SBD to LocalBitcoins to Money in the Bank - a step by step guide

in steem-help •  last year

One of the biggest hurdles I've encountered with onboarding non-crypto people is "I don't understand crypto" -- and they're done with it; won't even take a peek because it's been summarily rejected.

But there is a growing wave of non-crypto people joining Steemit, ignoring the fact that it's "fake internet money"; posting despite the nay-sayers crowing that they're wasting their time. And in the last few weeks several people have asked, "How does it make money if there aren't any ads?"

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I made this meme! Funny, right?

Seriously, I don't know the algorithms or the mathematical mysteries behind the HOW. Then again, I don't need to know how electricity moves from the power station to my house. I just want to flip the switch and know my lights come on. And isn't that what the big question is?

How do I pay for stuff with this funny internet money?


So, you want to know how to get from Steemit to cash.

So many options! Which to choose?

There are probably a hundred different ways to get from A to Z.
Today, I'm going to show you the steps to get from your Steemit wallet through BlockTrades to LocalBitcoins

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I wrote a post about the dangers of using PayPal for LocalBitcoins in this post but I'm still going to share this process because there are safer trade options in LBC.

What you need if you DO NOT feel like playing the crypto market:

This option may incur higher fees

Prepare BlockTrades for trade

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Notice that SEND is set to STEEM DOLLARS (SBD) and RECEIVE is set to Bitcoin (BTC)
Be aware which token you are sending through BlockTrades or you risk losing your earnings.

Sign in to LocalBitcoins and get your wallet address.

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Copy that long number and go back to BlockTrades
Paste into your receive address
Click Get Deposit Address button
A note should appear that says "We're ready for your trade" and it will have a memo

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This long alpha-numeric memo is very important!


Copy the memo and go to your Steemit wallet

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For this guide I am going to transfer 5 STEEM DOLLARS (SBD).

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Click Submit
Sign with your Active Key
And wait...


BlockTrades will show completed transactions fairly quickly

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In LocalBitcoins you should see an incoming transaction.
It can take 20 to 30 minutes for your funds to clear.


At this point I'd like to remind you that you are probably getting less than market price through BlockTrades but they get kudos for convenience. Also remember that LocalBitcoins now charges deposit fees so your money is getting shaved in a few spots.

Sorry. That's just how it is right now.


YAY! Your BTC cleared and is now sitting in your LocalBitcoins wallet.

Now what?

The safest way to ensure a smooth transaction through LocalBitcoins is through a CASH DEPOSIT.

The buyer needs to physically go to a bank, deposit cash, and you can request a photo of the cash receipt before you release your BTC from escrow. This is probably the safest method and not likely to be disputed. LBC also serves many other countries and they have a fairly large list of deposit options.

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Find a trader and initiate a trade.

Key things to look for:

  • Make sure you are trading within their limit. Many have a cash minimum of $200.
  • Make sure your bank is one they deal with.
  • Are you initiating trades during bank hours?
  • Look at their profile. How many transactions have they successfully made? What is their feedback score? READ their feedback. Are they verified and trusted?

Chances are if you're going this route you're not too worried about anonymity. Depending on your bank, cash deposits require the person making the deposit to fill out the slip with your name, address and account number.


I'm pretty sure you've got the rest figured out once you get to this point but there are always a few people who need extra hand-holding and moral support. That's okay!

Once you've found the trader that you feel comfortable with and you have enough BTC to fall within their minimum requirements, it's time to sell.

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Now you wait for the trader to accept the request.

Once that happens, they need time to go to the bank. Make sure in your request that you make it very clear that you will release your BTC from escrow once you confirm the cash deposit (online banking) and receive a photo of the cash deposit slip.

Double check that the deposit slip has the correct date and same amount that's showing in your bank account.

Congratulations! You got paid!

But there's one more thing to do. Release the BTC from escrow in a timely manner.

  • Optional: Leave feedback about your transaction. If it was a good experience, save their profile for future transactions.

That's it!

Now go. Blog. Earn. Build your Steemit Tribe!


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You have a duty as a new Steemian to learn about witnesses and their important role within the community. Read @pfunk's Complete User's Guide to Steem Witnesses. You have 30 votes. Use them wisely.


