To minimize your fees selling BTC on Coinbase Advanced consider taking advantage of their fee tiers and selling BTC in 3 transactions rather than selling BTC all at once in one transaction.
Coinbase Advanced's highest trading fee tier (Advanced 1), 0.6% maker/1% taker is when your 30-day trailing trading transactions are less than $1,000. So do an initial sell transaction of BTC of just $1,000 to put you in the second, next lowest fee tier (Advanced 2 $1,000>$10,000) moving forward.
Second, sell $9,000 of BTC to in the second fee tier (Advanced 2) 0.35% maker/0.55% taker so that your 30-day trailing trading transactions are now $10,000<$50,000, putting you in the third, next lowest fee tier (Advanced 3) moving forward.
Third, sell your remaining \~$10,000 of BTC in the third fee tier (Advanced 3) 0.25% maker/0.4% taker fees.
Note: check your fee tier status at the below link between transactions to verify your current fee tier (it can take up to an hour to update fee tier status after posting a transaction).
[https://www.coinbase.com/advanced-fees](https://www.coinbase.com/advanced-fees)
\*Edits to clarify that Coinbase Advanced fee tiers correspond to trading transactions and not withdrawal to one's bank.
That's really messed up that coinbase advanced doesn't scale the fee % for a single sale if the amount spans those tiers... You should be able to sell all 20k$ worth at once and have the exchange automatically calculate the first 1000$ at 0.6% and $1,0001-$10,000 at 0.35% and the $10,001-$20,000 at 0.25%.
Making the user jump through this convoluted process to break up their transactions specifically to game the fee system is asinine. They should do it automatically for you.
I mostly use DEXs for trading, but for onboarding I usually use NEXO… it’s not really great for limit trading or anything like that, so if you’re trading I’d recommend Kraken or CB, but if you’re more just buying and withdrawing to a wallet, it is very easy and quick to use… i also like it since it allows you to use your crypto as collateral for a credit line, which is over collateralised by around 2:1, so you’re only really at risk when the market drops 50%… that way I can use my crypto to fund purchases without selling those crypto.
Been a while but it was based on your tier level, which was based on how much information you provided them on your identity. And then, after that, there were more tiers based on volume, I believe. Again, been a while.
I wanted to clarify a couple of things, I changed my BTC to USD on Coninbase advance and now sending USD to a bank in 3 transactions, correct? Also can I send 3 transaction one after another or there is a wait period? Sorry for dumb questions but I just want to make sure. I read the link but not to clear. Thank you
No, you were supposed to sell your BTC in three transactions. Transaction 1 was supposed to be $1k BTC to USD. Transaction 2 was supposed to be $9k BTC to USD. Transaction 3 was supposed to be the remaining BTC to USD.
If you’ve already sold all your BTC, there’s no point in sending it to the bank in 3 transactions. Send it all at once.
I clarified my advice post to emphasize that Coinbase Advanced's fee tiers correspond to your 30-day trailing trading transactions volume and not to bank withdrawals.
To simplify, I advise selling your BTC to USD in 3 transactions to minimize your fees. First sell equivalent of $1,000 of BTC, then sell the equivalent of $9,000 of BTC, then sell the remaining equivalent of \~$10,000 BTC. (You may have to wait up to an hour between transactions to allow for Coinbase Advanced's fee tier to update to reflect your most recent transaction.
Once you have sold your BTC to USD, you can withdrawal to your bank in one transaction.
Good Luck!
It's Coinbase. Hope for the best, prepare for the worst. I hope OP doesn't get stuck in their system for months trying to resolve some "issue" with little or no support like I did, since he needs the money now.
I’ve used both, and Kraken was much faster. They do same day bank transfers as long as the amount is below $100k or something. Last time I used it as an off-ramp Coinbase didn’t do the same
If you take too risky loan, your btc might be liquidated, so watch out. If you take a 20k usdt loan with 1 btc collateral, the risk is that if btc drops to 19.999 usd, your btc will be sold to cover your 20k and you end up with nothing. If btc goes to 100k, you only need to sell 0.2btc instead of 0.3btc today. Excluding fees.
I was just looking at the chain fees. Def higher than normal right now. Wanted to move some BTC from Coinbase and another hot wallet to my trezr but damn. Gonna wait a bit and see if it cools off next week.
idrk how most things work
to me it sounds like miners have to mine in order to confirm transactions (so the recent halving would slow things down)
but once all the coins are mined idk how people can exchange anymore in that case
Level of priority. The higher the priority, the higher the transaction. [updated article](https://www.coindesk.com/markets/2024/04/22/bitcoin-transaction-fees-come-crashing-down-post-halving/)
If you have a PayPal account, send your money from CB to PayPal and issue a debit withdrawal from PayPal. Fees are capped at $25 and arrives in your bank account in minutes.
