Advice for Local Trading

I started writing this as a reply to someone else's post, but it turned out to be a bit too long, so I thought I’d make it a whole new topic. The goal here is to support newbies in the Bitcoin scene who want to do face-to-face trades. I've done a bunch of local deals over the years, and I think sharing my experiences might help those just getting started by giving them some tips to trade safely. I've broken down my advice into three parts: where to meet for trades, tips for buying, and tips for selling. I’ve aimed to make everything easy to read and digest. I'm totally open to any suggestions that could help improve this guide and make it more helpful. Hope this helps anyone looking to trade locally! Just a heads up: some of the locations and names I mention are from the US, so they're probably not super relevant everywhere. But the ideas should work no matter where you are. Meeting Up: There are a few key things I consider when choosing a meeting spot: Public Spot Is there a good crowd around? WiFi Access Is there free or cheap public WiFi in the area? Safety Are there cameras or security personnel around? Public Spot: Meeting in public places is like the first rule of Local Trading 101: always better to be around other people. Scammers and muggers are way less likely to act out when there are witnesses around. A good way to weed out any sketchy folks is to insist on a public meeting place; if they want to meet in private, they might have bad intentions. WiFi: Look for spots like McDonald's, Starbucks, Barnes & Noble.

Fantastic info, thank you for providing this. Personal safety does need to be top of mind, as is also emphasized on ShadowLife's post: - http://shadowlife.cc/2012/11/secure-and-professional-bitcoin-otc-exchanges I haven't completed all that many in-person trades myself but more than once now I have been asked to sell for cash an amount of bitcoins larger than any amount I would be selling by myself.  But had I previously gotten in contact with other traders in my area a larger trade amount probably could have been arranged since that would allow me to have to trade only up to my personal max level and then also there would be two or more of us present when the cash traded hands. As far as buying bitcoins from an untrusted stranger, the risk of double spending (due to either a Race attack or a Finney attack) is significant enough to require at least one confirmation (or a Green address transfer or a service such as a LocalBitcoins "Transaction" where the funds released to the buyer would always be already-confirmed funds). One challenge with in-person trading is with communications and coordinating the meet.  Unless you are already planning on spending a couple hours at a coffee shop or wherever, make sure to specify in advance your expectations otherwise you'll often be stuck waiting for your trading partner to show, oftentimes in vain. For a recent trade the buyer arrived on time but he needed to get cash from an ATM.  It was only then that he learned that his bank account has a low maximum daily withdrawal amount, leaving me holding more bitcoins (and less cash) than I had planned.  Had I confirmed that the buyer had cash in-hand before even setting a meeting time and location is something that would have saved me time, money and the resulting headache.

Very good points. I added a section for tips provided from other posters and put some of your info in the original post. You put it perfectly: specify your expectations in advance to avoid any unnecessary headaches. Poor planning results in poor trades. I've also had insufficient funds issues with in-person trades before, and it's quite a pain to deal with.

Stickied. Great tips for local transactions, and should help to keep new users safe. Thanks!

Thanks for the sticky! Really hope this advice can help everyone out!

My tip is to meet at some sort of table and set up a camera to monitor the transaction. For extra security, have the camera recording to some sort of remote server.

If you intend to record video or audio then as a professional courtesy you should disclose that in advance.  Many trading for cash are doing so with the preference for privacy and you recording that transaction conflicts with that. Additionally, there are unintended consequences.  Your camera setup will draw attention from bystanders and thus increase the risk of a potential robber seeing a wad of cash change hands -- something that might trigger that person's split-second decision to relieve you of that cash. If you are trading a larger amount of funds it makes sense that you might want to use some of the same tools that would be employed by any financial organization dealing with similar amounts.  For instance, to confirm the cash contains no counterfeits involves having adequate lighting and the liberty to raise each bill to the light to inspect the security features.  For a small amount that can be done inconspicuously even in a coffee shop, but try doing that from a sample of fifty bills and you'll stick out like a sore thumb.  I don't know the threshold but trading a couple hundred dollars worth of coins is going to be a night and day difference from a trade involving a thousand dollars or more. Remember too the saying that you don't bring a knife to a gunfight.  If you are thinking a camera will protect you from physical harm, you might be projecting too much significance with that mode of defense.

Fair points. Bringing your own camera may not be necessary if you're meeting at a place with plenty of security. Places like malls have security cameras so you don't have to bring your own. And I agree with Stephen: if you do decide to bring your own camera, make sure to okay it with the other trader before you set everything up to record. Certain jurisdictions may have privacy laws that could open you up to legal trouble, and you wouldn't want to provoke an argument with someone who values his privacy. However, I could see the mention of bringing a camera being a preventive method: like I mentioned about the public locations, a camera may cause a mugger to change his mind about the deal, preventing the crime before it happens. I wouldn't rely on it as a deterrent though. To Stephen: like I said in my original post, it would probably be easier to buy a marker that can detect false bills to bring with you. Less conspicuous than lifting large volumes of currency up to the lights and squinting at them.

Great points, but i was thinking that the camera would be useful if you were in a retail location w/o cameras, like starbucks. I also assumed that you would let the other person know about the camera. To avoid drawing attention you could use some sort of low-profile camera, like a button camera. Also, if you are trading large sums of money/goods it could make sense to have another person with you that the person that you are trading with doesn't know about, who could step in and break up any conflict that might arise.

This is a really good piece of advice: strength in numbers. Mentioning a second person could also help deter potential muggers who won't want to deal with two people. And, like you said, simply having a friend sitting a table away can help if a dangerous situation arises. I would personally disclose an additional person to the other trader (either in advance or during the meeting), but that's up to the discretion of the trader. I certainly don't see the harm in keeping it quiet, since it hopefully wouldn't be a sour trade in the first place. Added to the user tips.

Markers don't detect that bills have been bleached and reprinted.  - http://www.myfoxny.com/story/19100813/man-suspected-to-be-using-counterfeit-bills-in-nj

Hadn't heard of that before. Good advice to know though!

i'm sure your post is helpful for some people, and it does seem like a good write-up, however your list is pretty much the exact opposite of what I would look for in a trade Private location - no rubber-neckersWiFi Access unnecessary as everyone where i'm from has a data allowance on their phoneBig brother - Are there no security cameras in the area?

I have a data plan phone too, but WiFi works a lot quicker. I need to upgrade to LTE, lol! Anyways, it seems like you value privacy in your transactions, which is fine. As long as you feel safe in your trades, go with what's comfortable for you.

This would make sense if you know the person, or are trading something flash/illegal. However, if neither of these things is true, being on camera would go a long way to help w/security.

i agree cameras would help with security, but that's a tradeoff between security and privacy i'd generally go for the latter myself

That's my favourite method to buy BTC, meeting up with the seller (also,the safest!)

Wow, look who's talking! Mr BitcoinMax himself, a fkn thieve and a liar.

I'd highly recommend an openly-carried Glock 19 or similar -- if legal in your area, of course (Thankfully, it is here)

Here's a report of a face-to-face transaction gone bad. In this instance, a person selling headphones through Craigslist was contacted and a face-to-face trade (at a McDonalds) was arranged.  Except it didn't go according to the buyer's plan and the seller left with both the headphones and the bitcoins: I just got robbed blind of bitcoins - in person. I'm feeling like I've lost trust in the usability of the currency and looking for advice.  - http://www.reddit.com/r/Bitcoin/comments/1b89wm