Bitcoin Forum

Hello,

I live in a small town where Bank of America, Credit Unions and other lesser known banks are. BoA was pretty much my go to place since they were the only ones who didn't require ID but they do now (as of November). I just want to know what the dangers are of presenting my ID to the teller and what they do with the information.

Are there any other safe alternatives? I don't know how safe it is to meet the seller in person with cash for a bitcoin transaction

They need to keep a record of transactions and information about the person for KYC purposes.  It basically is to make sure that the money isn't being used illegally and that the proper taxes are assessed.  As long as your not doing anything illegal it really shouldn't matter if you give them your ID or not.

Localbitcoins is a great way to buy bitcoins with cash.  I probably meet someone every other day and have never had a problem.  You just have to find a trustworthy person and meet in a public space.  I always meet at McDonalds and just sit in clear view of the counter.  Always goes flawlessly.

As long as your not doing anything illegal it really shouldn't matter if you give them your ID or not.

of course, but becuase of the stigma around bitcoins I would prefer to avoid unwanted attention from the "authority." I guess that would be my concern.

Ok, then don't use a bank transfer.  Localbitcoins is a great way to get bitcoins, you will be paying a higher premium though, so that's the other side to consider.  You could also try buying giftcards (such as WalMart) and selling them on the forums, although it could be tough with a newbie account as trust is a pretty big factor.

EDIT:  BTW, the only time the authorities would get your information is if there was a need for it.  Just because the bank takes your ID, doesn't mean they send it to any government agency.  They simply do it incase the government comes asking (which in my opinion, if your just transferring money to an exchange or something, there is a very very almost zero small chance it would be an issue.)

if the exchange is hacked in some way, the hacker can steal your credentials, and use it for criminal activity, this is why i try to avoid to send my data

There are other ways to get your bitcoins which is PayPal.I don't recommend using the ID's as it destroys the anonymity of the buyer which could be used for destructive purposes .If you can find out a trusted dealer nearby your area who accepts cash for the bitcoins,you can always contact him.Localbitcoins is a good alternative for finding such dealers.

Paypal is not a secure method of payment to buy bitcoin ;) (because it is reversible). Here the better way (as the other have suggested) is localbitcoins, with cash.

If you can find out a trusted dealer nearby your area who accepts cash for the bitcoins,

Are you talking about meeting the seller and person and using cash? I do use localbitcoins and have foound someone with a good reputation locally. My question is this:

How would I prove to the admin that I paid the seller cash in person should the deal turn sour? With bank deposits, all you need is a receipt, but what kind of proof would you have if the exchange was made in person? Sorry, still a newbie to the bitcoin market. Thanks!!!

AFAIK there really isn't any way to prove that the exchange took place. Some people will simply take the money and run. One thing you can do to make it safer is to do the transaction in a public place with a lot of people. This protects against physical violence and if you just start shouting "thief" and chasing the guy if he runs then I'm sure there will be someone nearby that also chases him and tries to tackle him.

ya it is true i have read so many threads which clearly states that paypal is not a secure method even they are asking full account verified with documents but due to their reversible transaction without getting full detail from both side is a negative for that site.

Localbitcoins i have sold many times my bitcoins through that site and i received my money in my bank and then i am releasing the bitcoins. the way they are using escrow is very good. In person trading i have not done so cannot comment on that.

By your argument then, as long as the bank is doing nothing illegal, it shouldn't matter if the teller gave you their ID or not, right?


The danger is simply a risk that the bank might harm you in some way. The risk is low, but it is not 0. My experience has been that localbitcoins face-to-face transactions are safe. I've done many over the last several years and I have never had a problem or felt like I was ever in any kind of danger. Just don't do anything you wouldn't otherwise do with some random stranger on the street.

I know you live in a small town, but If you can find a bitcoin meetup in a nearby city I am sure there are people willing to sell btc for cash. I am waiting for one in the midwest.

You can use VirWox, the fees are high but I've used them in the past with no problems, they are legit. One can understand why they charge such high fees and it is because of the risk they face accepting Paypal but you should know you have that option if you want.

This thread sadly gives some actual insight of the stigma Bitcoin has for the average person. Plus is not very easy to get a hold of or to use (again for common non tech savvy people). And users here sometimes are surprised why there is not more mainstream user adoption.

The danger is simply a risk that the bank might harm you in some way. The risk is low, but it is not 0. My experience has been that localbitcoins face-to-face transactions are safe. I've done many over the last several years and I have never had a problem or felt like I was ever in any kind of danger. Just don't do anything you wouldn't otherwise do with some random stranger on the street.

