Topic: Rules to avoid being scammed - page 6. (Read 5881 times)
Cool, so they use the transaction ID's of the Bitcoin thing to check if you sent or not. This can't be faked can it.
You can use bitmit.net: just post anything you want to sell for bitcoins or ask the seller to do the same about something you want to buy. The payment in bitcoins is sent to their escrow system. If the buyer lies about sending, the system will reveal that he didn't already send the bitcoins. Once the bitcoins are received, a indication will appear automatically on the page of the deal at bitmit.net. If you are the seller and sent the goods to the buyer (for instance, another currency), once the buyer click item received, you receive the bitcoins from bitmit.net. If the buyer doesn't confirm that the goods were received, you write bitmit with evidence that you sent (like the transfer id) and they pay you fast. There is a 1.90% fee to pay.
http://www.bitmit.net/en/info/faq
http://www.bitmit.net/en/info/faq
I am still a little unsure on how a escrow system is used, can't the person lie about sending.
I am surprised nothing like this is stickied?
Take this in account, might save you money.
These rules were written assuming a position of a newbie that has to send first payment to buy something from an older member of the Forum. Of course, if you have some reputation, and don't have to send first, these rules are mostly irrelevant. It's the other party that will take most of the risk. But you still have to take in account rule 10 and the possibility of a double spending. Better wait for one or two confirmations in the blockchain, before fulfilling your part of the deal.
Beware that these rules use three different grades of reputation: some, good and excellent.
1) Don't just trust the status of a member, anyone can be a hero member. This just means that he invested some time on his membership. He can always decide that a profitable scam will be a good payment for his time. However, a Hero account without negative feedback can be sold for more than 0.5 btcs. Therefore, he probably won't scam you for less than that, because a negative feedback from you would lower its value substantially. The same applies to a legendary up to about 1 btc.
2) Never deal with anyone without doing a search in the forum with his nickname, in order to check if he has scam accusations.
3) Ask for his coin address and always search it on http://blockchain.info, www.cryptocoinexplorer.com or other similar site, to verify if his address has the amounts he wants to sell.
4) Be very suspicious about proposals well under market price or if he accepts your proposal under market price with no negotiation.
5) Look for the reputation/trust of the member, checking also his successful trades, in the form of vouches from the other party on the deal. Be aware that positive trust can be forged by making and using more bitcointalk accounts and the efficacy of the trust system can be more or less limited by changing its settings.
6) Even if he has some reputation, don't send all the money in one transfer: send one first small tranche (ex. 0.05 btc) and wait for his payment. Send a second little higher tranche and wait again, etc. Small increments, because he might decide to pay you the first and second, to scam a bigger tranche. Always suspect if he doesn't accept to trade in small tranches, unless he has an excellent reputation.
7) If he has no reputation (specially if he is a newbie or Jr.), even small tranches are very risky. Better use an escrow system, like the one of www.btcrow.com, or a trusted member, or you might need to send more than 10 very small tranches. Think well before sending more than 0.15 btcs (it's considerable money in some countries) and only after 3 or 4 successful payments of 0.05 and 0.1 btcs.
8] For big amounts use an escrow system, unless the member has an excellent reputation. If he doesn't accept, forget the deal. Always protect your capital.
9) Only trade codes (ex. of virtual gift cards) with members with a good reputation or using a very trusted escrow member that will have to go to the account and apply the code himself. The buyer will have to give the escrow person his password and change it again after. With an automatic escrow system, the buyer can claim falsely that the code was already redeemed when he received it or that his account was blocked after.
10) Don't sell any cryptocoin to paypal or other reversible system, unless the buyer has good reputation. The buyer can chargeback and, since it's against paypal's TOS to trade currency, paypal usually gives your money back to the buyer.
Here is a list of escrow members: https://bitcointalksearch.org/topic/escrow-list-108716
Beware that these rules use three different grades of reputation: some, good and excellent.
1) Don't just trust the status of a member, anyone can be a hero member. This just means that he invested some time on his membership. He can always decide that a profitable scam will be a good payment for his time. However, a Hero account without negative feedback can be sold for more than 0.5 btcs. Therefore, he probably won't scam you for less than that, because a negative feedback from you would lower its value substantially. The same applies to a legendary up to about 1 btc.
2) Never deal with anyone without doing a search in the forum with his nickname, in order to check if he has scam accusations.
3) Ask for his coin address and always search it on http://blockchain.info, www.cryptocoinexplorer.com or other similar site, to verify if his address has the amounts he wants to sell.
4) Be very suspicious about proposals well under market price or if he accepts your proposal under market price with no negotiation.
5) Look for the reputation/trust of the member, checking also his successful trades, in the form of vouches from the other party on the deal. Be aware that positive trust can be forged by making and using more bitcointalk accounts and the efficacy of the trust system can be more or less limited by changing its settings.
6) Even if he has some reputation, don't send all the money in one transfer: send one first small tranche (ex. 0.05 btc) and wait for his payment. Send a second little higher tranche and wait again, etc. Small increments, because he might decide to pay you the first and second, to scam a bigger tranche. Always suspect if he doesn't accept to trade in small tranches, unless he has an excellent reputation.
7) If he has no reputation (specially if he is a newbie or Jr.), even small tranches are very risky. Better use an escrow system, like the one of www.btcrow.com, or a trusted member, or you might need to send more than 10 very small tranches. Think well before sending more than 0.15 btcs (it's considerable money in some countries) and only after 3 or 4 successful payments of 0.05 and 0.1 btcs.
8] For big amounts use an escrow system, unless the member has an excellent reputation. If he doesn't accept, forget the deal. Always protect your capital.
9) Only trade codes (ex. of virtual gift cards) with members with a good reputation or using a very trusted escrow member that will have to go to the account and apply the code himself. The buyer will have to give the escrow person his password and change it again after. With an automatic escrow system, the buyer can claim falsely that the code was already redeemed when he received it or that his account was blocked after.
10) Don't sell any cryptocoin to paypal or other reversible system, unless the buyer has good reputation. The buyer can chargeback and, since it's against paypal's TOS to trade currency, paypal usually gives your money back to the buyer.
Here is a list of escrow members: https://bitcointalksearch.org/topic/escrow-list-108716
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