I've done some searching and can't find anything specific. Hoping to find someone who's well versed in this stuff who might be able to point me in the right way.. submitted by
I'd like to set up a dropshipping site, which accepts bitcoin. Once someone places an order, I'd order from the manufacturer, and the manufacturer would ship the product.
When I receive bitcoin, I'd continue to hold it as BTC, and pay the vendor in USD.
I do not want to utilize a BMSP (bitcoin merchant service provider) like bitpay, but I want to process the transactions myself.
I plan to set up a LLC, and do everything legitimate; paying taxes, etc. However, does anyone know the laws regarding this? Would I need to register my LLC as a MSB (money services business) and get licensed as a money transmitter?
PAYPAL submitted by
I'm not sure why the previous winner decided not to use his real paypal, maybe trying to remain anon, maybe trying to not pay taxes, maybe trying to hide money from his spouse/parents or maybe an international fugitive, who knows.
The fact is, paypal doesn't like anon people collecting lots of cash fast, to be fair, they don't like verified people getting a lot of cash fast either, unless they're getting their cut. So here's a couple things you can do to try and keep paypal from freezing your account and taking your money.
- Verify your account.
- Secure password!!! This is big, it's connected to your bank accounts, you need to have a secure password that is not the same as your reddit account.
- Add an email address that has not been used anywhere else.
Here's how to add an email address to paypal. Go to gmail/yahoo/wherever and make a new email with a different, very secure password.
Once you have a nice new email with a secure password, go to paypal and login. Under "Settings", you'll see "Email", hit the + button and add that new email address you just created. They'll send you an email to verify your address, go and click it. There you go, verified email address that (hopefully) has not been used by you anywhere else. CHANGETIP
- Signup for Changetip
- Link your reddit account to it.
- Add bitcoin to your changetip account.
- Sign up for Coinbase or Circle
Ok, so this is a bit simpler if you're in the US. Changetip has a "Buy Bitcoin" button under "My Money" that will use ACH with most major banks. Unfortunately not many credit unions or smaller banks though. So to buy bitcoin on coinbase or circle, you need to set up an account and verify yourself. These are US regulated companies who have to follow the laws, so they need to verify you just like you had to verify with paypal. The verification process is fairly easy, and not much different than paypals (although I haven't done paypal in years, so I'm not sure what it's like now).
The concern most people have is that circle/coinbase could be scam sites, or like that other site in japan that
stole all the bitcoin
got hacked, etc. The difference is, these sites are US based and licensed as money transmitters AND have a lot of financial/venture capital backing behind them. They are just like paypal, except they deal with bitcoin and not ebay.
Sadly, I do not know similar sites to coinbase/circle for outside the US. BITCOIN
I'd suggest reading up on bitcoin if you want to delve into making your own wallet and maintaining it yourself. There is a lot of info in /bitcoinbeginners
A basic online wallet can be made at Blockchain
, you can use your wallet on coinbase or you can download a bitcoin wallet program and do it all on your computer. A bitcoin address looks like 14KShuxFUM7PsHKYfPA9Rnkv6P213Wm8UH and is a specific address to your wallet. (You can send me coins there if you'd like lol) SPENDING BITCOIN
But I want cash, dollars, no one takes magic internet money....
If you have bitcoin, changing it into something real and physical in your hands can be done in as little as an hour. The secret is Gyft
. Go make an account, download the app to your phone and you can have a gift card in your hands in no time. They even give a 3% discount for using bitcoin. You scroll thru gyft, find the card you want, select an amount and pay with bitcoin. A popup will come up, with an address to send the bitcoin to. You send the bitcoin from your wallet, and the gift card is added to your gyft account. You open your app on your phone, and you have the card in hand ready for you to go shopping.
Alternatively, if you want cash, and don't want to worry about fluctuations in price, send your changetip btc to your coinbase/circle wallet, and select "Sell". You can send the cash to your bank account via ACH and it only takes a day or two. No worrying about the btc price crashing, no worrying about someone stealing your coins, cash out in a day or two with money in bank.
There are also more and more websites that accept bitcoin directly, from overstock to newegg. So you could just keep a hot wallet (think of it as cash you keep in your pocket) and buy with btc directly if you don't want to bother converting it.
Now, I will warn you, SOME banks have issues with bitcoin/coinbase, SOME banks may warn you about doing transactions with bitcoin/coinbase, and SOME banks may go so far as to threaten your account if you continue using bitcoin. So you can decide if you want to cash out to your bank, spend it on gyft, hold it or open a credit union account and cash out that way. REDDIT
While you're at it, change your reddit password too. As nice as this community is, there will be someone trying to steal from you, don't make it easy for them.
Edit: GOOGLE WALLET
Yes I forgot this one, simply because I never use it. I don't remember how I set it up, but it should be fairly straight forward since I already had an account.
When you sign in using your main google account, you can go to the Settings tab, and Verify your identity. I just did this, had to put in my legal name and address as well as birthday and last 4 of ssn. Had me verified in under 1 minute. Since I never use Google Wallet, I had to search for how to accept payments, and this is what I found.
Doesn't look too different than any of the other options so it should be pretty simple to setup, simply give your email address and people can email money.
The one thing I can't find however, is how to either add or mask your email address. Personally I wouldn't want my gmail account used as it is tied to my google identity, which is also tied to my google plus thing I had to setup. I'm sure there has to be a way to set it up with an alternate email address. If anyone knows I'll add it in as an edit later. Last points
As pointed out by bealhorm
- Don't tell anyone you won!
You'll have friends/family coming out of the woodwork asking for handouts and getting mad at you if you don't give them what they ask for. It's not going to be a million bucks (maybe???) so take care of yourself first. Catch up on your bills, take a vacation, pay off a loan or two, or just blow it on hookers and blow. If you want to give some away then go ahead, but do it as a gift because you want to, and not because you're given a guilt trip for not helping out that person you haven't heard from in 5 years. No one has to know you got a few thousand dollars in your bank account but you.
pointed out, you may want to write down your new passwords somewhere safe, as that would really suck to be super secure with all new passwords and not be able to login and access your winnings...
Really astonishing. For months, including the Senate hearing and the Treasury Department's own published documents on bitcoin always refer to it as a "virtual currency," "digital currency," or my favorite "convertible virtual currency." Don't take my word for it. Search through publicly available federal government documents that mention or address bitcoin in any way. It's always discussed as a convertible electronic currency, which it is, not as property. submitted by
If the government views bitcoin as property - for taxation purposes the same as selling ice cream sandwiches out of an ice cream truck - why was this not a topic broached during the Senate hearing? Why did former Fed chairman Ben Bernanke in his letter refer to "virtual currency" several times, and "virtual property" not once. His successor, Janet Yellen, has had an equally sane approach toward bitcoin.
Even by the sometimes byzantine logic of modern tax agencies, the IRS is simply wrong.
If mining Bitcoins is self employment, so is jerking off to porn.
If Bitcoin is primarily "property" and not currency, then why the focus on KYC/AML compliance? It's not money according to the IRS. And why the need for money transmitter licenses? And why is New York State trying to regulate Bitcoin if it's just property? Lawsky's job is over before it even begins, if this nonsensical IRS classification is not challenged and revised.
Please don't tip me, I don't want the burden of having your property thrown at me unsolicited over these inter web tubes. Thank you.
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