How does buying BCs in person work?

[Dr Bloggood]

I'm just trying to wrap my head around BC, learning a bit more every day.

So I want to buy BCs just an investment, not for daily usage. I figured the best way to buy them is (for security reasons) just meeting up with somebody in person and transfering their BC onto my USB-sticks.

Is this a good idea? And, uhm, ist this even possible? Any disadvantages I didn't think of?

I will just put my BCs on two or three different sticks and lock them away in seperate safe places.

If this works, how can I be sure the guy has indeed transfered the BCs to me?

Thanks!

Mr. Newton New Newbie

[qbitx]

It most likely wouldn't involve putting "them" onto a USB stick... the transaction would probably go down like this:

-You pull out your phone with a picture of a QR code.  The QR code contains a bitcoin address (that you own) for receiving bitcoins.
-The other party initiates a transaction, sending you X bitcoins
-You verify that the transaction went through by using something like an android wallet or by checking the page for your address on blockchain.info (eg: http://blockchain.info/address/<your bitcoin address here, without angled brackets>)
You should wait for 6 confirmations on the transaction if you want to be as safe as possible
-You pay him $$$ once you verify the transaction has gone through

[Dr Bloggood]

Ok, buy it it it!   

Thanks for the answer, the thing is though, I don't even have a smartphone and I would feel a lot saver having my BCs locked away far from the internet, because I don't know enough about the risks of my wallet being hacked, etc, etc.. Besides, as I won't be using them for some time, there is absolutely no need to put them on my phone.

So just do it like the Winklevoss twins and physically lock the good digital stuff away for some time!

Is the USB-solution possible?

[qbitx]

Ok, buy it it it!   

Thanks for the answer, the thing is though, I don't even have a smartphone and I would feel a lot saver having my BCs locked away far from the internet, because I don't know enough about the risks of my wallet being hacked, etc, etc.. Besides, as I won't be using them for some time, there is absolutely no need to put them on my phone.

So just do it like the Winklevoss twins and physically lock the good digital stuff away for some time!

Is the USB-solution possible?

You could store a "wallet" file on a USB stick and hide the USB stick away to serve a similar purpose as a paper wallet.  The "wallet" file will just contain your private key(s).  The USB stick would -not- be involved in any way in the transactions, however.  You would want to generate the "wallet" file on your USB stick and just put it in a safe or whatever...

For example, This site allows you to generate bitcoin addresses.  While I personally do not recommend generating your wallet online like this, this site is good for example purposes.  Once you generate an address on the site, it will show two things with the labels "SHARE" and "PRIVATE".  the "PRIVATE" data is what you will store on your USB stick in a safe somewhere - and the "SHARE" data is what you will need to bring with you for transactions.

So... instead of using a smart phone, you could like print out a QR code.  Now during the transaction, the other person will scan the QR code to know where to send the bitcoins, and initiate the transaction.

Once the transaction is initiated - you need to find some way to verify it.  Without a smart phone or some sort of device with internet connectivity it is impossible to verify that the transaction has gone through the block chain I'm afraid.  Once you've verified that the transaction has gone through though, the bitcoins are now in your 'wallet'.

Even though nothing has physically been transferred onto your USB stick (it should still be in a safe place with your "PRIVATE" data), the new bitcoins are now associated with your bitcoin address because of the transaction - and the USB stick has the private keys on it that basically allow you to say that "Yes, I own this bitcoin address" which allows you to do what you want with the new bitcoins at a future date.

[DannyHamilton]

Is the USB-solution possible?

What exactly are you going to put on the USB stick?

How are you planning on getting it (whatever it is) onto the USB stick?

[Dr Bloggood]

Ok, buy it it it!   

Thanks for the answer, the thing is though, I don't even have a smartphone and I would feel a lot saver having my BCs locked away far from the internet, because I don't know enough about the risks of my wallet being hacked, etc, etc.. Besides, as I won't be using them for some time, there is absolutely no need to put them on my phone.

So just do it like the Winklevoss twins and physically lock the good digital stuff away for some time!

Is the USB-solution possible?

You could store a "wallet" file on a USB stick and hide the USB stick away to serve a similar purpose as a paper wallet.  The "wallet" file will just contain your private key(s).  The USB stick would -not- be involved in any way in the transactions, however.  You would want to generate the "wallet" file on your USB stick and just put it in a safe or whatever...

