December 9, 2022

Buy Bitcoin: mission feasible

Contrary to popular belief, Bitcoin is a very liquid asset. Even in Russia, where the regulatory authorities configured very unfriendly to cryptocurrencies, there are many ways to buy or sell bitcoins. In this article, let's look at several ways to exchange rubles for bitcoins and vice versa.

So what's wrong with the law?

Let's start by briefly discussing the legal issues of buying and selling cryptocurrency at the current moment. I’ll try to clarify using a very simple and illustrative example:

According to our legislation, produceSettlements with business entities can only be in rubles. But how then, you ask, do we buy goods for dollars or euros in foreign online stores? This is where the most important and interesting loophole lies for us. Keyword - foreign. This is what happens when you press the button[Checkout], enter the details of your ruble bank card and confirm the payment: Your rubles are converted into the transit currency account of the issuing bank and then the foreign currency is sent to the seller. Thus, you change rubles to a currency in the jurisdiction of the Russian Federation and make a purchase for this currency in the jurisdiction of finding an online store. Of course, at the same time you do not have to be physically present in this store. For Russian jurisdiction - You exchanged rubles for currency and withdrew the currency from the country.

Thus, whatever prohibitions may beinstalled in the Russian Federation, no one can forbid us (for now) to exchange rubles for currency (for example, US dollars) and buy for them any goods and services in other jurisdictions where these goods and services are not prohibited. These products include Bitcoins. Any site that a) is not located in .ru or .рф domains and b) is physically located on servers abroad is outside the jurisdiction of the Russian Federation, which means that any actions performed by users on the sites of such servers are also not subject to the jurisdiction of the Russian Federation. However, of course, law enforcement agencies may have a different point of view on this aspect, which differs from the point of view of the author.

Well, we’ve figured out the legal basis. Let's now go directly to the exchange methods.

Bitcoin Bank Circle.com

Interface. In my opinion, Circle is the most convenient and fastesta way to buy and sell digital coins today, so I’ll dwell on it in more detail. The interface is incredibly simple and understandable (although there is no Russian language), registration does not require confirmation of identity, and the registration form consists of a name, surname, email address and password. Card binding is instant, as is the purchase process itself. There is a mobile application for iOS and Android, but for users from Russia they, unfortunately, are not available. However, the mobile version of the site is also designed very competently, and its use should not cause difficulties

Circle - personal account

Operations and commissions. Conversion inside the service is free, but withwhen transferring from a card, you will be charged a small commission for processing on the card (alas, the costs of archaic card processing). In addition, be careful when converting rubles into dollars - check the rate with your issuing bank. At the time of publication, the binding of the Promsvyazbank and Alfabank cards worked without problems. The course for both buying and selling is the same, although slightly higher than the market. Buying coins is instant, but selling may take a couple of days due to processing delays. There is a limit on the total amount of the purchase / sale - $ 500 per week, which will increase as you increase the volume of operations. There are no restrictions on the input / output of coins, as well as on transfers between users of the system. By the way, you can transfer bitcoins to e-mail to users who are not registered in the system by e-mail: the recipient will be invited to create an account and receive funds for it.

Circle - deposit window from a linked card

Security. There are 2 two-factor methods available for accountsauthorization: by phone number and Google authenticator. For the first method, SMS is sent to the phone, absolutely without delay. In addition, there are also settings for confirming the operations of sending and withdrawing funds. All funds in your account are insured (insurance is free for users), so if the secret keys are stolen from the Circle server, the insurance company will indemnify users.

Circle - security settings window

Bitcoin Exchange

Exchanges are the most common way amongearly enthusiasts, as well as among those who conduct operations on a regular basis. For most newcomers, it may cause confusion due to the association with "adult" regulated currency exchanges such as the MICEX: people have firmly established that in order to start trading, you need to go somewhere, open accounts with a broker, and so on . Of course, in the case of Bitcoin exchanges, everything is completely different, and most importantly, much simpler: register, make a deposit using one of the available methods and conduct transactions. Of course, the interface of exchanges is a bit more complicated than a regular Internet banking, and you should at least understand that the exchange itself is just a place where sellers and buyers gather and agree on the transaction price. It would also be nice to have an idea of ​​how market and limit orders work. Many newcomers to the Bitcoin exchange also cause distrust due to the bankrupt Mt.Gox exchange in 2014, but it is important to understand that the exchange is only responsible for its deposits. If you use the exchange to conduct rare transactions, then the storage time of funds on the deposit of the exchange will be minimal, and, accordingly, the risk will be minimal. In addition, due to high competition, bitcoin exchanges are trying to keep up with their older counterparts in matters of deposit safety, transparency and confirmation of reserves.

