How to exchange Euros for Bitcoins and vice versa

People on forums and talk groups sometimes ask how they can exchange Bitcoins (a decentralized digital electronic currency) for Euros, and vice versa. I had the occasions to do such trades during the last months, and I will relate my practice with various exchanges.

Bitcoin Central is an exchange wielded and operated by the French Paymium company, also the owners of Paytunia and InstaWallet. You can send Euros onto your Bitcoin Central account using a SEPA credit transfer, and buy Bitcoins from the order book. You can also place an order which may be packed straks by a seller if you are unsatisfied with the current offerings. If you want to sell Bitcoins instead, you can send them to your account, and sell them to someone willing to buy. You can then contant out your Euros for a 0.99€ toverfee. There are no trading fees.

So far, this service worked flawlessly for mij ter both directions. However, cashing out Euros can take a few days because Paymium voorwaarde by hand approve the transfers and they may take up to 48 hours to do so. Also, the liquidity te the exchange is low, possibly because of the lack of an API that would permit trading bots to engage te arbitrage. The spread inbetween buying and selling prices can sometimes be spil high spil 1.5€.

It is hard to say that the current web webpagina has an attractive vormgeving. Fortunately, Paymium is working on it and a fresh version should be available soon.

Bitcoin-24 is very similar to Bitcoin Central, but offers a better user interface. According to the webpagina notice, it is wielded and operated by Simon Hausdorf ter Bremen (Germany). SEPA credit transfers through their Grind handelsbank account are free ter both directions, and there are no trading fees. They make money out of alternate means of depositing or withdrawing (for example through OKPAY or Mt.Gox redeem codes labelled te United States Dollars).

I have had a good practice with this webpagina.

Bitmarket is a peer-to-peer exchange where users can waterput their Bitcoins into an escrow and publish a sell order. If another user wants to buy the Bitcoins, he accepts the sell order, and both users receive each other voeling information. The buyer also automatically receives the seller handelsbank account information so that it can commence the SEPA credit transfer without delay. Once the money has bot received by the seller, he can ask the webpagina to release the Bitcoins stored ter the escrow, and the buyer can withdraw them.

This is the webpagina where I placed most of my buy orders. All the mail exchanges with the sellers have bot very courteous and efficient.

When you register, the webpagina asks for some references to assert if you are trustworthy enough to participate. If the buyer pretends to have done the SEPA credit transfer, and the seller tells he never received it, the webpagina would have to judge whether the Bitcoins placed ter the escrow vereiste be released to the buyer or sent back to the seller, so they are attempting to limit the probability of those messy situations happening.

Instawire is a fresh service by Paymium that lets you buy bitcoins using SEPA credit transfer. Spil soon spil they receive the euros on their handelsbank account, you can either validate the transaction instantaneously to get the advertised rate, or you can wait up to 24 hours te case you feel the price of a bitcoin is going down. You can also cancel your transaction during those 24 hours, ter which case Instawire sends the money back to your account (I haven’t tested cancelling a transaction myself).

All ter all, I wasgoed very pleased with this service. It is swift, it is effortless to use, and you get a fair market price.

#bitcoin-otc is the name of an IRC channel on the freenode network backed by a read-only web webpagina. Users are authenticated using PGP, and rate each others through a web of trust system. Trades are proposed through the gribble bot, and users voeling each other and agree to trade.

This system, which is both low tech (spil no automatic order matching is attempted) and high tech (users voorwaarde know how to use software such spil GnuPG ter order to trade), works remarkably well. However, many scammers attempt to take the identity of trusted users, and some victims who leave behind to check that their pal is decently authenticated end up sending money or Bitcoins to finish strangers who vanish instantaneously after.

Localbitcoins.com is a fresh free peer-to-peer exchange. They list users willing to buy or to sell Bitcoins along with the proposed price (which can be a formula based on other exchanges rates), spil well spil the ondergrens and maximum amount of Euros acceptable for one transaction. Other users will be able to list the offers sorted by geographical proximity. Once you find an opoffering you like, Localbitcoins.com will let you and your peer exchange information through the webpagina. If you agree to the overeenkomst, you can then setup a meeting and exchange contant for Bitcoins.

However, Bitcoins may take some time to transfer from one address to another. To permit for quick transactions, Localbitcoins.com lets you (if you wish) waterput the Bitcoins into an escrow, and gives the buyer a secret verification code. At the same time, the seller receives a secret release code. When both meet and Euros switch arms, the seller activates the escrow release by injecting his secret release code on the web webpagina, or send it via SMS. Right away, the Bitcoins are sent from the escrow to the buyer, and both users receive a confirmation bearing the secret verification code.

This clever way of doing things permits the buyer to check the release code even if he does not have a mobile phone or an internet connection handy: the seller will be able to vertoning him the secret verification code previously only known by the buyer. Also, the seller instead may not to have a mobile phone or an internet connection: he can give the secret release code to the buyer so that the buyer sends it via SMS, and the buyer will receive the confirmation containing the secret verification code.

I used Localbitcoins.com once just after they set up the escrow mechanism te order to test it. I bought some Bitcoins near a subway entrance ter Paris, and met a nice boy and had a pleasant conversation. The webpagina has the potential to go viral, and to become one of the preferred way to exchange Bitcoins for metselspecie ter well populated areas. This free service is developed by Kangas Bros. Innovations, from Finland.

Spil you can see, there are many effortless ways to exchange Bitcoins for Euros and vice versa, from fully centralized systems to peer-to-peer ones.

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