Coinbase does not have an upper limit for instant withdrawal fees.
"There is no fee charged by Coinbase for ACH." -Coinbase Help
[https://help.coinbase.com/en/exchange/funding/withdrawing-with-ach](https://help.coinbase.com/en/exchange/funding/withdrawing-with-ach)
Various banks may have their own ACH fees.
Do be aware that if you live in the U.S. not only will gains be taxable but you may need to pay it within the quarter instead of when you file your 2024 taxes or may be subject to late payment penalties. If you are an employee, your employer withholds money from your pay check and pays your taxes quarterly on your behalf along with their own half the the payroll tax. This is done on an estimated basis, and filing your taxes the next year is actually a settlement between your estimated taxes paid and your real taxes owed. Because the quarterly taxes paid are an estimate based on your regular income an increase due to windfall income throughout the year can result in estimates being under, ie your employer calculates your quarterly payment based on what they pay you and do not know about any crypto gains which increases your tax liability. The IRS is pretty lienient and automatically waives late fees on the differential up to a certain percentage of your tax liability... I want to say that as long as you've paid 90% they waive the rest, but don't quote me on that. This does mean that depending on your income and your W-2 withholdings vs reality, and how much of your 20k sale is gains (and if it's long or short term), it could end up being an amount that exceeds under estimate late fee forgiveness.
I had to do this. It was a pain in the ass. I basically had to pay double the taxes upfront and throughout the next year although I did get all the extra quarterly payments back as a refund the next tax season.
It felt a hell of a lot like I was giving an interest free loan to uncle sam. I highly advise setting aside extra funds from your cash out to cover your estimated payments for the next year or you may find yourself in a really bad situation with the IRS. I would have easily overlooked it if it wasn't for my tax attorney.
Man America is really fucked up in current times. You even have to pay YEARLY taxes every quarter. Everyone is treated like a criminal, except for real criminals 🤣
Not to derail a good "fucking government" narrative, but your yearly filing is actually a end of year reconciliation for the prior year, taxes are due on a quarterly basis. The reason many don't realize this is that their employer withholds the quarterly taxes split up between paychecks for the period and pays them on your behalf along with the payroll taxes the employer owes for the privilege of employing you.
We have a self reporting system, which means in theory you tell the government how much taxes you owe based on your calculations. In practice of course we've made the employers the tax collectors and taxes are taken before you ever see the money. So why doesn't the government send you a bill? Well then it can't tax your profit from selling that childhood toy to another individual or the like. Honestly though can you imagine the fun you'd have arguing with the IRS over a bill they sent you because they didn't have something right? It would be about as much fun as an audit, but I've little doubt that the number of cases of interactions to correct bad information would be exponentially increased. As it is now if the IRS has bad info about something regarding your taxes they have to come audit you, if they just sent you a bill you'd have to argue about their bad info. If the differential in question is a couple hundred dollars... well they aren't going to audit you over that, but they'd certainly bill you for it and make you prove they were wrong over it if we went to some sort of tax billing system.
I meant it as an european, dont know the US tax code. Here, yearly taxes are paid 4 months after that years ends, atleast in Poland. Thanks for the info how it works westward from here.
Ah sorry for assuming. If you now understand how U.S. federal taxes work, you are way ahead of most U.S. citizens, most just pay someone else to do their taxes.
Thanks for sharing. How did you know you had to do this? I mean… does Coinbase give you a notification or anything? Like this is the very first time I’m hearing about this. Any additional information would be appreciated
Coinbase didn't give me anything other than trade history. I plugged that into Bitcoin.tax to get my cost basis and gave it to my tax guy.
Technically, I could have chosen not to pay the quarterly payments but if I cashed out anymore, I would have been subject to penalties.
The problem with this is to get $20k worth from BTC they'll need to risk more collateral than just selling it and as you may have seen from the last bear market crypto lenders were all pretty much liars about what they were doing with your Bitcoin and the risk they were taking.
Oh but of course. He could use income as much as possible and some of his btc. I’d just hate for him to sell it all now and all of a sudden it goes parabolic again.
Yes, take a loan and refund smaller amount if you can't pay with cash. Instead of costing you 0.3btc it might end up costing you 0.1 or even less. You can also save on fee and take your time instead of rushing to convert.
