Quote from: DannyHamilton on June 20, 2013, 07:34:42 AM

Quote from: juicer25 on June 20, 2013, 03:12:15 AM

thank you for the feedback, I appreciate it, I definitely learned a huge lesson, I've always just used blockchain/bitinstan cash deposit but that option is no longer available on those sites. What is the most reliable and safest way that I can purchase bitcoins now?

Step one. Take a few minutes to learn who on the forum has built up a reputation as trustworthy. If someone tells you they are trustworthy or that they have a good reputation, that should be an immediate red flag. It doesn't take long to see from someone's post history if they've been a reputable participant in the forum.

Step two. Check out localbitcoins.com and see if there is anyone within a reasonable distance of you willing to meet face to face to make the exchange. If not, consider adding your own advertisement to localbitcoins.com. (If you decide to meet with someone from localbitcoins, meet in a populated, public location. Preferably one with at least a bit of security. Take the same precautions you would if you were going to meet with a complete stranger to buy or sell something valuable (such as jewelry).

Step three. If you aren't going to meet up with someone, and you absolutely must do the transaction over the internet, use an escrow provider. There are several escrow providers that are pretty well trusted throughout the forum. See this list:

Escrow list
https://bitcointalk.org/index.php?topic=108716.0

Escrow in it's simplest form:

Seller sends the bitcoins to the mutually trusted escrow provider
Buyer sends payment directly to the seller
Seller notifies escrow provider that he has received payment
Escrow provider sends the bitcoins to the buyer

If the seller falsely claims that they id not receive payment, then the escrow provider begins a mediation process. He collects from each party whatever proof is available, then makes a decision about which proof is the most believable and compelling. If it is determined that the buyer is most likely scamming/lying about paying, then the escrow provider sends the bitcoins back to the original seller. If it is determined that the seller is most likely scamming/lying about not being paid, then the escrow provider sends the bitcoins to the buyer.

For additional security, and less chance of being scammed by a really good liar that can convince the escrow provider to believe his lies, the arrangements can be made for the escrow provider to receive both halves of the transaction and then once all pieces of the transaction are under the escrow provider's full control, they can forward each piece to the appropriate recipient. This adds some complexity depending on the payment method.

Some escrow providers advertise a specific fee, others do it for free just to help build the bitcoin community. If the transaction goes well, and the escrow service made you feel secure that you would receive what you were due, a reasonable gratuity is generally appreciated. This can be a flat amount (0.1 BTC for example) or a percentage (0.5% of the transaction for example). Just consider how much the peace of mind was worth to you in addition to the convenience of not having to deal with MtGox or BitInstant, and then tip accordingly.

MODS, split this and sticky allover the forum