Bitcoin Forum

I've never made a bitcoin transaction so this will be my first, need some advice!

i need to pay in cash, $500 worth of USD to buy bitcoins

is this the way i should do this and standard?

we meet in public place
i show him the cash
he transfers to my wallet
i verify it's in my wallet
i hand over the money

please let me know what you suggest is the best way to protect myself

Wow, that is a fun adventure.  Obviously bring a smart-phone with a wallet app installed and wait for the actual transaction to appear in that wallet.  I use coin.space for a portable wallet.  The wallet itself should cover an appropriate number of confirmations so you don't have to deal with it.  Copy and paste the TX ID somewhere in a document in the phone and email it to another person, just to confirm the date and time.  Biggest thing is that even a few confirmations can take a long time.  Find an outside restaurant because you could be there a few minutes or even an hour or more.  Have fun and don't hand that money over until the transaction is in your wallet history.

I wouldn't really suggest you to do this kind of transaction in person. You will have to wait a very long time for the transaction to get confirmed.

thanks for replying

but i need to pay in cash, so how else could i do it if paying in cash?

There really is no other ways to buy Bitcoins in cash. You should just put the money in your bank account and buy Bitcoins with paypal.

yeah, that is the general idea when buying bitcoin with cash.
you meet up and change cash face to face with the seller. but you have to keep in mind a couple of important things.
1. meet in a public place like a coffee shop or a mall not in a car or a dark alley! and do the exchange in the public place.
2. bring your own smart phone, ipad,... to check the transaction and see the confirmation on your own.

make sure to read this before doing anything:
http://www.coindesk.com/bitcoin-stolen-new-york-gunpoint-robbery/

one guy replied to me already, he said i must pay him first though, then he'll transfer
and this in public place

he could just run though!

Yeah meet at public place is a good idea like mall or coffee shop, if the meeting place has a security guard is better, but if you still doubt, bring some friends to accompany you while doing the transaction, or maybe you can buy it online using paypal or something so its safer..

If it is a funded transaction, the sender will be localbitcoins. I prefer a funded transaction as opposed to one where the seller sends you coins directly from his wallet. That way if there are any issues regarding non-confirmation you can take it up directly with localbitcoins support instead of having to hunt down the seller.

For example, once the seller releases the transaction from localbitcoins escrow and the buyer sees the tx broadcast to his wallet, the buyer can give the cash and both parties can walk away immediately.

What do you mean by you should pay it first ? if you are doing cash trade then ask any third party to keep the cash and just wait until he releases the coins.If the money is important to you then go with a Cop.

It depends on the profile on localbitcoin you are trading with,paste the link to his id or any of his page.

If it is a funded transaction, the sender will be localbitcoins. I prefer a funded transaction as opposed to one where the seller sends you coins directly from his wallet. That way if there are any issues regarding non-confirmation you can take it up directly with localbitcoins support instead of having to hunt down the seller.

For example, once the seller releases the transaction from localbitcoins escrow and the buyer sees the tx broadcast to his wallet, the buyer can give the cash and both parties can walk away immediately.
[/quote]

hi, i'm paying in cash though, is it possible for seller to FIRST put his bitcoins into escrow at our meeting, i hand him money, then he releases into my localbitcoins account which is instant?

Once you start the trade the coins will be held in escrow by default and will be released if the trade is completed or any dispute occurs.But you should carry your laptop with you in order to avoid any risks or to prove it's you.Yes,your account will be credited instantly.

But again check the previous feedback's of the seller before trading.

hi, i'm paying in cash though, is it possible for seller to FIRST put his bitcoins into escrow at our meeting, i hand him money, then he releases into my localbitcoins account which is instant?
[/quote]

it will open up a chance for him to scam you (if he is a scammer) !

since you are dealing with cash, you won't have any proof. so he can tell the escrow you didn't even show up for the payment and takes back the deposit.

i think it is best everything is done between you two at the place.

i agree with this..

just show him the cash, have him send the coins.. make him use a huge fee like .0005 (this is important, if he sends it with no fee it could fail) and wait till it gets confirmed.. then hand the cash and leave.


if he adds a decent fee it will go quick..

My advice is to meet at some coffee shop in the early afternoon when there are a lot of people around or bring some close friend with you or tell him to survey the exchange from a distance so if the seller tries to run with the cash you could get immediate help.

Yes, you give him your BTC address and he puts his funds into LBC escrow with that address. That guarantees that he can't use those coins for another transaction at least for the time being. Later, when he meets you and sees your cash, all you has to do is press the green Release Coins button while taking your cash. Text messages / emails will be sent out to confirm the completion of transaction.

Note that it is not necessary for him to release the coins to your localbitcoins BTC address. The address you give hime could be from any wallet.

Edit: There are some bullshit comments from people on this thread who have no idea how localbitcoins escrow works. Don't listen to them. It is not the same as some guy on the forum escrow. It is automated unless something goes wrong.

@Soros Shorts

so the escrow thing with giving him cash seems safe no?
i mean, yes he could technically run away, but this profile https://localbitcoins.com/accounts/profile/israeliboy/ seems very safe to me atleast, i have zero experience, but with a profile like this, would you feel 100% comfortable giving him cash and waiting for him to press the release button?

If its noit a hacked or stolen account then id be more than happy enough to trust feedback like that. you should be able to weigh up pretty easily when you meet in person. Just make sure its a busy public place like a starbucks or something.

how would i know if it's a hacked or stolen account though?

You wont really, but id ay thats your only risk. If the account isnt bought or hacked then the guy looks legit enough. The only other thing i can think is to check id etc but im not sure if you can see that on lbt.

See OP? Buying bitcoin is as safe and no more difficult than buying crack. In the projects. At 3am.