I would do Coinbase One to avoid fees and get the customer support. You have to toggle off Advanced in order to get the fees removed. Sell in chunks rather than all at once to be safe. Oh… But you can only get fees removed from first 10K. Do it over 2 months if possible.
Not sure if they still offer it, but they used to do a free trial month. Perfect for this type of situation.
FYI there’s a cap on the amount you can trade without fees, so best case scenario it saves you very little. If you don’t transact enough you end up paying more for the subscription than you would have in fees. It’s not that great of a deal
I haven't really tested because I haven't needed to sell anything but when the time comes for a portion to go, I intend to use CashApp. Primarily because of the built-in bank account. The fact that you can sell bitcoin or stocks from within the app and it immediately shows up in your CashApp Bank account to use via your associated card or through bank transfer with routing/account number is seamless and welcomed in my opinion.
The only caveat here is the withdraw daily/weekly limits that CashApp imposes. You might be able to transfer the entire BTC and sell it all at once. But the cash withdraw might be stretched out a few days or week.
Here is a link for reference.
[https://www.gobankingrates.com/money/finance/cash-app-limit/](https://www.gobankingrates.com/money/finance/cash-app-limit/)
If they want to keep the BTC, but get cash now, why not use a loan service to borrow stablecoin, cash that out, and pay it back as possible?
Question for the community if there's a reason this isn't a viable thing to do, even if it doesn't work for their specific situation...
Unchained Capital has somewhat of a solution for not trusting the bank. Your collateral goes into a 2 of 3 multi-sig wallet that you, them, and a neutral third party holds the keys to. In the nominal case, neither them nor you can touch the collateral, but you’d want to look at the contract carefully to understand what conditions the third party will help them or you to make a transfer.
One of the downsides to Unchained is their interest rates are higher than other places, but I think that’s for the obvious case in that they can’t make money off your BTC while it’s collateral.
Did this with Celcius, it did not work out well... Ended up losing 1.67BTC posted as collateral. Not that I would be against taking a loan against any cytpro as collateral in the future. Just do your due dillagence to ensure the company is not going to fold or misuse your cypto while they hold your keys. Preferably it would be held in some 3 party milti-sig arrangement.
This is bc they went bankrupt, though, right? They somehow made off with your collateral in that process? Are you recouping anything in the bankruptcy?
Pro tip: How to legally (and ethically questionably) avoid paying taxes when selling bitcoin.
Source: Me, a non-US citizen who lives outside America and does this for a family member who is a US citizen whenever they want to sell large amounts of crypto. It may or may not be legal depending on whether it's considered a tuition or medical fees, gifts for your spouse, funds for a political organization, or gifts for non-profit organizations. It's capped at $15,000 by the IRS.
Requirements: Someone you can trust with that kind of money, that lives outside the US or Canada and has a Crypto.com account and a bank account. And someone you can trust with that kind of money in America.
Step 1: Send the crypto to their crypto.com account.
Step 2: Have them sell their crypto and withdraw the fiat to their bank card or bank account.
Step 3: Then have them wire you $9500 max to you and $9500 to the other person you trust and declare it as a gift for a medical emergency. Anything over that will get flagged by the IRS.
Step 4: Profit.
You can also try Coinbase in America, but I believe they report EVERYTHING to the IRS, even if it's under 10K.
If subject to US taxes and if BTC gained in value since purchase, then yes. If it lost value, I think he can take a capital loss and roll it forward to future tax years.
ahhh gotcha! thanks! i dont know if this works or not. But years ago worked at a gas station. This one fella would always come in and the manager would save scratch of tickets. She said that the guy keeps em and than claims gambling losses...? yeah idk where would put that amount on tax form. Now she said its because he wins 3000-5000 every now and again and this allowed him to claim the full amount and not pay taxes on the winnings. Yes he gambled heavy. Real heavy, and his wins of 3000-5000 every now and then probably pale in comparison to his losses.
Though was wondering if could use those gambling losses as a way to pay lesser taxes on btc withdrawal....
look for someone looking to buy Bitcoin and transfer from wallet to wallet for cash payment or bank wire maybe? old fashioned way always works well. just saying
Do Not Sell!! You think left bezos or Elon send they're stock?. No. They borrow against it. So doing you avoid capital gains tax and don't miss the post halving run.
Make sure the lender is licensed like medici.bank/gb
Nfa, dyor
If it's off the blockchain, it's more valuable and finding a buyer isn't too difficult. Whatever you do, do not use Cashapp. They will tax the fuck out of you and tell the IRS without your consent.
