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I've made a contact via LocalBitcoins.com and am going to buy some coins with cash. The seller is not verified, but as we will meet, it sounds ok:

  • I show him the cash.
  • He transfers the Bitcoins.
  • We wait one block.
  • I give him the cash.

Is this safe enough or is there anything I should take care of? Any scams known?

He requested to use my mobile internet, though (will enable Wi-Fi hotspot on the smartphone).

Rodrigo de Azevedo
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Borph
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3 Answers3

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Shamelessly summarized from this extensive guide on local transactions:

  • You want to meet in a sufficiently public location, such as a pub or mall, preferably one that has an open wifi.
  • If you have agreed on terms in beforehand, print out what you agreed upon and take it with you.
  • If you have not agreed on terms yet, be sure to check the current price of bitcoin during the meeting.
  • Wait for the transaction to complete and check if the right amount was paid. If the other person is willing to wait around for one additional block together that is a good sign.
  • Specify your expectations in advance: When and where to meet, what each person will have on hand to make the deal, how the price for the bitcoins will be calculated.
  • Consider taking a second person along for additional safety.
Murch
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LocalBitcoins.com features a transaction service which guarantees that bitcoins have arrived to your LocalBitcoins.com wallet.

  • You get a secret code when the bitcoin seller enables transaction service (escrow enabled) on the trade

  • When the bitcoin seller releases the transaction the seller gets SMS with the your secret code

  • Ask the seller and if he/she knows your secret code from his/her SMS it is safe to hand over the cash as you know bitcoins are then in your LocalBitcoins.com wallet

  • Now you can transfer bitcoins from LocalBitcoins.com wallet to any wallet you wish

https://localbitcoins.com/faq#howto_transaction

Sometimes when somebody has suggested a deal where there the payment is 50% now and 50% later, it is a sign of potential scam.

Mikko Ohtamaa
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  • One more thing: Meet in a public place like a bar. – Murch Sep 04 '13 at 12:47
  • They have interesting services, yes. But I didn't set it up and it costs 1% fee actually, so the question was rather meant without escrow service. – Borph Sep 04 '13 at 14:11
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My answer would be: "There is no way, to protect self from rapid scammer."

You are, probably, should spent a great time with seller, say 3, may be 4 hours.

E.g. See this thread: bitcointalk.org: If confirmation takes 10 minutes, how will I buy coffee at Starbucks?

Another way is to use an arbiter, e.g. www.bitrated.com

Bitcoin arbitration marketplace Protect yourself against online fraud with Bitcoin's m-of-n transactions.

Before you go to give your money to seller, an arbiter confirm transaction, wait for seller's confirmation, than send bitcoins to you.

user10274
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