Topic: Acquiring bitcoin with cash - what, why, how (Read 356 times)

This site lists operational ATMs in UK location wise

https://coinatmradar.com/country/225/bitcoin-atm-united-kingdom/

I checked news related to legality and there are old articles stating that these ATMs are illegal as declared by the regulator. I will suggest you to wait for replies from members here who are from UK. They can explain ground reality in this case.

Yesterday I noticed some person on HodlHodl was trying to borrow like $10,000 USDC at like 2% APR. wonder what he plans to use that for.   He's taking a risk that the platform he stakes it on doesn't go belly up and the lender is taking a risk that USDC won't suffer any type of depegging event during the loan period. I am not entirely sure but I think the lender also has a risk exposure to the collateral have a price spike down such that it cannot be liquidated at the loan amount but only less. I guess you would also penalize me if I didn't point out that both lender and borrower have risk exposure that their USDC will be frozen by Circle. 

Nope. I wouldn't expect them to. Same reason I buy from sellers on ebay with good feedback ratings. Those type of sellers care about keeping a good rating so I know they'll ship fast and provide a tracking #. I've found it to be very rare to ever have any issue with sellers like that.

Thanks for the tips.

Agreed. So I never use them.

Also correct. Which is why cash is a popular peer to peer trading method.

Again, this is solved by using cold, hard cash, which obviously can't be charged back. There is also the other party's account reputation to consider. Is someone going to risk their account with 1000+ positive feedback to scam you out of a few hundred bucks?

Exactly. Start small, choose reputable trading partners, trade with the same person multiple times to build further trust, and don't use methods which are easily reversible.

I don't know what's DAI, but there cannot be a really decentralized stablecoin in fiat, as it's against its nature. A stablecoin is pegged to another currency. If that currency isn't decentralized (such as bitcoin), then whatever manner you choose to maintain the 1:1 peg, yours isn't either. There can be a bitcoin stablecoin, with the use of cryptography, but there cannot be a fiat stablecoin, due to the lack of transparency.

well, you either have a centralized stablecoin (USDC, USDP(paxos), USDT) or it is decentralized (DAI). I guess each has it's own tradeoffs. But there is going to be NO perfect stablecoin. the whole point of a lending platform is to obtain a cash equivalent for using some crypto (btc in this case) as collateral. so you must be against the premise of a lending platform entirely. although i do suppose a site like bisq could introduce lending to their protocol where cash was used instead of stablecoins...

don't forget your bank account. anything going out of or into your bank account that can be audited could be audited.  

well, as a buyer on these p2p platforms, i have a hard time seeing how someone could get scammed. the sellers are the ones that have to be more careful since many of these payment methods can be charged back later on down the road, 30 days, 60 days what have you...there is no seller protection once the bitcoins get released. then you're on your own. so you better hope they don't try and scam.

I hope that's not the case. I mean the ones I'm suspicious of are buyers that want to pay using something like cashapp,wise transferwise, paypal who has little or no feedback ratings. yeah i think of those as scammers. they are probably getting fake id and opening up these accounts with these money transfer services. no doubt about that. it's pretty well known that some of these money transfer services will close people's accounts that are using them for any type of e-commerce which looks suspicious to them. enough said.

This.
Probably how o_e_l_e_o hasn't been scammed in his many DEX adventures. 

The seller can find a trustworthy buyer, though. There are also several measures that protect you somewhat from getting scammed.

Are you saying that DEX users are mostly scammers or am I misunderstanding here?

I don't think the lending platform itself is a scam by any means. But from a quick look it seems to be that you can only lend or borrow various stablecoins or wrapped/tokenized bitcoin. All of these tokens/coins are entirely centralized, in many cases not backed up fully and running fractional reserve, and also there are no guarantees whatsoever that their price is pegged to USD/bitcoin/whatever. So although HodlHodl's platform is perfectly legit, the coins they are supporting are pretty much scams, as far as I am concerned.

I would work under the assumption that anything you do on a KYCed platform, be that a crypto exchange or fiat service like PayPal, is easily viewable by your government or tax authority should they want.

