How do I get the money out of Steemit?

in steemhelp •  3 years ago  (edited)

How do I get the money out of Steemit?

With all excitement over Steemit being the social media site that pays it’s users for creating and curating content, I think something has been overlooked or at least not addressed yet, “How do I get the money out of Steemit?” Well, this is good question. I know many of us who are involved in the cryptocurrencies scene already know this but Steemit is bringing a large chunk of people who this will be their first exposure to it. So here are a few things new users should know. This is all based on my experience being in the US.

First thing, I would advise people to set up a dedicated bank account for handling your cryptocurrency transactions. Preferably with a different bank than one you normally use. Many banks, especially in the US still look at Bitcoin and cryptocurrencies with suspicion. Although there is nothing inherently illegal with cryptocurrencies , banks are conservative and can be overly cautious with dealing with these transactions.

Use a personal account not a business account unless dealing with cryptocurrencies is part of your primary business. I say this because banks are more critical of transactions in business accounts, at least in my dealings.I am not endorsing these banks, but so far I have not had any issues with Simple Bank and Chase. I have had an associate who had some issues with their Bank of America business account and Bitcoin transactions.

Once you have your bank account setup you will need a service/exchange that can convert your Steem or Steem Dollars into fiat. There is currently no direct route from Steem tokens to fiat as of now (hopefully this will change in the future) so you will have to go through Bitcoin.

The first step is converting your Steem/Steem Dollars to Bitcoin. There are few Exchanges that can do this, but for the sake of simplicity I would recommend using BlockTrades. At BlockTrades, you pick the tokens you want to convert to/from then send them. BlockTrades does the conversion instantly for you. But in order to get Bitcoins, you need a Bitcoin address. Since the focus of this is getting to fiat (US Dollars) I will narrowed it down to a couple of services.

The two primary services in the US for converting between Bitcoin and fiat in my opinion are Coinbase and Circle. Both these services give you ability convert directly to your bank account by debit card or ACH. So just create an account with one or both of them and use the bank account you created earlier. This process can take a few days because of all the verifications they require. Once you have this all setup, you will have a Bitcoin address you can use with your BlockTrades transactions.

And that’s it. It seems like a lot at first, but once it is done you will have planted your flag into the future of social media and money!

#steemhelp #steem #steemit

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  ·  3 years ago (edited)

Please also check your local tax regulations. Not only because cashing out is seen as an income source, but in some countries even trades between coins (i.e. Steem->BTC) can be taxable!

When you are in europe you can use bitcoin.de for the BTC cashout.

I'm constantly wondering how much liquidity there actually will be in the STEEM--->BTC and SMD--->BTC markets. and If everybody is cashing out on July 4th how much will that effect the price of STEEM? hopefully outside people holding BTC see future value of STEEM as a good investment. I know I do. But i hope I'm not the only one buying STEEM on July 4th because I can't create that much liquidity myself

it´s a beta and it´s still so early, get all the steem you can, the site grows fast and they will be in more demand, the next few years will be exiting. Passing reddit is THE milestone

I secretly wish the value of STEEM crash on July 4th so I can buy as much SteemPower as possible with my Steem Dollars on that day. :-) There ain't going to be a better time to claim a large stake in that platform. (but that's outside the point)

People cashing out on July 4th would be very short sighted, however I expect it to happen. A few days after the 4th would be the time to start accumulating STEEM.

Nice information

Great Suggestions! I am going to keep this to refer to later.

Good advice for newcomers :)
Don't sell all of your Steem for fiat currency, as it could be worth a lot more in the near future!

that's a good point.

Thank you!

Nice information. Thanks

It seems this will go down well with Americans, Asians and Europeans. But for Africans? I don't think so.

The infrastructur is still being build out. Im sure there will be solutions that are better geared towards that part of the world. Im sure someone somewhere is working on that now.

Hi pretty new to steemit...posted my sons video and I now have a very excited boy bouncing about because people liked it! And the idea that he could earn a bit of pocket money making him very excited! Any tips on UK users and how to access funds ??

this was helpful. Today I got a bitcoin wallet app, breadwallet for ios, and I applied for an account with simple bank. Would my next step to be trading on BitShares, once I get Steem Dollars? I'm new at this.

  ·  3 years ago (edited)

I would say getting a Coinbase or Circle account and linking them to the Simple Account. For Steem Dollars I am pretty sure you will be able to convert them through Blocktrades.us . As for other exchanges, will have to see who supports it will they become available.

ok thanks

Hi Stellabelle. Breadwallet is a good wallet for iOS, another good one is the CoPay wallet. I haven't used BitShares a lot so in my case the way it would probably work is:

  • Transfer my Steem to Bittrex exchange
  • Sell it for Bitcoin
  • Send it to my Breadwallet or CoPay wallet
  • Send it to Circle
  • Have Circle deposit it to my bank account using the debit/atm card I have on file with them.

You should always send funds from your own wallet to Circle, rather than from exchange wallet. These services have government regulations they have to follow and if they suspect, or mis-identify a transfer as a gambling or other illegal activity they will freeze your account. So it's always best to send from your wallet so they don't confuse the transactions source.

That said... Circle is a fantastic service. The bank transfers are usually instant when withdrawing from your bank, but have to go through the "usual" banking delay when depositing to your bank (not Circles fault).

Your post was very informative, thank you for taking the time to explain this.

Love like Jesus.

Thankyou for sharing, learned alot as a new user.

Thank you