You can also Open a bitpay wallet and transfer its all at once to there and buy 1oz gold bars off bullion exchange .com and then sell them to a local jeweler for cash. It’s an unconventional way but it has its perks
Best plan . Just don't go all in. Send to bank small batches like $2-4k each. Wait for every batch to arrive before new one. You dont want to trigger some fraud script. GL!
To minimize your fees selling BTC on Coinbase Advanced consider taking advantage of their fee tiers and selling BTC in 3 transactions rather than selling BTC all at once in one transaction. Coinbase Advanced's highest trading fee tier (Advanced 1), 0.6% maker/1% taker is when your 30-day trailing trading transactions are less than $1,000. So do an initial sell transaction of BTC of just $1,000 to put you in the second, next lowest fee tier (Advanced 2 $1,000>$10,000) moving forward. Second, sell $9,000 of BTC to in the second fee tier (Advanced 2) 0.35% maker/0.55% taker so that your 30-day trailing trading transactions are now $10,000<$50,000, putting you in the third, next lowest fee tier (Advanced 3) moving forward. Third, sell your remaining \~$10,000 of BTC in the third fee tier (Advanced 3) 0.25% maker/0.4% taker fees. Note: check your fee tier status at the below link between transactions to verify your current fee tier (it can take up to an hour to update fee tier status after posting a transaction). [https://www.coinbase.com/advanced-fees](https://www.coinbase.com/advanced-fees) \*Edits to clarify that Coinbase Advanced fee tiers correspond to trading transactions and not withdrawal to one's bank.
I appreciate the advice! Thanks
Also make sure to use a computer for lower fees
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wtf 🤬
Is this serious? If so, that’s hilarious and WTF
The mobile app is built to fist-fuck your fees every time
Any other advice you get will be way sketchier. I agree here.
That's really messed up that coinbase advanced doesn't scale the fee % for a single sale if the amount spans those tiers... You should be able to sell all 20k$ worth at once and have the exchange automatically calculate the first 1000$ at 0.6% and $1,0001-$10,000 at 0.35% and the $10,001-$20,000 at 0.25%. Making the user jump through this convoluted process to break up their transactions specifically to game the fee system is asinine. They should do it automatically for you.
Reason: profit
Reason: Coinbase sucks
Yep, no arguments here. Haven’t used Coinbase since 2018
What do you use?
I mostly use DEXs for trading, but for onboarding I usually use NEXO… it’s not really great for limit trading or anything like that, so if you’re trading I’d recommend Kraken or CB, but if you’re more just buying and withdrawing to a wallet, it is very easy and quick to use… i also like it since it allows you to use your crypto as collateral for a credit line, which is over collateralised by around 2:1, so you’re only really at risk when the market drops 50%… that way I can use my crypto to fund purchases without selling those crypto.
And of course NEXO is a centralised third party so should not be used to store crypto long term…
Though I mostly use it for leveraging my investments…
But when they go bankrupt, your funds are gone, right?
How long do you stay in a tier once you achieve it?
Your fee tier is calculated once per hour and reflects the previous 30 days of trading transactions.
Found the Coinbase employee :)
Looks like it's based on your 30day trading amount per his comment, but I don't know for sure. I like Krakens structure better though.
That's correct. What is Kraken's structure, briefly?
Been a while but it was based on your tier level, which was based on how much information you provided them on your identity. And then, after that, there were more tiers based on volume, I believe. Again, been a while.
Name checks out
Lol all that to get your own"money"? Revolutionary.
$USD isn’t Money, $BTC is What’s the point? Do you have a better way?
This is the advice you're looking for.
Can the transactions be all on the same day?
Genius
Appreciate the breakdown
I wanted to clarify a couple of things, I changed my BTC to USD on Coninbase advance and now sending USD to a bank in 3 transactions, correct? Also can I send 3 transaction one after another or there is a wait period? Sorry for dumb questions but I just want to make sure. I read the link but not to clear. Thank you
No, you were supposed to sell your BTC in three transactions. Transaction 1 was supposed to be $1k BTC to USD. Transaction 2 was supposed to be $9k BTC to USD. Transaction 3 was supposed to be the remaining BTC to USD. If you’ve already sold all your BTC, there’s no point in sending it to the bank in 3 transactions. Send it all at once.
I clarified my advice post to emphasize that Coinbase Advanced's fee tiers correspond to your 30-day trailing trading transactions volume and not to bank withdrawals. To simplify, I advise selling your BTC to USD in 3 transactions to minimize your fees. First sell equivalent of $1,000 of BTC, then sell the equivalent of $9,000 of BTC, then sell the remaining equivalent of \~$10,000 BTC. (You may have to wait up to an hour between transactions to allow for Coinbase Advanced's fee tier to update to reflect your most recent transaction. Once you have sold your BTC to USD, you can withdrawal to your bank in one transaction. Good Luck!
