too many choices, none of them easy

[spoonbender]

Hello,
I would REALLY like to purchase some bitcoin. There are lots of exchanges out there, and over a week ago, I began the registration process with Mt. Gox, but haven't heard nary a word in reply.

In the meantime, I've been exploring options as to how to get bitcoin to an exchange, once I'm properly registered, and what I'm finding is that none of them will accept a direct credit card payment, although you can get a prepaid credit card like OK PAY and make a purchase with that. I've never used a prepaid card like that before. I notice there seems to be a pricey fee to get the prepaid card - is this a one-time fee? Does the fee have to be paid every time you charge up your prepaid card?

Am I missing something here? Why is bitcoin so hard to buy through a direct purchase?

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[pontiacg5]

Credit card charges are reversible, but bitcoin isn't.

Prepaid credit cards are harder to reverse, the terms are dependent on the exact card you choose. I'd advise you to read up on several prepaid cards if you decide to go that way.

[spoonbender]

What other options are there? How do you set them up? I've spent HOURS on this and am just as lost as when I started.

[pontiacg5]

I'm not doing the work for you, but you've found one option. The next most regular option is probably ACH bank transfers, followed by a few brokerage services like bitcoin-brokers.

[pokerFace2]

Am I missing something here? Why is bitcoin so hard to buy through a direct purchase?

Anything with easy charge back (credit cards, paypal) is not best for Bitcoin purchase - too much risk for Bitcoin seller

[DannyHamilton]

What other options are there? How do you set them up? I've spent HOURS on this and am just as lost as when I started.

The best options in order of preference are:

• Physical cash
• U.S. Postal money order
• Western Union or MoneyGram

Most of these methods are not available with the major exchanges such as MtGox, BitStamp, BTC-E, and campBX.

As such, I suggest you take a look at:

localbitcoins.com

[spoonbender]

What other options are there? How do you set them up? I've spent HOURS on this and am just as lost as when I started.

The best options in order of preference are:

• Physical cash
• U.S. Postal money order
• Western Union or MoneyGram

Most of these methods are not available with the major exchanges such as MtGox, BitStamp, BTC-E, and campBX.

As such, I suggest you take a look at:

localbitcoins.com

Thanks Danny. :-) 

I was working on a response when you replied:

I'm not asking anyone to do any work for me. I have not found a single FAQ anywhere which outlines a typical start-to-finish setup. I don't understand the process and I'm looking for an explanation so I can figure out how to proceed.

What I /think/ I understand is this:
1) I need to register with an exchange.
2) I need to set up a method to get my USD to the exchange to be converted into BTC (aka XBT???). This might be through
    a) a wire transfer/international wire transfer
    b) a prepaid credit card
    c) personal check (rare)
    d) SEPA (not available in US)
    e) other services such as Interkassa, LiqPay, Ripple, PerfectMoney, WebMoney, etc., most of which don't seem to be available in the US

Danny, you have also listed cash (personal check?) - so I would assume this would be done thru the mail?

I did check out localbitcoins.com, but there's nothing within 500 miles of where I live.

I notice that the great majority of exchanges are outside the US, and that makes it more complicated for me. I'm thinking my best bet might be to go with a US exchange such as CampBX (accepts personal checks & postal money orders) or Kraken (could set up wires, depending on fees).

I didn't realize that it was going to be so hard to just get going with this. :-(  And I didn't understand there would be multiple middlemen (the exchange and the payment service) between me and my bitcoin. Why does it have to be so complicated?

[DannyHamilton]

Danny, you have also listed cash (personal check?) - so I would assume this would be done thru the mail?

No.  Definitely not personal check.  Cash. Like $20 bills (or $50 bills, or $100 bills).  And yes, thru the mail is one option.  A better option is face-to-face exchange.

I did check out localbitcoins.com, but there's nothing within 500 miles of where I live.
I notice that the great majority of exchanges are outside the US, and that makes it more complicated for me

It sounds like you are in the U.S.

I find it quite surprising to hear that there is anywhere in the U.S. that is more than 500 miles from the nearest person listing bitcoins on localbitcoins.com

Regardless, you'll find that there are many people offering bitcons on localbitcoins in exchange for MoneyGram, Western Union, GreenDot MoneyPak, or cash deposit into their bank account.  With these options there is no need for them to be within 500 miles of you.

I notice that the great majority of exchanges are outside the US, and that makes it more complicated for me. I'm thinking my best bet might be to go with a US exchange such as CampBX (accepts personal checks & postal money orders) or Kraken (could set up wires, depending on fees).

I generally avoid the exchanges.  They are more hassle than I want to deal with.

I didn't realize that it was going to be so hard to just get going with this.

Transferring bitcoins is extremely easy. It's the paying with USD in a non-reversible manner that is difficult. The system of payments set up by the financial industry for USD is simply too easy to take advantage of for fraud.  This is one of the many benefits that bitcoin provides that gives it value.

:-(  And I didn't understand there would be multiple middlemen (the exchange and the payment service) between me and my bitcoin. Why does it have to be so complicated?

I eliminate all the middlemen by paying for my bitcoins directly.  I find someone who has bitcoins and wants USD.  I give them USD.  They give me bitcoins.  No middle-men to take fees, and no hassles.  Not complicated at all.

If you like, you can send me some money, and I'll send you bitcoins.  Here's a link to my thread with the price and payment methods that I accept:

Currently available amount of Bitcoins:
65 BTC

Current pricing:
Since, the spread between Gox and BitStamp pricing varies, I'll use whichever of the following is cheaper.

