Newbie with questions, please help :)

[Blippable]

Hi Guys,

I'm looking for some help with some questions that I have about buying BTC's

I'm reading and searching the web for days now in how to buy some BTC's safe so they don't get stolen.
I found some tutorials on youtube about making a cold wallet, and this looks like the best option for me, because i'm not really into computers that much and safety of them. For the interested people see link below.
( http://www.youtube.com/watch?v=K0cGvUFBNEQ )

1) Now I want to buy them with cash money and I found a website ( www.localbitcoins.com) where they give that option to do so.
But here it is.... If I give him the money for the BTC's I want to buy and I give him the Public key, and he deposits the BTC's in my wallet.
So i'm guessing I have to check on my computer if they are also in my wallet, but then i'm online with it so, am I exposed now with any danger? And when I come home can I split them up offline in different wallets that I made (like the video)?

2) Now I want to buy LTC's, do I have to sell my btc's first for money, and then to buy ltc's back on (like) BTC-E?

3) I want to trade them on BTC-E but is it safe to have all of them there in the wallet or how does this work???

Thank you for reading,and hoping you can help me out here!
sorry for the realy nooby questions )

[mintyfreshblast]

First, you don’t buy public keys. they are generated by the software you are using as a bitcoin wallet. If you buy bitcoins locally, you will be meeting up with a guy somewhere then you pay him for the amount of coin you want, along with your public key, and then he proceeds to send you the bitcoins. the best thing to do in that situation is set up a wallet on your mobile device and make the seller send the coins to an address tied to that wallet, so that you can see when they arrive and ensure that you got the correct amount of coin. you can then send them to your other wallets as you see fit.

as far as online wallets go, you are exposed to the danger for sure, but as long as you send you bitcoins to an offline wallet soon after, you shouldn’t need to worry. also i dont see a point in using other crypto-currencies, but that is a matter of opinion.

hope this helped!

[BurtW]

See my response here for a quick tutorial on the logistics of using localbitcoins:

https://bitcointalk.org/index.php?topic=288051.msg3087780#msg3087780

[Blippable]

Thank you for you fast reply,

About the public key, I know I don't buy them... maybe I explained it wrong in my first message.

So I meet up with the guy, I pay... he sends... I check, and then I send to a other public (offline) key of mine?

But what if i want to check it for sure that it went all ok, then I have to open the wallet again online, because it probably has to have a connection to go to the wallet.

The reason for me to buy LTC's is because they are still pretty low to purchase, and hoping to make some profit with these once because I feel I missed the train with the BTC's ( I quess )

And maybe somebody can answer the question I had about how to trade then BTC's for LTC's, how does this work if I did all of the above.

Thanks again, really helping me out here!!! greets

[mintyfreshblast]

well thats the whole reason for setting it up on your phone, is so that you can confirm the seller has sent you the correct amount before you ever leave the meeting area. if you want to make sure the funds made it to your offline wallet then you would have to pull up your offline wallet onto a computer, then you will have to get the wallet online so that it can sync with the blockchain (which represents every transaction ever) that has been growing since the wallet was taken offline. once the wallet has the up-to-date info on the blockchain, it will accurately show the amount of coin stored in that wallet, and you can take it offline again.

also be careful with local buys/sales. make sure you are in a public place and that both parties know exactly when, where, how much, etc before you meet. its easy to lead someone to a dark ally with promises of cheap bitcoin sales and leave with all their money.

[Blippable]

Thanks again 

And I would meet up in a public place, like in the lobby of hotel or similar.

[bumpk1nK]

So I meet up with the guy, I pay... he sends... I check, and then I send to a other public (offline) key of mine?

Keep yourselves, out of problems and use exchange.

3) I want to trade them on BTC-E but is it safe to have all of them there in the wallet or how does this work???

No, Install litecoin-qt wallet on your computer or generate paperwallet liteaddress.org in offline mode

[BurtW]

So I meet up with the guy, I pay... he sends... I check, and then I send to a other public (offline) key of mine?

Keep yourselves, out of problems and use exchange.

This is bullshit FUD.  I have done dozens and dozens of in person trades in well lit public places with free public WIFI and never had even the slightest indication of an issue.

localbitcoins.com is a great way to buy and sell Bitcions.  In the event of a banking/goverment shutdown of your ability to get your USD on or off exchanges it may be the only way to buy and sell Bitcoins.  I fully support its operation and growth and you should too.

Also, as a buyer you do not even need a phone, or even have to take a phone or computer with you to the trade!  All you need is to take a piece of paper with (or memorize) your release code to the trade.  If the seller can show you the release code on their phone you know the BTC have been transferred to your localbitcions account.  That is all there is to it.  For more information re-read this:

https://bitcointalk.org/index.php?topic=288051.msg3087780#msg3087780

[DannyHamilton]

So i'm guessing I have to check on my computer if they are also in my wallet, but then i'm online with it so, am I exposed now with any danger?