For example, This site allows you to generate bitcoin addresses.  While I personally do not recommend generating your wallet online like this, this site is good for example purposes.  Once you generate an address on the site, it will show two things with the labels "SHARE" and "PRIVATE".  the "PRIVATE" data is what you will store on your USB stick in a safe somewhere - and the "SHARE" data is what you will need to bring with you for transactions.

So... instead of using a smart phone, you could like print out a QR code.  Now during the transaction, the other person will scan the QR code to know where to send the bitcoins, and initiate the transaction.

Once the transaction is initiated - you need to find some way to verify it.  Without a smart phone or some sort of device with internet connectivity it is impossible to verify that the transaction has gone through the block chain I'm afraid.  Once you've verified that the transaction has gone through though, the bitcoins are now in your 'wallet'.

Even though nothing has physically been transferred onto your USB stick (it should still be in a safe place with your "PRIVATE" data), the new bitcoins are now associated with your bitcoin address because of the transaction - and the USB stick has the private keys on it that basically allow you to say that "Yes, I own this bitcoin address" which allows you to do what you want with the new bitcoins at a future date.

Awesome, that was a very useful answer, I'm starting to get it!

So I need some form of wallet anyways, right? I wouldn't have any BCs on my USB stick directly, but just my private key, which I could hold by paper etc. too, right?

In that case, I would just scratch the USB stick and go with a paper wallet directly. Got it. What's the difference between just printing the "Single Wallet" on bitadress.org and printing a paper wallet?

You say you wouldn't recommend generating a wallet like this, so what's a better way to do it?

[Dr Bloggood]

...
Is the USB-solution possible?

Tbh, its kind of pointless You can use a laptop but all you really need to do is check the transaction. Print out a qr code of the address and the vendor can scan it and send the coins to it. If they have a way of sending coins then they have a way of checking the address on blockchain.info so you can see its gone onto the network. Its safer doing it that way as you don't carry your wallet but its better if you have a smartphone etc. to check the transaction for your self.

Ok, understood. New questions arise (see above).

[PenAndPaper]

So I need some form of wallet anyways, right? I wouldn't have any BCs on my USB stick directly, but just my private key, which I could hold by paper etc. too, right?

In that case, I would just scratch the USB stick and go with a paper wallet directly. Got it. What's the difference between just printing the "Single Wallet" on bitadress.org and printing a paper wallet?

You only need to go with your bitcoin address. The private key (of that address) is for you and you 'll use it when and if you are going to spend the funds from that address.

Also you have to be sure that the transaction has at least 1 confirmation before paying the other guy. (Usually people recommend 6 although this is an overkill and not so practical for person to person transactions.)

Last but not least keep in mind that you are going to meet with a person that you probably don't know while he knows that you 'll be carrying a lot of money with you.  

[Dr Bloggood]

Is the USB-solution possible?

What exactly are you going to put on the USB stick?

How are you planning on getting it (whatever it is) onto the USB stick?

I guess putting my code on there directly doesn't work, so no USB, just a wallet now.

[Dr Bloggood]

So I need some form of wallet anyways, right? I wouldn't have any BCs on my USB stick directly, but just my private key, which I could hold by paper etc. too, right?

In that case, I would just scratch the USB stick and go with a paper wallet directly. Got it. What's the difference between just printing the "Single Wallet" on bitadress.org and printing a paper wallet?

You only need to go with your bitcoin address. The private key (of that address) is for you and you 'll use it when and if you are going to spend the funds from that address.

Also you have to be sure that the transaction has at least 1 confirmation before paying the other guy. (Usually people recommend 6 although this is an overkill and not so practical for person to person transactions.)

Last but not least keep in mind that you are going to meet with a person that you probably don't know while he knows that you 'll be carrying a lot of money with you.  

What do you mean by "at least one confirmation"? How can there be several confirmations for the same deal?

The guy will not be anonymous to me, I found people with open identities and their name spread out all over their business homepage. I'm also thinking about doing a short, handwritten contract.

On an unrelated note, where does your nickname come from? I almost bought a domain of that name, if I remember correctly, but then started my blog on a different one.

[PenAndPaper]

A transaction is considered confirmed (1 time) when included in a block. When another block is added afterwards we say that the transaction is now confirmed 2 times and so on...

