Crypto Holds - Strategy (comment/question)

[Retazempic]

Comment/FYI/Question ….

Due to periodic account freezes (of different kinds) on my crypto, I’ve stumbled upon a system whereby I use Kraken, PayPay and Coinbase wallets as alternate on-ramps for my personal wallets (I have Exodus and Phantom)

Recently, my ability to transfer from Coinbase was limited for a month (I think bc I forgot to disable my VPN before initiating a transfer) so I’ve been using PayPal. I get PYUSD, transfer it to exodus, and convert it there to USDC-sol

Usually, I buy $200 PYUSD on PayPal, and after a 1-week hold, I could transfer it all to my Exodus wallet. I’ve done with a few times with no issue.

Recently, however, PayPal has only permitted me to transfer 1/2 the amount it claims has cleared for transfer.

For example, I went to transfer $200 PYUSD (bc it said that amount was available for transfer) but PayPal only let me send $100. After waiting a few days, PayPal indicated that all of the remaining $100 was available for transfer, but it only let me transfer $50.

Is this happening to anyone else?

 

[Calm Logic]

I've never had a freeze or hold or anything like that. But I always used Exodus to pay, usually funding from within the Exodus app using Paypal as a payment method. (Buying PYUSD within Exodus and then swapping to save money.)

Exodus also allows Robinhood as a payment method, without deducting as much as using debit card. But I have never fully set that up.

With my usual vendors (GBs on TG), I don't need crypto anyway, though it is cheaper to use sometimes.

 

[MaineUser]

PayPal has been very difficult for me. Long and vague holds. I have found a better route.
Use cashapp, link to debit card.
Purchase btc in the app.
Funds available instantly.
Use bluewallet app to create a btc wallet
Transfer from cashapp to bluewallet.
Then pay vendor from bluewallet.

I opened new accounts in both apps and was able to get my btc in my wallet in one hour. Cashapp commits to 2 hour transaction time.

100% legitamite and no need to leave money laying around for days. No questions asked.

 

[tubby]

Not sure I have an answer for you, but at a certain point trying to use these crypto exchanges/sellers starts to feel like you've become the protagonist in a Kafka novel. Seems like they just make up new rules and restrictions when they feel like it in ways they don't disclose until after you've brought in funds and purchased via their platform.

Perhaps the answer is to open accounts with all the large exchanges and when one is feeling frisky one week, at least you've got another one setup and aged that you can potentially jump to until the first settles down. 🤷‍♂️

 

[Retazempic]

I've never had a freeze or hold or anything like that. But I always used Exodus to pay, usually funding from within the Exodus app using Paypal as a payment method. (Buying PYUSD within Exodus and then swapping to save money.)

Exodus also allows Robinhood as a payment method, without deducting as much as using debit card. But I have never fully set that up.

With my usual vendors (GBs on TG), I don't need crypto anyway, though it is cheaper to use sometimes.

The on-ramp that Exodus uses (I don’t even remember anymore) permanently banned me immediately, without any explanation.

 

[Retazempic]

Not sure I have an answer for you, but at a certain point trying to use these crypto exchanges/sellers starts to feel like you've become the protagonist in a Kafka novel. Seems like they just make up new rules and restrictions when they feel like it in ways they don't disclose until after you've brought in funds and purchased via their platform.

Perhaps the answer is to open accounts with all the large exchanges and when one is feeling frisky one week, at least you've got another one setup and aged that you can potentially jump to until the first settles down. 🤷‍♂️

That’s exactly been my strategy.

I do get the sense that one reason they put a hold on transfers is that they want to see if you will trade while you’re waiting

It certainly had that effect on me when Coinbase banned transfers for a month

I figured, my money is already here, I might as well make it work for me.

Luckily, I was able to buy during one of the crypto dips (although since i didn’t start with a lot of money, I haven’t made a lot of money).

 

[tubby]

What's odd to me is that they readily sell and enable stablecoins (e.g. USDT, USDC) if they don't intend for people to be able to transfer them to private wallets conveniently. Like if you send in money and buy BTC or ETH, you're probably gambling (AKA "investing") and facilitating trades is presumably where they turn a profit.

Unless I'm missing something, it would seem that the way money is made off of stable coins is from the issuer being able to pocket the interest from investing that cash, while the user doesn't earn any interest once the coin is transferred to their own private wallet. Kind of analogous to how a bank makes more off of the float in your checking account when you leave funds sitting there (VS transferring it to a savings account that pays you interest). With a setup like that, you'd think the financial incentive would be to get USDC out of Coinbase as fast as possible and keep it out of Coinbase for as long as possible. 🤷‍♂️

 

[ktg123]

I only use Kraken now. They let me deposit USD, immediately buy USDT or BTC, then immediately transfer it out. They say you have to wait 7 days, but they don't enforce it on me anyway.

 

[Calm Logic]

The on-ramp that Exodus uses (I don’t even remember anymore) permanently banned me immediately, without any explanation.

You are bad news, giving bad vibes to the cryto lords. We probably shouldn't even be communicating, haha.

 

[Retazempic]

You are bad news, giving bad vibes to the cryto lords. We probably shouldn't even be communicating, haha.

Looking back, I probably set off warning bells from the get-go with my VPN and didn’t realize it.

At one point, even though they couldn’t tell me why they imposed an old, I asked the Coinbase rep HYPOTHETICALLY if using a VPN could cause a problem. I got the most emphatic affirmative response from the customer service person on the other end of the chat. It was the first time I received a response that confirmed I was communicating with a human.

Oh, and they immediately released that particular hold right after the convo.

 

[Cdub100]

Interesting I have not heard or seen others having this issue.

I've been recommending Figure markets. They are a publicly traded company. They are small enough to have excellent customer service.

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[Retazempic]

I’ll check it out, but with my luck, I’ll be that guy who left the 1-star review in October