WEBVTT 00:00.630 --> 00:08.910 Another method of getting bitcoins anonymously is using peer to peer services now peer to peer services, 00:08.910 --> 00:16.170 as the name suggests, remove the middleman or the middle entity that facilitates exchange in fiat or 00:16.170 --> 00:18.750 normal currency with cryptocurrency. 00:19.350 --> 00:25.980 So with Coinbase and all of the other exchange websites, there is a middleman or an entity or a company 00:25.980 --> 00:28.570 or a bank that is acting in the middle. 00:28.590 --> 00:34.160 We give this entity our fiat currency or normal currency, and we get crypto instead. 00:34.170 --> 00:41.250 And usually these companies and entities would require extensive information about us, would require 00:41.250 --> 00:44.190 us to verify our identity and so on. 00:44.430 --> 00:50.190 Therefore, they're great in terms of security, but they're not very private or anonymous. 00:50.700 --> 00:57.270 On the other hand, with peer to peer, it really depends on the person that is selling you the bitcoins. 00:57.270 --> 01:04.380 So you might be able to find a seller in your area that is willing to give you bitcoins without verifying 01:04.380 --> 01:05.520 your identity. 01:05.880 --> 01:12.060 A lot of sellers also accept cash in person, so you'll literally be able to walk in, give them cash, 01:12.060 --> 01:14.700 and then get your bitcoins in your wallet. 01:15.060 --> 01:15.810 This is great. 01:15.810 --> 01:22.860 So this is similar to using an ATM, but there is no cameras, there is no shops, so it can be even 01:22.860 --> 01:24.000 more anonymous. 01:24.780 --> 01:32.940 Now if you go on bitcoin dot org and look at the exchange page that I have in here, we already discussed 01:32.940 --> 01:37.260 the exchange websites, like I said in here, like Coinbase and all of them. 01:37.680 --> 01:43.590 If you scroll down, you'll get to the HTTP section that shows you the most common and most popular 01:43.590 --> 01:47.430 peer to peer services that you can use to get bitcoins. 01:48.060 --> 01:53.310 Now, the top three services in here, they are peer to peer, so there is no middleman. 01:53.310 --> 02:00.870 But they either require you to verify your identity, to sign up, or they only accept payment methods 02:00.870 --> 02:07.620 that would require an ID such as transferring money using Western Union and other services where you 02:07.620 --> 02:10.650 have to show your ID when you're transferring the money. 02:11.610 --> 02:18.900 The last two in here, Localbitcoins and Paxful are slightly better because they offer a large number 02:18.900 --> 02:22.410 of payment methods, including cash in person. 02:22.530 --> 02:27.300 Now local bitcoin does not offer cash in person anymore, but it used to. 02:27.330 --> 02:30.960 Paxful still does that and I'll show you how to use it in a minute. 02:31.230 --> 02:35.740 But before using Paxful, I want to give you a quick look on Localbitcoins. 02:35.760 --> 02:40.430 I already have it open in here and using this website is very, very simple. 02:40.440 --> 02:43.440 You type the amount that you want to exchange for bitcoins. 02:43.440 --> 02:45.360 For example, we can type 25. 02:45.480 --> 02:48.750 You select the currency that this amount is in. 02:48.750 --> 02:55.750 You select the country that you are in, and you select the payment method that you want to pay with. 02:55.770 --> 02:59.460 And as you can see, there is a lot of payment methods in here. 02:59.460 --> 03:01.710 You can pay by cash at ATM. 03:01.710 --> 03:07.380 You can do a cash deposit, you can do a bank transfer and so on. 03:07.410 --> 03:13.740 Now, as you can see, a lot of them would require you to present an ID or at least verify your ID when 03:13.740 --> 03:15.150 using the services. 03:15.270 --> 03:20.700 And like I said, this website used to offer cash in person, but it doesn't anymore. 