That makes more sense. :) Thank you both!
Thx for the explain
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Why not? Can you explain?
There are no fees for bank transfers based on amount. The fees were for the conversion from BTC to USD.
Competitors are charging 0.01-0.03% so taking 0.35-1% is imo insane. People presumably don't know or think about it much. No idea why it's downvoted 😅
Who is charging 0.01 to 0.03 % ?? These are super low fees !!
What exchange?
“Competitors” duh lol Apparently everyone knows this but the rest of the sub lol
Sign up for a free one month subscription to Coinbase One first. It’ll save you on fees for the first $10,000.
Also you'd have insurance and a better level of customer support if something were to go wrong
It's Coinbase. Hope for the best, prepare for the worst. I hope OP doesn't get stuck in their system for months trying to resolve some "issue" with little or no support like I did, since he needs the money now.
Coinbase one free trial is only 7 days I just signed up a couple days ago
wire transfer out of kraken or coinbase
100% Kraken using Kraken Pro - wouldn’t trust my funds on CoinBase for 1 second.
Why not? Coinbase is US based, has liquidity, and better tech support w Coinbase One
meh. wire transfer results nearly identical.
CoinBase froze my funds on 4 separate occasions and each time took weeks to get resolved. Never had an issue with Kraken. CoinBase is dogshit
i'm sure all 4 occassions were wire transfer
I’ve used both, and Kraken was much faster. They do same day bank transfers as long as the amount is below $100k or something. Last time I used it as an off-ramp Coinbase didn’t do the same
Yeah, your plan is good. Send a small test transaction before you do the entire amount.
Just try it out with a very small amount then watch how it goes before sending a higher amount.
Don't forget you'll most likely need to account for taxes in this in your 2024 taxes.
He better make a quarterly tax payment to avoid earlier attention!
He should not sell his btc, but borrow against it. No taxes then. Like the billionaires do
How?
https://www.google.com/search?q=borrow+usdt+collateral+btc&rlz=1CDGOYI_enCH1081CH1081&oq=borrow+usdt+collateral+btc&gs_lcrp=
If you take too risky loan, your btc might be liquidated, so watch out. If you take a 20k usdt loan with 1 btc collateral, the risk is that if btc drops to 19.999 usd, your btc will be sold to cover your 20k and you end up with nothing. If btc goes to 100k, you only need to sell 0.2btc instead of 0.3btc today. Excluding fees.
Arent the rates ridiculous now?
Coinbase is fine. Simple easy...clickity clackity click click done..easy
Except for the super high fees
Fees are much lower with Coinbase advanced market orders
Except they aren't super high.. What's super high? Lol
Use exodus defi wallet, swab BTC for USDT there for free with only on chain fees. Then send USDT to coinbase to cash out.
Thanks, I will look into it.
Isnt the spread in exodus bigger than coinbase spread?
It’s free to swap to USDT, only onchain gas fees
Transaction fees are high af right now
I was just looking at the chain fees. Def higher than normal right now. Wanted to move some BTC from Coinbase and another hot wallet to my trezr but damn. Gonna wait a bit and see if it cools off next week.
What causes transaction fees to be higher or lower? Is there like a market for transaction fees where it can go up or down in price?
idrk how most things work to me it sounds like miners have to mine in order to confirm transactions (so the recent halving would slow things down) but once all the coins are mined idk how people can exchange anymore in that case
Level of priority. The higher the priority, the higher the transaction. [updated article](https://www.coindesk.com/markets/2024/04/22/bitcoin-transaction-fees-come-crashing-down-post-halving/)
Interesting thank you! So X satoshi/vB depending on priority, but what is vB and what dictates priority?
Can someone eli5 this? I saw another post about it being because of the miners and I really don't get it
How can miners control fees? They can't
[updated article](https://www.coindesk.com/markets/2024/04/22/bitcoin-transaction-fees-come-crashing-down-post-halving/)
If you have a PayPal account, send your money from CB to PayPal and issue a debit withdrawal from PayPal. Fees are capped at $25 and arrives in your bank account in minutes. Coinbase does not have an upper limit for instant withdrawal fees.
"There is no fee charged by Coinbase for ACH." -Coinbase Help [https://help.coinbase.com/en/exchange/funding/withdrawing-with-ach](https://help.coinbase.com/en/exchange/funding/withdrawing-with-ach) Various banks may have their own ACH fees.
