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Best platform for buying Crypto?

<SLV>

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Coinbase? I am thinking about taking a small position in Etherium.
 

ds_mustang

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I use Coinbase and Kraken which are US based. I have Gemini and it seems ok but I've never used it. Coinbase is probably the easiest and most popular. Once you have ETH on Coinbase or Kraken you can stake it and earn interest (around 5%) paid in more ETH. However staking ETH locks it up so you can't access it (probably until sometime in Q1 next year when the Ethereum developers implement staking withdrawals). Gemini didn't have ETH staking last I looked.

If you want lower fees you can use Coinbase Pro (which is run by coinbase but it's a different website), but at the cost of a more complicated interface intended for trading. Also you can't stake there but must move the coins to normal coinbase (which is free and instant).

If you want to earn returns on ETH without locking it up, wait until Q1 next year. Or you might look into sites like Blockfi, Celsius, or Nexo as they pay interest on ETH and other crypto by lending it rather than staking it.

And yeah, they all have annoying KYC so be ready for that.
 

<SLV>

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What is KYC?
 

<SLV>

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Keep (and stake?) crypto in Coinbase exchange or move to a wallet?
 

Scorpio

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what he means is it is giving up a lot to get access to any platform due to .gov regs and so on.

who you are and where is your dough coming from,
they mainline into a bank account, thereby providing them direct access into your fiefdom


Know Your Client (KYC)​


By
JAMES CHEN



Updated April 17, 2021
Reviewed by
ERIC ESTEVEZ
TABLE OF CONTENTS

What Is Know Your Client (KYC)?​

The Know Your Client or Know Your Customer is a standard in the investment industry that ensures investment advisors know detailed information about their clients' risk tolerance, investment knowledge, and financial position. KYC protects both clients and investment advisors. Clients are protected by having their investment advisor know what investments best suit their personal situations. Investment advisors are protected by knowing what they can and cannot include in their client's portfolio. KYC compliance typically involves requirements and policies such as risk management, customer acceptance policies, and transaction monitoring.
 

<SLV>

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what he means is it is giving up a lot to get access to any platform due to .gov regs and so on.

who you are and where is your dough coming from,
they mainline into a bank account, thereby providing them direct access into your fiefdom


Know Your Client (KYC)​


By
JAMES CHEN



Updated April 17, 2021
Reviewed by
ERIC ESTEVEZ
TABLE OF CONTENTS

What Is Know Your Client (KYC)?​

The Know Your Client or Know Your Customer is a standard in the investment industry that ensures investment advisors know detailed information about their clients' risk tolerance, investment knowledge, and financial position. KYC protects both clients and investment advisors. Clients are protected by having their investment advisor know what investments best suit their personal situations. Investment advisors are protected by knowing what they can and cannot include in their client's portfolio. KYC compliance typically involves requirements and policies such as risk management, customer acceptance policies, and transaction monitoring.
Got it. That explains all of the questions when I opened the Coinbase account.
 

ZZZZZ

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ZZZZZ

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I have a stock brokerage account at Interactive Brokers. They just started offering crypto trading. I haven't used it yet, but it's well worth checking out. They claim to have the lowest crypto fees on the planet.

 

ZZZZZ

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what he means is it is giving up a lot to get access to any platform due to .gov regs and so on.

who you are and where is your dough coming from,
they mainline into a bank account, thereby providing them direct access into your fiefdom


Know Your Client (KYC)​


By
JAMES CHEN



Updated April 17, 2021
Reviewed by
ERIC ESTEVEZ
TABLE OF CONTENTS

What Is Know Your Client (KYC)?​

The Know Your Client or Know Your Customer is a standard in the investment industry that ensures investment advisors know detailed information about their clients' risk tolerance, investment knowledge, and financial position. KYC protects both clients and investment advisors. Clients are protected by having their investment advisor know what investments best suit their personal situations. Investment advisors are protected by knowing what they can and cannot include in their client's portfolio. KYC compliance typically involves requirements and policies such as risk management, customer acceptance policies, and transaction monitoring.

Years ago, I worked on the team to implement KYC reporting at a former employer.