03:20.730 --> 03:27.150 So you can actually just keep this on all online offers and search and you'll see all of the offers 03:27.150 --> 03:32.070 that's available in your area, in your country in which you can get bitcoins with. 03:32.100 --> 03:39.060 So as you can see, we have a seller here that accepts add cash and you can see these guys accept bank 03:39.090 --> 03:45.300 transfer and you can just look for whichever is best for you and pick it from here. 03:45.750 --> 03:48.020 Now, one more thing that I'd like to note. 03:48.030 --> 03:51.570 Keep in mind that in here you're using a peer to peer service. 03:51.570 --> 03:54.180 So it's similar to buying stuff from eBay. 03:54.180 --> 03:58.830 You want to make sure that the person you're buying bitcoins from has a good rating. 03:59.370 --> 04:05.940 So if you look in here, the first number that you see between the two brackets, this is the amount 04:05.940 --> 04:08.760 of exchanges that he's done. 04:08.760 --> 04:12.990 And as you can see, he has 100% positive feedback. 04:13.230 --> 04:19.800 This guy right here has done more than 20,000 exchanges and he has 100% positive feedback. 04:19.800 --> 04:22.470 So he is a really, really good seller to get from. 04:23.070 --> 04:28.470 Now, once you find the seller that you're happy with, all you have to do is literally click on buy 04:28.470 --> 04:33.780 and the website will take you through the steps that you need in order to get your bitcoins. 04:33.810 --> 04:37.130 Now, using this is very, very simple and intuitive. 04:37.140 --> 04:43.170 That's why I'm not going to spend time on it, especially that this website does not offer cash in person, 04:43.170 --> 04:46.590 which, like I said, is the most anonymous payment method. 04:47.070 --> 04:50.990 Instead, I'm going to show you how to use a website called Paxful. 04:51.000 --> 04:55.260 Like I said, it's the second website that we have in the list in here. 04:55.560 --> 05:01.770 The reason why I want to focus on this website instead of local bitcoins is because this website has 05:01.770 --> 05:02.970 cash in person. 05:02.970 --> 05:06.360 And again, as you know, this is more anonymous. 05:06.780 --> 05:10.410 Now, I have this loaded in here in my computer. 05:10.410 --> 05:13.680 And as you can see, again, very simple to use. 05:14.070 --> 05:17.670 From the left here, you can pick the payment method that you want. 05:17.670 --> 05:23.940 And as you can see, we have bank transfer, PayPal, Western Union and a lot of other payment methods. 05:23.940 --> 05:27.570 You can even see gift cards, Uber gift cards and so on. 05:27.570 --> 05:29.620 So things that you can't even think of. 05:29.640 --> 05:32.280 But what we're looking for is cash. 05:32.550 --> 05:35.610 And as you can see, we have in here cash in person. 05:35.790 --> 05:37.260 So that's what we want. 05:37.290 --> 05:43.440 The amount that I want to transfer, I'm going to put it in euros because I live in a European country. 05:43.440 --> 05:47.550 So let's put 20 and that's going to be euros. 05:47.730 --> 05:51.540 It's telling us how much that will be equivalent to in bitcoins. 05:51.540 --> 05:59.340 And we're going to click buy bitcoin now to search for all this others that exchange cash to Bitcoin 05:59.340 --> 06:01.080 and accept cash in person. 06:02.170 --> 06:06.640 Now we have no script here detecting a potential cross-site scripting attack. 06:06.670 --> 06:07.870 It's not really an attack. 06:07.870 --> 06:10.670 It's just this website is using Twitter's API. 06:10.690 --> 06:12.750 I'm going to keep this at block anyway. 06:12.760 --> 06:13.570 We're going to click on. 06:13.570 --> 06:14.290 Okay. 06:15.130 --> 06:21.490 And because we're using Tor right now, the website did not get my correct location. 06:21.640 --> 06:26.770 Therefore, I'm going to scroll up and I'm going to select the country from here manually. 06:27.610 --> 06:31.050 So by default, the website should automatically get where you are. 06:31.060 --> 06:36.040 But because we're using Tor, we appear like we're coming from a different country. 06:36.040 --> 06:38.980 That's why the results will not be relevant to us. 06:39.700 --> 06:41.440 So I set this to Ireland. 