Silk Road forums
Discussion => Security => Topic started by: p3nd8s on April 12, 2013, 06:22 am
-
With localbitcoins.com you do OTC transactions in person with buyers/sellers that are in your area.
In comparison to MtGox, this means no limits, no verification, 100% anonymous, no fees, no need to trust an exchange,
no paper trail. If you are ultra paranoid, get a burner phone and use text messages only to setup the deal or a voice changer.
-
How does localbitcoins work exactly. I was checking it out myself. Do you release the funds into escrow or how does it work?
-
found this for ya :
localbitcoins.com works by you registering an account with your e-mail address (you could use a tormail.org address). You can also enter in your cellphone SMS number, if you want. That allows you to see when your funds have been released by the BTC seller.
Once you've done that and have found someone who will trade with you, you set up a meeting. I suggest a Starbucks close to you two. Upon meeting, cancel the transaction you used to arrange your meeting. Then immediately re-open another, so your trade is at the current market price. Allow the seller to inspect your cash, but don't hand it over until the transaction is done.
He sets the transaction in motion by transferring the BTC to the temporary address associated with your localbitcoins.com account. Then you have to wait for 3 verifications to complete, which takes a half hour (10 minutes per verification). At least that's what it is for $100. For $1000+, you may have to wait for 5 or 6 verifications. Alternately, if the seller is familiar with the system, they can transfer the BTC beforehand, meet with you, then release the funds once your cash is in hand. No waiting. But that requires trust in the localbitcoins.com system, which won't be the case if they haven't used it before.
Once the verifications are complete, the funds are available on the localbitcoins.com system, but they must be released before they're actually in your account. The seller must release the funds, at which point you'll receive a text message from the localbitcoins.com system that the transaction has been completed, which includes a verification code. Or, if you opt out of using your cell, you can just check the blockchain that the BTC has been transferred to your localbitcoins.com temporary address, and view your localbitcoins.com account as well to eyeball your balance. That's it.
I strongly recommend going through the system and paying the miniscule system transaction fee of 1%, then leaving feedback for the seller and having him do the same with you. This is a service that, just like Ebay, is only as valuable as the feedback and the actual participation in the system. Plus, you get to meet some very cool people by doing it this way, rather than through a faceless- and trackable- bank transfer.
Hope This ^^^^
Helps ya a bit :)
Peace,
ChemCat
O0
-
Almost nobody uses the escrow feature as it is unnecessary when you do an in person transaction. That explains the 0 feedback that 99% of users have. Feedback is only generated when you use the escrow feature. I have personally never used it, and have saved the 1% escrow fee.
You basically use the PM system to set up a meeting or you put up an advertisement that you are buying and/or selling and people contact you by PM. Once you set up the meeting, you meet in a public place. Bring your smart phone and use a bitcoin client or an online wallet to make the transfer (if you are selling BTC), or check the blockchain to see that it went through. Get the cash or pay the cash for the BTC and you are done.
A more interactive way is to use bitcoin-otc.com. You need to download and install an IRC client like XChat. Follow the directions on the site to register your nickname with the IRC server and register/authenticate with the gribble bot. For ultra security, get a VPN account and connect to the VPN account using Tor. Make sure you use the OpenVPN software and not the VPN software provided by the provider as it may have backdoors (for LE).
-
Stupid question. What does OTC mean?
-
Stupid question. What does OTC mean?
Stupid answer: over the counter:)
But seriously, localbitcoin is great. So far i haven't ever needed to use an exchange and have built up working relationships with three people in my area.
Between the three I have always been able to buy/sell btc as needed.
No bank deposits, no fees, no paper trail and I met some interesting peeps along the way.
Total anonymity, just the way we want it in bitcoinland.