Summary of 7 years of experience in the cryptocurrency circle, helping countless cryptocurrency friends solve the card freezing crisis, worth collecting.
Whether you are a newcomer or an old hand in the cryptocurrency circle, there are many confusions about the withdrawal issue. Newcomers are afraid of not being able to withdraw money, and old hands are afraid of being cheated.
If you are new to the cryptocurrency circle and only want to trade in small amounts, you don’t have to worry about this. After all, the domestic OTC market is a peer-to-peer (C2C) transaction. Some people want to buy, and some people want to sell, so there will always be C2C transactions. At present, the C2C trading markets of Binance and OKX are still stable. If you find a reputable merchant and don’t covet small profits, you can use it with peace of mind.
Next, let’s focus on the issue of bank cards being frozen for withdrawals, which is a concern for veterans in the cryptocurrency circle, that is, the worry of receiving black money.
The following text is long, but it is full of useful information. You can consult me for specific cases.
First of all, what is black money?
If the buying price in the c2c trading market is lower than the selling price.
Theoretically, you can buy 1000 USDT at 6.34, and then sell 1000 USDT at 6.38, making a net profit of 0.04*1000=40 USD=280 RMB. You can continue to arbitrage.
But the market is not stupid, the interest rate gap has long been leveled.
The reason for this is that the merchant who uses legal currency to buy USDT (i.e., 6.38) has black money in his pocket, so he is willing to buy USDT at a cost higher than the market price in order to get rid of the black money in his hands, and you become an accomplice in money laundering.
In 2018 and before, the C2C market was relatively normal. Later, telecom fraud and other black money all tried to go through the C2C market in the cryptocurrency circle. The GA that tracks black money is now more strict about this area. If they encounter any card that black money has flowed through, they will freeze it to cooperate with the investigation.
Characteristics of black money
It is very much like an infectious disease. It is highly contagious and latent, and cannot be seen on the surface. So it brings two characteristics:
1. As long as this card receives black money, it will be infected and may be frozen. If this card is transferred to any card, the new card will be infected.
2. You don’t know which card or money is problematic before it is frozen. You will only know after it is frozen, so it is somewhat hard to guard against.
How to deal with the problem of black money when withdrawing cash
1. When withdrawing cash, look for merchants with large transaction volumes, long registration time, and normal prices (the selling price is lower than the market buying price). Don't be greedy for small bargains:
Generally, the price of stocks with more than 2,000 transactions and registration time of more than one year is lower than the purchase price. However, stocks with small transaction volume and registration time of less than one month and the top few prices almost all have problems.
2. Use unused cards to collect money. Don’t use too much money on a single card. Try to only trade with one merchant per card. Quarantine the money for 1-3 months. Transfer it to the main card after it is not frozen. Because we don’t know which merchant has the problem, it is purely a probability, so we need to reduce the loss caused by freezing. With this isolation method, even if one card is frozen, it is not a big problem and can be processed.
Advanced ideas
1. If you have a lot of money and need US dollars, you can open an account at the US dollar exchange Kraken, withdraw USDT to cash it out into USD, and then withdraw it to your US dollar card
2. Some people use the money to pay off credit cards/loans, buy financial products, or enter the stock market immediately after receiving it. This also has a lower probability of being frozen.
3. It is better to use a bank card. Alipay and WeChat cannot reduce the probability of being frozen.
Summary: As long as the operation is proper and not greedy for small profits,
