For the platforms that don't allow US customers, you don't have to say what country you are from so long as your VPN is functioning. Those platforms block you based on your IP address, not based on any information you give them.
Basic advice. Do not buy from anyone with no transaction history that is offering a price that is too good to be true. Would focus on Zelle or other payment methods that your bank supports, basically a good indicator that the other person is also an American using a VPN.
If you want to use the US approved P2P exchanges, there is nothing wrong with doing that, and you'll have more payment options after providing your ID. I wouldn't tunnel in to the most complex form of the P2P exchange if you haven't done it before. Even the US ones that require ID feel fairly safe to me at this point.
For the p2p sites that have you use ID/address verification, is that true KYC (reporting, etc) or is it their own verification that stays "in house" so to speak?
They may promise that it stays in house today, but tomorrow the authorities may request all data they have of American citizens (or whatever country).
Just assume that the information you provide will be given to the IRS and other authorities some day. Either plan an effective story and data trail to obscure your later actions, or plan to comply with tax regulations, even nonsensical ones.
The ones that require KYC are doing that to comply with the IRS, which is why the ones that dont require it are all geo-locked and not available in the US. So they are doing it in true KYC form and if/when audited by the IRS will have to hand over a random sampling of accounts to them.
Thank you for this, very informative to overcome the security concern and understand the future potential for a novice. This whole process is also kind of forcing anyone (like me) who believes this is the way to have more and more personal responsibility and be better informed, hard to be passive in this space, it is kind of interesting. Hopefully my discernment is not failing me but the way you write is helping to identify crypto salespeople easier...Do you recommend these online wallets over something like Ledger?
Its less of an either or, and more of a this, and that. Will cover hardware wallets in another post and the pros and cons of using them to manage transactions. They are essentially an added layer of security for signing transactions.
People need to be familiar with the basics though before they start looking at hardware wallets.
It depends on just how deep you want to go with crypto.
If you just want to buy and hold with no access to airdrops or crypto income, then yeah you can use the Exodus wallet. You get the keys to it, it has both an app and a desktop program you can install on a computer. If thats what you want, then certainly, Exodus can work.
If you do plan to get more active with smart contracts, dApps, and programs available on chain, then you will need whichever wallet has been integrated by those dApps, and multi-chain wallets like Exodus or Atomic Wallet don't let you do any of that stuff. Exodus is definitrly my top recommendation though if you're going that way.
Thanks, Yes I had been reading about Exodus. I think that is where I will start for now. I would like to get into the deeper realm eventually, but I'm still learning and trying to gain full custody.
This is one of the best write-ups I've seen explaining DeFi. I've been sharing it with my clients.
What payment methods are recommended for p2p transactions?
To clarify : use a VPN if in Usa, but sign in that you are in USA?
For the platforms that don't allow US customers, you don't have to say what country you are from so long as your VPN is functioning. Those platforms block you based on your IP address, not based on any information you give them.
Basic advice. Do not buy from anyone with no transaction history that is offering a price that is too good to be true. Would focus on Zelle or other payment methods that your bank supports, basically a good indicator that the other person is also an American using a VPN.
If you want to use the US approved P2P exchanges, there is nothing wrong with doing that, and you'll have more payment options after providing your ID. I wouldn't tunnel in to the most complex form of the P2P exchange if you haven't done it before. Even the US ones that require ID feel fairly safe to me at this point.
For the p2p sites that have you use ID/address verification, is that true KYC (reporting, etc) or is it their own verification that stays "in house" so to speak?
The internet is forever.
They may promise that it stays in house today, but tomorrow the authorities may request all data they have of American citizens (or whatever country).
Just assume that the information you provide will be given to the IRS and other authorities some day. Either plan an effective story and data trail to obscure your later actions, or plan to comply with tax regulations, even nonsensical ones.
The ones that require KYC are doing that to comply with the IRS, which is why the ones that dont require it are all geo-locked and not available in the US. So they are doing it in true KYC form and if/when audited by the IRS will have to hand over a random sampling of accounts to them.
Very good. I appreciate the insight. Great info.
Thank you for this, very informative to overcome the security concern and understand the future potential for a novice. This whole process is also kind of forcing anyone (like me) who believes this is the way to have more and more personal responsibility and be better informed, hard to be passive in this space, it is kind of interesting. Hopefully my discernment is not failing me but the way you write is helping to identify crypto salespeople easier...Do you recommend these online wallets over something like Ledger?
Consider a ledger to be an additional security device. Ledger is compatible with many types of wallets.
For instance, this is how to integrate your electrum wallet on a ledger device.
https://support.ledger.com/hc/en-us/articles/115005161925-Set-up-and-use-Electrum?docs=true
Its less of an either or, and more of a this, and that. Will cover hardware wallets in another post and the pros and cons of using them to manage transactions. They are essentially an added layer of security for signing transactions.
People need to be familiar with the basics though before they start looking at hardware wallets.
Thank you. Happy New Year!
Do you have a recommendation for a wallet that supports a wide variety of coins? I have metamask and electrum but want a wallet for other coin
Yes and No.
It depends on just how deep you want to go with crypto.
If you just want to buy and hold with no access to airdrops or crypto income, then yeah you can use the Exodus wallet. You get the keys to it, it has both an app and a desktop program you can install on a computer. If thats what you want, then certainly, Exodus can work.
If you do plan to get more active with smart contracts, dApps, and programs available on chain, then you will need whichever wallet has been integrated by those dApps, and multi-chain wallets like Exodus or Atomic Wallet don't let you do any of that stuff. Exodus is definitrly my top recommendation though if you're going that way.
Thanks, Yes I had been reading about Exodus. I think that is where I will start for now. I would like to get into the deeper realm eventually, but I'm still learning and trying to gain full custody.