This is a step-by-step guide to converting your Grain to USD (or any other currency of your choice. @decentralion, if you could comment on anything that needs editing or anything you think would be useful to add, that would be helpful. Miguel and I were unsure on some of the FAQs. @panchomiguel, if you could double check the step-by-step directions for the mobile app, that would be great as well. Any and all comments are welcome, I would love for this to be clear to non-devs and non-crypto peeps
This is also a new way of creating a doc and asking for review and collaboration, compared to thew ay we reviewed Beta docs. Any feedback on this method is also appreciated.
It is recommended that once you convert your Grain to DAI, that you finish converting to whatever currency you are comfortable with and withdrawing it into your bank account, NOT holding onto USD in your CoinbasePro account. SourceCred cannot guarantee the safety of currency in CoinbasePro. SourceCred wants to be transparent that here is risk in holding DAI and in holding anything on CoinbasePro.
This is not the only way to convert Grain to USD. There are payment processors (apps) that can work too, but they often have higher fees and shifting regulations. If you have any questions about other options to convert Grain, please ask in the Discord Questions channel.
What are the tax implications of receiving Grain?
- We are not tax advisors. This is not tax advice. The following statements are informational only and provided on a best-effort basis. Please consult a tax professional for advice about your situation.
- As soon as you have Grain, it is taxable and should be reported to IRS the proceeding tax season
What are DAI?
- DAI is a stable coin within the Ethereum ecosystem. It is always very, very close to $1 per DAI.
How long does it take to convert Grain to USD?
- Converting Grain to DAI takes up to 7 business days, although is often done sooner than that. After converting DAI to USD, you have immediate access to the USD in your CoinbasePro account once your limit order gets filled. However, withdrawing that USD to your US Bank account can take a few days.
Can I convert Grain to a cryptocurrency rather than USD?
- Easily. Instead of converting DAI to USD and then transferring it to a linked bank account, you can buy cryptocurrencies at their market price with your DAI. This is, of course, variable, as market prices change for most cryptocurrencies.
How do I know how much Grain I have to convert?
- You can check the Grain Ledger to see how much Grain you have available. Grain in the SourceCred community is distributed every Sunday.
How it Works (the basics)
You open a CoinbasePro account.
You send our Treasurer, Miguel, a Grain Sale Request Form and he will send DAI from the SourceCred hardware wallet from the SourceCred account to your wallet on CoinbasePro. He will then create a Pull Request on Github telling the SourceCred code that this transaction took place, so your Grain balance on the Grain Ledger will show the adjusted amount.
You go on CoinbasePro and sell your DAI for USD (or any other currency).
Step by Step (Desktop)
Convert Grain to DAI
- Open a CoinbasePro account. For this you will need to link a bank account.
- Fill out the Grain Sale Request Form and send to @panchomiguel on Discord.
How to get your DAI-USD address for the “Grain Sale Request” form:
(Props to @LB for making this section easier to digest)
- Sign into your already-created CoinbasePro account.
- Click on the CoinbasePro DAI-USD Trading Page link in the topic above. This brings you to CoinbasePro’s Trading Page for DAI to USD. (Note that we are specifically using CoinbasePro and not Coinbase.com)
- Double checking that you are in fact signed in (see your name in the top right hand corner), and the trading market is indeed set to “DAI-USD” (see the header at the top of the left-hand column next to the “Select Market” dropdown menu) Click the “Deposit” button within that left-hand column. (This is because you want an address that will “deposit” currency into your CoinbasePro account.)
- A new pop-up window opens displaying a long list of currencies. Select “DAI” from the list.
- The pop-up window content will shift to display two options: “Crypto Address” and “Coinbase.com”. Choose Crypto Address .
- Read and click the two confirmations to arrive at the wallet address; in the form of a QR Code, and a text address (a long string of letters/numbers below the QR code).
- Copy the text-form wallet address and add this to the appropriate field of your Grain Sale Request form.
Convert DAI to USD and withdraw from cryptowallet
The next step is to convert your DAI to USD, withdraw your USD from your cryptowallet on CoinbasePro and have it sent to your linked bank account. CoinbasePro may look complicated, but don’t let that scare you - using it can be simple. Here’s how:
Go to the CoinbasePro Trading page and find the the drop-down menu that says “Select Market”. Make sure you have DAI-USD selected.
Then click Sell and select the amount you would like to sell.
DAI is a stable coin, but it does fluctuate by about 1/1000th of a penny throughout the day. Because of this, you need to let your limit price, the price you want your DAI to sell for. A Limit Price is the price you’re choosing to buy/sell at. If you’re selling DAI for USD, and you want to sell when 1 DAI = 1.0007 USD or more, then 1.0007 is your limit price. In setting that price, you’re saying “I want my DAI to be worth this much for me to sell.”
The changing orange and green numbers on the left side of the screen are the updated price of DAI over time. You will notice they are all fairly close in value. That is because the price of DAI typically fluctuates by only .0001 at a time. Pick any of those numbers (it will be around 1.0078) and type that in your “Limit” box. Then hit “Place Sell Order.” When the DAI market hits that price again, (possibly in a matter of seconds) the conversion will be made.
Next, you need to withdraw your USD from your cryptowallet and send it to your linked bank account. Click "Portfolio’ in the upper right hand corner.
Click “Withdraw” and select USD.
Select “Bank Account” and choose your amount. A 2-factor authentication code will be sent to your phone.
Have additional questions? Post in the SourceCred Discord Questions channel!