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Video Instructions for Cash Deposit Photo
Most common mistakes of amatuer Bitcoin sellers
Every day someone posts on one of the bitcoin forums about how they were trying to sell bitcoin and got scammed. These amateur sellers are commonly known as “windowlickers“. They lose their money, their bitcoin and still consider themselves smart enough to make money with bitcoin. The fact is most sellers lose more money than they make.
Here is the list of the most common mistakes amateurs make.
- Selling bitcoin they can’t afford to lose. Even the best traders get scammed so plan to lose money
- Charging to little. Those profits are what keep you in business when prices fluctuate or you get scammed. Lower your prices to undercut your competition and you are cutting your own throat.
- Accepting PayPal as a payment method. Yes, some people accept PayPal but they have a ton of experience and know tricks you don’t. If you accept Paypal you will get scammed, you will lose money and Paypal will come after you. Paypal can even take the money back out of your bank account and ruin your credit
- Believing that anything you can say will help you win a Paypal dispute. Paypal doesn’t care what they say. They have judged you before they even contact you. If the windowlickers were smart enough to win their dispute they wouldn’t have been accepting Paypal in the first place.
- Believing a website/forum can help and/or protect them. Websites like LocalBitcoins and Bitwallet do what they can but they are understaffed and their primary concern is making money, not settling disputes or answering support tickets. The forums are full of other people just as naive as you that have no power over the website. Understand you are on your own and expect 3-5 business days for a reply. Be prepared that reply may not actually be able to help you.
- Believing reload cards like ReLoadit or PayPal MyCash are safe. They can be reversed and scammers do it all the time. There are also a lot of scams that will get your accounts shut down after the card has been loaded, you banned and a mark on your credit if you don’t give PayPal/ReLoadit the money back.
- Releasing bitcoins without cash/payment being fully in your possession. Remember, most consumer based payment methods can be reversed.
- Selling out of escrow. Hopefully you don’t really need an explanation why this is stupid.
- Giving out personal information like bank account numbers or their phone number. There are tons of scams that use these. The professional sellers that do give this information out have safety features on their accounts to protect them.
- Believing cash deposits are safe – There are a number of scams that target bank accounts. These often end up with the police investigating the owner of the account and the bank’s banning the owner from their system (regardless of who is at fault).
- Accepting credit cards. These are the easiest scammed of all because credit cards automatically default for the owner of the card and its up to the retailer/seller to prove that the purchase was one the card company approves of.
- Believing that if a seller requires a photo ID they will be protected. Photo IDs that will fool police are easily bought online.
Want to learn how to be a real seller? Check out our consulting service!
What a cash receipt should look like.
A good cash receipt has all of the following
- Picture is large, bright and clear
- Receipt has message we tell you to write on it
- Receipt hows paid for with cash
- Receipt shows only one card was bought (avoids scammers and brokers)
- Receipt shows purchased in last 24 hours
- Card clearly shows scratch off number (in our example it is blurred for security)
- Background can be seen
- No cropping or missing edges
Below is an example. If someone cannot provide a picture like this or they make excuses for not having one, it is often a scam.
Common Scammer Excuses
Scammers like to try to bend the rules, confuse you and generally not follow the terms of trading websites and ads.
- Can you do me a favor and change your rules just this one time?
- I really am from the US but my IP just says China/Nigeria/Phillipines because I am on vacation”
- Please release coins first before I send you the payment. I’ve already been scammed and don’t want to lose my money again.
- “I didn’t get a receipt.”
- I lost the receipt.
- “Trust me it is just a mistake, I really did pay with cash.”
- “That is all the receipt, the register just cut off the rest”
- “Their printer was broken and I couldn’t get a receipt”
- “Someone give it to me for my birthday so I don’t have a receipt”
- “I threw the receipt away”
- Localbitcoins won’t let me upload a pic
- “I will retake the picture after you release, my phone is dead right now”
- “You don’t need a pic”
- “I only have pics of the payment and receipt separate. I can’t take one of them together.”
Regarding Cash Deposits
- I will report you to the police