Probably a stupid question.

[btcduster]

Hello, I want to buy bitcoin, how can I be sure that they were not used for any shady business?  If I buy directly from a person, what is the chance that I will have problems later?  Do I only have to buy from exchanges?
Please, forgive my ignorance.

[1715676007]

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[1715676007]

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[Charles-Tim]

Do I only have to buy from exchanges?

To avoid doubt, you can buy bitcoin using bitcoin atm. But there are still only few bitcoin atm existing in the world. And for convenience, you can use mycelium to purchase bitcoin locally. There are exchanges like hodlhodl and bsiq, they are p2p exchanges with no kyc required, you can purchase bitcoin from such exchanges. But be careful, of scammers. But not compulsory to buy from exchanges, you can by from someone you know. You also need to be careful to avoid scam and harm.

Hello, I want to buy bitcoin, how can I be sure that they were not used for any shady business?  If I buy directly from a person, what is the chance that I will have problems later?
Please, forgive my ignorance.

If the bitcoin transaction is already confirmed, you have no problem. But be careful. Check the link below.

https://bitcointalk.org/index.php?topic=5269045.msg55000212#msg55000212

6. Meet in Person
There are some ways bitcoin can be bought or sold locally, the counterparty can request to meet you personally before making any trade. This can be very dangerous as the counterparty can rob the buyer or seller. Also, another issue is exchaning fake fiat for bitcoin. Certain precautions must be followed in a way no one will scam another. Using p2p exchanges to escrow the funds will be a good option, and also all possible things you can think to make the exchange successful is good, like having a bodyguard around.

[jackg]

Check your country's money laundering policy. I've had no problem buying and selling bitcoin at all - although my countries limit before you have to do kyc is €15000.

Realistically you shouldn't face any problems and if you don't put the funds directly onto an exchange (as in get the buyer to deposit directly) then you shouldn't face a problem.

And yeah clue yourself up on what can be charged back and how secure a confirmation is to decide the threshold you want to accept (I'd recommend 3 confirmations - ~20 minutes after the first confirmation on average).

[NeuroticFish]

Almost like with cash, you don't really know.
There are companies (very few) that can do the tracking (between some limits) but you probably won't use them.
Some of the exchanges do shallow check and may lock certain inputs or deposits.
But no, you don't know the coins are really clean.

If you really want clean coins there are miners that offer fresh coins, but they cost more. Again, it's not a much used service.

All in all, the chance you know the history of your coins is small, but nobody cares much. Did you ever cared how dirty your cash is?!

[bitmover]

Hello, I want to buy bitcoin, how can I be sure that they were not used for any shady business?  If I buy directly from a person, what is the chance that I will have problems later?  Do I only have to buy from exchanges?

You will not have problems later. If you have any problems, they will be immediately.
Buying through exchanges is usually a lot safer, as some exchanges trade millions and millions of dollars everyday, so they are not going to steal your money. However, unless you know who the person you want to buy your bitcoin is, it is like a shot in the dark (you can get scammed or not).

If you buy from exchanges, immediately move your bitcoin to your personal wallet. I recommend Electrum, from electrum.org

[btcduster]

Thank you for your answers.
The current financial system has collapsed so much that it cannot be compared at all to the opportunities offered by bitcoin.

Almost like with cash, you don't really know.
There are companies (very few) that can do the tracking (between some limits) but you probably won't use them.
Some of the exchanges do shallow check and may lock certain inputs or deposits.
But no, you don't know the coins are really clean.

If you really want clean coins there are miners that offer fresh coins, but they cost more. Again, it's not a much used service.

All in all, the chance you know the history of your coins is small, but nobody cares much. Did you ever cared how dirty your cash is?!