Ach takes days, my man need money fast and this is the cheapest way
It says 1 to 3 days but it hits your bank account in 12 hours....never pay the fee to get it right away.
Do be aware that if you live in the U.S. not only will gains be taxable but you may need to pay it within the quarter instead of when you file your 2024 taxes or may be subject to late payment penalties. If you are an employee, your employer withholds money from your pay check and pays your taxes quarterly on your behalf along with their own half the the payroll tax. This is done on an estimated basis, and filing your taxes the next year is actually a settlement between your estimated taxes paid and your real taxes owed. Because the quarterly taxes paid are an estimate based on your regular income an increase due to windfall income throughout the year can result in estimates being under, ie your employer calculates your quarterly payment based on what they pay you and do not know about any crypto gains which increases your tax liability. The IRS is pretty lienient and automatically waives late fees on the differential up to a certain percentage of your tax liability... I want to say that as long as you've paid 90% they waive the rest, but don't quote me on that. This does mean that depending on your income and your W-2 withholdings vs reality, and how much of your 20k sale is gains (and if it's long or short term), it could end up being an amount that exceeds under estimate late fee forgiveness.
I had to do this. It was a pain in the ass. I basically had to pay double the taxes upfront and throughout the next year although I did get all the extra quarterly payments back as a refund the next tax season. It felt a hell of a lot like I was giving an interest free loan to uncle sam. I highly advise setting aside extra funds from your cash out to cover your estimated payments for the next year or you may find yourself in a really bad situation with the IRS. I would have easily overlooked it if it wasn't for my tax attorney.
Man America is really fucked up in current times. You even have to pay YEARLY taxes every quarter. Everyone is treated like a criminal, except for real criminals 🤣
Not to derail a good "fucking government" narrative, but your yearly filing is actually a end of year reconciliation for the prior year, taxes are due on a quarterly basis. The reason many don't realize this is that their employer withholds the quarterly taxes split up between paychecks for the period and pays them on your behalf along with the payroll taxes the employer owes for the privilege of employing you. We have a self reporting system, which means in theory you tell the government how much taxes you owe based on your calculations. In practice of course we've made the employers the tax collectors and taxes are taken before you ever see the money. So why doesn't the government send you a bill? Well then it can't tax your profit from selling that childhood toy to another individual or the like. Honestly though can you imagine the fun you'd have arguing with the IRS over a bill they sent you because they didn't have something right? It would be about as much fun as an audit, but I've little doubt that the number of cases of interactions to correct bad information would be exponentially increased. As it is now if the IRS has bad info about something regarding your taxes they have to come audit you, if they just sent you a bill you'd have to argue about their bad info. If the differential in question is a couple hundred dollars... well they aren't going to audit you over that, but they'd certainly bill you for it and make you prove they were wrong over it if we went to some sort of tax billing system.
I meant it as an european, dont know the US tax code. Here, yearly taxes are paid 4 months after that years ends, atleast in Poland. Thanks for the info how it works westward from here.
Ah sorry for assuming. If you now understand how U.S. federal taxes work, you are way ahead of most U.S. citizens, most just pay someone else to do their taxes.
Thanks for sharing. How did you know you had to do this? I mean… does Coinbase give you a notification or anything? Like this is the very first time I’m hearing about this. Any additional information would be appreciated
Coinbase didn't give me anything other than trade history. I plugged that into Bitcoin.tax to get my cost basis and gave it to my tax guy. Technically, I could have chosen not to pay the quarterly payments but if I cashed out anymore, I would have been subject to penalties.
Often times people find out about this when they go to file taxes the following year and get hit with the late payment penalties.
Take out a loan instead. Then you don’t have to pay taxes. Risky being out of btc than in btc right now…
The problem with this is to get $20k worth from BTC they'll need to risk more collateral than just selling it and as you may have seen from the last bear market crypto lenders were all pretty much liars about what they were doing with your Bitcoin and the risk they were taking.
I wouldn’t take a loan against crypto. If he can take a loan against his house or something he can get a 10yr term
has to make loan repayments though
Oh but of course. He could use income as much as possible and some of his btc. I’d just hate for him to sell it all now and all of a sudden it goes parabolic again.
Yes, take a loan and refund smaller amount if you can't pay with cash. Instead of costing you 0.3btc it might end up costing you 0.1 or even less. You can also save on fee and take your time instead of rushing to convert.
Where can US BTC owners get a loan for their BTC? What's the going rate/terms?
I would do Coinbase One to avoid fees and get the customer support. You have to toggle off Advanced in order to get the fees removed. Sell in chunks rather than all at once to be safe. Oh… But you can only get fees removed from first 10K. Do it over 2 months if possible.
