OK, I HAVE to start with $2500? [edit: my bad :/]

[whofarted75]

Hello everybody. I've been getting some pretty good advice and helping here so I thought I'd come back here and find out about something.

I finally decided to get started got set up at the swan exchange, got my authentication completed and I'm ready to buy my first Bitcoin. As I'm reading through the instructions on wiring the money it's the first time I find out they have a minimum of $2,500 in order to wire money into an account. And yet I keep hearing people say you could start off with just $10 or $20 or whatever. So is this the same on all exchanges? Do you have to have at least $2,500 to get in? Or is this just at swan?

I'm just learning and trying to get started and get my feet wet with bitcoin. I'm not looking to throw my entire life savings into it and hope everything turns out well. This has been an annoying process with surprises all the way through with kyc and so on. Now I'm all ready to buy, I set up the two-factor authentication in the phone and everything and now I'm hit with this. This is getting really annoying. Please help.

Side note: I'm in the U.S. Anyone know how much they take in taxes (approx.) when you cash out? I've heard people saying around 7.5% all the way to 47%  

EDIT: I believe the $2,500 minimum was for wire transfers only. Buying from my linked account is minimum of $100 purchase. That's better.

[1715184022]

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[LeGaulois]

First time I hear about a minimum purchase. Are you talking about Swan Bitcoin? Otherwise, it may be a scam website you found but on Swan Bitcoin, the minimum plan is $10from what I get from their FAQ.
 
I assure you people do not necessarily start with $2,500, especially if there are new to cryptocurrencies. It's a costly manner to test the water I can say.
Generally speaking, you can deposit just $10 and start buying BTC with it.

You have for sure not found the best place to buy your BTC. You should find a better place for your needs and there are plenty.

Bitcoin is considered as a property in your country, so it's taxed as such (don't know the percentage)

[whofarted75]

First time I hear about a minimu purchase. Are you talking about Swan Bitcoin? Otherwise, it may be a scam website you found but on Swan Bitcoin the minimum plan is $10

I

Yes Swan bitcoin. I'm getting ready to wire money from my bank to Swanbitcoin account to buy bitcoin. When I click the link -> "Deposit by wire transfer" This is a direct copy paste (i'll bold & color red the part i'm referring to) from the site explaining what to do:

Wire Transfers
By wiring money into your Prime Trust account, you acknowledge that you have agreed to the terms on this page.

Please read these instructions carefully to avoid significant settlement delays with your wire due to mistakes at your bank.

Please use your bank’s online wiring form, and, if possible, cut and paste your information rather than typing it. Bank staff can make transcription errors, leading to funds not reaching your account.

You will wire money directly to your Prime Trust custodial account following the instructions below.
By wiring money into your account, you acknowledge that it is coming from your own bank account and are not being asked to do so by a third party for any reason.
Please do not contact Swan to verify your wiring instructions, as each bank handles wiring differently. Please do contact us if your wire hasn’t arrived by the end of the following business day.
The wire will usually settle into your account within 1-2 business days. Wires sent after 12PT on any day will likely settle the following business day. Wires are not processed on weekends and holidays. Neither Swan nor Prime Trust is responsible for delays in wire transfers for any reason.
You may deposit any amount, but please contact Swan Client Services if planning to deposit $500k or more. If you are depositing on behalf of an entity, we can help you set up a corporate account.
Once the wire clears, you will be notified by email, and a Convert Now button will appear beneath your Cleared balance on top of your dashboard. You can use this button to buy Bitcoin in increments of up to $50k at a time. Trade execution is provided on a best effort basis and is not guaranteed. Please contact us at private@swanbitcoin.com if you would like us to handle execution for you, for purchases larger than $250k.
Some banks allow you to select “how fast do you want it delivered,” which may mislead you into selecting an ACH deposit instead of a Wire. Please verify that the word ACH does not appear on your screen. Sending ACH transactions to this account number will result in funds not reaching your account.
The minimum wire is $2500. There is no maximum. If your wire bounces, it will be returned to you, but return times are not guaranteed. Please follow instructions carefully to avoid a wire return.
Please get an IMAD trace number and a wire receipt from your bank immediately after wiring. If your wire does not arrive within 1-2 business days, Prime Trust will require this information to trace the wire.
Please ensure that the reference code, which begins with a Q, is the only information in the reference field that will be sent to the beneficiary (Prime Trust), sometimes labeled Reference, Additional information for recipient, or Information for Beneficiary Bank to avoid significant settlement delays.