In fiat I can't check the previous owners of the money. As far as I know, with bitcoin, one can trace the path of transactions to the time they were mined. I thought that if bitcoins were used for criminal acts and then sold to someone like me, they could get to me in a possible investigation. Everyone says that bitcoins are only used to scam people.
In addition, we must provide personal information in each exchange.
Which brings me to the next question. How can I sell bitcoin without exchange? There is such a big risk that I will not get my money back.
There is so much negative news about bitcoin on the Internet that I'm sure most are a lie, but it's hard to sift through the truth.

[ranochigo]

In fiat I can't check the previous owners of the money. As far as I know, with bitcoin, one can trace the path of transactions to the time they were mined. I thought that if bitcoins were used for criminal acts and then sold to someone like me, they could get to me in a possible investigation. Everyone says that bitcoins are only used to scam people.

The way Bitcoin works makes it very hard for individuals to receive clean coins which hasn't been mixed with a "tainted" coin. Every Bitcoin that you receive is likely to have been linked to a illicit activity in its history, just like fiat. Innocent until proven guilty, law enforcement cannot arrest you solely based on the fact that you're in possession of tainted coins because it doesn't mean that you're involved in the activity.

In addition, we must provide personal information in each exchange.
Which brings me to the next question. How can I sell bitcoin without exchange? There is such a big risk that I will not get my money back.
There is so much negative news about bitcoin on the Internet that I'm sure most are a lie, but it's hard to sift through the truth.

OTC trades. Localbitcoins and bisq allows you to do peer-to-peer trades. Some exchange don't accept tainted coins but as long as you're not involved in any illicit activities, you're fine.

[mocacinno]

There's no denying, crypto is sometimes used on the darkweb to purchase illegal stuff, and people do fall for crypto scams. However, exactly the same can be said about cash, gold, barer bonds, wire transfers, creditcards,...

The big difference is that crypto is only used by a small part of the population, so it's easy for newspapers to talk trash about crypto. It's an easy story that only victimises a very small part of the population while giving a good story to the rest of their readers (so it's good profit for them to highlight any negative aspects of crypto).

To purchase crypto, you can go the p2p way and search sellers or buyers on fora (like this one). Or you can use services like localbitcoins (which is a moderated form of a p2p trade), you can use ATM's, you can use decentralised exchanges (like bisq) or centralised ones (KYC or no KYC), or you can just spend your BTC to buy/sell gold, other precious metals or stones,... Loads of ways to buy and sell crypto, the odds of getting stuck with your funds are very small.

I really don't like to pass KYC, however, IF you're really afraid of having an address funded by an unspent output that can be linked to any kind of illegal activity, you might want to go full legit and buy your BTC from a KYC exchange with good reputation and actual licences in a trusted country. If the police/tax authority/a seller starts asking difficult questions, you can actually show them where you purchased your BTC.

[btcduster]

Thank you guys for the answers.
I will check the options you have offered.
I need to read some reviews before doing anything.

[The Cryptovator]

First of all, you can't trace bitcoin before you receive it. That means before received into your wallet you are unable to know if that coin has been used for any criminal activity. To avoid these, you have to ensure the sources of funds are a few suggestions that have been given above. One more strong option is, accept bitcoin via bitcoin mixer. You may provide an address from mixer to seller, so he will send it here and you will receive it after mixed into your wallet. Once you will use a reputed mixer then there is very little chance to get involved transaction with criminal activity.

For selling, the better option is to use peer to peer exchange where KYC isn't required like LocalCryptos. So you shouldn't have any problems at all during buying and sell.

[witcher_sense]

To be completely sure bitcoins you recieve were not involved in any illicit activity, you should buy them directly from miners. Newly minted bitcoins aka "virgin" bitcoins have either clean transaction history or no history whatsoever.

You can also use mixing techniques such as CoinJoin or third-party mixers e.g. Chipmixer in order to untether your previous transactions from future transactions. Either way, blockchain analysis companies cannot link your address to your identity unless you open it yourself through KYC - procedures. Ideally, bitcoin should be considered as digital version of physical cash while using which you usually not responsible for behavior of previous transactors.