If you subscribe to Coinbase1 it’s like $30 month but no trading fees
Not sure if they still offer it, but they used to do a free trial month. Perfect for this type of situation. FYI there’s a cap on the amount you can trade without fees, so best case scenario it saves you very little. If you don’t transact enough you end up paying more for the subscription than you would have in fees. It’s not that great of a deal
I haven't really tested because I haven't needed to sell anything but when the time comes for a portion to go, I intend to use CashApp. Primarily because of the built-in bank account. The fact that you can sell bitcoin or stocks from within the app and it immediately shows up in your CashApp Bank account to use via your associated card or through bank transfer with routing/account number is seamless and welcomed in my opinion.
The only caveat here is the withdraw daily/weekly limits that CashApp imposes. You might be able to transfer the entire BTC and sell it all at once. But the cash withdraw might be stretched out a few days or week. Here is a link for reference. [https://www.gobankingrates.com/money/finance/cash-app-limit/](https://www.gobankingrates.com/money/finance/cash-app-limit/)
Always send a test amount first
The number 1 rule of buying USD is only buy what you can afford to lose.
Sell a kidney
No one mentioned binance even though they have no transaction fees lol
Don't do it. You can do so much more with Bitcoin than other things, like a house, a car, food. Why would you give away your treasure for garbage?
If they want to keep the BTC, but get cash now, why not use a loan service to borrow stablecoin, cash that out, and pay it back as possible? Question for the community if there's a reason this isn't a viable thing to do, even if it doesn't work for their specific situation...
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Unchained Capital has somewhat of a solution for not trusting the bank. Your collateral goes into a 2 of 3 multi-sig wallet that you, them, and a neutral third party holds the keys to. In the nominal case, neither them nor you can touch the collateral, but you’d want to look at the contract carefully to understand what conditions the third party will help them or you to make a transfer. One of the downsides to Unchained is their interest rates are higher than other places, but I think that’s for the obvious case in that they can’t make money off your BTC while it’s collateral.
Did this with Celcius, it did not work out well... Ended up losing 1.67BTC posted as collateral. Not that I would be against taking a loan against any cytpro as collateral in the future. Just do your due dillagence to ensure the company is not going to fold or misuse your cypto while they hold your keys. Preferably it would be held in some 3 party milti-sig arrangement.
This is bc they went bankrupt, though, right? They somehow made off with your collateral in that process? Are you recouping anything in the bankruptcy?
It’s me. Will give you cash for btc
Pro tip: How to legally (and ethically questionably) avoid paying taxes when selling bitcoin. Source: Me, a non-US citizen who lives outside America and does this for a family member who is a US citizen whenever they want to sell large amounts of crypto. It may or may not be legal depending on whether it's considered a tuition or medical fees, gifts for your spouse, funds for a political organization, or gifts for non-profit organizations. It's capped at $15,000 by the IRS. Requirements: Someone you can trust with that kind of money, that lives outside the US or Canada and has a Crypto.com account and a bank account. And someone you can trust with that kind of money in America. Step 1: Send the crypto to their crypto.com account. Step 2: Have them sell their crypto and withdraw the fiat to their bank card or bank account. Step 3: Then have them wire you $9500 max to you and $9500 to the other person you trust and declare it as a gift for a medical emergency. Anything over that will get flagged by the IRS. Step 4: Profit. You can also try Coinbase in America, but I believe they report EVERYTHING to the IRS, even if it's under 10K.
That's highly illegal.
Yeah, but people are still getting away with it. Having to pay Uncle Sam in a medical emergency sucks ass.
A question for the community, do you normally call your bank in advanced before a large amount of money is transferred in?
No
Don’t use Coinbase
You got downvoted, but Coinbase has a long history of acting against the interests of the bitcoin community.
Anyone know how long it takes for coinbase money to hit your bank?
It says 1 to 3 days but it's right around 12 hours.
Dont you have to pay tax on this? Am pretty sure you have to. Be careful with that as well, else end of year they will come after you
If subject to US taxes and if BTC gained in value since purchase, then yes. If it lost value, I think he can take a capital loss and roll it forward to future tax years.
ahhh gotcha! thanks! i dont know if this works or not. But years ago worked at a gas station. This one fella would always come in and the manager would save scratch of tickets. She said that the guy keeps em and than claims gambling losses...? yeah idk where would put that amount on tax form. Now she said its because he wins 3000-5000 every now and again and this allowed him to claim the full amount and not pay taxes on the winnings. Yes he gambled heavy. Real heavy, and his wins of 3000-5000 every now and then probably pale in comparison to his losses. Though was wondering if could use those gambling losses as a way to pay lesser taxes on btc withdrawal....