I think you can set up a "watching only" wallet at blockchain.info or on your own online computer with Armory.  These wallets can verify that the transaction has been confirmed to the desired address.  Then as long as you are confident that you have the correct private key for the address, you won't have to put a computer online that has the private key.

2) Now I want to buy LTC's, do I have to sell my btc's first for money, and then to buy ltc's back on (like) BTC-E?

You can find individuals that will sell you LTC directly in exchange for BTC.  I think you can do the same at BTC-E, but I've never tried.

3) I want to trade them on BTC-E but is it safe to have all of them there in the wallet or how does this work???

It depends on what you mean by "safe".  If BTC-E is hacked, or is shut down, your coins will be lost permanently.

[odolvlobo]

You can check any public address here: http://blockchain.info/ or here: http://blockexplorer.com/. Blockchain.info is more user-friendly.

If you want to use the bitcoins, you cannot keep them in a cold wallet. You will have to first transfer them to a hot wallet.

[Dr Bloggood]

So I meet up with the guy, I pay... he sends... I check, and then I send to a other public (offline) key of mine?

Keep yourselves, out of problems and use exchange.

This is bullshit FUD.  I have done dozens and dozens of in person trades in well lit public places with free public WIFI and never had even the slightest indication of an issue.

localbitcoins.com is a great way to buy and sell Bitcions.  In the event of a banking/goverment shutdown of your ability to get your USD on or off exchanges it may be the only way to buy and sell Bitcoins.  I fully support its operation and growth and you should too.

Also, as a buyer you do not even need a phone, or even have to take a phone or computer with you to the trade!  All you need is to take a piece of paper with (or memorize) your release code to the trade.  If the seller can show you the release code on their phone you know the BTC have been transferred to your localbitcions account.  That is all there is to it.  For more information re-read this:

https://bitcointalk.org/index.php?topic=288051.msg3087780#msg3087780

Great post!

Two questions:

Who is supposed to give it away first, the buyer or the seller?

Also, how would you make sure there is no trace left of your key code online (from where you print it)? How big is the risk of leaving traces?

[MicroGuy]

2) Now I want to buy LTC's, do I have to sell my btc's first for money, and then to buy ltc's back on (like) BTC-E?

There are numerous exchanges that facilitate the direct exchange of cryptocurrencies. I'm in the US and like https://www.cryptsy.com/.

[DannyHamilton]

Great post!

Two questions:

Who is supposed to give it away first, the buyer or the seller?

Most of the transactions I've done, the person with the less significant reputation pays first, it is generally a pretty casual exchange.

If you feel a need for a formal set of steps, and it isn't clear who has more reputation I'd probably handle it this way:

• The person paying with cash counts the cash out onto the table
• The person sending the bitcoins verbally states the amount of bitcoins to be sent and the bitcoin address he will send to (I've also written it down as a "receipt" at times)
• The person paying with cash verbally indicates agreement with the stated information (if you're really nervous about it, I suppose you could have them sign the written receipt)
• The bitcoins are sent
• The person receiving the bitcoins verbally confirms that they have received the transaction with an appropriate number of confirmations
• The person receiving the cash counts it again and picks it up
• Both parties to the transaction leave, happy with an issue free and sucessful transaction

In general, I'd advise:

Arrange a meeting time when you won't be in a hurry.

Meet in a public place (not an abandoned building, or a dark alley).

Bring a friend.

Arrive early.

If you're extremely concerned, you can do the following for added security:

• Meet in a place with higher value targets than yourself
• Meet in a place with some level of security (bank, casino, etc)
• Wear a good pair of running shoes.  Not sandals or any type of "dress shoe".
• Choose a place to sit and wait that is not close to the nearest exit.
• Have your friend sit and wait near the nearest exit.  If the person you are exchanging with tries to "grab and dash", your friend can get between the thief and the exit.

I've engaged in hundreds of face-to-face transactions, and I haven't had a single issue yet.  There is, however, always a possibility that you'll encounter a thief (that's true in life even if you aren't trying to exchange bitcoins).

Also, how would you make sure there is no trace left of your key code online (from where you print it)? How big is the risk of leaving traces?

BurtW is referring to a "verify code" that is supplied to you by localbitcoins if you choose to use their "transaction service".  If you use that service, localbitcoins will charge the advertiser a fee of 1%.  Once the bitcoins are released to you from the transaction service, the verify code becomes useless, so there is no need to worry about "leaving traces".

If you prefer not to use the localbitcoins transaction service, you can simply provide the bitcoin seller with your bitcoin address (from your bitcoin wallet, or that you generated offline when you generated a "paper wallet").  The seller can send directly to the bitcoin address you provide them.  In this case you'll want to have a method with you to check and see that the payment has actually been made. This can be done with a laptop computer or a smartphone. If you don't have either one, then you can call someone at home and have them verify for you that the payment has been received.