Author Topic: Bitshares as an "off ramp"/bitUSD  (Read 1884 times)

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Offline yvv

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My impression is that sending my BTC into Bitshares and then exchanging it for bitUSD might be a good way to do this

Yes, it surely is. I do this all the time myself. Converting bitUSD back to BTC or any other token when you need is easy.

Though I must ask - how often have you had a margin call? Have you found yourself losing money on bitUSD ever? I'm new, and I want to be careful and know the risks.

You don't need to worry about margin calls, if you keep bitUSD. You can be "margin called" if you borrow bitUSD, and this is another story.

Offline This Guy

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My impression is that sending my BTC into Bitshares and then exchanging it for bitUSD might be a good way to do this

Yes, it surely is. I do this all the time myself. Converting bitUSD back to BTC or any other token when you need is easy.

Though I must ask - how often have you had a margin call? Have you found yourself losing money on bitUSD ever? I'm new, and I want to be careful and know the risks.

Offline This Guy

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Thank you both. Very helpful input!

Offline yvv

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My impression is that sending my BTC into Bitshares and then exchanging it for bitUSD might be a good way to do this

Yes, it surely is. I do this all the time myself. Converting bitUSD back to BTC or any other token when you need is easy.

Offline paliboy

1a) Regarding exchange itself, it serves as your wallet and you own private key so it's much better than other exchanges. Make sure that you follow best practices so that you stay safe (use only on safe pc, strong password, backup wallet safely).

1b) Regarding assets, Open.BTC is an IOU issue by OpenLedger company. There hasn't been any major issue with this company in the past but make your own research, risk is similar to holding BTC on other exchanges. bitUSD is completely decentralized and trustless. In theory it's very very safe but still there might be a bug in software or a systemic failure (like total collapse of EU/USA economy) might cause that it starts behaving unpredictably.

2) I would guess that it will be dramatically lower when selling BTC for bitUSD, might be similar when buying Open.BTC back (it's 0.2% for OPEN.BTC, not sure about Coinbase).

3) If you don't want to completely cash out of crypto world, BitShares is an awesome platform.

Offline This Guy

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Noob here.
Here's what I want to do, and I'd love some advice:

-Currently my BTC is in my Exodus wallet. I want to put it on ice for a while (get it out of the market), but I don't want to sell into fiat (i.e. cash out to USD on Coinbase).
-My impression is that sending my BTC into Bitshares and then exchanging it for bitUSD might be a good way to do this. However:
1) People always warn about leaving your funds on exchanges. Is sending my BTC to Bitshares (as open.BTC, then exchanging it for bitUSD) expose me to similar risks? I'm not clear on the security of SmartCoins and Bitshares when compared to traditional exchanges like Polo/Bitfinex, or compared to a desktop wallet.
2) Will the fees be dramatically lower than selling into fiat via Coinbase?
3) Is there a better way to go about doing what I want?

Again, my main objective is to get my BTC out of the market for a little while, but still have it be easily accessible, and not have to cash it out to fiat.
Thanks for your help!