I understand I can buy as much Bitcoin as I want but I didn't know I was going to have to wire $2,500 into the account to be able to buy $10 worth of bitcoin. It's the wiring part that's the issue. Is that the same everywhere or is that just that Swanbitcoin? Or is that a wire thing? I've never "wired" money before.

[LeGaulois]

 Is that the same everywhere or is that just that Swanbitcoin? Or is that a wire thing? I've never "wired" money before.

Just on Swanbitcoin, it is not something usual otherwise

If you want to compare with 2 other established companies:

- on Kraken the deposit minimum with Fedwire goes from $1 to $150, depending on the bank
https://support.kraken.com/hc/en-us/articles/360000381846-Fiat-currency-deposit-methods-fees-and-minimums

- on Coinbase there is no minimum but there is a $10 fee
https://help.coinbase.com/en/coinbase/getting-started/add-a-payment-method/payment-methods-for-us-customers

That's why I suggested looking for another place to buy your BTC. Imagine you only want to buy $1,000 worth of bitcoin, you need to deposit $2,500 first, and then transfer back $1,500 to your bank account

[whofarted75]

Just on Swanbitcoin, it is not something usual otherwise

If you want to compare with 2 other established companies:

- on Kraken the deposit minimum with Fedwire goes from $1 to $150, depending on the bank
https://support.kraken.com/hc/en-us/articles/360000381846-Fiat-currency-deposit-methods-fees-and-minimums

- on Coinbase there is no minimum but there is a $10 fee
https://help.coinbase.com/en/coinbase/getting-started/add-a-payment-method/payment-methods-for-us-customers

That's why I suggested looking for another place to buy your BTC. Imagine you only want to buy $1,000 worth of bitcoin, you need to deposit $2,500 first, and then transfer back $1,500 to your bank account

Poop. I guess i need to try kracken.  I didn't know this part till trying to buy today. Now I gotta start over. 

You think I should close my account with Swan? Or leave it open as an alternative if something poo poos? 

[Welsh]

Side note: I'm in the U.S. Anyone know how much they take in taxes (approx.) when you cash out? I've heard people saying around 7.5% all the way to 47% 

Depends on how the US handle taxes, but in many countries they tax it based on how you earned it. For example, over in the UK we have income tax, which is basically how much you earn in a tax year, and depending on the threshold you are in depends on the amount you get taxed. I believe it starts off at 20% for those over £11,000 ish.

However, I do believe the USA are one of the countries which determine the tax based on how you got the Bitcoin. For example, mining, selling goods, or purchasing Bitcoin from an exchange. In your instance, buying it from an exchange, I believe they tax it as capital gains tax, on the amount of profit you made on the purchase.

You shouldn't take legal advice from us though. If you are serious about investing in Bitcoin or any cryptocurrency for that matter its probably worth either learning about tax yourself or getting in touch with an accountant.

[GreatArkansas]

@LeGaulois got the point, looking for another alternative of Swan Bitcoin is the best, it is also my first time hear Swan Bitcoin.

There are a lot of US exchanges that now got better advantages, just like minimum deposits or withdrawals or some requirements to open an account.

Beside Kraken and Coinbase. You may also try to look FTX US and Binance US.

[whofarted75]

Okay after looking at it more closely I believe I can invest immediately the minimum buying is $100 from my linked account. If wiring the money you have to wire at least $2,500. So I believe that was (again) my own mistake I feel kind of dumb.