• BitStamp_last + 6%
• MtGox_last + 4%

Discounts available for large value purchases.

Payment methods I will accept:

1. Cash in Mail- You send me cash via Priority or Express mail. We lock in price and I release BTC when received.

2. U.S. postal money order in Mail - You purchase a U.S. postal money order and send it to me via First Class postage. We lock in price and I release BTC when received.

3. Western Union You send me money via Western Union for same day pickup at agent location, once picked up I release the BTC. Maximum $900 per day. Currently still available today $900.

4. MoneyGram You send me money via MoneyGram for same day pickup at agent location, once picked up I release the BTC. Maximum $900 per day. Currently still available today $900.

5. Greater Chicagoland meetup We meet up and trade cash for my bitcoins. Travel fee of $0.50 per mile if I have to travel more than 10 miles to meet you.

6. Suggest other options I'm willing to consider other options that result in cash in my hands without first passing through my bank or PayPal.

[spoonbender]

Thanks for the detailed info - it's just the sort of thing I was looking for...I'm just trying to understand how it all works so I can get my feet wet with making a few purchases. (I do live in a remote area, but I don't think I was using the localbitcoins.com search correctly, because I went back and got different results.)

What you describe sounds simple enough, but what safeguards are there that the person isn't going to rip you off? Isn't it taking a really big chance to send a nameless, faceless person $100 and trust that they'll send you the bitcoin you're expecting? Isn't there some sort of peer rating or something?

And if I choose a seller who wants money deposited to a specific bank - how does that work? Do I go to any branch of that bank, say Wells Fargo, and deposit my cash into a bank account number the seller specifies?

Or if the purchase is made using a postal money order - don't they require filling out the names of the sender and receiver?

Sorry for all the questions.

[btcranger]

http://www.teambitcoin.com/bitcoin-exchange-list/

there are some on that list do accept CC payments,

PS: Do your diligence before dealing with any exchangers!

[_Crash_]

So what site would be the trust worthiest when it comes to selling bitcoins? Would I be ok on localbitcoin?

[mearylll]

So what site would be the trust worthiest when it comes to selling bitcoins? Would I be ok on localbitcoin?

Yes, but at exchange you can get better price.

[DannyHamilton]

What you describe sounds simple enough, but what safeguards are there that the person isn't going to rip you off? Isn't it taking a really big chance to send a nameless, faceless person $100 and trust that they'll send you the bitcoin you're expecting?

Yes.  You're also taking a big chance sending a nameless, faceless person 0.10 bitcoin and trusting that they'll send you the cash you are expecting. Now you are beginning to see why the process can seem difficult and complicated when the transaction isn't between two entities that already trust each other.  localbitcoins reduces some of that risk with an escrow feature and peer rating.

Isn't there some sort of peer rating or something?

Yes.  localbitcoins has a peer rating system.  bitcointalk.org has a peer rating (trust) system.  There is also the IRC #bitcoin-otc channel's WOT rating system.

And if I choose a seller who wants money deposited to a specific bank - how does that work? Do I go to any branch of that bank, say Wells Fargo, and deposit my cash into a bank account number the seller specifies?

Exactly.

Or if the purchase is made using a postal money order - don't they require filling out the names of the sender and receiver?

In my experience only the receiver's name and address are required.  The sender does not need to supply any identifying information.

[toobigtofail]

Not to hijack, but does anyone have any experience with coinbase?  They seem easy to deal with.

[spoonbender]

What you describe sounds simple enough, but what safeguards are there that the person isn't going to rip you off? Isn't it taking a really big chance to send a nameless, faceless person $100 and trust that they'll send you the bitcoin you're expecting?

Yes.  You're also taking a big chance sending a nameless, faceless person 0.10 bitcoin and trusting that they'll send you the cash you are expecting. Now you are beginning to see why the process can seem difficult and complicated when the transaction isn't between two entities that already trust each other.  localbitcoins reduces some of that risk with an escrow feature and peer rating.

Isn't there some sort of peer rating or something?

Yes.  localbitcoins has a peer rating system.  bitcointalk.org has a peer rating (trust) system.  There is also the IRC #bitcoin-otc channel's WOT rating system.

And if I choose a seller who wants money deposited to a specific bank - how does that work? Do I go to any branch of that bank, say Wells Fargo, and deposit my cash into a bank account number the seller specifies?

Exactly.

Or if the purchase is made using a postal money order - don't they require filling out the names of the sender and receiver?

In my experience only the receiver's name and address are required.  The sender does not need to supply any identifying information.

Thank you for taking the time to answer these questions. The answers can seem obvious to an experienced person, but to a person who has never made a transaction the answers are not always obvious.

[M1SHO]

You can try Okpay . Recently they added BTC  and LTC ! Most of the exchanges accept Okpay.

[willerdup]

Hey try with localbitcoins or try buy sell section on this forum. You get lot of reputed people who are seriously exchanging btcs for other currencies.

[Splork]

It looks like majority of people at localbitcoins have dozens and hundreds of transfers without any negative feedback. Pretty decent results actually.

[riverside]

Hey try with localbitcoins or try buy sell section on this forum. You get lot of reputed people who are seriously exchanging btcs for other currencies.

I agree with this.

However, carefully deal when you are exchanging for westernunion and paypal. okpay might be an added advantage.

[BTCNations]

there is some good members who can make it for you, like DannyHamilton, with good feedback in exchange subcategorie.