Identity safety issues (very new crypto user)

[digeraro]

Today I started playing around with crypto. Don't know anything about it and none of it makes any sense right now. Gona slowly give a try though.

I'm using the PayPal / USDT / Solana Crypto Guide 10.21.25 pined to this forum. Right now I'm at the point of trying to buying Sol through Jupiter in the amount of $10. When selecting payment type no mater which one I choose (paypal, CC, debit card, Google pay) I get redirect to yet another app.

I have no idea why I need to go through the above process but I think it's referred to as buying "gas money"? Also not sure of how much to by. Just following the guide.

When I do get to these other apps like moon pay they all want my social number and or a photo. MY whole life I've been very cautious about giving out my social to anyone/anything. My question is... Is this a nessasary requirement and is there any way around this? Maybe I'm paranoid but it seems very risky giving out your social to these apps not really knowing any about them or who/what they are.

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[pughster25]

Its a right PIA as everyone wants KYC (know your customer) for regulatory compliance and tax purposes in said origin country

 

[digeraro]

I didn't get very far. Unless I'm missing something, looks like there's no way to buy crypto with out exposing your social security number if your a US citizen. I did read about somehow going to a crypto ATM putting US cash the machine and purchasing but that's all I found out.

 

[mraajr]

If someone truly wanted your SSN, they would get it. The absolute easiest way to do crypto for the purposes of buying grey is to get a wallet like Exodus, buy crypto with PayPal, Venmo, Cash App, etc., and send it to your wallet directly from one of those apps. Takes 5 minutes. The best way to do it is fund your app first and buy the crypto using your "balance" rather than directly funding it with a CC. Less likely to be held up that way.

Although it is the most volatile, buying BTC is the easiest way of doing it. No weird gas fees or anything like that. Buy the BTC with one of the apps I mentioned and send it to your wallet. Then send it from there to the vendor of your choice.

 

[digeraro]

I definitely understand and agree with the fact if they wanted my SS they could get it. That could be said regarding many personal identities and accounts... So on.

But I'm older and have less tolerance for risk taking and have much less time to sort out and repair issues if they do accur. For me it's just a personal stance, thinking if I don't do it there will be at least a couple less places my social will be exposed. Nothing against anyone that thinks otherwise and if I wasn't getting close to 70 I would consider it.

Your instructions we're good. Also I was thinking the along the lines with just buying BTC sound so much simpler. Still slightly on the fence though. Thanks

 

[digeraro]

Paypal-Venmo question... After some advice on the forum on Sunday (two days ago) I bought 2 small amounts of Bitcoin through paypal and venmo. Just as a test. Since I already had accounts there I felt it was a safer/easier option. Checking today I still can't move the Bitcoin from either places. It's been 48 hours.

Anyone know how long of a wait there is till the Bitcoin can be transferred? Is it a first time thing or is there a wait/clearing period whenever you make a purchase?

 

[Babovka]

I am new to crypto as well, and bought some through my PayPal account funded by my regular bank account on Sunday, and it appears that I'll be able to send it to a vendor to pay for product, however, it is still in process with PayPal with a message that says takes 3 to 5 days to process.

It appears that I can send my BTC crypto once it is processed by PayPal to a vendor, is that true? Or would that not work? Would I need to send it to a wallet first and then pay a vendor??

 

[digeraro]

I am new to crypto as well, and bought some through my PayPal account funded by my regular bank account on Sunday, and it appears that I'll be able to send it to a vendor to pay for product, however, it is still in process with PayPal with a message that says takes 3 to 5 days to process.

It appears that I can send my BTC crypto once it is processed by PayPal to a vendor, is that true? Or would that not work? Would I need to send it to a wallet first and then pay a vendor??

I finally got through to PayPal two days ago. They don't make it easy to contact them to say the least. Paypal informed me that I would have to to wait a full week before trying to send Bitcoin to my exodus wallet. Reason they gave me is that I tried to move the crypto the same day that I purchased it and it was flagged/hold by them. I used my bank debit card for the purchase. From what I thought I read you could have the crypto available instantly. What an awful process. Looks like you have to plan weeks ahead if you want go this way.

The small amount of Bitcoin I bought though venmo is stuck also. When I try to access it I just get the same message over again "try again later verifying documents".

To attempt to answer your question.... I don't know if you can send your crypto directly from PayPal. My plan was to send my Bitcoin to the Exodus wallet, then use Exodus to issue to vendors. Just trying to figure it out.

Tell you what though... After I'm able to get to my crypto I'm taking it all out of PayPal and venmo. I'm done. I may try to just use Exodus and just pay with Bitcoin or maybe coinbase if I can? For me it's looking like paying and extra $50 - $100 bucks is well worth it. Untill I can't and then deal with it.

 

[yeddie]

Coinbase also places a hold on bank deposits, whether it's a direct transfer or debit card withdrawal. It's frustrating. I ended up depositing some extra cash in Coinbase as USDC (stablecoin) so I have a reserve to use if I need to make a quick purchase. There's a small amount of interest on the USDC asset, but the currency itself is pegged to the US dollar. Not nearly as volatile as BTC.

I always transfer to my Exodus wallet before sending to the vendor.

 

[digeraro]

Looks like you need to have made your purchase of crypto one to 2 weeks out from the date you plan on using it. To play it safe and hope they don't put a hold on it for other reasons.

 

[nonyabizznez]

@digeraro
@Babovka

Just a few hopefully informative and not intended to be argumentative comments:

If you want to sell on eBay you have to provide your social security number. If you're a king pin seller your 1099 might have tax implications. Otherwise does that sweater you paid $50 and sold on eBay for $20 have tax implications? If so you're doing your taxes wrong.

Crypto wallets and exchanges are like opening bank accounts where you also have to provide a social security number and photo ID. If you're a king pin day trader your 1099 might have tax implications. Is that $30 you made by maintaining an average balance of $1000 in USDT going to be taxable? If so you're doing your taxes wrong.

Acquiring crypto from your preferred exchange is encouraged (PayPal, Coinbase etc...) But there's plenty of reasons spelled out here in the forum why NOT to pay from a crypto exchange. Paying from your wallet is discreet and your purchases are none of your exchange's business. Imagine if you gave your power for everyday purchases to your bank and they didn't like how you spent your money so they cut you off...Does your bank teller need to know you have erectile dysfunction or send money to China for better hair and stronger nails? Do you want them to seize your funds when they don't like how you're spending? This is one reason why a wallet is important.

Like most other banking activities (like setting up a utility payee) transactions are quicker with time. What took 10 days the first time with crypto now takes mere seconds (initially - bank>open exchange account>open wallet account>set up exchange as ACH payee>make initial transfer>ACH hold/white list>transfer to wallet>pay vendor). Now just cut/paste destination address and send.

States regulate crypto which effects the ease or difficulty of utilization depending on where you live. This is one of the main reasons crypto seems daunting and experiences relayed here are so varied. In my state you can't view Internet porn without creating an account and providing photo ID. Establishing crypto functionality more like accessing porn... Becoming seller on eBay more difficult!