And as far I know, using of mixing services, especially those ones that function within bitcoin protocol is not a criminal activity itself and doesn not make you a criminal automatically, so you are free to use them.

[squatter]

In fiat I can't check the previous owners of the money. As far as I know, with bitcoin, one can trace the path of transactions to the time they were mined. I thought that if bitcoins were used for criminal acts and then sold to someone like me, they could get to me in a possible investigation. Everyone says that bitcoins are only used to scam people.

The way Bitcoin works makes it very hard for individuals to receive clean coins which hasn't been mixed with a "tainted" coin. Every Bitcoin that you receive is likely to have been linked to a illicit activity in its history, just like fiat. Innocent until proven guilty, law enforcement cannot arrest you solely based on the fact that you're in possession of tainted coins because it doesn't mean that you're involved in the activity.

That doesn't mean that exchanges won't freeze or close your account or launch an investigation for proximity to darknet market transactions, for example.

One should always be aware of the AML/KYC policies of any given exchange, and accordingly, whether your outputs might be flagged upon deposit. For example, Binance Singapore, Bitfinex, and others I'm sure have frozen or closed accounts for proximity to CoinJoin transactions. Coinbase has done the same for proximity to casino transactions.

To cut any such associations, you can use a reliable third party mixer. Alternatively, you could use what Chainalysis might call "risky" services or exchanges -- those with weak or nonexistent AML/KYC policies, who permit tainted coins to mix back into circulation. Gambling services, P2P exchanges, and centralized exchanges who allow unverified trading occupy this niche.

For selling, the better option is to use peer to peer exchange where KYC isn't required like LocalCryptos. So you shouldn't have any problems at all during buying and sell.

I also strongly recommend non-custodial P2P exchanges like LocalCryptos that don't require KYC over LocalBitcoins and the like.

[NeuroticFish]

In fiat I can't check the previous owners of the money. As far as I know, with bitcoin, one can trace the path of transactions to the time they were mined. I thought that if bitcoins were used for criminal acts and then sold to someone like me, they could get to me in a possible investigation. Everyone says that bitcoins are only used to scam people.
In addition, we must provide personal information in each exchange.
Which brings me to the next question. How can I sell bitcoin without exchange? There is such a big risk that I will not get my money back.
There is so much negative news about bitcoin on the Internet that I'm sure most are a lie, but it's hard to sift through the truth.

Tracking is possible indeed, but limited. I mean, yes, you can see all the transactions, but it's hard to tell if a wallet belongs to criminals or not. And bitcoin can be mixed.
Exchanges... not all of them need KYC documents. Of course, if you buy from an exchange where you did provide KYC, you can always blame them if anybody asks for the source of coins. But as I said, the chance of such questions is thin.

There are plenty of ways to sell without exchanges. From meeting person to person (not advisable) to ATM or DEX or selling on the forum, ... just choose the way. But this kind of sales bring risks if you are not careful: you need trusted escrow and means of payment that cannot be reversed, or if you get the money into your bank account that may be from really shady sources and then questions will be asked.

Many agree that we should not give out this easy the KYC documents. So for selling bitcoin there are 2 ways I see - with KYC (exchanges, bitcoin cards) or without KYC (smaller amounts at ATMs).

[blckhawk]

Hello, I want to buy bitcoin, how can I be sure that they were not used for any shady business?  If I buy directly from a person, what is the chance that I will have problems later?  Do I only have to buy from exchanges?
Please, forgive my ignorance.

Fist of all there's nothing wrong to ask a question especially if you don't have much knowledge from it, besides you were a newbie so we understand if you don't know it.
Now getting back to the question, I would recommend to buy Bitcoin in exchanges but make sure the platform has integrity rather than buying it on a person. If you know the person you are going to buy from then why not that would be much convenient though but if not you should be wary of it.

