How To Avoid Crypto Taxes: Cashing out

how to cash out your cryptocurrency and avoid taxes now you should pay your taxes and that is funding the government services like roads Schools Police yada yada disclaimer I am not a tax professional I am not a financial advisor I'm just Dan the guy on the internet who researches a bunch of random stuff and it's just for entertainment don't take any of this seriously but I did research some of this very thoroughly so with that let's get started first off avoid kyc exchanges that means know your customer and they also do AML anti-money laundering so that's why they need to verify who you are and they need to make sure this money is something you are earning through trading and it's not some kind of money laundering scheme if you are only using an exchange like coinbase to convert your money into cryptocurrency and then you're taking it off the exchange immediately that might raise some red flags depending on where you send it to let's say you send it to a wallet that should be fine but if you're sending it to decentralized exchanges and exchanges that don't do kyc there might be some red flags there so you kind of have to be careful with how much and how often you are doing that I don't know the exact number but uh some accounts do get Frozen for that type of activity now on the reverse side of that let's say you have coinbase and you have never deposited any US Dollars into that account but you have another Shady account doing all these cryptocurrency transactions and you want to convert that to US Dollars let's say ten thousand dollars just appears into your coinbase account from a mysterious wallet and you try to convert that to US dollars to withdraw this could also raise red flags due to AML and sign money laundering and your account could be Frozen as they investigate where that money came from I don't know the exact specific amounts but there are lots of reports of people getting their accounts Frozen for this type of activity but what should you do a little bit of both keep a little bit of cryptocurrency in your coinbase account maybe buy some stable coins send that to a wallet then from your wallet send that to an exchange that doesn't do kyc or a decentralized exchange and do all your trading that way and then just cash out whatever money you need through your Fiat on-ramp which could be coinbase a Fiat unwrap is just a place where you can convert US dollars to cryptocurrency or cryptocurrency to US Dollars back into your bank account now I did another video on kucoin that is actually my favorite exchange that doesn't do kyc and is accessible for us users from any state and you don't need a VPN you can just use your current usip address and access it that way with crypto regulation getting stricter I don't know how long this will be possible so just be aware in the event that the US starts restricting kucoin like they have for binance.com and bit Max then you might need to go through kyc or use a VPN my personal situation is very lucky because for my coupon account all they wanted was an email address and that's what they have in the event that they need to do kyc for me to withdraw my funds let's say they get Frozen for some unforeseen reason my wife is Taiwanese and I could just use her passport to claim the funds like my accountant just has my email address it doesn't have any name on it pretty much I can use anyone's international passport to claim those funds I don't know if she'll be liable for taxes in Taiwan but I'm just saying if you are from the US from a restricted country get some International friends it's a great time to make international friends and like hey in the effect that my account gets frozen I'm gonna trust you on this the best way to use your cryptocurrency without paying taxes is to use cryptocurrency to pay other people send them Bitcoin Litecoin Nano whatever you want to use I know there are very high fees to do that which is why I always mention Litecoin or Nano now okay I haven't really mentioned Nano in the videos but when I'm talking to other people um off the video like through some of the comments through Reddit I like using Nano because it's zero fees and the fastest transactions out there I also like Celsius wallet because they have sell pay where you can pay other Celsius users with a link so it's pretty easy to do and if you want to pump your coin whatever coin that may be and let's say it's a payment type coin the best way to do that is to actually use it it's to pay other people with that coin the more people using cryptocurrency the faster it gets adopted the faster your investment goes up if you truly believe in that investment and that's how Bitcoin got to its current place today they started by sharing it with other people allowing people to mine it and spending it sure they spent like 50 000 Bitcoin on two pizzas but that was the very first purchase to bring real world value to cryptocurrency we have to spend it we have to use it on things and not just hold holding is great you're investing you're growing your Investments but for cryptocurrency to succeed it needs to be used as a currency so the absolute best way to do that is to use it especially from your own wallet and just remember to try to avoid those fees if you're spending any cryptocurrency from an exchange that does kyc I don't know if uh that's going to be taxed in the future if that's track it's very likely tracked yes but I don't know if they're going to try and tax you on that that's a whole nother thing I personally have not got any tax documents or I'm subconsciously avoiding them I know I can download them yes uh but let's avoid that for now taxes now I don't want to get into the actual tax part since this video is just how to cash out your cryptocurrency but you could just pay your taxes for long-term capital gains tax that would be about 15 if you held your crypto for a year if you do any cryptocurrency trading even if it's from coin to coin that is a taxable event and it gets very complicated if you're using an exchange that does kyc sure they can track everything they can give you a report and you can bring that to a crypto tax professional there's a couple out there but that's if you want to do your taxes legitimately like a good person otherwise you can just go to a super Shady uh accountant I don't know anyway don't ask me uh but you know you got to get some recommendations you got to find out how the wealthy hide their taxes legally uh and that's not too hard to find online but there are a lot of scams out