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On 2016-02-02 15:42:49
Their are countless ways to protect yourself from fraud when purchasing bitcoin. Below are my "Top 3" buying rules I follow whenever I am buying bitcoins, hope it helps.
1. Check The Credibility & Trade History Of The Seller
When buying from an individual on Peer to Peer exchange such as LocalBitcoins, it is extremely important to validate a sellers reputation before you do anything. Take a minute out and look at a sellers trade history, trade volume, sign up date and feedback. It is a good habit to dig into a sellers feedback as sellers with thousands of trades will have a few negatives, you should know when they got them and why. If they have 1000 trades and 10 negative feedbacks in the past year that is no big deal, but if they have 10 bad feedbacks, all of which came in the past week or month you should think twice before trading. Be sure the seller you choose has received 100 or more feedbacks and is no lower then 99%, has been trading for a minimum 6 months, has a no less then 100 trades and has a trade volume over 10 BTC. I DO NOT choose any seller that does not meet ALL of those minimum standards, doing so has kept me safe from ever getting scammed on LBC or Paxful.
If you’re buying at an exchange, be sure they are a reputable, well established one. Bitcointalk forum is one of the provides invaluable honest Exchange Reviews. The top exchanges I recommend are coinbase, circle, coinmamma and bitstamp. Check back soon for a detailed review on these exchanges and others.
2. Always use Escrow
Any trade from an individual seller on LBC, Paxful or any other P2P trading platform should NEVER be done outside of escrow! Escrow services hold on to your funds until you receive the required amount of confirmations. This way your money will be in the custody of a trusted 3rd party until you receive the Bitcoins. Escrow is there for a reason, USE IT.
3. NEVER leave your money at an exchange or online wallet.
When you’re buying Bitcoins from an exchange or P2P platform such as LBC or Paxful, be sure to move your Bitcoins to your own private Bitcoin wallet as soon as you receive them. Unless the coins have to be their, NEVER leave Bitcoins inside an exchange or online wallet when they don't need to be. Online wallets leaves you open to being scammed by the site or outside hackers. Private, 1-1 trustless wallets such as green address are key.
Their are countless ways to protect yourself from fraud when purchasing bitcoin. Below are my "Top 3" buying rules I follow whenever I am buying bitcoins, hope it helps.
1. Check The Credibility & Trade History Of The Seller
When buying from an individual on Peer to Peer exchange such as LocalBitcoins, it is extremely important to validate a sellers reputation before you do anything. Take a minute out and look at a sellers trade history, trade volume, sign up date and feedback. It is a good habit to dig into a sellers feedback as sellers with thousands of trades will have a few negatives, you should know when they got them and why. If they have 1000 trades and 10 negative feedbacks in the past year that is no big deal, but if they have 10 bad feedbacks, all of which came in the past week or month you should think twice before trading. Be sure the seller you choose has received 100 or more feedbacks and is no lower then 99%, has been trading for a minimum 6 months, has a no less then 100 trades and has a trade volume over 10 BTC. I DO NOT choose any seller that does not meet ALL of those minimum standards, doing so has kept me safe from ever getting scammed on LBC or Paxful.
If you’re buying at an exchange, be sure they are a reputable, well established one. Bitcointalk forum is one of the provides invaluable honest Exchange Reviews. The top exchanges I recommend are coinbase, circle, coinmamma and bitstamp. Check back soon for a detailed review on these exchanges and others.
2. Always use Escrow
Any trade from an individual seller on LBC, Paxful or any other P2P trading platform should NEVER be done outside of escrow! Escrow services hold on to your funds until you receive the required amount of confirmations. This way your money will be in the custody of a trusted 3rd party until you receive the Bitcoins. Escrow is there for a reason, USE IT.
3. NEVER leave your money at an exchange or online wallet.
When you’re buying Bitcoins from an exchange or P2P platform such as LBC or Paxful, be sure to move your Bitcoins to your own private Bitcoin wallet as soon as you receive them. Unless the coins have to be their, NEVER leave Bitcoins inside an exchange or online wallet when they don't need to be. Online wallets leaves you open to being scammed by the site or outside hackers. Private, 1-1 trustless wallets such as green address are key.
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Forum posts: 128Bonuses: 1
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On 2016-06-09 01:33:26
Always using escrow is a must. Never leave large amount in an exchange I have even seen people using an exchange as a wallet. Never do this ! Many people have lost a lot of bitcoin this way.
Always using escrow is a must. Never leave large amount in an exchange I have even seen people using an exchange as a wallet. Never do this ! Many people have lost a lot of bitcoin this way.