Tutorial: How to Sell Part II – Validating Profiles, Selling Directly

In our previous tutorial – Part I – we covered the basics of the wallet, loading it with Bitcoin and monitoring your transactions.

Now that you have topped up your account and reached the “Sell Bitcoin” page, you can start choosing the currency and method of payment that best matches your criteria. In some cases such as the Amazon Gift Cards, you may notice that prices offered for bitcoin can reach up to 2 times the current price of Bitcoin. We will go over some things to note to make sure that you always remain safe and secure during the process. Some offers may be too good to be true and if that is the case, we urge that you take some time to understand the risks involved.

Familiarise yourself with the search bar:

The search bar allows you to select:

  • The amount you want to sell.
  • The desired currency.
  • The method of payment you prefer.
  • Give me the best (brings you the best offers based on when the buyer was last online and their rating).

In this example we will sell $20 selecting USD as the currency with the Amazon Gift Card as a way to receive the money. There are over 300 ways to sell bitcoins. Each have their own benefits and risks attached, depending on your personal choice.

Selecting an offer:

This is one of the most important parts of the entire process. As you can see there are several things that we have highlighted here:

  • Last seen online: This shows whether the person was online to determine whether if you were to make the trade, they would be available to chat and make the trade.
  • Positive feedback Shows the number of positive feedback that person has. You can use this to evaluate the risk when making a trade. Note: a higher number does not automatically mean that they are to be trusted. Some people can do insider trading with themselves on different accounts to increase the number. Please check their profile, their trade volume and number of ways they have verified themselves.
  • Mix-Max amount: You can see here the amount bracket the person is willing to purchase. Perhaps the person has a minimum or maximum limit that is below or beyond what you have in mind. It is also recommended that you do the trades in small amounts until you can trust the person.
  • Rate per bitcoin: This rate can change depending on the person. You can usually believe that if it is too good to be true, it usually is.

Offer #1:

For the sake of this tutorial, we will a few to give you an idea of how to make a trade:

So in this instance we have selected a person who is giving us $1.9 for every $1 we trade with them in the form of a Amazon Gift Card. It seems like a pretty good way to save on purchases!
Note: We do recommend in such cases that you do ask for a receipt and that the person shows the proof of payment for the gift card – ideally you want the gift card to have been paid for by cash.

Protection Warning:

Chat Dialogue (Unsafe/Poor):

Sample chat example of how you can protect yourself. Still we do not want to make a purchase of $100 without doing some minor trades first. So now we try another user.

i sorry but ? have only 100usd GC and more

you did not mention this in your limit

I know before I had less too

with the 100usd can you send me the receipt and proof of payment for the GC?

sure I send always the receipt

was it paid for by cash or CC?

only by cash

is a problem?

no, just in the past ive had people send me a GC but then amazon says it is not working anymore after i make the purchase, because they used a stolen credit card to buy the GC.

nono I dont fraud nobody

okay, thanks buddy. i will try a lower amount but if i do more, i will come to you 🙂

User Profiles (Poor/Unsafe):

It is always a good idea to check the user profile of the person you are making a trade with. In this example we have highlighted:

  • Verification: This indicates whether the person has gone through all the verifications possible on the site. It is a good to make sure they have both options verified!
  • Trades: This number indicates the number of trades a person has committed to on the website. Typically you want a person that has committed to more than 20 trades and has at least 10 partners. It would mean that person is experienced enough on platform and can guide you through.
  • BTC Volume: The volume can be used as an indicator to analyse the integrity of the trades the person has committed to. 10 BTC is still valued over $10K USD at the time of writing this, so it is a decent amount, though we do not know how less it is. It could be as small as a few $50 trades.
  • Trusted by: Shows how many people have trusted this person. Keep in mind anyone can trust another user without even having performed a trade with them.
  • Blocked by: Shows how many people have blocked the person. Indicating to not trade with the person. These can be trolls or vendors blocking each other, though, usually a good indicator to look into the profile and feedback further before performing trades. Keep in mind anyone can block another user without even having performed a trade with them.
  • Joined: How long has the member been registered with the site. You want a member that has been a member for at least a month. Being a new member does not have to mean something negative, but if you are doing larger trades, we recommend someone that has been around for a longer period for your peace of mind. A longer period may not mean a higher trust, but it is a good way to know that at the least the person has been around and not performed any fraud during that time. It would be a waste of their time to build up a good profile for a long period just to ruin it in the end.

Overall – I would rate this profile as unsafe for large trades based on a few reasons:

  • Is a new member with only 4 days passed since registration. At times some transactions such as a gift card can go wrong after 2 weeks. With Paypal this can be even longer. So you want the person to have been a member long enough that if such a thing has happened, the user would have had enough time to come back and mention it.
  • Only performed 3 trades with very low volumes.
  • Phone number has not been verified. This does not have to mean something negative, though it is a good idea to go for a profile that has committed to being a legit bitcoin buyer, thus doing everything they can to verify themselves and relieve the seller of any doubt. Keep in mind that during the trade process you can see their phone carrier information. In some cases if user has VoIP phone such as Google Number, it would be higher risk.