06:41.440 --> 06:42.640 We're going to search. 06:45.420 --> 06:46.110 And perfect. 06:46.110 --> 06:49.470 As you can see, we only have one result, but that'll do. 06:49.650 --> 06:55.680 You can see this result has more than 1168 positive transactions. 06:55.680 --> 06:56.880 So that's all good. 06:57.120 --> 07:00.630 It's in Dublin, so it's in the same city where I live, so it's perfect. 07:00.630 --> 07:07.320 So you can either click on buy to go ahead and go through the buying process, or you can click on the 07:07.320 --> 07:10.590 seller to get more information about him. 07:10.710 --> 07:15.420 So again, you can see the amount of positive reputation or positive reviews. 07:15.420 --> 07:24.450 We have one neutral review and zero people saying that they had negative feedback with using this service. 07:25.020 --> 07:29.670 Now you can see again in here the email and the ID of this person and the phone number have all been 07:29.670 --> 07:30.210 verified. 07:30.210 --> 07:31.190 So that's good. 07:31.200 --> 07:37.140 You can see the amount of trades he's done, the trade volume, the amount of people that trust him, 07:37.140 --> 07:39.930 and you can see the amount of blocked people. 07:39.960 --> 07:42.900 Now, this should not put you off from a seller. 07:42.900 --> 07:49.050 If you see some blocked people, this might be just people that this seller blocked because they were 07:49.050 --> 07:50.430 conducting fraud. 07:50.430 --> 07:51.960 So it's nothing scary. 07:51.960 --> 07:57.600 If you're buying from someone, you should focus on the positive feedback that you see in here. 07:58.500 --> 08:03.360 Now again in here, you can see the payment methods that this seller accepts. 08:03.360 --> 08:10.320 So they accept cash in person, they accept cash by email, they accept uber gift card and so on. 08:11.040 --> 08:17.190 But I'm going to close this because what we were interested in is cash but in person, which we already 08:17.190 --> 08:17.850 clicked on. 08:17.850 --> 08:21.150 So you can see it actually automatically loaded in this tab. 08:21.150 --> 08:23.340 But if we go back to where we were. 08:24.480 --> 08:27.050 And literally just click on buy here. 08:27.060 --> 08:30.330 The website will take us through the buying process. 08:30.960 --> 08:36.150 Now, before buying bitcoins using this website, we'll have to make an account with them. 08:36.300 --> 08:40.940 Now, the nice thing about this, it's not going to ask you for a lot of personal information. 08:40.950 --> 08:43.680 So as you can see, it's asking us for the email. 08:43.710 --> 08:48.020 We've already created an email that will only use on the darknet anyway. 08:48.030 --> 08:49.530 So I have it in here. 08:49.530 --> 08:53.970 It's John Wick at Blue Dot N, so I'm just going to paste it here. 08:54.660 --> 08:56.880 It's going to ask you to set a username. 08:56.880 --> 09:02.340 We'll set the same username as the email and we'll set a password. 09:03.840 --> 09:06.140 We're going to agree to the terms and conditions. 09:06.150 --> 09:10.800 Now, again, you might want to go through this in details, but for me, it's fine. 09:10.800 --> 09:12.330 I'm going to create the account. 09:13.980 --> 09:14.400 Okay. 09:14.400 --> 09:17.460 So the account has been created, as you can see in here. 09:17.460 --> 09:22.590 But before we can buy bitcoins, we have to go and verify our email. 09:23.280 --> 09:28.370 So I'm going to go to my email and here I'm going to refresh my inbox. 09:29.260 --> 09:31.330 And we have a new message. 09:31.750 --> 09:33.280 We're going to click on it. 09:34.530 --> 09:38.130 We're going to load the verification link that we have in here. 09:39.630 --> 09:40.420 So that's it. 09:40.440 --> 09:47.130 My email has been activated successfully, so I'm just going to go back to the page that we were in 09:47.130 --> 09:47.850 already. 09:47.850 --> 09:52.440 And as you can see, the verification message have disappeared. 09:52.440 --> 09:56.550 So right now we've already set the amount that we want to exchange for bitcoins. 