Step 3 – Exit Plans
Step 3 – Getting Paid
Having all of the crypto in the world is meaningless if you cannot use it to buy the ‘stuff’ you want. This step may be the most important to you.
Before you receive your first payment from Penny Wise, be sure you have a secure wallet whose PRIVATE KEY is owned by YOU.
Rule NUMBER ONE: Not your KEYS, Not your CRYPTO.
Rule NUMBER TWO: Never give anyone your PRIVATE KEYS!
You need to get a trustworthy wallet to maintain control of your assets. A wallet is nothing more than an app that you can keep and control on your phone, if you have a smart phone. If you have an old phone that you can turn off access to the internet, even better.
Each coin that you have will have a different wallet address for that coin.
Remember, in crypto, YOU are the bank. It is totally up to you to safeguard your assets. If you lose your KEYS or access to your wallet, there is no recourse. Keep your KEYS safe. There are many stories of people who have millions locked up in a wallet that they have lost access to. It is a very common thing. Keep your KEYS safe.
Getting your money out of your crypto wallet can be done quite easily, if you take advantage of the different types of accounts that are available. Keep in mind that each time you remove money from an account, it may be a taxable event so research the options carefully.
Penny Wise pays you the equivalent of your US Dollar earnings in XLM. In your wallet, you have the ability to swap out XLM for any other currency that you choose. Keep in mind that cashing out may be a taxable event. If you have large amounts of XLM, it may be wise to keep them in cryptocurrency and borrow against them. There are some wallets that can facilitate that process for you quite easily.
Taking your crypto as a loan may be an option for you. It would allow you retain your cryptocurrency as collateral and take the cash to do with as you please. Right now, loans are not taxable events and thus will affect your tax liability. The wallet that I recommend for getting loans is Guarda.
There are debit cards attached to some accounts, including Coinbase. Crypto.com also has a debit card option making it easy to move money from a wallet to the card.