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They use a non-custodial method, for the wallet
And an escrow smart contract trade escrow:
https://support.localcoinswap.com/hc/en-us/articles/360008557014-What-is-Escrow
These are all on-chain transactions. LN is not used.
Trade with a small amount first.
There are many scanners on these platforms, so trader reputation number is useful info. When selling BTC, never release escrow until you truly have received payment, and avoid payment methods that are easily reversible.
I used to make many trades on LocalCoinSwap, mostly selling relatively small amounts. Once you find a good trading partner -- one that is responsive / prompt, subsequent trades are smooth and no anxiety.
For truly small trade amounts, you won't find buyers when BTC trx fees are not low. So I would convert from LN via a swap tool/site to Litecoin, or (just for the trade), to have lower trx fees.
How this works:
Iranians in Iran find a trusted Iranian in U.S. who will receive USD in his bank account, then use those funds to buy Gift Cards (online / spendable electronically) and physical (delivered to Iran).
Iranians in Iran find third parties in other countries to send USD to the U.S. bank account of the Iranian in the U.S.
What the article doesn't describe, is how and why these third parties sent USD to the Iranian in the U.S.
This matches well with "third party" P2P trading on Paxful or other KYC-free P2P trading platforms. The seller of bitcoin, (the Iranians in Iran) provide to the buyer of the bitcoin the name and bank account number of the Iranian in the U.S. The Iranian in the U.S. only needs to let the Iranians in Iran know when the funds arrive, and they release the BTC to the "third party" / buyer. The Iranian in the U.S. then withdraws the cash and buys gift cards with cash, and sends the code (secret) from the gift card to the Iranians in Iran.
The gift cards were likely used for online purchases for luxury items then received in Iran and those items resold for cash.
The bitcoin were likely received as payment for commodities or weapons -- possibly through corporations or intermediaries.
It may not have been exactly like this, but this is how bitcoin held by Iranians can be spent within the country.
Ok, just to confirm, this is still just the normal protocol, but where the buyer paying on-chain BTC then receives via LN ?
i.e., not the planned Bisq Lightning feature?
Bisq Lightning: LN BTC <-> Fiat (chain of multiple protocols: Liquid Submarine Swaps, Liquid Multisig)
Darknet markets aren't just for illegal shit on Tor, you acid-soaked fool.
The buying and selling of cash can be an activity performed on platforms which help you maintain your financial privacy. Two of these, Bisq and RoboSats, can be considered darknet markets too.
Do you know how to detect a bleached bill that has been re-printed as a $100 ?
Your pen says it is legit.
Tips for local transactions
https://bitcointalk.org/index.php?topic=137272.msg1463290#msg1463290
You want to avoid being included in the following list:
Known Physical Bitcoin Attacks
https://github.com/jlopp/physical-bitcoin-attacks/blob/master/README.md
SafeTrade Stations
https://www.safetradestations.com/where-to-trade.html
Exactly. Sellers will look at listed offers and think ... Hmm no buyers, or only bad rates.
At the same time, buyers will look at listed offers and think ... Hmm no sellers, or only bad rates.
In the meantime there was a trade opportunity that was lost. Make an offer and get the price you want. You can find sellers like myself who will sell near or at spot even (when we need the fiat, and are not doing the trade just to make a profitable trade).