This is exactly the best way, but I feel you need to find the right trader. You need to meet him at his place or go upon his suggestion.

You have to make your own judgment whether you want to carry $500 in the location that you agreed to meet. FWIW I was always the seller, so my focus was on how not to get jumped AFTER the transaction. I've done way more than $500, though, if that should put you at ease.

he might have a set bitcoin address that he does the sales with other than that go through his history and try to find a bitcoin address which is old then ask for a signed message from that address if he has the private keys he can sign and prove that the account is his and not sold/hacked account

I've done a lot of localbitcoins transactions, both as a buyer and as a seller, and I've never had an issue.  I take a few precautions, but so far they've never been necessary.

Typically, the localbitcoins transaction escrow is funded before we meet.

My preference is to meet in a public place (such as a fast food restaurant or coffee house).  I try to arrive earlier than the agreed time, and sit inside as far from any exit as I can, with my back to the wall so I can see who is entering, and which door they enter from. This allows me to see if the other party arrives alone or with a friend, and what direction he is likely to exit. It also means that the other party will have a distance to cover to get out which may allow me to chase, or shout, or gather information about them and their vehicle. In situations with a large amount of cash, I've had a friend come along with me and asked that friend to sit next to the most likely exit. I usually will buy a beverage from the business I am meeting in, and have it at the table with me.

It is important to remember though, that your health, and life are far more valuable than any amount of money you might lose.  If at any time before the transaction you feel concerned for your safety, you should just call it off and make other arrangements with someone else.  If, during or after the transaction, the other party becomes threatening or engages in any activity that risks your health or life (such as pulling out a knife or a gun) you and any friend you bring along should be prepared to just walk away and let the thief keep what they've taken.

Once we meet, my preference is:
The seller gets their mobile device ready to send the transaction while the buyer counts out the money for the seller to see that it's all there.  The buyer leaves the money on the table in view of the seller.  The seller then releases the escrow to the buyer and asks the buyer to confirm that they've received it.  Once the buyer confirms they've received the released escrow, the seller removes the cash from the table and re-counts it themselves in view of the buyer.  When both parties are satisfied that they've received what is due to them, they thank each other for a smooth and easy transaction and go their separate ways.  I typically remain at my seat and continue to sip at my beverage. It is obvious that I plan to finish my beverage before leaving, or if it happens to come up in conversation I mention that I'm going to finish my beverage and possibly order some food. This allows me to wait for the other party to leave and be comfortable that I'm not going to be followed when I leave.

Note that there can be variations to this scenario. There is no "standard" or "official" way of completing the transaction.  You'll need to be flexible enough to deal with any modifications.  For example, some people are uncomfortable with leaving cash sitting out on a table in public.  They may expect the cash to be exchanged discreetly.  Others might require you to complete your side of the transaction before they are willing to complete their side.  You might arrive and find that the other party is already there. Some people refuse to use the localbitcoins escrow service and will want to send or receive bitcoins directly.  You'll need to decide for yourself if someone's requirements are acceptable to you, and if not then find someone else to exchange with.

Note that, the business you are meeting at probably has more than $500 in their cash registers and office.  So, if the other party is going to use a weapon to try to get away with your cash, they can get a lot more for the exact same risk to themselves buy stealing from the business instead of you.  The other party also risks you contacting the police and being able to identify them, and they risk you leaving feedback on their localbitcoins account explaining to all future potential victims what happened.

Some risks to be aware of...

It is possible for a seller to pretend not to arrive and instead wait outside for you to leave. They now have a victim that they can wait for, knowing that you are carrying at least the specified amount of cash.  When you leave they can use a weapon to steal from you before you get to your vehicle, or they can discretely follow you and use a weapon to steal from you when you get to a less populated location (such as your house?).

If a seller sends directly to your wallet instead of using the localbitcoins escrow, it is possible for them to create a transaction that will take hours (or even days) to confirm.  They might do this on accident if they are using a poorly written wallet, or they might do it on purpose with the intention of attempting to invalidate the transaction later (before it confirms).  In either case, it can be difficult to agree on what should be done about this.  If possible, it may be a good idea to have an agreement ahead of time as to what will happen if the transaction doesn't confirm before either of you want to leave.

If a seller uses localbitcoins escrow, it is possible that they could fund the escrow but the localbitcoins service is down at the time of the transaction. It can be difficult to agree on what should be done about this.  If possible, it may be a good idea to have an agreement ahead of time as to what will happen if escrow is funded but localbitcoins is unavailable at the time of the transaction.

This is the way I planned to buy for cash.

Arrange to meet at a McDonalds (or similar cafe) with its own car park and video surveillance.
Take part of the money with you - say £100 if it's a £500 transaction.
Do the exchange, and make sure it confirms,
Then do the second or third part of the transaction.
Remember to decide who is paying for the coffee.
McD have got free wifi, so you can use a full node on a laptop to confirm, no messing with 3rd party wallets. :)

I haven't found anybody locally to do this yet.

Instead of meeting and all this stuff, you can use escrow.
It will make both parties safe

I don't think that is possible cause LBC have made the 2fa mandatory to trade any amounts and if you don't have a smart phone then you would get a printed sheet/paper with numbers.However, the user looks trusted but i wonder why don't you just do the cash deposit to his bank after starting the trade & funds held in the escrow ? There is no need to meet him and increase the risks or inconveniences.

>McDonalds
>coffee
Already failed.
Also: Handgun of dubious origin & functionality. Don't forget to bring with.

please let me know what you suggest is the best way to protect myself
[/quote]
if you do that you need to wait until your bitcoin get confirmed because you don't know when your bitcoin transaction will failed and back to the sender due to few factor,1 confirmation is enough but 2 confirmation is better
[/quote]



Minimum of three confirmations is the safest for any transaction, no matter how low it may be.