Of all Bitcoin exchanges, ruble transactions are stablespend two: BTC-e and ExMo. Both are very unpretentious in use, have a Russian-language interface and support. At BTC-e, depositing in rubles is directly possible through Yandex.Money. The exchange does not charge a deposit fee, but Yandex takes it: 0.5% of the credited amount. The exchange operations on the exchange themselves take place with a commission of 0.2%. Withdrawal of coins is almost free, however, in order to combat fraudulent transactions, it can be frozen for up to 7 days.

BTC-e: quotes and placement of orders

ExMo offers several different options.ways to replenish the ruble deposit: Yandex.Money, QIWI, Alfa-click, OKPAY, Payeer, WebMoney, but the commission for crediting is higher than on BTC-e. However, ExMo provides more convenient tools for exchange and trading, and the interface is also a bit more convenient. Both exchanges support two-factor authentication, so there are no complaints about them in terms of security.

ExMo - quotes and placement of orders

Exchange Services

In addition to the above Bitcoin banking services andexchanges, there are also direct exchange services between users. The most popular is LocalBitcoins. There you can find many different private offers for both buying and selling bitcoins. Those who place ads offer a variety of ways to transfer fiat currency: online and in cash at a meeting. Each user is assigned a bitcoin wallet through which the cryptocurrency is exchanged.

For example, you buy bitcoins, findsuitable ad, initiate a deal. At the same time, the seller on his LocalBitcoins wallet must have the number of bitcoins necessary for the transaction. If the seller confirms that he is ready for the transaction and sends the necessary amount of bitcoins for deposit, you agree with him in a chat on how to send the rubles to him. Bitcoins in deposit will no longer be availableto the seller until you cancel the transaction yourself or internal arbitration decides that the transaction has not been completed and returns the deposit - this ensures transaction security and protection from fraud. Once the rubles are sent, you clickthe corresponding button in the office, and the seller, for his part, confirms that he has received rubles, and bitcoins are sent to your wallet in the same second. After that, you can transfer the purchased coins to any other address.

LocalBitcoins - Search Ads

Amount limit, transaction price and transfer methodsset by traders and visible in ads. As a result of the transaction, the trader can leave a review, which will be visible to other users. These reviews can also help you in choosing a reliable trader. Commission for transactions applies only to traders who place ads and is already included in the displayed price. Withdrawing coins from LocalBitcoins wallet - no commission. Of course, there is two-factor user authentication and customizable SMS notifications about account activity. For those who would like to place their ads, there is a mobile application for Android devices (only the English interface).

Mycelium - ad search window

Another very interesting way to exchange bitcoinsfrom hand to hand gives the mobile wallet application Mycelium (unfortunately, so far it is only available for owners of Android devices). Personally, I really like this application for its incredibly convenient and understandable interface (including in Russian), and an advanced wallet security mechanism. But let's get back to trading.

Make a deal in the interface of this applicationeasier than simple, there is a search for the closest traders by location, a rating system and encrypted chat inside the transaction. The system will not allow the seller to open a deal if there are not enough coins on his wallet. Well, of course, you can create an ad for regular trading yourself. Purchased coins will immediately appear in your wallet, which is certainly also very convenient. The system charges 0.2% of the transfer fee and applies only to ad owners. Perhaps the only drawback of this method is that there is no internal arbitration to resolve disputes, so I recommend that you make transactions with caution, pre-try a small amount to make sure that the trader is in good faith.

Summary

According to my feelings, many people are afraid to trybuy Bitcoin because of the stereotype that it is difficult, that you need to connect with unreliable exchanges, or engage in mining, or go to some illegal sites on the darknet. In practice, buy bitcoins not only easier than on the currency exchange, but even easier than going to the operating cash deskto buy dollars or euros, and most importantly - also legal how to buy a track in iTunes. In addition, you can safely trymake a deal with a small toy amount, which in the event of a "failure" would not be scared to lose. Again, this advice will only help you overcome the fear of that very first transaction and dispel the myth that Bitcoin is also difficult for geeks. In reality, everything turns out quite the opposite:

Bitcoin is easy for ordinary people too!

Disclaimer

This article is an analysis of the currentsituations regarding the possibilities of acquiring and selling bitcoins. The author and the editors of the site calls not to commit any illegal actions and independently and comprehensively evaluate all potential legal consequences of certain actions.