In order to take full control, and be able to transfer the coins to my wallet, I have to wait 10 days. That way things aren't reversible and it's easier to make sure that they don't get fraud on their exchange. This is why they have lower fees.

I'm officially a Bitcoin owner now I used the $10 that they give you for free when you sign up and bought my first Bitcoin! YAY 😁

[whofarted75]

Side note: I'm in the U.S. Anyone know how much they take in taxes (approx.) when you cash out? I've heard people saying around 7.5% all the way to 47% 

Depends on how the US handle taxes, but in many countries they tax it based on how you earned it. For example, over in the UK we have income tax, which is basically how much you earn in a tax year, and depending on the threshold you are in depends on the amount you get taxed. I believe it starts off at 20% for those over £11,000 ish.

However, I do believe the USA are one of the countries which determine the tax based on how you got the Bitcoin. For example, mining, selling goods, or purchasing Bitcoin from an exchange. In your instance, buying it from an exchange, I believe they tax it as capital gains tax, on the amount of profit you made on the purchase.

You shouldn't take legal advice from us though. If you are serious about investing in Bitcoin or any cryptocurrency for that matter its probably worth either learning about tax yourself or getting in touch with an accountant.

I know it's considered a commodity, and that they are taxing it as capital gains. I was just interested if anybody knew around about what percentage it was. Trust me I'm just getting guidance and so forth from people here but as far as tax information and all that kind of stuff I'm not going to be getting that information from a forum.

[TheMimic1]

Which exchange is swan exchange? Why are people so into any exchanges they come across? As a matter of fact I don't know swan exchange and it's not recognize as a top crypto exchange, since you are in the US try using P2P on binance exchange

[Lucius]

This is the first time I've heard of this exchange and they don't seem to have very favorable terms when it comes to the deposit or the time after the purchase in which your crypto is literally locked. Among some other alternatives, this option seems to me to be a worse solution - but it seems that the OP has imagined that this exchange will be its first choice no matter what (so they say that the media have no influence on people ("I heard about Swan from Max Kaiser on Tim Pooles show last monday. Apparently that's where Max Kaiser buys all of his bitcoin.")

I'm officially a Bitcoin owner now I used the $10 that they give you for free when you sign up and bought my first Bitcoin! YAY 😁

You actually bought a very small portion of Bitcoin, and since you plan to withdraw it to your crypto wallet (by the way mobile wallet is not a good choice for long-term storage), part of what you got will probably be deducted for the withdrawal fee. Congratulations on your first purchase, and I wish you many more successful investments

[traderethereum]

Okay after looking at it more closely I believe I can invest immediately the minimum buying is $100 from my linked account. If wiring the money you have to wire at least $2,500. So I believe that was (again) my own mistake I feel kind of dumb.

In order to take full control, and be able to transfer the coins to my wallet, I have to wait 10 days. That way things aren't reversible and it's easier to make sure that they don't get fraud on their exchange. This is why they have lower fees.

I'm officially a Bitcoin owner now I used the $10 that they give you for free when you sign up and bought my first Bitcoin! YAY 😁

Good to see you buy your first bitcoin. Congratulations on that but you need to be careful because bitcoin prices can go down for more.
Starting with $10 will be good as you are still a beginner and you need to learn more, especially learning about trading because trading is not just to buy low and sell high.
Buy low and sell high is the basic thing in trading but with learning many things related to trading, your chance to make a profit will be bigger, which means you can make money from trading.
You can continue to have more bitcoin and trade it to make a profit.
Good luck.

[Muenalo]

Why not go for Binance or Coinbase? Because I think they will be a better alternative which has lesser minimum deposit  of $10

[Welsh]

I know it's considered a commodity, and that they are taxing it as capital gains. I was just interested if anybody knew around about what percentage it was. Trust me I'm just getting guidance and so forth from people here but as far as tax information and all that kind of stuff I'm not going to be getting that information from a forum.

