When I first started on Steemit, one of my primary concerns, after receiving my first payout, was how to cash my steem dollars into USD. For some of you, this hasn't been a consideration yet, you're buying steem with every penny you earn. Good for you. In fact, if you can afford it, I highly recommend leaving everything you can on the platform.
When I first decided it was time, I started looking for a tutorial to help me navigate the process. There were several. I found ways to do it through the exchange here, then to an outside wallet, and then to a bank. In all, it was about a six day process. Then, there was the paper wallet version, where you cashed into bitcoin, printed a paper wallet and exchanged it for cash to avoid fees, with a total stranger, that sounded a bit sketchy.
I finally settled on a process that involved selling my SBD on poloniex, moving my BTC to coinbase, then invoicing myself through Bitpay to move the coins into my bank. It was about a three to four day process. But, with payouts happening within 24 hours, it was still possible to get paid multiple times a week.
Over time, I grew disenchanted with Poloniex, when they lost over $1000 in SBD that I transferred to them. So, I moved to Bittrex. The fees are lower and the speed is quicker.
Then, I was finally able to order a Bitpay card. Now, within hours of receiving my payouts, I am spending my money anywhere USD, or VISA is accepted. Here's how you do it.
Don't be intimidated. You signed up on Steemit, and earned a payout, that's teh hardest part. The rest is just details. Take it one step at a time and ask if you have questions.
First, sign up on Bittrex
You'll need to prove your identification with a picture of your photo ID and some other information. Your account may be limited through the first few transactions. Verifying email and other factors can help that.
Once you have an account, you'll need to find your unique address. There will be a separate one for Steem and Steem Dollars.
Once on Bittrex, select the "Wallets" button in the navigation bar at the top of your screen. In the search box, input either "Steem" or "SBD" depending on which coin you are converting. Click on "SBD" to open the exchange for that coin.
Preparing to transfer your steem
Here is the Bittrex dashboard
On the left, select "wallet" and copy the ID number in the box labeled "memo". This is unique address you need to send coins from Steemit, to bittrex. It is a public number, so keep track, but it's not necessary to keep it secret. It can't hurt, but this number is for deposits only.
Transferring steem
Go to your steemit account. Select your "wallet" in the top right. You can see anyone's wallet by going to their profile and clicking on it. The platform is transparent, everything you do here can be seen by every other user.
Next to your steem, or steem dollars, click on the down arrow. Select "transfer" from the drop down options. A dialog box will open marked "Transfer".
In the "to" box, type in "bittrex" to indicate you are sending to the bittrex exchange on steemit. Yes, it sounds sketchy, right? But it's what you do. It's okay, all transactions can be seen, so if there is a problem, simply contact bittrex through their help address on the site and send them screen capture of your transfer. I've had one problem, because I sent steem to a steem dollars address. They fixed it without argument.
In the "amount" box, type in the amount of coins you want to move.
In the "memo" box, paste the memo number you copied from Bittrex and hit "submit". The site will then ask you to sign in to confirm the transaction and your steem will be on its way.
Now, you wait
Go have lunch, do a load of laundry, whatever. Give it at least a half hour. It can take from several hours to a day or more, even for a normal transfer. It is generally much less time. Be patient. Check your bittrex account an hour or so later.
If your coins have been moved, at the top, your balance will reflect the transfer.
Selling your steem
Go back to wallets and bring up the "steem" or "SBD" exchange, depending on the coin you've transferred. Scroll down to the "trading" box.
In the "Trading" section, go to the "Sell Steem Dollars" box. (the Steem box is identical, except it will be labeled "sell steem") Here you can select how much you want to want to sell, and how much you are asking for it. The quickest way is to choose "Max" which will put up all the coins you've imported. Then, select the "bid" price and follow the steps to confirm your desire to sell. Then, wait.
This typically only takes few minutes. Sometimes less than a minute. If the price is fluctuating, it can take longer. The price you're asking won't change until it's either sold, or you cancel it.
You can check below the sell box to find out if you have "open orders". Once you have no open orders, all of your coins are sold. All sales are paid in BTC.
Once you've done a few sales, you can try trading,or setting stops. I'm not going to explain all of this in this tutorial.
Next, sign up on Bitpay
Again, you'll need to confirm yourself and will be limited to a few thousand dollars a month to start. (more than enough for most beginners) After signing up, login into your account and select the "wallet" option in the top navigation bar to sign up for a private Bitcoin wallet.
A wallet is simply a small app that contains the code for your bitcoin. Unlike cloud apps, like Coinbase (the most popular bitcoin wallet) the Bitpay wallet will be downloaded onto your machine. This means anyone that wants your coin, must not only hack their network, but your machine while it is online to access your coins, adding an extra layer of protection.
Sending BTC to Bitpay
Open your bitpay wallet on your desktop. At the bottom, find the "receive" button. A screen will pop up with a QR code with a memo address under it. Copy this memo.
Now, open your bittrex account
To send BTC from Bittrex, select "wallets" and find the BTC wallet. It should be at the top of the wallets list.
Click on the "minus" button. A dialog box will pop up. Enter the copied memo into the "address" box, and type in the amount of BTC you want to transfer. Click on "withdrawal" and confirm the transaction. You'll also need to open the email you used to start your Bittrex account and click on the "confirmation" link in the email they send to finish the process.
Receiving the BTC in Bitpay
It typically takes about an hour for the process to complete. This is the time required for the bitcoin blockchain to verify your transaction. You'll pay a small fee to the Bittrex exchange. You may, or may not see a decrease, or increase in the dollar value of your bitcoin at ANY time, due to market changes.
In your bitcoing wallet, you can select to see any transaction "on the blockchain" this will bring up a screen that shows you where the process is in the confirmation of your transaction. Once it is confirmed, it will be noted as such.
To convert the BTC to USD, you'll need to connect a bank account.
If you have a standard bank account, you'll need the routing and account numbers to make it possible for direct deposits to reach your bank.
If you don't have one, look at Gobank.com for an account that will work. It is a Greendot bank, operated by Walmart. You will be issued a debit card, which can be loaded with cash for free at any Walmart, and used just like any debit card. It will be either Visa, or Mastercard.
If you want to, you can then email yourself an invoice through Bitpay. I won't describe this entire process here, since I recommend the Bitpay VISA Card. You can pay from the wallet, and your money will go to your bank in two or three business days.
Speed up the process by ordering the Bitpay VISA
This will require some bitcoin. It is $10 in BTC for the coin, but the process has a cost as well. So, the card will initially cost you between $25 and $40, depending on the cost of mining and the price of BTC at the time of your purchase.
You'll need to verify your identification again, and the card will take about ten days to receive. Mine came in six.
Now, you can load the card directly
Once you have the Bitpay VISA, you can move your BTC from your Bitpay wallet, to your card. It generally takes mine less than half an hour to make the transfer. There is a mining cost, which varies, based on the amount, or the price of BTC at the time. Lately, it's ranged from $10-35. So, it's best to move amounts over $200 to minimize the cost.
So, for me, it's about a three hour process.
- Collect my payout on steemit
- Transfer the SBD, or STEEM, to the Bittrex account inside your Steemit Wallet.
- Sell the Steem, or steem dollars coins on Bittrex.
- Transfer the Bitcoin to my bitpay wallet
- Use the "add money" feature to convert BTC to USD on my Bitpay card
- Take the money in cash from any ATM, or spend it
So, for those who've never done it, that's how it's done. For those doing it the hard way, you're welcome. Again, remember, it's not that hard. Take it a step at a time and follow the instructions on each platform. Provide the same information at each step to make things easier.