On an unrelated note, where does your nickname come from? I almost bought a domain of that name, if I remember correctly, but then started my blog on a different one.

lol. I used to play pnp rpgs 

[Dr Bloggood]

Why would the same transaction be confirmed in several blocks?

And why do I need more than one block? I guess there are usually no errors in the blocks!?

And rpgm is role playing game, i suppose, haha!

[PenAndPaper]

Why would the same transaction be confirmed in several blocks?

And why do I need more than one block? I guess there are usually no errors in the blocks!?

And rpgm is role playing game, i suppose, haha!

To mitigate the risk from network attacks, orphan block etc.

[qbitx]

Awesome, that was a very useful answer, I'm starting to get it!

So I need some form of wallet anyways, right? I wouldn't have any BCs on my USB stick directly, but just my private key, which I could hold by paper etc. too, right?

In that case, I would just scratch the USB stick and go with a paper wallet directly. Got it. What's the difference between just printing the "Single Wallet" on bitadress.org and printing a paper wallet?

You say you wouldn't recommend generating a wallet like this, so what's a better way to do it?

"So I need some form of wallet anyways, right? I wouldn't have any BCs on my USB stick directly, but just my private key, which I could hold by paper etc. too, right?" - Correct

In that case, I would just scratch the USB stick and go with a paper wallet directly. Got it. What's the difference between just printing the "Single Wallet" on bitadress.org and printing a paper wallet? - It looks like the paper wallets actually have a clean format and can have multiple bitcoin addresses associated with them, while the single wallet is just the one and it's not formatted all 'pretty' and such

You say you wouldn't recommend generating a wallet like this, so what's a better way to do it? Generating a wallet online is fine - I just don't completely trust that sites are not sending a copy of the private key data to themselves as well.  It could be verified, since the site is written mostly in javascript, but I just don't personally feel comfortable using an online service like that.  They could very easily switch out the javascript at any moment with 'malicious' javascript and the users would most likely never notice until their bitcoins are stolen at some later date down the road.  As with most things bitcoin-related though, it's basically a trust exercise...

To generate your address on your computer locally, you could use something like 'Vanitygen' (Google it) to generate a bitcoin address (the part you share) as well as the associated private key.  Then you could just print out the private key as is in plaintext for storage purposes - Then perhaps make a QR code from the bitcoin address and print that out as well so you can receive bitcoins from people.

[NorthFreedom]

Meeting up with someone in person is always risky if you don't know them in advance. I would advise that you bring at least one friend and meet in a very public place. After the Bitcoins have been transferred to you, make sure that you don't leave until they have been fully "confirmed" with 6 transactions.

Also be sure to check market prices to make sure that you aren't paying too much in the transaction.

Finally, check out other coins that are promising like Peercoin (PPC) and Litecoin (LTC).

[Mondy]

It most likely wouldn't involve putting "them" onto a USB stick... the transaction would probably go down like this:

-You pull out your phone with a picture of a QR code.  The QR code contains a bitcoin address (that you own) for receiving bitcoins.
-The other party initiates a transaction, sending you X bitcoins
-You verify that the transaction went through by using something like an android wallet or by checking the page for your address on blockchain.info (eg: http://blockchain.info/address/<your bitcoin address here, without angled brackets>)
You should wait for 6 confirmations on the transaction if you want to be as safe as possible
-You pay him $$$ once you verify the transaction has gone through

Make sure the transaction is confirmed!

And dont pay cash before he sends it. Some sellers have been known to run with the money. Good luck

[xchanga.com]

really amazing things here.
learnt a lot now.
thanks all.

[Dr Bloggood]

Thanks for your help everybody!

qbitx, you have a talent for explaining things in a simple, understandable way!

And dont pay cash before he sends it. Some sellers have been known to run with the money. Good luck

Haha, that's bad! Does anybody know how it is usually done in Europe? Does the money transfer or the BC transfer come first?

[DannyHamilton]

Thanks for your help everybody!

qtix, you have a talent for explaining things in a simple, understandable way!

And dont pay cash before he sends it. Some sellers have been known to run with the money. Good luck

Haha, that's bad! Does anybody know how it is usually done in Europe? Does the money transfer or the BC transfer come first?

In general, I'd advise:

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

Bring a friend.

Arrive early.

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

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).

[Gator-hex]

You meet in a cafe that has wifi and share a coffee while waiting for the transaction to complete.

Using mobile phones rather than laptops help make you look a little less like a spies exchanging swiss bank accounts!