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Explore smarter ways to off-ramp crypto without major taxable events using P2P rails, crypto credit cards, loans, and new payment networks.
After I wrote an article about running a no kyc crypto card business, I got a ton of messages asking the same thing. What’s the smartest way to off-ramp crypto without paying insane taxes.
This article is mainly for my brothers in countries like the US, UK, Canada and other Western/European countries where crypto taxes can go as high as 50–60% If you’re in the UAE paying 0% tax congrats you’re playing life on easy mode, you can click off, this article isn’t for you
Disclaimer: We are not advocating that anyone breaks the law, all methods below falls into legal gray zone or technical loopholes that exist in many jurisdictions. It’s similar to how, in the US, real estate can be sold without triggering immediate taxes through a 1031 exchange. Off ramping crypto without paying taxes is illegal in nearly all countries. Please consider your country’s laws before anything else. Our Crypto Talk or the author does not share these views and they are strictly for educational purposes only.
After running a no KYC card company, I strongly advise against relying on this method. These cards are extremely risky and can be shut down at any time without warning. If you do choose to use one, never keep a balance on the card. Only top up right before you spend it.
Speaking from experience, I’ve had over $50k locked up by a no kyc card issuer. There are better and safer ways to proceed.
The first method is a company called @peerxyz, formerly known as ZKP2P.
Peer lets you onramp and offramp crypto through a P2P network, but it is not like the old janky Paxful style apps where everything was done manually in a chat. The seller deposits fiat or crypto into escrow, the buyer sends payment, and the system verifies it using ZK tech. Once confirmed, funds are automatically released. The whole process is automated and usually takes seconds.
So far in 2025, @peerxyz has processed over $20M across payment methods like Revolut, Cash App, Zelle, Venmo and PayPal.
Another example is p2p.me, which works similarly but focuses more on international currencies like Argentina, Brazil and India, integrating with local payment apps instead of western ones. I have spoken with a few members of the @peerxyz team, shoutout to @drahcir, @unhappyben, @davyjones0x and the rest of them, very cracked group of guys. From a tax perspective, this does not look like a normal exchange sale, which is why many people see it as a cleaner way to off ramp compared to using a CEX.
Big emphasis on the word CREDIT. This method does not apply to crypto debit cards. It applies to crypto CREDIT cards. You get taxed when you trigger a taxable event, usually when you sell crypto for fiat. However borrowing against your crypto is not a taxable event. With a crypto debit card, you are typically selling crypto at the moment you swipe. With a crypto credit card, the issuer fronts the payment.
You briefly take on debt, and the app automatically pays it off using your embedded wallet balance. Since it is classified as a loan/credit, it is not taxed, the same way a regular off-ramp would be.
In my view, this is one of the cleanest ways to reduce taxes when off ramping crypto. KYC is still required, which is a good thing. You do not have to worry about the program suddenly shutting down due to compliance issues like you would with a no KYC card. Some companies that offer crypto credit cards include:
I also recommend looking into @AriEiberman. He’s deep in the card space and probably knows more niche options, especially for places like Argentina and other less covered markets.
Most of these crypto credit cards charge similar fees. The main differences are branding, UX, limits, and rewards.
Structurally, they work the same way. Your funds sit in an embedded wallet. When you make a purchase, it creates a short term credit balance. The system then automatically debits your wallet to repay that balance. It is treated as a DEBT repayment, which as you’ve now learned earlier, is not treated a taxable event.
The next method is also built around loans, but this time actual crypto backed loans, not credit cards. The premise is the same. Loans are not a taxable event.
Let’s say you have 100k in BTC and want to buy a car. You cannot use a crypto credit card for that. Most dealerships are not letting you swipe Apple Pay for six figures. In this case, a crypto lending platform will wire you 100k in USD and take your 100k BTC as collateral. You now have cash without passing through a taxable event.
You will pay interest, usually somewhere around 7-10% APY depending on the platform and terms. But for many people, paying interest is still better than triggering a large capital gains bill.
Some companies in this space include:
Each has different terms, rates, and jurisdictions they operate in, but the structure is similar. You post crypto as collateral, receive cash and repay the loan over time without triggering a direct sale of your crypto. Personally, I would give my deal flow to @Strike . If you have followed @jackmallers and his story around being debanked and his battle with JP Morgan. Very respectable guy. I would suggest looking into his story and what they are building.
The next option is a P2P network on Telegram called Exchangers Market. It’s a big, active channel with around 30 to 50 exchangers, supporting almost every payment app you can think of. You can find it as @ exchangers on TG. That said, fees are usually 5-10%, and there are plenty of sus accounts. There are also some very good scammers. If you don’t really know how TG deals work, it’s easy to get tricked and lose money.
Personally, I think it’s safer to use @peerxyz. They support most of the same payment methods, the process is more structured, and the fees are usually lower. Still, I get why some people use Telegram. Once you find someone you trust, you can message them, get an on ramp or off ramp done fast, and move on with your day. It’s convenient, just comes with more risk.
The last option, and probably the one I’m most interested in right now, is a new project called @colossuspay, founded by @josephdelong
Colossus is building its own card network that sends stablecoins directly to the acquirer, who then handles currency conversion on the merchant side. No Visa or Mastercard involved in the flow. Settlement happens natively in crypto, and the acquirer handles the conversion to USD on the merchant end.
Because the funds never directly touch traditional fiat rails, the transaction does not trigger a taxable event, allowing you to spend in real life without paying tax.
The team is still building the project and plans to launch it sometime this year, and I expect it to become one of my favorite options going forward.
Image is from Joseph, the founder testing his own card network on a terminal at home. like how cracked do you have to be lmao. genius
At the end of the day, you only get taxed when you trigger a taxable event. Off ramping does not always mean you have to sell on a CEX and take a massive tax hit.
There are smarter ways to go about it. The worst thing you can do is blindly click sell on a CEX without knowing your options.
Launched one of the first crypto cards in 2022 (scaled to 500k in spend) building agentic finance now // sharing my insights
https://t.co/pQ2KdfQTy7