Thank you. Does anyone know what the procedure is for a bitcoin transaction in person? Do I just hand them the money and be on my way or do I bring my laptop and ensure that the bitcoins get deposited while I have them with me? Again, I'm new to the bitcoin thing, so bear with me for wanting specifics.

Also, what reason would a bank have to "harm" me? Thanks!

They wouldn't necessarily be out to harm you, but they might just not care because your safety and the safety of the information you give them is not their concern. For example, they could be hacked by an identity thief. They could sell your information to marketing firms. They could file a Suspicious Activity Report on you.

Online bank purchase is always danger from online hackers..
But in case of btc there is nothing like this.. if you want to buy btc then deposit money in their acc manually.. do not use cards online more..
Hacker can get your card information and use it for online purchases and he runs aways... there are no chances except some cases to catch him/her..
So take care.

You need to always fulfill the KYC needs of the bank. You don't have to think the negative way.

Personally, I do not mind giving my id in order to buy bitcoin in a more convenient way. I do not feel every hacker in the world is after me to steal my coins or cash and use it for criminal activities. There is a risk that happens perhaps, but I feel it is not worth the pain to try to make every transaction absolutely private.

Ok, then don't use a bank transfer.  Localbitcoins is a great way to get bitcoins, you will be paying a higher premium though, so that's the other side to consider.  You could also try buying giftcards (such as WalMart) and selling them on the forums, although it could be tough with a newbie account as trust is a pretty big factor.

BTW, the only time the authorities would get your information is if there was a need for it.  Just because the bank takes your ID, doesn't mean they send it to any government agency.  They simply do it incase the government comes asking (which in my opinion, if your just transferring money to an exchange or something, there is a very very almost zero small chance it would be an issue.)

When I purchase my coins via a service that sends the coins direct to my PC wallet, or simply withdraw coins from an exchange, I let them go through Bitmixer first, to get fresh coins in return. This way I don't have to worry about my privacy.

The problem is that it is up to them (with the guidance of the U.S. government) to decide what is appropriate, not you.

For example, here is the official list of activities (supposedly now defunct) which were considered "inappropriate":


Coinbase has a list like this. If they believe you are involved in any activities on their list, they will file a Suspicious Activity Report on you. They might also ban you.

  Cable Box De-scramblers
    Coin Dealers
    Credit Card Schemes
    Credit Repair Services
    Dating Services
    Debt Consolidation Scams
    Drug Paraphernalia
    Escort Services
    Firearms Sales
    Fireworks Sales
    Get Rich Products
    Government Grants
    Home-Based Charities
    Life-Time Guarantees
    Life-Time Memberships
    Lottery Sales
    Mailing Lists/Personal Info
    Money Transfer Networks
    On-line Gambling
    Pawn Shops
    Payday Loans
    Pharmaceutical Sales
    Ponzi Schemes
    Pornography
    Pyramid-Type Sales
    Racist Materials
    Surveillance Equipment
    Telemarketing
    Tobacco Sales
    Travel Clubs


wow...lol. Isn't that everything and anything bitcoins can be used for?

No, that is just a bunch of illegal and sketchy stuff. Bitcoin can be used for everything else that isn't banned and is legit. Bitcoin can be used for everything that fiat can be used for as well. Just so you know, that list doesn't apply just to Bitcoin, it applies to fiat as well. 

I don't think you actually read the list. You feel that coin dealers, dating services, firearm sales, money transfer networks, online gambling, pornography, and surveillance equipment are all illegal or sketchy?

I read most of it. Probably should have said most of them are illegal and sketchy. But online gambling can be illegal, porn is kinda sketchy, and so is surveillance equipment depending on the equipment being sold. Firearm sales are kinda illegal, depends on the firewarms, and money transfer networks seem pretty sketchy. Coin dealers could be scams and have some sketchiness in them and dating services don't particularly seem safe to me as your date could be dangerous, so kinda sketchy.

When I purchase my coins via a service that sends the coins direct to my PC wallet, or simply withdraw coins from an exchange, I let them go through Bitmixer first, to get fresh coins in return. This way I don't have to worry about my privacy.


What do you mean by bitmixer? Are you talking about something like blockchain? And how does that help with privacy? What about VPN's? Thanks!

bitmixer is a coin mixing service. They make it very difficult for someone to trace your coins so it provides anonymity. VPNs and Tor won't help since IP addresses do not have a part in the Bitcoin network.

VPN and Tor can hide your using IP associated with the transactions since we know some tools can track the IP of transactions then know your location.

Not true. There is nothing (short of a sybil attack) that can track the IP address that a transaction originated from. Transactions do not contain the IP address of the sender, it is not necessary information. Block explorers like blockchain.info only report the IP address of the node that first relayed the transaction to them, not the IP address from which the transaction originated.