User Reputation (Poor/Unsafe):

The user reputation is essential in selecting a safe buyer to sell to. If correctly selected with consideration to the duration that the member has been registered with the site, you can ensure that the trade will go through without any issues.

In this example, the user has been registered for 4 days and has a positive reputation consisting of 5 trades. Ideally you would want someone that has been registered for a bit longer and has performed a greater number of trades.

User Profiles (Good/Safe):

In the previous example we showed you an example of a profile that we deem unsafe. Now we will show you an example of one that we believe represents a good set of :

Verifications: We can see in this example, that the person has verified both of their contact details. This is a great starting point.
Trades: We mentioned that we want the person to have committed to at least 20 trades. In this case, they done so with over 240 trades! So far so good.
BTC Volume: Next we check the trading volume. This person has reached the next level ensuring that they have traded at least 10 Bitcoins – valued at over $10K USD. Another great checkpoint.
Trusted by: Shows how many people have trusted this person. In this case, 24 is a good number, though again keep in mind anyone can trust another user without even having performed a trade with them.
Joined: This aspect is pretty important. Users who have joined a long time a go can alleviate us of our worries for the most part. This is because it is much more likely that they would have been banned from the site or been reported as a scammer during that timeframe. We can access a longer history of comments, feedback and reputation points to when making our decision.

Overall – This profile would be rated as safe and a worthy vendor willing to purchase for the following reasons:

  • Has performed over 20 trades.
  • Has been a member for longer than 3 months.
  • Phone number and email have been verified.
  • Comments left by users seem thorough, not just a simple one word review.

User Reputation (Good/Safe):

The user reputation is essential in selecting a safe buyer to sell to. If correctly selected with consideration to the duration that the member has been registered with the site, you can ensure that the trade will go through without any issues.

In this example, the user has been registered for more than 7 months and has a positive reputation consisting of 242 trades. With the exception of one negative review and three neutral review, they have an exceptional 215 positive review. With this in mind, we proceed with the trade.

Chat Dialogue (Average):

In this trade we approached a buyer who we assessed and marked to be a safe member based on their many previous trades and other factors listed above. Once a trade is initiated, you can see a more detailed view on their mobile phone – if they have verified this. This allows you to see the provider and whether it is a normal network or purchased via a VOIP/Google phone service.

The partner had set their location to USA, though after a short look we noticed that the mobile number was from China.

We also noted that the coupons were for the German amazon website. This coupled with the location of the mobile phone, raised our concerns and diverted our attention towards needing to address this with the buyer.

As we proceeded to question the situation, we also noted that the buyer did not provide a receipt for the gift card. This all pointed to an unsafe sell, though the user cancelled the transaction.

Timeframe:

The timeframe in which the buyer can perform the trade varies from user to user. Ideally, you would want someone that can do this fairly quickly so that you do not have to wait for them to communicate and finalise the process.

Amazon Gift Cards

There are various methods by which the user may try to provide you the gift voucher. Some require you to make a purchase straight away with the code, others purchase on your behalf and the code itself can be sent in a physical card, e-code or even amazon coins. They all have their own risks and usability. In our case, the user wanted to make the purchase on our behalf. This is a good idea if there is an item that you want and the buyer can make the purchase for you, whilst getting a discount through the process.

Safety Tips

Gift Cards

  • Biggest profit and every vendor has its own ways to convert gift card back to bitcoin and usually does not share it around.
  • Ask receipt and make sure gift card is bought with cash.
  • Watch out for brokers so when suspicious ask to write on receipt your username/trade ID and let them retake picture.
  • Be careful when accepting e-codes or gift cards bought with debit/credit cards as any debit/credit card purchase can be charged back.

Cash Deposits

  • Least risk, smallest profit margin but purchase amounts are higher compared to gift cards.
  • Make sure buyer deposits cash on your name and ask for receipt

Online Wallets

  • First make sure that buyer’s account is verified on that wallet (i.e verified PayPal account).
  • Ask for ID of the buyer. Make sure full name matches on ID and online wallet account.
  • Riskiest way to sell bitcoin since buyer can easily charge back but at the same time its quickest way to acquire bitcoin without leaving computer.
  • Every payment is tied to debit/credit card which is reason why it can be easily charged back. In example of PayPal less risk would be to make sure buyer is sending payment from their PayPal balance and not directly from debit/credit card.
  • As extra precaution option ask buyer to write on paper that he confirms purchase of bitcoins with trade ID, amount and payment that payment is final. In case of charge back you can show it as evidence.

Debit/Credit Cards

  • As risky as online wallets. Has same chargeback avoiding tips as online wallets. Except that debit/credit card name has to be matched with one on ID.
CONTINUE TO PART III  Facebooktwittergoogle_plusredditpinterestlinkedinmail

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AminTutorial: How to Sell Part II – Validating Profiles, Selling Directly