{"id":2453,"date":"2018-09-17T00:00:00","date_gmt":"2018-09-17T00:00:00","guid":{"rendered":"https:\/\/xcoins.com\/3-things-to-know-about-in-person-bitcoin-trading\/"},"modified":"2023-09-15T11:03:57","modified_gmt":"2023-09-15T11:03:57","slug":"3-things-to-know-about-in-person-bitcoin-trading","status":"publish","type":"post","link":"https:\/\/xcoins.com\/en\/blog\/3-things-to-know-about-in-person-bitcoin-trading\/","title":{"rendered":"3 Things to Know About In-Person Bitcoin Trading"},"content":{"rendered":"\r\n<p>Buying or\u00a0<a href=\"\/en\/blog\/what-are-a-few-ways-to-sell-bitcoin-instantly\/\">selling a bitcoin<\/a>\u00a0in person is a pretty easy thing to do when you get down to it, whether you meet up to conduct the electronic trade together or go as low-tech as handing over cash for a\u00a0<a href=\"https:\/\/bitcoinpaperwallet.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">paper wallet<\/a>. After all, Bitcoin is a currency. The entire\u00a0<em>point<\/em>\u00a0is that it\u2019s easy to swap, spend, or give away.<\/p>\r\n\r\n\r\n\r\n<p>Still\u2026 it\u2019s not something we can entirely recommend here at XCoins. While trading bitcoins in person isn\u2019t hard, there are three things you should probably keep in mind before committing to the transaction.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Slow, not slow\u2026 Fast, not fast<\/h2>\r\n\r\n\r\n\r\n<p>An in-person bitcoin transaction can take mere moments. If you want to get as streamlined as absolutely possible, you can hand over an envelope of cash and the other person can hand you the private key. Easy as a handshake, you\u2019re done.<\/p>\r\n\r\n\r\n\r\n<p>Less simple are the days, if not weeks, it can take to arrange that conversation.<\/p>\r\n\r\n\r\n\r\n<p>To make a Bitcoin transaction in person, you have to first find someone relatively nearby who is looking to trade. For someone living in a big city that\u2019s probably not a problem. Bitcoin enthusiasts who live elsewhere might have some real travel ahead of them.<\/p>\r\n\r\n\r\n\r\n<p>Then, of course, you have to set up the meeting. Coordinating schedules can take time. For an asset which can\u00a0<a href=\"https:\/\/www.coindesk.com\/price\/bitcoin\/\" target=\"_blank\" rel=\"noreferrer noopener\">swing<\/a>\u00a0by hundreds of dollars in the span of a few hours, days spent on dueling datebooks can screw up entire trading strategies.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>It\u2019s the Space Mountain of financial transactions; it takes forever to get there, then it&#8217;s over in a flash.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">It\u2019s Risky<\/h2>\r\n\r\n\r\n\r\n<p>There are all manner of ways that trading your Bitcoins in person can go wrong. We won\u2019t linger on the threshold issue, personal safety, but users should understand that it\u2019s a very real concern. Whether you\u2019re the seller, with the QV code and private key printed out in your wallet, or the buyer, either way, you\u2019re walking around with a lot of cash.<\/p>\r\n\r\n\r\n\r\n<p>Furthermore, you\u2019ve advertised to a stranger exactly where and when you\u2019ll be with that money. While not necessarily dangerous, it\u2019s not without risks either.<\/p>\r\n\r\n\r\n\r\n<p>Perhaps more likely, though, is the simple risk of mistake, fraud, or error.<\/p>\r\n\r\n\r\n\r\n<p>Once a Bitcoin has been transmitted, it\u2019s gone for good. There\u2019s no appeals process or customer service team to correct the record. So if something goes wrong during an in-person transaction, there\u2019s more or less nothing you can do about it. Maybe it\u2019s a\u00a0simple error, such as a keystroke that sends 1.2 bitcoins instead of .12. Maybe it\u2019s fraud, such as a personal check that bounces long after the sale has been conducted.<\/p>\r\n\r\n\r\n\r\n<p>Whatever happens, what\u2019s done is done.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">It Might Be A Crime<\/h2>\r\n\r\n\r\n\r\n<p>Federal law\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/uscode.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=31-USC-837998430-246126454&amp;term_occur=1&amp;term_src=title:31:subtitle:IV:chapter:53:subchapter:II:section:5330\" target=\"_blank\" rel=\"noreferrer noopener\">defines<\/a>\u00a0a money transmitting business as any business (other than the Post Office) which provides check cashing, currency exchanges, money transmitting, or \u201cother similar services.\u201d Cryptocurrency is money in the eyes of the SEC, so selling it constitutes a currency exchange and\/or money transmission. It\u2019s\u00a0<a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/31\/5330\" target=\"_blank\" rel=\"noreferrer noopener\">illegal<\/a>\u00a0to operate a money transmitting business without registering it.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>The Justice Department hasn\u2019t just been arresting people for this. They are\u00a0<a href=\"https:\/\/www.justice.gov\/usao-wdmo\/pr\/nixa-man-pleads-guilty-illegal-bitcoin-exchange\" target=\"_blank\" rel=\"noreferrer noopener\">actively<\/a>\u00a0conducting sting operations.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Now, this doesn\u2019t mean that every token you buy or sell makes you a criminal. First off, doing it through a registered service (such as a licensed exchange) is perfectly legal. Second, you have to do this often enough that the government considers you a business. Buy and sell bitcoins long enough, though, and sooner or later the feds will decide that you look more like a professional than a mere hobbyist.<\/p>\r\n\r\n\r\n\r\n<p>Taking risks like that out of the process\u2026 well, it\u2019s why professional exchanges with smart, well-informed and extremely attractive lawyers exist.<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>Buying or\u00a0selling a bitcoin\u00a0in person is a pretty easy thing to do when you get down to it, whether you [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":1106,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[743,741],"tags":[],"class_list":["post-2453","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-category","category-academy-category"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.4) - 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