So, I did take a little look at what the percentage would be in the US, and it seems to entirely depend on what tax bracket you belong in, which is a similar system to how tax is handled in the UK.

According to Wikipedia (probably not the best source) the percentage they tax is entirely dependant of your living situation; for example, single, married etc. It seems that there are seven different tax brackets based on the information here

However, because I'm not overly familiar with the system in the US, whether that is accurate or not I have no idea. Although, it does seem Bitcoin is treated the same as any other capital gain tax in the US, so it should fall within the same brackets.

Basically, the short answer is between 10-37%.

[Rengga Jati]

Every exchange has different rules on tje trading rules,  transactions deposits,  and also withdrawal.  And you need to check this information before using the exchange.  Yiu also need to know whether it needs certain KYC or AML in the exchange to be able to withdraw before putting money there.
Briefly,  do research or learn before using the exchange because they may have different rules or terms & conditions

[whofarted75]

First of all thanks for all the responses.

I figured I'd update what I've been doing.

1.) I opened up a coinbase account. Why? Because Swanbitcoin (based in Nevada) is only for purchasing Bitcoin you cannot sell. I wanted to make sure I would be able to buy and sell. Their website says if you want to sell you can always transfer to another exchange free of charge (free of fees from them) and sell it from there.

2.) I did a little bit more researching on the tax situation in my area. If you hold the asset for less than 1 year it's considered income and is taxed as a regular income tax. If you hold the asset longer than one year it becomes a long-term investment and is taxed as to capital gains. So basically less than one year could be taxed as high as 35% more than one year it will generally be somewhere between 15 and 25%. So the longer you hold it the less taxes you pay on it.

Basically, the short answer is between 10-37%.

Thanks for that, that's all I wanted was generalization. I'm not expecting anybody to open up the IRS code and start researching it for me. I was just curious.  

Now I'm gonna start looking for a hardware wallet. I was thinking paper wallet before for security, but I read Blazrs post Time to bust a myth. Paper wallets are less secure than normal encrypted wallets & started thinking it might just be easier/faster to do digital hardware wallet. Suggestions? I wanted this one -> ( SecuX W20 ) But I'm having second thoughts because some of the people, in the reviews, are saying that your coins are being stored on their website and they're charging 1% fees when you transfer. I don't know if that's true but if it is that's kind of messed up. The information about it (on the Amazon site) says that they do not store it on their website, so I don't know.  

Okay after looking at it more closely I believe I can invest immediately the minimum buying is $100 from my linked account. If wiring the money you have to wire at least $2,500. So I believe that was (again) my own mistake I feel kind of dumb.

In order to take full control, and be able to transfer the coins to my wallet, I have to wait 10 days. That way things aren't reversible and it's easier to make sure that they don't get fraud on their exchange. This is why they have lower fees.

I'm officially a Bitcoin owner now I used the $10 that they give you for free when you sign up and bought my first Bitcoin! YAY 😁

Good to see you buy your first bitcoin. Congratulations on that but you need to be careful because bitcoin prices can go down for more.
Starting with $10 will be good as you are still a beginner and you need to learn more, especially learning about trading because trading is not just to buy low and sell high.
Buy low and sell high is the basic thing in trading but with learning many things related to trading, your chance to make a profit will be bigger, which means you can make money from trading.
You can continue to have more bitcoin and trade it to make a profit.
Good luck.

Thanks! I'm actually not worried about making big profits, etc. I'm basically learning the basics of how to use bitcoin & ready to use it if necessary. Meaning I believe that hyperinflation (if only "transitory") is coming and the dollar is going to be in some severe trouble here real soon. I already have other investments and I'm looking for more diversity. Also if things started going crazy really fast this is a pretty easy/fast asset to dump some USD into if needed. Anyway, whether it's Bitcoin or some government shitcoin I believe digital currency is the future. Might as well get use to using it.