Does something like that exist? I have my Storj in a zksync wallet, and I am utterly confused on how I would swap them into fiat (and I’m afraid this won’t be viable until I have saved Storj for some 20 months). I think the process goes like this:
Withdraw Storj from L2/zksync to a L1 Address which can belong to an exchange. I will have to pay a zksync account activation fee (how much?) and a withdrawal fee as both require on-chain L1 transactions. Therefore both these fees will depend on gas prices, right?
Which exchanges support Storj? Are there any where I can trade storj to fiat or do I have to go via eth?
Yes the transaction fees depend on gas prices, as well as any fees charged by the platform you use to make the exchange.
Regarding the zksync account activation fee
This is a fairly comprehensive list of exchanges that exchange Storj tokens.
You will need to see which operate in your location/s
Most people transact Storj tokens to fiat currencies via these exchanges.
There may be other markets besides those on the list but as you know the levels and degrees of risk associated with the platforms varies greatly.
Depending on the exchange you use, you may be able to trade Storj tokens directly for a variety of fiat currencies.
I’ll just say that fiat crypto in my view should be you last option - there are plenty of things to spend without having to cash out.
zKsync has moved on allot, and there are now allot of native solutions you can use directly on L2 - look out for the LIVE flag - there is also native L2 → L2 exchange to allow change coin, and also L2 to other chain bridges.
You are correct though, as a minimum you need to activate your L2 address by performing a transaction - a few weeks ago this was like $1-2 [Edit : You pay in Storj though] …but it can be high > $6 so you need to watch - this is a requirement for any L2 zKsync solution, so you won’t even be able to convert L2 → L2 without this.
L2 to L1 will be hit by Gas fees, and they do fluctuate - this could be more than you have in your wallet
Also, L1 exchanges - be very careful depositing funds - ensure you know the KYC requirements for the exchange, ensure you are happy with this, ensure you are aware of the fees, ensure you have access to the private keys for the exchange wallets.
Also, Storj doesn’t have many pairs on some exchanges, so do your homework - you will find STORJ/ETH - STORJ/BTC is popular, but to fully fiat you might have to jump through a few hoops [different crypto coins] to get into a currency you can pay into a bank account and fiat off-ramp.
Also, be aware of any local money Tax laws/declarations you might need to adhere to when cashing out.
I know it sounds complex [It isn’t intuitive yet], maybe start with activating your wallet and connecting to a few L2 solutions to see what’s available.
STORJ is listed on all the mayor exchanges and many others as you can see here. Also this list shows that in fact there are lots of options to trade directly to USD and EUR at least, other currencies may require multiple steps though. The main obstacle will be going to the KYC requirements of any centralized exchange.
So does anyone have a concrete example of how much it would cost to convert L2 Storj to Fiat right now? Including L2 wallet creation fee, withdrawal fee, trading/exchange fee and then fee for withdrawal from the exchange? I don’t really care which exchange, all I want is a kind of estimate when I should start thinking about withdrawal. When I have 20 Storj? 50? 100? 1000?
I am running storj on existing hardware and I was hoping that in some months or a year it might help a little with the electricity bills. I am ok with withdrawing once a year for all I care but there is this jungle of different fees attached. Can someone give a number?
Considering the great variation in exchange fees, exchange rates across platforms, natural variance in token price, etc. this is a very hard question to give an accurate estimation.
The exchange fees will probably remain the most constant of these.
Maybe start there. I know you said you don’t care which exchange, but you may reconsider because that determines some of your variables. They are not all equivalent in access, reliability or fee structure.
This will help you track gas rates
You can use Tradingview to track the price of the token over time, against a variety of fiat currencies as well as other cryptocurrencies, across a variety of exchanges, to see what best suits your needs, once you know which exchanges you may have access to
This is why it’s impossible to give you an exact number.
If you are considering months or a year as you mentioned, these tools may help you get a historical perspective as well as assess the current market conditions, to decide what is practical for your purposes.
You’re going to pay some fees. How much? Depends. Let’s say you need to pay $20 in fees. How much Storj do you think is worth exchanging to cover that amount and you get what is left? Someone crazy might have $21 in Storj and decide they’ll cash out now to get that one fancy dollar. Someone else might have $100 and lose 20% in fees to claim the $80. Or maybe you wait until you have $1,000 and you pay 2% in fees.
