Getting a salary in USDC

III_MESSIAH_III

III_MESSIAH_III

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Hi there,

As the thread title states, I will be getting paid in USDC as I will be working for a gaming company that involves NFT's.

I am new to Cryptocurrency and this world, therefore apologies if I miss anything but I have done tons of research thus far and I know the basics.

Situation: They wanted to send me my salary (USDC) to Coinbase but I asked them to send it to my LUNO account rather for convenience purposes. However they said it will cost 5% in fees if they send it to my LUNO account which is around R3000.00. I almost fell off my chair when they said that. Plus I have to worry about the fee of transferring it from USDC into ZAR which I think is 2%. From what I have read its all about fees in this game and specifically in South Africa.

Question: Which option would be cheaper for me?

They send to Coinbase > I send to LUNO > Convert USDC to ZAR > Deposit into my Bank account.

or

Straight from Employer > LUNO > Convert USDC to ZAR > Deposit into my Bank account.


I did read on the forum here that XRP incurs smaller fees? So perhaps cheaper to do the below?

They send to Coinbase > Convert to XRP > I send to LUNO > Convert XRP to ZAR > Deposit into my Bank account.

I understand that there will be fees and its something I have to accept however I am trying to minimise the the incurring fees as much as possible as anyone would.

Thanks in advance if anyone is willing to read through all this. Cheers!
 
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III_MESSIAH_III said:
Hi there,

As the thread title states, I will be getting paid in USDC as I will be working for a gaming company that involves NFT's.

I am new to Cryptocurrency and this world, therefore apologies if I miss anything but I have done tons of research thus far and I know the basics.

Situation: They wanted to send me my salary (USDC) to Coinbase but I asked them to send it to my LUNO account rather for convenience purposes. However they said it will cost 5% in fees if they send it to my LUNO account which is around R3000.00. I almost fell off my chair when they said that. Plus I have to worry about the fee of transferring it from USDC into ZAR which I think is 2%. From what I have read its all about fees in this game and specifically in South Africa.

Question: Which option would be cheaper for me?

They send to Coinbase > I send to LUNO > Convert USDC to ZAR > Deposit into my Bank account.

or

Straight from Employer > LUNO > Convert USDC to ZAR > Deposit into my Bank account.


I did read on the forum here that XRP incurs smaller fees? So perhaps cheaper to do the below?

They send to Coinbase > Convert to XRP > I send to LUNO > Convert XRP to ZAR > Deposit into my Bank account.

I understand that there will be fees and its something I have to accept however I am trying to minimise the the incurring fees as much as possible as anyone would.

Thanks in advance if anyone is willing to read through all this. Cheers!
Click to expand...
Couple of comments on this.

1) I can't find the USDC withdrawal fee for Coinbase, but can't imagine it'll be more than $20. Sending it to the wallet / exchange of your choice won't be a big deal.

2) I don't think Luno does USDC (given, it's late, I might have missed it in my quick look on the app) but VALR does. You might want to consider using them instead. https://www.valr.com/invite/VANJ7QGT

3) VALR doesn't have an USDC/ZAR exchange, but they do do a direct conversion (this is normally more expensive). Compare their fee to switching to XRP at Coinbase and sending that to a ZAR exchange. XRP transactions are cheap as chips and near instant.
 
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VALRs fee for simple ZAR conversion is 0.85%

support.valr.com

What are VALR's charges?

We are committed to providing fair and transparent pricing to our customers. We charge no monthly fees. No management fees. No cryptocurrency storage fees. No account opening fees. Deposits & W...
support.valr.com support.valr.com

Coinbase exchange fees (for the first $10k per month) are 0.5%
 
Visa supports USDC so you can paid directly to your card, assuming you have a Visa card.
 
Doesn't USDC trade at a premium on local exchanges? So some of your fees will be recouped through that. Also, if you do it via Coinbase, they'll likely use SWIFT to transfer the amount which results in more bank fees and a poor exchange rate from your bank - you'll easily lose 5% just through that part. So it makes far more sense going to Luno or Valr and converting there.
 
static_sa said:
Keep it off Luno. They need to declare it to SARS
Click to expand...
nobody is "declaring it to SARS", Luno, VALR and AltcoinTrader all three were approached by SARS with specific requests which all three complied with:
www.moneyweb.co.za

Sars turns on the heat, asks crypto exchanges for certain customers’ information

AltCoinTrader, Luno, and VALR say they have been approached by Sars for information on a small number of customers.
www.moneyweb.co.za www.moneyweb.co.za

none of them are proactively sharing anything with SARS
 
Speedster said:
VALRs fee for simple ZAR conversion is 0.85%
Click to expand...
times two, 0.85% on the trade of USDC to BTC/ETH and again 0.85% on the BTC/ETH trade for ZAR


still cheaper than the 2% Luno charges, but not by much

cheapest overall would be to place the orders on the exchanges manually, in which case Luno would be the cheapest: a single trade at 0.1% taker fee vs VALR's two trades at 0.1% taker fee each
 
Speedster said:
Actually, reading that page again I think the fee is 0.85% total. It reflects as two transactions on your history but the fee is only charged once.
Click to expand...
I suspect it might be applied twice, but I've been locked out of my VALR account since I changed phones way back and they didn't have any functionality to disable 2FA and re-enable with a new authenticator even though I had the old phone still in hand

it was all manual and essentially KYC from scratch and I got pissed off and left it (zero balance anyway luckily)

why don't you try it out and report back for the greater good, or have you?
 
NarrowBandFtw said:
I suspect it might be applied twice, but I've been locked out of my VALR account since I changed phones way back and they didn't have any functionality to disable 2FA and re-enable with a new authenticator even though I had the old phone still in hand

it was all manual and essentially KYC from scratch and I got pissed off and left it (zero balance anyway luckily)

why don't you try it out and report back for the greater good, or have you?
Click to expand...
I'll gladly be the guinea pig if you send me some USDC to convert :giggle:

Looking at the fee structure I honestly think the 0.85% is for the full conversion.

Screenshot_20211102_170131_com.android.chrome.jpg

It's basically the 0.1% crypto fee plus the 0.75% ZAR fee.
 
Speedster said:
I'll gladly be the guinea pig if you send me some USDC to convert :giggle:

Looking at the fee structure I honestly think the 0.85% is for the full conversion.

View attachment 1180062

It's basically the 0.1% crypto fee plus the 0.75% ZAR fee.
Click to expand...
mmm, yeah that would make sense, or at least if it isn't done like that I'd be an upset customer if I discovered it the hard way

... and to think I was just about to send you some USDC to test :sneaky:
 
WOW! Thank you so much to everyone that took the time to reply in this thread! Much appreciated!

I have taken everything into consideration and will play around with the points you have mentioned and find the cheapest and most effective way. I will report back to this thread once I have the results.

PS: Would be nice to avoid tax but SARS are to clever these days. I will be paying tax as normal. 36% of my salary poof
 
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