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How To Anonymously Purchase Bitcoins

February 3rd, 2017 | by BTC News
How To Anonymously Purchase Bitcoins
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by rutgervz

How To Anonymously Purchase Bitcoins

As Bitcoin is a decentralized financial frame-work, it’s alluring to hardcore libertarians who’d prefer to maintain their money out of the governments reach; simultaneously maintaining this type of monetary obscurity isn’t exactly a straight forward process.

Exchanges, where you purchase and sell your Bitcoins, are regularly tied to your current account to change your money to Bitcoin whenever you need it. Obviously your account is clearly linked to your identity so in this article I share a couple of separate systems to take your precious Bitcoins off the grid.

Cash deposits through localbitcoins, a web site that connects individuals looking to purchase Bitcoin with those looking to sell, and also the same for anyone wanting to sell Bitcoin for those who would like to buy.
For people wanting to namelessly buy it, basically pick a trusted merchant from the arrangement of persons who’ve the quantity of Bitcoin you’ll need, it’s not at all too different from an on-line auction, you can evaluate the vendors in ascending and descending order of price per BTC and positive ratings that is displayed in volume of transactions and percentage of happy customers.

So as long as you check the reviews of the vendors then you can certainly ensure that it’s a pretty safe and reliable way for you to buy Bitcoins, and for people in large cities, you will often be spoilt for choice when choosing someone who is selling for cash; the people who I’ve handled would usually meet me inside my favourite coffee shop or pub would be incredibly friendly to do business with and I always found myself learning many of the latest news and gossip.
Should you not like the idea of meeting people they’ll provide you with their banking information and you simply make a deposit into their bank. As soon as the transaction’s confirmed, you’ll typically get the Bitcoins in a matter of minutes.

For example I require 100 GBP (approx 150 USD) in BTC, I go through the list of vendors ready to sell that quantity and get a long list of sellers which are listed in descending/ascending rates of exchange.

I’ll more than likely use one of the initial few sellers, because their feedback indicates excess of 100 finished transactions and 100% positive rating. The sellers profile lists the bank, so once I put the order in and possess the reference number from the vendor I’d go to a HSBC with all the money, complete a cash deposit on the seller’s account and make certain I supply the bank the reference number. When everything has been affirmed, the seller sends the Bitcoin to my wallet and I have finally secretly added the required quantity of coinage to my account.

B. Bitcoin tumbler.

If you have already got Bitcoins that you want to make anonymous, you would be wise to utilize a Tumbler, here’s a scaled-down explanation of how it works.

In the event that you and I each put 500 pound coins in a jug and shake it up, we could then extract the 500 coins each without knowing whose were whose. Tumblers enable gatherings of bitcoin holders; namelessly pooling their Bitcoins, mixing them up and redistributing them once again to the group, usually minus a small fee for the service.
By far the most established tumbler seems to be BitcoinFog.

Now where do we go from here?

Now we have these two choices It is important to bear in mind the following.

Limitations from the banks

Obviously you will find limits depending on how much cash can be deposited to a bank-account; the cash limit will obviously vary determined by what bank the seller is employing, the branch location (a HSBC is going to be accustomed to having more money deposited in Mayfair than it would do in a small mining village) and of course whether it’s a small cash or student account or a business account. Now most of the people inside the Bitcoin community are often anti establishment (rightly so) and will not be familiar with accounting and tax laws, so it isn’t going to be long for many Bitcoin vendors who accept cash deposits to their current accounts to start experiencing complications, unless they have got an efficient system for avoiding these hurdles.
Along with the rate that most western governments love to interfere with peoples affairs it certainly won’t be long before many bitcoin vendors get approached through the various business and tax authorities.
I’m not trying to put fear into anyone, but despite what many think, most bank branches are not used to having in excess of 2-3 thousand pounds deposited at once, and far more cash is generally withdrawn than deposited therefore it is required to be taken into account in the case when you deposit a significant amount using a bank. I would suggest keeping each deposit under 2000 GBP / 3000 USD to be on the safe side and stay under the radar.
Developing trust with the vendor.

I found the best way to buy Bitcoins was to meet face-to-face with a willing vendor and pay cash, the first time I did this made me quite nervous as I was handing over 2000 GBP. It was all I had at the time and I was not feeling up to wrestling anyone to the ground or defending myself against a would be robber. I had a couple of things in my favour, the comments about the vendors previous 100 or so transactions suggested that he or she was a pleasure to deal with and it would be unlikely that he would attempt to pull any stunts.
I really don’t trust ANYONE, being ex-military, self-employed for several years and working for a family run business where I had a lot of exposure in the past to dishonest and unsightly people I had to ensure I covered as many angles as possible, as I am never surprised anymore by peoples actions and I don’t underestimate anyone.

The way I see it we are in tough economic times in which a few are seeking to rip off people for a lot of reasons; drug habits, living beyond their means or they simply cannot help themselves, so I must cover as many angles as possible. I arranged to meet the seller in a Starbucks since it is an open public place where there was only one entrance/exit; the fire exit led to a route which I knew perfectly and had this in mind; so I knew that if he were going to try anything I would have the capacity to stop him.
And so i bought us both a coffee, we sat down he showed me that he had the balance in his bitcoin wallet on his Android phone which put me at ease further, then he took out a anti counterfeit pen (he apologised and explained that it’s nothing personal but someone tried to pass counterfeit notes the previous week and he had never met me before), I assured him that no offence was taken and he spread the stack of notes into a fan shape, with one swipe he’d checked every note and I was impressed with the way he made it look so easy.

He scanned my phone, sent the Bitcoins for the agreed rate and we spoke for several minutes and then we went our separate ways. I found him to be very efficient, straight and honest and an absolute pleasure to work with. Now I have his number and his trust I meet him whenever I need more Bitcoins. I enjoy it this way, I find it nicer to meet someone who I class as a friend now and exchange our money (and the latest Bitcoin news and gossip) over a coffee at the cafe than going online and using any modern system, it seems a nice old-fashioned way of doing something new.

Lastly, I would make sure that you have got to grips with your Bitcoin wallet, have your passwords safe and make sure you have all the back up procedures in place such as paper wallet before you begin handling significant amounts of money. I will go into this in another article.

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