Or maybe they just want a bit of financial privacy and not to have their bitcoin under the control of third parties. Which was the entire reason bitcoin was created in the first place. I would point out that I have traded on various peer to peer platforms extensively and have never once been scammed. A few misunderstandings which have been fairly easily resolved, sure, but never an active scam.

i'll have to look into how they have it set up a bit more detail. i don't just assume it is a scam. even something like bisq, the seller has to send their btc to an address out of their control. and trust the people that run it to do the right things...


and that's how bitcoin sellers got thrown in jail for running unlicensed money transfer services/businesses here in the usa by using LBC too much 

maybe that's why. another reason might be paypal reports crypto transactions to the irs or other government taxing authority not sure if they do but i would assume so. anyone using something like bisq or agoradesk is not a newbie and they have their reasons. no one just wonders on to a site like that and starts buying bitcoin with paypal. it's either some or all of those things or they are trying to scam.  

I can't really comment about their lending platform as I have never used it. Nor will I. I have no interest in risking my bitcoin in some questionable loan collateralized with centralized, fractional reserve (un)stablecoins.

They have always been P2P, but many years ago they swapped from a site purely listing peer-to-peer trades (much like HodlHodl is now), to requiring accounts, verification, KYC details, and centralized wallets. So although you still trade peer-to-peer, it is entirely centralized and therefore, like all centralized exchanges, neither private nor secure.

Well, because PayPal will log your bitcoin purchases and transactions against your real name and identity and hand all that information over to blockchain analysis companies. But as mentioned I would steer well clear of PayPal at all times.

yeah for their selling and buying platform I guess that's the case.

but they also have a p2p lending which apparently they opened it up to usa people: https://cryptobriefing.com/hodl-hodl-opens-decentralized-bitcoin-lending-us-users/

that's kind of important because you would hate to have your money in a 2 of 3 multisig with them holding one of the keys and the thing stuck in some type of dispute where they are asking you for an ID.  

i always thought they were p2p type thing. but they did pull out of the usa unfortunately. decreasing available ways to get bitcoin in the process.

yep. i don't understand why there would be people wanting to buy btc using paypal when they could just buy it from paypal (https://www.paypal.com/us/digital-wallet/manage-money/crypto) and send it out wherever they want to. plus i dont understand why someone would want to sell to someone that wanted to use paypal as their payment method, given the above fact. since paypal like many of the payment methods listed on the site are not irreversible. that's at best. at worst, the company steps in and freezes the buyer and/or sellers account due to TOS violations.  

Any method in which the cash can be immediately withdrawn prior to the trade, or immediately deposited after the trade. For smaller amounts, the easiest way to do this is to meet at an ATM and for the party buying the bitcoin to withdraw the cash directly from the ATM and immediately hand it over. For larger amounts, you can either do the same thing but at a bank where you can withdraw more than at an ATM, or you can meet at a bank and have the bitcoin seller deposit the cash prior to releasing the bitcoin from escrow. I remember you mentioning a casino before, and it is a nice option. I do wonder if a casino would take issue if they discover what you are doing, though, as you are essentially converting currencies on their premises.

This is another bonus of what I was talking about above regarding trading with the same person dozens or even hundreds of times. At some point, you build enough trust to stop doing this.

Most banks have plenty of security and CCTV cameras, or you choose an ATM in the middle of a busy public mall in the middle of the day, or similar.

Just don't use a US IP address. HodlHodl don't know otherwise since you don't have to register any information with them. I wouldn't touch LBC though, since they are just another centralized KYC exchange.

Just to point out that LocalMonero and AgoraDesk are two fronts of the same service.

It's easier to be a consumer than to be a merchant. So, if you want to sell bitcoin, you could just purchase gift cards from trusted stores (using bitcoin), instead of being a merchant yourself. Buying bitcoin with gift cards is rather difficult.

I haven't ever made an offer myself, I've only picked others' offers. So, it was instant.

