Crypto payments - how does it work ?

Discussion in 'Crypto Assets' started by TrAndy2022, Feb 24, 2024.

  1. Some prop firms only do crypto payouts, but I never had any cryptos in my life so far. So what to do ? Where to open an account ? What do I need to take care of ? Any instructions here would be helpful for a newbie on cryptos.
  2. 2rosy


    Download a wallet and provide your address
    johnarb likes this.
  3. which wallet and what kind of address ? I heard you need to be careful on network address as some are not accepted elsewhere. And how to connect the wallet with my bank account ?
  4. expiated


    If you're interested in connecting a crypto wallet to your bank account, here are some steps, companies and precautions you might want to consider:

    Choose a Reputable Crypto Wallet:

    Start by selecting a reliable crypto wallet that supports bank account connections. Two popular wallets are:
    • Offers a user-friendly app where you can link your bank account and manage you crypto holdings.
    • Coinbase: A well-known platform that allows you to buy, sell, and store cryptocurrencies. It also supports bank transfers.
    Create an Account:
    • Sign up for an account with your chosen crypto wallet provider.
    • Complete any necessary verification steps to secure your account.
    Link Your Bank Account:
    • Within the wallet app, navigate to the settings or account section.
    • Look for an option to link your bank account.
    • Provide the required details, such as your account number and routing number.
    Verify Your Bank Account:
    • Most wallets will make a small deposit (a few cents) into your bank account.
    • Verify this deposit amount within the wallet app to confirm your bank account.
    Transfer Funds:
    • Once your bank account is linked, you can transfer funds between your crypto wallet and your bank account.
    • In the wallet app, choose the option to withdraw or transfer funds.
    • Specify the amount you want to transfer and select your bank account as the destination.
    • Security: Ensure your wallet has strong security features, such as two-factor authentication (2FA) and encryption.
    • Privacy: Be cautious about sharing sensitive information. Only link your bank account to reputable wallets.
    • Fees: Check for any fees associated with bank transfers. Some wallets may charge a small fee for withdrawals.
    • Tax Reporting: Keep records of your transactions for tax reporting purposes.
    Remember that while connecting your crypto wallet to your bank account provides convenience, it's essential to prioritize security and choose trustworthy platforms. Always double-check details and follow best practices to safeguard your assets.

    Some things you might want to bear in mind...

    You could go to the app store and download a wallet right now, and in effect, it would be no different than Venmo. (If you had a Venmo wallet, and you wished to send someone money, you could simply ask them to give you their address, you would plug it in, and you could send them the money.)

    However, if you keep your crypto on an exchange such as Coinbase, for example, then Coinbase has your private key. This is opposed to YOU having a hardware wallet that you custody yourself, in which case, YOU have have control of your private key.

    In the world of Bitcoin, they have a saying: "Not your keys, not your coins." So, whoever has the key, has control of the coin. This of course means that if you leave it on a central exchange, such as Coinbase, Kraken or Gemini, and they get leaned on or squeezed by a government, they might be forced to give up your key.

    Think about it like in the old days, you might have some gold that you buried in the ground, and you would subsequently draw a treasure map. If somebody got a hold of that treasure map (your private key) they could get a hold of your gold. If you lost your treasure map (your key) you would also lose your gold (your crypto).

    I believe there was a case where a couple got four-and-a-half billion dollars seized by the government, which obtained their private key by raiding their home and finding it on Google Drive. So, you really have to protect your private key. That's the main thing.

    I copied and pasted the following from Copilot...

    To get a self-custody crypto hardware wallet, follow these steps:
    1. Download or Buy a Hardware Wallet: You can either download a software wallet or purchase a hardware wallet USB drive. Popular hardware wallet brands include Ledger and Trezor.

    2. Install the Software: If you choose a hardware wallet, install the accompanying software from the official company website. Follow the instructions to create your wallet.

    3. Fund Your Wallet with Crypto:
    Remember that self-custody wallets give you full control over your private keys, but also require you to take responsibility for securing your recovery phrases and other sensitive crypto information to keep your funds safe. Choose wisely and prioritize security!
  5. schizo


    long likes this.
  6. %%
    Good points;
    wonder why that ''not your keys ,not your coins '' is so seldom published or disclosed??
    Maybe because think how poorly that would sell, say for bank safe deposit box-LOL:caution::caution:
    Wonder why, since'' its not your keys'' why one key safe guard would matter much??