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great info ! I had a very hard time finding a short video or step by step explanation to exchange steem for Bitcoin on bittrex , then send the Bitcoin to Quadrigacx to sell for money which is then deposited directly for a fee ! into my bank account , its 5% fee for Rapid 24 hr service and 2% fee for up to 4 days service ! Now the second part is easy at Quadrigacx , but its the first part that's difficult at Bittrex ! I googled it and 2 videos from Craig grant no longer work and the other info out there is not just a simple step by step explanation ! LOL! So my son helps me now sometimes haha !😂👍 if you have a great tutorial on this or a link to one please let us know ! Thanks !

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@karenmckersie - If quadrigacx has a bitcoin wallet then this method can work without sending funds to Bittrex or playing the market. Blocktrades has a built in conversion. Granted, you might not get top market price for your STEEM/SBD but I consider that a convenience fee that I can live with.

In this tutorial, just replace the stuff for LocalBitcoins with Quadrigacx and it should work just fine. :) In fact, it sounds like LBC and Qcx are very similar type services.

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Quadrigacx only converts bitcoins and maybe ether but that part I know how to do , I was using poloniex but its not working now for a long time , and in Canada we only have minimum options I tried . So its just a quick tutorial on turning my steem into Bitcoin on bittrex that I cant find . Thanks a bunch ! 👍👍👍 resteemed your post its great !

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Ah, Karen, I think you missed a very important point. BlockTrades automatically converts your STEEM and SBD into BTC. Think of it as the meat grinder that turns steak into minced meat. You do not have to put your tokens through the crypto exchange at all!

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oh well then that sounds great , as long it works in Canada and I can then move them to quadrigacx ! Im getting tired now of having to open up new accounts as well because some were not available in Canada , thanks for the info its much appreciated!👍👍👍

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Yes! If you follow the tutorial from the beginning, anywhere that I reference LocalBitcoins you can replace with QuadrigaCX (though I believe LocalBitcoins also serves Canada - but honestly, just stick with the one you already have an account with.) Good luck! Let me know how it goes.

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OK sounds good ! Thanks !👍👍👍

Thanks, I was guessing how to do that...

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I was guessing when I first started too. It was very stressful and I was afraid of losing the money I earned. I'm going to leave unsolicited advice though - if you do not need the cash, consider powering up your account and wait until the market grows. My personal feeling is Steemit is going to be around for a while and our tokens and Steem Power is going to be very valuable. It's something to think about!

nice overview of the entire process!

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Thank you @rangertx - What method do you use? I'm curious because there are so many options out there! I'm still on the hunt for the best one!

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I've been reinvesting everything, so I've not converted any crypto to spend. Hoping as things grow, I will need to do that at some point.

Nice guide. Resteemed!

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Much appreciated @manosteel211 - May it help you in your Steemit journey.

Thanks for this @merej99 its perfect and super helpful as usual. I hope you get good news with that shady paypal crap soon.

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Can you believe I'm still waiting? I had it reopened and made an appeal. Still waiting. If I don't hear anything by Monday I'm making ANOTHER phone call. I'll upgrade to a fraud case if it doesn't go my way. I've got records on the blockchain on my side. Fingers crossed that it doesn't get that far.

It sounds so easy. I want cash for my steem

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LOL @runridefly - are you teasing me? hahaha
Do you know when I first started on Steemit I was on the brink of tears not knowing how to do this stuff? Nearly lost my first $100 in earnings!

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It's not easy for me, but you make it easy. I haven't received cash for my Steem yet. I'm cranky!

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I'll probably do a very short series of how to get spendable money out of Steemit. I just recently got my BitPay card and I'm in love. LOL The fees suck but the convenience is out of this world!

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I looked at bitpay, so you recommend it? I really want cash for my steem

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If you want money in the bank, try this method. (I'm in the U.S.)
If you want money on a Visa card, order your BitPay card. Either way you're getting hit with transaction fees so try to make it worth your while.

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I will need an account at Bank of America chase or Wells Fargo?

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Not necessarily. Some of the vendors deal with BOA, Wells Fargo, Chase, SunTrust, Credit Unions, Coops, etc... The same ones are not always online and they all have different exchange rates. If you look at the sell options, they also have Western Union and MoneyGram among others. CASH, imho, is the best method. I used PayPal about 11 times and only one transaction bit me. I'm still appealing it a month later as they're trying to steal about $1400 from me.

