RE: HowTo Buy Crypto – Part 1: LiteBit
I brought one friend from EU to Steemit and he asked me, can STEEM be cashed out and how. Since I haven't looked myself to cash out, I didn't have an answer beside, "there are ways but takes few steps I don't know yet"
Maybe LiteBit could help in this regard?
If you know how, would you make a post, with the steps.
My guess would be:
1 - create wallet on LiteBit, say for Ether
2 - On Steemit platform sell SBD/STEEM using Blocktrades to buy ETH?
3 - Then somehow send them to LiteBit?
4 - Cash out through LiteBit?
Would this work?
Or you would have to open account at Bishares first? Buying BTS and sending them to your BTS wallet is easy, he can also sell BTS for ETH on Bitshares exchange. I can show him all this, but I wouldn't know, how to then proceed to get ETH from Bitshares to LiteBit.
Since LiteBit doesn't list none of the three (SBD, STEEM, BTS)
Anyway, if you do have an idea how to do it, I would guess, there would be few interested in steps involved ;-)
You'd have to open an account on LiteBit first. The wallets are already there for each new user. You could use ETH, but BTC still has the smallest spread, so I would actually use BTC since the transaction speed between exchanges themselves and brokers like LiteBit and Coinbase is really quite good.
Of course, before doing any of that you would have to convert your STEEM into BTC. That's done most cost effectively (for now anyway) on any of the centralized exchanges where you might already have an account set up. I recommend either Poloniex or Bittrex mainly because they've been around the most, have the best volume and fee structures and have worked very well for me in the past.
So after having set up your accounts, you send your STEEM to a centralized exchange, trade/sell it for BTC, send your BTC to LiteBit and sell it, and then send your proceeds to your bank account. Of course, part of setting up your LiteBit account for withdrawals involves bank account verification, and that can take a few days . . . but if you're in LiteBit Credits, no worries since they're just as good as Euros.
Also keep in mind that you'll have a taxable event on your hands and you'll need to set aside some money to pay for that too. 🙁
Thank you, this is just a theoretical question for now ;-) I will forward your answer to my friend who asked @postar13 (this should probably tag him).
About taxes I'm still scratching my head, is taxable even withdrawal or 'revenue' regardless of withdrawal or not. I have about a year to think about this :-)