move out of XRP into a stock or something of the sort instead of fiat.

You would have to set the trustline to the IOU you are trading.

If you were not aware there is a different company that will be using the Flare network called https://trustline.co and they plan on issuing a trustless stable coin called Aurei on the XRPL DEX pegged to USD.  Not sure when this will actually happen but could be be another method in the near future.

Quick coil article about solo/xumm etc... https://coil.com/p/macropolo/XUMM-CBDCs-and-the-XRPL-DEX/lh8D5jlSj

Hope that helps a bit...

Thanks for your input, I have finally updated the post and written the guide so anybody can follow it.

Link to comment
Share on other sites

Posted (edited)
On 4/27/2021 at 3:22 AM, Neurotoxin said:

I'm sure you can also do this on a PC/Mac

Just FYI, The xumm app doesn't have a PC version due to security issues.  There would prob be a way to figure something out with some sort of app emulator or something.

I didn't realize you can actually swap right in the wallet...Xumm really is a slick wallet. Thanks for putting that together.

Edited by Hydnum
Oh, also you can get tangem cards from Xumm which would be another way to store your key/sign transactions. Get two and you can store one away as a backup.
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.