So I have been trying to figure out the best way to get Bitcoin off of a centralised exchange and onto Polygon, without triggering any taxable events and paying minimal gas fees. Turns out this is a bit of a pain, but I have come up with a few options:
Option 1: Sell BTC for Wrapped BTC on the exchange, withdraw WBTC to Ethereum, bridge WBTC to Polygon. This is not ideal as selling BTC for WBTC on an exchange would technically count as a sale, and likely trigger a taxable event. There's also the gas fees for withdrawing + bridging to Polygon.
Option 2: Use RenBridge to convert BTC to renBTC on Polygon. You send your BTC to a gateway address on the Bitcoin blockchain, and renBTC on Polygon is minted for you in return. This would likely not trigger a taxable event, as you have not technically sold your BTC. Gas fees would also likely be lower than option 1. This seems like the best option, however I have no experience using RenBridge, so I am a bit apprehensive about it.
Option 3: If on Binance, sell your BTC for stablecoins, withdraw stablecoins to Binance Smart Chain, bridge your coins from BSC to Polygon, then buy WBTC or renBTC on Polygon. This method is quite straightforward with minimal gas fees, but you trigger a taxable event when you convert BTC to stablecoins. You could also use OKcoin exchange to withdraw stables directly to Polygon and skip the bridge part.
Does anyone have any experience using RenBridge, or have any other methods for doing this?
No comments:
Post a Comment