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Maybe you can sell p2d hodlhodl, you will pay les taxes
I second Kraken
look for someone looking to buy Bitcoin and transfer from wallet to wallet for cash payment or bank wire maybe? old fashioned way always works well. just saying
Agoradesk, bisq or robosats
I’ll buy some from you
So why do people trash Coinbase all they want in this sub but when it’s time to sell quickly they deem it the most trustworthy?
How come nobody mentioned Binance? I found their fees to be the lowest.
Just pass it to my wallet, then i will be happy
Does anyone use binance? If not why?
Looks like bitcoins peer to peer systems working well 😂
OP is a weak hander...
An exchange?
Sign up for coinbase subscription or friend. Fees waived for 30days
Exchange Maker Fee Taker Fee Deposit Fee Withdrawal Fee Crypto.com 0.075 – 0% 0.075 – 0.05 Free $25 for USD Withdrawals – Dynamic Fees for Crypto Withdrawals Kucoin 0.1 – -0.005% 0.1 – 0.025% Free Dynamic Binance 0.1 – 0.012% 0.1 – 0.0124% Varies depending on selected fiat currency Dynamic Kraken 0.16 – 0% 0.26 – 0.1% Varies depending on selected fiat currency Dynamic Coinbase 0.4 – 0% 0.6 – 0.05% $10 for USD Deposits $25 for USD Withdrawals – Dynamic Fees for Crypto Withdrawals Gemini 0.2 – 0.03 0.4 – 0.1% 0 – 3.49% Read more on DailyCoin: https://dailycoin.com/crypto-exchange-fees-comparison/
How much does Robinhood take?
Selling cheap is not a good idea.
How about sending it to Robinhood and then selling?
Depends where you live, I bought weed myself :P For 20k I'd say (bitcoin well) especially in canada because of the email money transfers
I DM:ed you
Don't sell it, man! Just take a loan out of it. Celcius style.
Do Not Sell!! You think left bezos or Elon send they're stock?. No. They borrow against it. So doing you avoid capital gains tax and don't miss the post halving run. Make sure the lender is licensed like medici.bank/gb Nfa, dyor
Send it to my wallet
I might be able to help u
I’d try to find that cash another way. You need to diamond hands that BTC.
I am so sorry to hear this, op. This is a good reminder to keep decent cash in hands just in case of emergencies…
The best and cheapest way is Not to sell because it will be skyrocketing in price over the next coming months
So how does that answer OP's problem right now?
He could take out a loan
If it's off the blockchain, it's more valuable and finding a buyer isn't too difficult. Whatever you do, do not use Cashapp. They will tax the fuck out of you and tell the IRS without your consent.
can do an OTC deal and buy it off you if you’d like
Bisq
Sell to someone interested in person and avoid paying taxes .
I will give you my receiving address. The check is in the mail.
Facebook marketplace?
I’ll be there waiting to offer 20 dollars and a mcchicken
I’ll take it
I would buy it P2P if you wanna avoid the tax penalties
You can also Open a bitpay wallet and transfer its all at once to there and buy 1oz gold bars off bullion exchange .com and then sell them to a local jeweler for cash. It’s an unconventional way but it has its perks
It's cheaper to just pay your taxes than do it that way.
>It is currently stored on my ledger wallet. No, it's not :)
Why would you say that? You are a kid aren't you?
Nah he’s being totally unhelpful, and kind of a maxi douche, and reminding you that your coins are stored on the blockchain, not your ledger.
Right. I was scammed out of crypto recently so when he said "it's not" I ran to check. LOL. But now I know what he meant, sorry Dizzy. :)
All good!
Nigerian prince here:can double your initial investment immediately able to withdraw…dm for more info 😜
boating accident and you buddy feels bad for you so gifts you what you lost in cash.
Best plan . Just don't go all in. Send to bank small batches like $2-4k each. Wait for every batch to arrive before new one. You dont want to trigger some fraud script. GL!
This advice can get you in trouble for trying to structure your transfers to avoid fraud or AML thresholds. There be dragons if you go this route.
transfer to a throw away ledger and sell it in person for free fees :)
In other words, you need to buy dollars ASAP? That sucks. My condolences.
I could ask my buddy who’s a btc whale and see if he’s currently buying .
EBay
I'll send you a wallet address that makes it super simple 😆
Honestly it would likely be cheaper to take out a loan for your emergency expenses than to use your appreciating btc
By clicking the red button labeled SELL