there so be very careful this is high risk pretty high reward or you can set up your own business funnel the money further I don't know I'm just saying those are ideas not responsible if you do any of that legal disclaimer I'm just a guy on the internet not a financial advisor not a tax expert you should pay your taxes I'm just coming up with potential ideas that maybe some people do to avoid paying taxes on their cryptocurrency that's that doesn't mean I'd do it no I'm just saying it's not illegal to my knowledge if this is possible at all that people might do okay continuing on now my favorite idea to cash out cryptocurrency is through a Bitcoin ATM or a batm so to find a Bitcoin ATM we go to coin ATM radar we select sell and the coin we want to sell and then we search for a city and here you can see there's a Chevron that will allow you to buy and sell Bitcoin the buy fee is 14 and the selfie is 10 that is very high you might as well pay taxes at that point so just be aware if you use a Bitcoin ATM the fees are very high let's say you have over one hundred thousand dollars due in taxes from your cryptocurrency gains and you don't want to pay that well we do know Bitcoin ATMs are a thing and you don't have to go through the kyc process there why not buy a Bitcoin ATM you can buy and set up your own Bitcoin ATM business for less than eight thousand dollars from some light research online that transaction and network fees come out to about one percent basically you could set up this Bitcoin ATM in your own home and just cash out to yourself while paying one percent fees and you'll be running your own business so that's just a crazy idea I'm not sure if you want to do that but if you owe a lot of money it is an option converting your cryptocurrency into US dollars through eBay mining contracts so on eBay you can sell mining contracts and technically you don't have to do any actual cryptocurrency mining you can just sell a cryptocurrency so here we have Provo code token and it's worthless let's say we want to buy 25 million provocode token that's 2.75 this is a nonsense token it doesn't do anything but you can buy 25 million promo code token for 29 now they made this coin it's pretty much worthless they just made a lot of it and it just goes to show 25 million of something can still be nothing you can still have zero dollars worth of 25 million so remember not all coins are great yeah even if you use this exchange it's not like a highly rated exchange they probably just had to pay a small fee to list their token and they can control the volume and the pricing especially when there are no other markets tracking this data so be very careful whenever you're dealing with a coin that is only on several exchanges and coins that only trade on uniswap or one inch because basically anyone can list their coins there but my point is through eBay you can sell these mining contracts to other people and as we know cardano is around one dollar they're selling three cardano for 15 bucks which means they're profiting about twelve dollars per order they sold 409 orders 12 times 409 they made almost five thousand dollars over selling a coin so you could actually make some money selling mining contracts and just be careful whenever you're dealing with eBay especially if you're a buyer you should warn new users that you should never buy any cryptocurrency on eBay because a lot of them are fake or they do nothing or they're overpriced Tron classic not a real thing not no relation to Tron or TRX but the writing of the coattails of that name and they're taking advantage of people and uh I guess if you want to take advantage of people too you can sell mining contracts on eBay you can also sell your Bitcoin for Amazon items basically if you want to buy something on Amazon you create a listing on purse IO saying Hey I want this item and I'll give you this much Bitcoin for it you set that price a potential buyer comes along and then they send you that item and then you send them that Bitcoin now all of this is processed through purse IO I have no personal experience using it but it has been very popular in the crypto space for several years now there's also nanomart.cc I haven't used this but it's an online retail store where you can use your Nano for real world Goods now the listings are pretty weird yeah I guess uh there's a lot of different services in here and uh yeah use it use it if you want you can get math homework help someone can make YouTube thumbnails for you and uh there's a lot of random things on here kind of entertaining just to browse it's a it's kind of like a online Craigslist or yard sale out of all of those methods the best way to use your cryptocurrency is as cryptocurrency so if you need to pay for something pay with cryptocurrency and that helps all of the crypto Community out instead of just holding and not spending your cryptocurrency it needs to reach more hands it needs to be exchanged between more people and then that's how more value is gained in cryptocurrency and if you want to avoid taxes on that side you should be spending your cryptocurrency from your personal wallet or an exchange that does no kyc I also recommend using cryptocurrencies with very low fees like Bitcoin cash Litecoin and Nano now I'm not saying saying to invest in these I'm just saying they have very low fees and out of those three my favorite is nano because it's the fastest with the lowest lowest lowest fees and if you're thinking of investing I'm not recommending anything I'm just saying do your research and it'll make more sense and if you have a lot of money to throw around anyway you could probably set up your own tax Haven in a low tax country or a no tax crypto country like Dubai or Singapore now I've been thinking about Singapore for a while just because I like the food and I just need another reason to go and that's to set up a crypto business now I'm not gonna do that because I pay my taxes and let's leave it at that so I hope you got your full value for today [Music]

Channel: Full Value Dan

Views: 555,542

Keywords: crypto taxes, bitcoin taxes, cryptocurrency taxes, crypto tax tips, crypto taxes explained, cryptocurrency tax, crypto tax, crypto tax laws, cryptocurrency taxes usa, cryptocurrency taxes 2021, how to report cryptocurrency on taxes, robinhood cryptocurrency taxes, how to calculate cryptocurrency taxes, how to file cryptocurrency taxes, how to avoid cryptocurrency taxes, crypto, bitcoin, cryptocurrency

Id: NhlBsMLQqOg

Length: 14min 10sec (850 seconds)

Published: Fri Mar 12 2021