Was kind of bummed out that HodlHodl and Localbitcoins aren't available to usa residents. In that sense then they are not reallly decentralized exchanges. They are centralized. that's the usa for you though. always protecting its citizens to not be able to use services they might want to.  

so far i got bisq, agoradesk as ones that a usa person could use. and localmonero if you're into xmr.

oh i forgot about paxful. not sure i would trust them seen alot of buy offers wanting to pay with "game items", gift cards of various types and crap like that for way over market price. something can't be right about that stuff...

How on earth are you going to sell them online though? People will think you are a scammer because that's what 90% of the sellers are.

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@BlackHatCoiner, what's your average time your Bisq trades take? Particularly for altcoin exchanging - in my first experience, I cancelled the trade after an hour passed with no buyers. There were only a few dozen open offers for altcoin to bitcoin exchange in total.

5. Buy gift cards with cash and sell them For BTC: It is the most effective way to buy bitcoins anonymously, especially those physical cards that can be bought in stores that do not have surveillance cameras.

Why?
It does not need to reveal your identity and the physical card ensures that no information will be collected about you.
If you are reliable, you will not sell those cards at a discount.
Good for those who want to buy small amounts.

I know it's been discussed here before, but for F2F transfers how do you verify the cash?

Personally a local casino works for me. Lots of security, cash is common and you can put some random bills in a slot machine and if it takes them you are good to go.

But meeting in other public places just does not seem as secure to me.

-Dave

No, I wouldn't trade off-DEX with a complete stranger. I've traded face to face with complete strangers before, but always via a DEX where the bitcoin involved will be locked in an escrow prior to meeting to hand over the cash. But now a lot of my trades are done without a DEX because once you've traded with the same person hundreds of times, you may find you have enough mutual trust to just message each other directly and send coins directly without using a DEX.

Bisq charges fees which are spent on funding the DAO and future development, yes, but arbitrators don't set those fees and I would be surprised if the number of arbitrators has any impact on the trading fees.

Bisq doesn't use a reputation system like that, so that wouldn't work on Bisq. Other sites such as HodlHodl let you view the profiles of everyone who has left a user feedback, so you can easily see if they are all fake accounts with only 1 trade.

So, you wouldn't exchange F2F with a complete stranger, but with someone you've traded several times?

Yes, but they're part of the DAO, right? Don't the members of this DAO charge fees to sustain their operation? If there were more arbitrators, wouldn't this process be cheaper? If we're going to have complete free trade, the fees should adjust freely as well.

One more question that I can't answer honestly: can't someone fake their trust? Like, creates several Bisq identities and starts trading with each, to insure trustworthiness.

In addition to the ones o_e_l_e_o mentioned
I know a few people who have used: peachbitdoin  https://kycnot.me/exchange/peachbitcoin   /   https://peachbitcoin.com/

PERSONALLY, since it's mobile based although it does avoid KYC it is not really anonymous unless you are using a disposable smartphone.
Not a lot of offers but it is yet another option.



Part of the % is also convenience. No looking for people to trade with, no waiting for someone, no worrying if you are going to somehow get scammed. And so on, you put in cash and get BTC or you put in BTC and cash pops out of the machine. There is a cost for convenience.

Humor, and unrelated but it makes the point. Back in the early 1990s there was an earthquake in southern CA, there were people complaining that some of the local convenience stores were price gouging / profiteering on the fact that they had things that people needed and were marking it up because of the earthquake. They actually were not, they were just that overpriced since they are convenience stores. Get in get what you want and get out....

-Dave

The point I'm making is that by this point it isn't a stranger. Without revealing too much for my own privacy reasons, there is another party I first met through a DEX and whom I have traded with probably 100+ times over many years, both in person and electronically. There comes a point where you have enough mutual trust to start trading small amounts without using the DEX and/or escrow, and then building from there. Obviously I would never suggest going off-DEX with a stranger.

It was convenience rather than fees, but no one is going to say no to paying lower fees in any situation.

I'm not sure if I'm misunderstanding you, but Bisq arbitrators do not set the fees, they simply moderate any disputes.