[famososMuertos]

Hello, I want to buy bitcoin, how can I be sure that they were not used for any shady business?  If I buy directly from a person, what is the chance that I will have problems later?  Do I only have to buy from exchanges?
Please, forgive my ignorance.

Hi!
It's funny because it does what you should do. If you have questions, ask questions or seek information. So there is nothing to excuse.

The really stupid question is the one asked later.

Then use common sense, the amounts define crime in many countries, in some with only $ 20 you are already in trouble you can even die.

So unless he are a friend, (-/if the amount is really important reject it/-) make the transaction, but remember only you are the true one responsible for your actions.

Go to an exchange and buy with your credit card or go P2P and use local transfers or the different payment channels that exist to acquire the bitcoin asset, is the best way when you start .

Finally for everything else, there is the forum search engine and the comments that are added to this Topic.

GB.

[Rengga Jati]

Hello, I want to buy bitcoin, how can I be sure that they were not used for any shady business? 

We cannot decide it and we cannot guarantee it because it is like money, depending on how the holders and also the goals of using that money/Bitcoin. So, better to focus on yourself, use it depends on what you need to do in it, surely the Bitcoin is a worthy thing to invest.

If I buy directly from a person, what is the chance that I will have problems later?  Do I only have to buy from exchanges?
Please, forgive my ignorance.

It relates to some probabilities if someday, you face certain problems or your transaction is not successful with that person, you cannot claim anything to them. And moreover, you may not need to believe someone that want to help you while selling or buying.
It is better to buy that in your local exchange that has certain regulations as accepted in a country.

[Kupid002]

In fiat I can't check the previous owners of the money. As far as I know, with bitcoin, one can trace the path of transactions to the time they were mined. I thought that if bitcoins were used for criminal acts and then sold to someone like me, they could get to me in a possible investigation. Everyone says that bitcoins are only used to scam people.
In addition, we must provide personal information in each exchange.
Which brings me to the next question. How can I sell bitcoin without exchange? There is such a big risk that I will not get my money back.
There is so much negative news about bitcoin on the Internet that I'm sure most are a lie, but it's hard to sift through the truth.

It's difficult at the same time dangerous to buy from a persons you don't know so I suggest to use exchange for buying. Yes there are also bitcoin came from illegal act like hacking or funds came from a ponzi scheme that get a large fund from  investors that's why they want to sell it to others because they don't want to be trace .

The news you hear can also be true and it is happen sometimes and it is inevitable.

[kawetsriyanto]

To avoid doubt, you can buy bitcoin using bitcoin atm.

I don't think it is a good idea to buy Bitcoin using Bitcoin ATM. For me, buying through an exchange is still much better. Not only about the number of Bitcoin ATM is still a few in the world, buying Bitcoin using Bitcoin ATM requires more fees. On the other hand, if we buy Bitcoin on an exchange, we can be easier to trade it. We can trade it on that exchange or send it to another exchange. 

[Velkro]

Hello, I want to buy bitcoin, how can I be sure that they were not used for any shady business?  If I buy directly from a person, what is the chance that I will have problems later?  Do I only have to buy from exchanges?
Please, forgive my ignorance.

There are no stupid questions, only stupid answers so let me help here.
You can't be sure, same as you can't be sure that dollars you get as paycheck were not used for any shady business.
I heard about some studies that most (!) dollar bills got traces of cocaine on them.

[jademaxsuy]

Well sorry to hear you say like that don't let yourself fall down on this issue. Most of the users here came without knowledge about cryptoxurrency and just learn it here in this forum. The best thing you made is that you have posted this post in the right section. So, no worries regarding to this matter.

Anyway, if you wanted to get bitcoin then do as wha others told you here in their replies. I will second the motion to those who says that buy bitcoins in an exchange directly so as to avoid getting problems in the future. But first make a small transaction to be sure of if it will be successful or not. Then if it do then you can buy more bitcoins in that exchange.