This was a super helpful and easy-to-follow guide. Thanks for taking the time to put it together!

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Thanks @runaway-psyche - let me know if you try it. The first (and maybe the second) time is always scary. I still freak out when I move the crypto around.

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I know the feeling, haha.

The first question when I ask a friend to join steemit, "how to get money into the bank account?" Second, "how do they create money".

My answer for the first questions, "@merej99 and many others done it multiple times".
My answer to their second question (actually a question back), "do you understand how governments create money?"

Now I know how @merej99 and other do it! Thanks @merej99 for all the hard work to create so informative articles.

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What I've found @mathworksheets is that most people don't even care that it's on the blockchain or paid out in STEEM or SBD. They want to know how to spend it. Honestly, I was conflicted about writing this because I truly believe that we should be using our earnings to play the market and get the best price, THEN POWER UP. I consider my Steem Power a rainy day fund or enhancement to a future retirement. If you cash out, it's gone. Something to think about. As always, I appreciate you stopping by. HUGS.

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Right. I think the value of the platform has a big boost due to the amount held in steem power. I am powering up whenever get a chance to buy steem from internal market.

Also great idea to consider the Steem Power as a rainy day fund or future retirement fund.

I am so grateful being part of such a huge movement on the planet.

Nice info good post thanxx for sharing @mere99

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Thank you @nomi2233 - if you try this method and find that I've missed anything, please let me know. It was a late night (or early morning - tomayto-tomahto lol) when I started writing this.

I came on Steemit with no idea whatsover on how things work, blockchain token, crypto - it's all Greek to me. But I came to the same conclusion, there's lots of things that I don't understand how they work, but I use them every day.
Thank you for all the details. I will bookmark this for the distant future when I'll need to use it.

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YES! If people came in with the mindset that it's another blogging platform with a highly engaged community, they'd be hopping over here! But "crypto" scares so many people away. Well, we don't have the prettiest site and it's still in BETA too but does all that really matter? Not to me! And not to you! YAY! Looking forward to reading your blog @ladyrebecca - thank you for stopping by :)

Great reference material. I was wondering this morning about how to get going with Block Trades. I've saved your article for future reference and will be sure to resteem. Thanks!

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Much appreciated @fraterralph - if you notice that I missed anything, please let me know so I can update. I started writing this post around 3 AM. :P

I've been in "the crypto space" (don't I sound "with it") for almost two years and made hundreds of transactions with different coins... but frankly, it is still a pain in the rump roast. I only put up with it because there's no easy way, yet, to do it.

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This has probably been the easiest route I've found but I do like to play the market a little to see if I can make some profit before I go spend. I'm not quite to the point of being able to accumulate my coins. Once I get over the hump of my boys' graduation (and possibly Steemfest) my next goal is squirreling enough for a BTC or two in cold storage. :)

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Not investment advice (as everyone says ha ha) but you might look into Dash, too. From my research, it's Bitcoin 2.0 with amazing potential. For me, it has already proved to be a great investment. And for cold storage, I use a Trezor and think it's great. Just my opinion, though. I wish you all the good luck in the world, Meredith.

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Thank you, Lee! I've heard of Trezor but I haven't messed around with it yet. That rabbit hole gets deeper every day, doesn't it? LOL Dash gave me a noogie when it was up and I was the fool for chasing after it but I'm trying to be a little more patient. There are certain coins that I'm holding for the long term. I'll be getting serious about cold storage as soon as I do some much needed hardware upgrades. :D

Thank you very much! It is one of my big questions!

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When you give it a try let me know how it goes! I'm a little surprised how many long-standing Steemians haven't yet cashed out because it is still a mystery. Hopefully easier ways are on the horizon!

Thanks, so helpful!

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Glad it is of use. Let me know how it goes and which method you've decided to go with. There are so many options!

Thanks so much!! This is going to be a big help!! Up voted and re-steemed. I will be following for more helpful information. Have an awesome day!!

