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Title: Purchasing Large Amounts of Bitcoin - Safest Storage Method Post by: AdamR on April 20, 2013, 06:19:47 AM Hello,
What is the best method to purchase for example $80,000 worth of Bitcoin at one time? Also, because of buying so much, is there anyway to get a discount on market rate? Could someone please explain how this would work and what would be best practice. Also, what is the safest way to store such bitcoin. It will not be used to transact with and can be kept offline if necessary to keep it safer. Thank you, Title: Re: Purchasing Large Amounts of Bitcoin - Safest Storage Method Post by: zeroday on April 20, 2013, 06:26:58 AM Hello, What is the best method to purchase for example $80,000 worth of Bitcoin at one time? Also, because of buying so much, is there anyway to get a discount on market rate? Could someone please explain how this would work and what would be best practice. Also, what is the safest way to store such bitcoin. It will not be used to transact with and can be kept offline if necessary to keep it safer. Thank you, Post your request on Currency Exchange (https://bitcointalk.org/index.php?board=53.0) forum. Then find trusted escrow, make GPG signed (http://www.glump.net/howto/cryptography/practical-introduction-to-gnu-privacy-guard-in-windows#5.1_Using_the_GPG_Clearsign_Command) contract with the seller and complete the deal. Here is an example contract involving three parties - BUYER, SELLER and ESCROW. Quote Contract # 201304201934 BUYER buys 640 BTC from SELLER for $80000 USD. 1. BUYER sends 50 BTC to ESCROW GUY's address "123DePoSiTAdDreSsXxXxXxXX123" as secure deposit. 2. SELLER sends 640 BTC to ESCROW GUY's address "234EsCrOwDePoSiTAdDreSs2XxXxXX123". ESCROW GUY keeps them until SELLER receive the wire transfer of $80000 from BUYER. 3. When ESCROW GUY receives bitcoins from SELLER, SELLER sends to BUYER a message with bank account details where to transfer $80000. The message must be signed with SELLER's bitcoin address. If SELLER doesn't know how to sign it, SELLER may send bank requisites to ESCROW GUY and he will sign it himself and then forward to BUYER. 4. BUYER sends wire transfer within 3 business days and provides SELLER with a scanned copy of wire order. 5. After wired money is deposited to SELLER's bank account, SELLER notifies ESCROW GUY, who then sends 50 BTC secure deposit from 123SecUrEDePoSiTAdDreSsXxX123 back to BUYER, and, transfers 640 BTC to BUYER's address. 6. If BUYER is unable to complete wire transfer in 10 days, the deal will be cancelled and SELLER will receive back 640 BTC held on address "234EsCrOwDePoSiTAdDreSs2XxXxXX123". Further, SELLER receives 50 BTC compensation from secure deposit on 123DePoSiTAdDreSsXxXxXxXX123. Title: Re: Purchasing Large Amounts of Bitcoin - Safest Storage Method Post by: ShakerRaiders87 on April 20, 2013, 07:06:49 AM Yes I would definitely store it offline. Just make a backup of course and also you can print out a paper backup of some wallets like Armory. I'm not sure how it works but something like that. Good luck.
Title: Re: Purchasing Large Amounts of Bitcoin - Safest Storage Method Post by: EskimoBob on April 20, 2013, 06:34:55 PM How is signing it with GPG making it any more binding?
Title: Re: Purchasing Large Amounts of Bitcoin - Safest Storage Method Post by: rippleme on April 20, 2013, 07:19:02 PM I still have a lot to learn about Bitcoins... This forum helps a great deal!
Title: Re: Purchasing Large Amounts of Bitcoin - Safest Storage Method Post by: zeroday on April 22, 2013, 08:14:57 PM How is signing it with GPG making it any more binding? Trusted escrow service will make sure that conditions of GPG signed contract are fulfilled before releasing bitcoins. Title: Re: Purchasing Large Amounts of Bitcoin - Safest Storage Method Post by: EskimoBob on April 22, 2013, 09:18:35 PM How is signing it with GPG making it any more binding? Trusted escrow service will make sure that conditions of GPG signed contract are fulfilled before releasing bitcoins. Seriously, what is the point of the GPG signature here? Anyone can generate a key pair under any name they like to. No legal and valid ID is required. This signature on that contract is actually meaningless unless the key/cert used for signing is issued by a government (certificate authority) and you have a way to check it's actually valid (read up on PKI, digital signatures and digital ID cards used in EU) You are probably better off (more legally binding) using crayons to draw a toy passport, signing it as "The lord of the BlaBlah" and attaching a copy of your colorful handiwork to this "contract". :) If this makes no sense, ask yourself: Who issued me the key/cert for signing stuff? Title: Re: Purchasing Large Amounts of Bitcoin - Safest Storage Method Post by: AskMiners.com on April 22, 2013, 10:17:00 PM 1. Install bitcoin client
2. Get address 3. Buy Coins and send them to address from 2. 4. Put password on wallet 5. SAVE/BACKUP walled.dat (to dropbox.com or gmail or amazon s3) Title: Re: Purchasing Large Amounts of Bitcoin - Safest Storage Method Post by: Come-from-Beyond on April 22, 2013, 10:21:13 PM Also, because of buying so much, is there anyway to get a discount on market rate? Hehe. From other point of view it's you who is selling so much dollars, so it's you who should give a discount. Title: Re: Purchasing Large Amounts of Bitcoin - Safest Storage Method Post by: Chakraball on April 22, 2013, 10:24:59 PM Also, because of buying so much, is there anyway to get a discount on market rate? Hehe. From other point of view it's you who is selling so much dollars, so it's you who should give a discount. Could be worse, he might trade Euros lol. Title: Re: Purchasing Large Amounts of Bitcoin - Safest Storage Method Post by: zeroday on April 23, 2013, 07:34:50 PM How is signing it with GPG making it any more binding? Trusted escrow service will make sure that conditions of GPG signed contract are fulfilled before releasing bitcoins. Seriously, what is the point of the GPG signature here? Anyone can generate a key pair under any name they like to. No legal and valid ID is required. This signature on that contract is actually meaningless unless the key/cert used for signing is issued by a government (certificate authority) and you have a way to check it's actually valid (read up on PKI, digital signatures and digital ID cards used in EU) You are probably better off (more legally binding) using crayons to draw a toy passport, signing it as "The lord of the BlaBlah" and attaching a copy of your colorful handiwork to this "contract". :) If this makes no sense, ask yourself: Who issued me the key/cert for signing stuff? GPG signatures are only needed to let Escrow provider identify buyer and seller and authenticate the conditions of their deal. Escrow is the key party here. He makes sure that both sides fulfill their liabilities. Buyer and seller don't need to trust each other, they only need to trust Escrow provider. Using trusted escrow service makes your deal even more secure than signing legal contracts, which often fail. To find trusted escrow, you may search #bitcoin-OTC which is peer-to-peer analogue to Credit Score. |