09:56.550 --> 09:58.230 We know how much we should get. 09:58.260 --> 10:03.630 We've already checked our seller, so I'm going to click on Buy now to initiate the process. 10:05.420 --> 10:08.870 You'll get a nice message explaining to you how this is going to work. 10:08.870 --> 10:10.280 So we're going to say, got it. 10:10.790 --> 10:14.260 And basically what you want to do is pay the money here. 10:14.270 --> 10:19.460 Once you do, you click on paid and wait for the money to arrive in your Bitcoin wallet. 10:20.180 --> 10:26.090 If for any reason you don't wish to continue with this, you can just click on Cancel and all of this 10:26.090 --> 10:27.110 will be canceled. 10:27.980 --> 10:33.800 Now on the right, as you can see, we have instructions on how this will work and this might vary depending 10:33.800 --> 10:36.170 on the seller you're buying bitcoins from. 10:36.590 --> 10:40.740 Now, as you can see in here, it's saying we have one hour to make the payment. 10:40.760 --> 10:43.430 If we don't, then the trade will expire. 10:43.700 --> 10:47.240 So I'm just going to send him a message asking where we should meet. 10:52.750 --> 10:53.080 Now. 10:53.080 --> 10:58.360 I've actually waited for this letter to get back to me, but as you can see, I got nothing here. 10:58.360 --> 11:02.590 So I communicated with him using one of the methods shown in here. 11:02.620 --> 11:08.770 Now, obviously, telegram is anonymous enough if you install it on a phone that has followed proper 11:08.770 --> 11:13.900 object that is not used for personal use, that does not contain any personal information. 11:13.990 --> 11:18.370 So I communicated with him and the minimum they do is €3,000. 11:18.370 --> 11:22.420 So the minimum I can transfer into bitcoins is €3,000. 11:22.450 --> 11:24.150 Now that's a bit too much. 11:24.160 --> 11:25.590 I don't want to transfer that much. 11:25.600 --> 11:27.430 I'm only doing this for this course. 11:27.910 --> 11:33.040 Unfortunately, in my country, as you can see, this is the only seller, so there is no other options 11:33.040 --> 11:33.710 for me. 11:33.730 --> 11:39.700 In your case, if there are other setters, you can go ahead and try to start a trade with them. 11:39.730 --> 11:41.650 As you can see, the process is the same. 11:41.650 --> 11:45.970 You communicate with them, you meet up, you give them the money. 11:45.970 --> 11:51.580 Once you give them the money, you click on paid and you wait for the money to arrive in your account. 11:52.300 --> 11:58.840 Now the money will automatically arrive in your wallet in here because when you create a paxful account, 11:58.840 --> 12:02.260 it automatically creates a Bitcoin wallet for you. 12:02.260 --> 12:05.670 And as you can see right now, there is no transactions in mind. 12:05.680 --> 12:12.130 So once you go ahead and pay them and come back here and click on Paid the money, they should transfer 12:12.130 --> 12:14.570 the money into your wallet in here. 12:14.590 --> 12:17.890 Now, as you can see, you even have the address of the wallet here. 12:17.890 --> 12:20.530 If you just want to use it for normal use. 12:21.010 --> 12:27.190 And because you're communicating directly with that person through this chat or through one of the other 12:27.190 --> 12:33.220 methods of communication that they list here, you might even be able to give them the address of your 12:33.220 --> 12:34.220 Electrum wallet. 12:34.240 --> 12:41.080 So as we see before, all you have to do is go to the receive tab, copy this address or QR code and 12:41.080 --> 12:42.160 give it to them. 12:42.160 --> 12:47.590 And they might agree on transferring the money directly into your electron wallet. 12:48.190 --> 12:50.350 If they disagree, that's fine. 12:50.350 --> 12:56.530 You're going to get the money here and you'll be able to send it from here into this wallet. 12:56.530 --> 13:02.320 Again, simply using this address and I will actually cover transferring bitcoins from one wallet to 13:02.320 --> 13:04.660 another in the next lecture anyway.