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Need help understanding wallets and withdraws

A

Airbrushkid

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Aug 27, 2007
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Lets' start off with I am using Nicehash. My wallet is thru them. So when I withdraw any amount they need my bitcoin address. If I take any amount from my wallet where does it go? Isn't your bitcoin address created from your wallet? If it is then... Sorry but confused a bit here. Because it sounds like your taking it from your wallet to put back into your wallet.
 
Nicehash has your mining in an account, valued in bitcoin. When you mine you should have provided a bitcoin address for your miner to point to (its possible they gave you one), to which the credit for your account is to be applied. Once you hit a threshold of value, it gets deposited to that bitcoin wallet. When you want to withdraw that bitcoin for fiat $$, you'll need to send that money to a place that will exchange it. A popular one is Coinbase. You'd register an account there, give away your first born child's worth of personal information, then get another bitcoin wallet address tied to them. You then send your bitcoin from your original wallet to your coinbase wallet, eat a transfer fee, then transfer out to cash money for another fee.

So currently it sounds like you currently would:
Nicehash Mine Earnings -(small transfer fee)-> Nicehash provided Bitcoin wallet -(transfer fee)--> Exchange Bitcoin Wallet --(transfer fee)--> $$$

You can simplify that to:
Nicehash Mine Earnings -(small transfer fee)-> Exchange Bitcoin Wallet -(transfer fee)-> $$$

If you start dealing with larger amounts of bitcoin that you don't intend on exchanging short-term, you'll want to get a legit wallet untied to any other website/account and put it in "cold storage". This is essentially taking the private key of the wallet, putting it on a backup drive(s) of some kind, then forgetting about it until its worth several Lambo's.
 
So basically what I tried to do was withdraw from my wallet on nicehash and when I gave then my btc address all it would of done was deposit it right back into my wallet on nicehash?
 
Yeah, you need an account with an exchange. Coinbase or Bittrex, something. Those exchange accounts will have their own wallets that generate their own addresses for you to transfer coin to. My Nicehash miner points directly to my Coinbase wallet. So mining proceeds get deposited directly to my Coinbase account. From there I can exchange it for fiat currency, or any number of other coins, or my local wallet on my PC.
 
So is there any place that does the exchange that doesn't want "your first born child's worth of personal information"? As libaycat says.


Riccochet said:
Yeah, you need an account with an exchange. Coinbase or Bittrex, something. Those exchange accounts will have their own wallets that generate their own addresses for you to transfer coin to. My Nicehash miner points directly to my Coinbase wallet. So mining proceeds get deposited directly to my Coinbase account. From there I can exchange it for fiat currency, or any number of other coins, or my local wallet on my PC.
Click to expand...
 
But you could technically launder your money through various different less-than-legit places that take/want bitcoin if you're trying to move huge amounts of money and want to avoid the taxman. That's illegal though.
 
How did you come up with 1000% return? Your mining and along the value of btc an the others go's up and done. And there's still the power bill.
 
Some people have had that kind of return. All depends on when you jumped in. It's still quite profitable, even now, after taxes. About as profitable as right before the bubble still.
 
I was also mining Nicehash directly to Coinbase. Their fees add up when you're hashing 1Gh/s though. Cut out a lot of that ditching Nicehash for a dedicated ether pool.

I switched everything over to Musicoin for a few days, but I'm about to switch back to straight ETH soon for the mining rigs. 1080 Ti will go back to using Nicehash.
 
In Sweden it's better not to report that you mined your coins. You get bitchslapped with 70% tax because it's pure income. It's better to just say you've earned like 10% profit by trading and then you don't get hit by a large tax, they only tax what you report as profit. Is it same in the USA?
 
Better to only report 10% of your earnings? Of course, then you're only paying 25% on 10% instead of 25% on 100%... its just also illegal.

Taxes are nowhere near that high here.
 
It seems that you cannot do the here. With all the personal info and you mining rig and all it's activity. You cannot hide it from them.
 
You don't need to hide anything if they aren't looking, and they aren't going to be looking if they aren't motivated to. Tax man isn't going to chase someone for having $500 worth of unreported income show up in their bank account and places like coinbase don't have to (and won't) report anything under $10,000.
 
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