That is a simplified explanation, but at the end of the day, it is a personal decision on your part as to when you withdraw for FIAT vs sitting on it and letting it grow.
If you want a blind, best guess… Have so much Storj saved up that the fees seem insignificant.
You forget the other variable - the token price. Even after the last few payments I am well below the total nominal USD amount paid by storj over the last 12 months. That has also significantly impacted the ability to cash out any storj I have earnt over the last 15 months. In net terms I have received close to $100 USD now but that is currently valued at about half that.
There are very specific rules regarding what Storj employees and contractors are allowed to say regarding the token price, dictated by federal regulations I won’t bore you with here.
That’s why I said “natural variance in token price” and provided a link to reliable sites where people can DYOR on historical price data, etc.
I’m not withholding information or ignoring challenges like bear markets, I just need to direct people to places where they can discover the data for themselves instead of offering financial opinions or advice directly.
But I can say that long term I personally think its better to give people the tools and skill sets to make these decisions for themselves based on what ever the current market conditions are, rather than to give them a single numerical answer at a specific point in time which may not be useful or relevant in six months or a year.
We all know how much and how fast the markets can change, and everyone has different goals and needs. That’s why I like the OP’s idea of a guide or maybe a repository where people can find the tools needed to fill in their own equations with the data relevant to their goals.
I don’t want anyone to give advice on token price or anything, what I want to talk about is orders of magnitude, something like "If you want to cash out to fiat it will be viable after 1/10/100 months.
The whole idea of this project is to run Storj on your already running hardware to generate some side profit. All the payments are calculated in USD, which doesn’t make a lot of sense if you can only cash out every 3 years without loosing more than 50% of your payment. If that is the case (and I have the feeling that it is) then I think the Storj team and/or community is misleading node operators by suggesting that it’s possible to earn something from it. Don’t take me wrong, I am not trying to get rich quick or at all, not hoping to turn a profit by buying new hardware and using it for Storj, all I want is to give half my hard drive to the project and in turn earn something (anything) to help pay the power bill of my home fileserver. As of now, it looks as if I will not earn anything in the first two or three years, which is kind of demotivating.
I was hoping that someone could comment a personal experience, something like “I converted 50 L2 Storj to 30USD last month and it cost me 5USD in fees” but I guess no one has converted any L2 Storj to fiat yet and most people here are planning on keeping their Storj as a trophy instead of converting it to money.
Hello so there has been some great posts in response, but let me give you some more information as you are asking specifically how to FIAT.
TL;DR; anything less than $50 isn’t normally possible to FIAT to $ due to minimum transaction value on exchanges.
I would say that you should make use of the BrightSilence estimator tool, so you can expect to see higher returns if you have good node - but roughly after 6 months you should have $10-$15 and after 12 months $60-80 earned - you should be able to FIAT $80 of storj and receive $50 after 12 months, assuming market conditions stay fixed for 12 months <— You need to do your own homework on this
Assuming June 2022 and a 1 Storj to 0.56 USD , and a 1 Storj to 0.0000176 BTC, 1BTC to $29683 and there are rounding errors…
So you have 50 L2 Storj, they are worth $28
Activate L2 Wallet on Zksync = $2 (paid in Storj)
Move L2 Storj to L1 Storj Exchange Wallet = $7 (paid in Storj)
Limit trade on Exchange from Storj to BTC ~ 0.14% commission plus 5% loss = 33 Storj > BTC = 0.0005808 BTC ~ $17 left in wallet to Fiat
Assuming the exchange will let you Fiat $17, commission can be 4% or $10 whichever is greater, so you will receive $7 in to bank account.
The above is just one example, there are 100’s of way to do it with different fees, and limits and processes, and zksync and risk involved.
** Also, be very careful using exchanges - They can change the rules, I.E increasing limits, changing fees, requiring advanced KYC, Country specific restrictions all with minimal notice - you can easily find your funds locked up, with hoops to jump through if you don’t have the private key to the wallet.
Thank you very much, this is exactly what I was looking for, a rough estimate. I have been using the estimator and 10-15USD after 6 months is pretty close to what my node is making I guess. I’m totally fine with waiting for the second year to be able to cash out, but I wanted some kind of assurance that it will be possible/viable at some point. I’m putting quite some effort into keeping the node online all the time, more than I would for my fileserver where it would be ok if it was down for a day so I want to get something out of it at the end. Thanks for this