How to choose an exchange
Due to constantly increasing regulations, I've decided to write a short article on how to utilize them and not be tracked by big brother. In the USA it is required that you track all profits and losses on EVERY trade to be taxed accordingly. But, who really wants to do that? Not me. It's ridiculous. So, if your country requires something like this, there are things you can do to avoid it.
First, avoid exchanges with KYC (know your customer) requirements. Decentralized exchanges such as Bitshares do not require any KYC information to trade and deposit/withdrawal. Decentralized exchanges are also beneficial because you hold on to your private keys. This eliminates a lot of risk associated with centralized exchanges. There is no single point of failure. If your funds get stolen, there is a 99.9% chance it was your fault and not the DEX.
We also have some good centralized exchanges though. Exchanges such as Binance, KuCoin, and Cryptopia that offer pretty high daily withdrawal limits before requiring KYC. Binance and KuCoin being my two favorite centralized exchanges. These 3 together + Bitshares give you an absolutely massive amount of trading pairs.
Withdrawal'em!
Now, if you want to cash out your crypto, the best thing I can recommend doing is using a mixing service to anonymize the source of the withdrawal. The tax code on cryptocurrencies can get quite complicated. I don't want to provide any incorrect information on this subject, so I will refer you to this article: https://www.cnbc.com/2018/04/02/got-crypto-heres-how-to-avoid-an-audit-from-the-irs.html which explains how the taxes are calculated based on a variety of different factors like whether you mined the coins, they were gifted, earned from trades, etc.
If you anonymize your trades before cashing out, you will be able to report your crypto to the tax man in the most cost efficient way possible as it cannot be tracked. Being knowledgable on this kind of thing can help save your money and your ass at tax time.u
But, if you want to avoid that mess all together, you have a couple options. For example, you can sell Bitcoin on sites like LocalBitcoin, Paxal, and Craigslist for cash (Paxal also allows you to sell them for gift cards, prepaid Visa's, Western Union, and more using a secure escrow). Exchanging directly to the buyer for cash (or gift cards, Visa prepaid cards, Western Union etc.) allows you to circumvent the whole tax scam completely.
Fin.
Well, hopefully this post helped some of you looking for an exchange or those who are curious about cashing out. The tax man always has to stick his nose in everything and make things harder for us. So, the best thing we can do is be as resourceful as possible. Stay prosperous Steemians!
Aphiso's Exchange Recommendations
Here are my recommended exchanges that don't require KYC to use.
Support Me (Affiliate Links) - I only recommend quality services I use myself!
- Coinbase: Buy or sell $100 of digital currency or more and earn $10 of free Bitcoin! https://goo.gl/vYcZbp
- Binance: My favorite exchange. https://goo.gl/HGvtyo
- Kucoin: Another great exchange. https://goo.gl/U3ucuk
- Free BTC every hour, weekly lottery with huge prizes! I also pay my referrals some earnings every week! - https://goo.gl/9GdMSq
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BTC - 1BzFFDQtdMT9ABVXZVCftugi42gGDu5pFS
BCH - qpcwgq330ffwkg50d0hfmapvhkfup793ksq469mppc
ETH/EOS - 0xB99Cd307EA947b50426f7cDbCC3A87d635fbDDad
ZEC - t1es1cNGbGWU8Mhzm7AeSwpi4Fi351uCHkr
@pharesim thanks for the kind upvote man! :)
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by aphiso from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews, and netuoso. The goal is to help Steemit grow by supporting Minnows. Please find us at the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
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Interesting article, subscribed, I hope for reciprocity!
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Thank you @aphiso for this post. I will resteem this for future reference, so I don't have to look somewhere else. I hope you can also write a detailed process on how to convert your Steemit earnings to real currency. Thank you again. Cheers, mate!
Thanks and I'll write a post about that for ya really soon. Maybe tonight.
Really informative post, thanks!
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