It's not just financial institutions who must comply, it's ANY business that deals in cash: car dealers, jewelers, pawn shops, firearms dealers, construction contractors, etc. Any and every cash business in the country.
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#48Fan

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I mostly use the Voyager app on my cell. They have over 60 coins/tokens to choose from and they pay up to 12% APR on over 30 of them (paid out in crypto monthly if you hold a minimum average over the month). Right now, DOT and USDC are paying the highest APR. They have very low trading fees and limit buy/sell. Set up the same way as most with KYC and connection to your bank account.

Anyone interested, just holler. I can send you a referral link to get us both a little free BTC.
 

Fiat Metaler

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KYC = Patriot Act surveilance.

Binance US has low fees but a somewhat clunky interface.

Interactive brokers probably has the lowest fees to trade stocks. Can't vouch for their crypto rates but they are probably good. Its probably handy to have your crypto at your stock brokerage to facilitiate moving money back and forth. IB has an advanced, though difficult to use interface, and bare bones customer service.

Not sure if Coinbase and Binance are registered brokers in the U.S. IB is, which may be an advantage. All the talk out of the regulators in the U.S. amounts to the risk that the crypto brokers will have to register with the SEC if they have not already.
 

Bigjon

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KYC = Patriot Act surveilance.

Binance US has low fees but a somewhat clunky interface.

Interactive brokers probably has the lowest fees to trade stocks. Can't vouch for their crypto rates but they are probably good. Its probably handy to have your crypto at your stock brokerage to facilitiate moving money back and forth. IB has an advanced, though difficult to use interface, and bare bones customer service.

Not sure if Coinbase and Binance are registered brokers in the U.S. IB is, which may be an advantage. All the talk out of the regulators in the U.S. amounts to the risk that the crypto brokers will have to register with the SEC if they have not already.

I read IB (skimmed) the prospectus and it said the crypto you buy comes from their holding account and is not registered on the blockchain.
From that I got the impression that all the crypto you buy stays in house at (Praxxx whatever) and you can't take it out in your own wallet.
You have to use their wallet.

No thanks says I.
 

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I read IB (skimmed) the prospectus and it said the crypto you buy comes from their holding account and is not registered on the blockchain.
From that I got the impression that all the crypto you buy stays in house at (Praxxx whatever) and you can't take it out in your own wallet.
You have to use their wallet.

No thanks says I.

if true, what a great point,

kind of like buying shares, you 'sorta' own them, but not really

you have a 'claim' to them, that is all
 

ZZZZZ

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Interactive is a middleman to the Paxos crypto platform. Like all Interactive trading, it is designed to provide convenience, simplicity and above all low cost. The crypto connection is intended for traders, not long-term investors. Other crypto platforms also do not allow withdrawal to a private wallet. It's sort of like investing in GLD or SLV, you want direct exposure to the price of the asset, but you neve intend on holding the asset itself.


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ds_mustang

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Other crypto platforms also do not allow withdrawal to a private wallet.
Some legacy financial services like Paypal and Robinhood don't allow withdrawal to a private wallet, but crypto platforms do.
 

Scorpio

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Yes, but his point is still valid,

be very aware of the differences is what he is suggesting

buying on coinbase and putting into your account, or moving to a coinbase wallet, or a private wallet is far different than these other vehicles starting to spring up.
 

Bigjon

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The thought occurred to me, that when you buy from their pool, might it be a fractional reserve pool?

Who's watching the watcher, like I trust these people... not.
 

Usury

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No thank you. I have no plans to have to answer YES on my tax return that I own cryptos.
 

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I can't vouch for how IB works, but if true that is a big deal. Its a big deal because not only to you have counterparty risk with IB, you don't get compensated for it.

Once you get into crypto, you'll want to juice your profits by staking and yield farming - basically loaning out your crypto for interest or incentive payments. For some coins, this is 5% APY, for others it can be north of 30%. Yes you have counterparty risk when doing this but at least you get paid for it. On Paypal, RH, and presumably IB, you don't hold the coins so you can't stake them.
 

ZZZZZ

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The thought occurred to me, that when you buy from their pool, might it be a fractional reserve pool?

Who's watching the watcher, like I trust these people... not.

I think it'll be pretty difficult to do fractional reserves with a blockchain.
 

Bigjon

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I think it'll be pretty difficult to do fractional reserves with a blockchain.

Well that is my point, that is what the blockchain makes possible.

BUT!!!
The setup at IB/paxos is you are NOT USING THE BLOCKCHAIN.