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Thank you for the feedback @alicemarie - Let me know if you try this method. Hopefully it's a smooth, stress-free experience for you. :)

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Thanks, I will let you know but it will be a while yet before I am ready to try to get some cash out of this. I have a long way to go in earning enough yet. :-)

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This is not meant to be investment advice, but when I started nearly a year ago, my ultimate goal was to power up as much as possible. I wanted to increase my vote strength and work my way to dolphin and eventually whale.

By doing that - even when STEEM prices were way low, I kept working at it. It was a timely blessing that STEEM and SBD were doing so well in the market because 2 power downs allowed me to pay for a week's house rental for one son's bootcamp graduation; travel with a Disney weekend for another son's graduation from bootcamp (with his fiance), and a new computer for my other son.

It didn't happen overnight and it's not been easy. If you look at the amount of comments/posts I've left, it's pretty significant but the key for me has always been engagement. I will RARELY swing by with "nice post" on anyone's blog. COMMENTS are the life blood on Steemit. You may even find days when your comments earn MORE than your posts. It happens -- quite frequently actually. Consider this as you build your tribe and navigate the Steemit waters :)

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Thanks so much for your advice. It is very helpful. I actually powered up a bit today. That is why if you look at my wallet, I have little steem dollars right now, I put them either into steem or steem power. I am learning, little by little and do so appreciate the advice of others as I try to negotiate these waters. :-) I too will leave thoughtful comments when I view a post. I want to make long term friendships as much as I need to make some money. Thanks again, @merej99, I am so grateful for your guidance!!

You have many reasons in what you say dear friend @ merej99, this topic is taboo for many people. Very good job, is paractico and dynamic. Thank you very much for disseminating this material, I must admit that this platform did not know it
I wish you a beautiful weekend

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@jlufer, my good friend! No one likes talking about money but everyone wants it! I tried to be as thorough as possible so our newbie friends feel confident about moving their crypto around. I remember being SO SCARED when I started! I wish you and your family a beautiful weekend as well. HUGS & BLESSINGS.

Great guide

Will help the less crypto minded bloggers get their well earned cash out.

I havn't reached the point of trying to get money out yet, I'm still trying to get it in.

@zebbad

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Thank you @zebbad - people with blogging experience have a jump on this platform. But people who've never shared their content and then still have to learn crypto are in for a huge learning curve. The best advice I can give you is the 3 C's. I will say it until I'm dead.

Content creation (build the landing spot for your readers) - COMMENTS (the life blood of our community. Engage and your tribe will grow. You comments also have the potential of earning more than some of your posts. I can attest to this!) - Curation (upvote. Upvote posts and thoughtful comments. Be as generous as you can as if you're tipping a waitress for excellent service.)

Best wishes in your Steemit journey :)

Hi there :) It will take me a while before I understand all this changing of Steemit earnings to cash I can use (or get it into my bitcoin wallet (don't yet have one though! so that I can use bitcoin to pay for things on other sites), but I reckon that I'll grasp it all eventually. I want to.

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@teresaschultz - It's good to have a reference but don't even worry about that yet until you can build up your following and readership. If I was going to give one more tip on best practices beyond the 3 C's (scroll up through comments. I reference it several times) - I would say if you had 4 hours to dedicate to Steemit, one hour should be dedicated to creating a well-thought, well formatted post. The other 3 hours should be dedicated to reading, upvoting and leaving comments.

Thanks, @merej99! Useful info for all the new Steemians, especially the screenshots.

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If I had more time I would be using these screenshots for a video tutorial. Pffft! Bwahahahaaaa - I've still got a VIVAcoin post, a newsletter, and catching up in Basecamp to do! What I really need to do is find the really good guides and just post a list on my website so they don't get lost in an endless scroll.

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@papa-pepper put a bounty out for a tag search function that would be helpful for culling past posts and this is what he got:

https://steem-tag-search.herokuapp.com/

Spiffy little tool, but powerful.

Have fun on your projects and don't forget to take a break now & then.

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GURL - you know I'm gonna test that link out! thank you!

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Thank papa-pepper... he paid 50 SBD for it!

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He's awesome! I need to get on rocketchat with him. I lost his address. The little-peppers have been waiting MONTHS for homemade cookies and I'm finally to a point where I can afford something extra - like shipping a package. Seriously! I'm so glad to be out of that financial black hole.

VERY detailed and useful! Soon I'm doing the same transaction. Thanks for helping!