As the founder of bitcoin-otc, I think I'll be able to help you out here. :)
OTC uses gpg (the free software implementation of the PGP protocol) for authentication. So your first step is to register on OTC with your gpg key. The OTC wiki contains detailed instructions on this page: http://wiki.bitcoin-otc.com/wiki/GPG_authentication
The rating system is a ...
Shamelessly summarized from this extensive guide on local transactions:
You want to meet in a sufficiently public location, such as a pub or mall, preferably one that has an open wifi.
If you have agreed on terms in beforehand, print out what you agreed upon and take it with you.
If you have not agreed on terms yet, be sure to check the current price of ...
Note: This is a US-centric answer. Other countries may differ. I'll add other countries as people leave comments.
There is an arbitrary limit of $1,000 per person per day that triggers the necessity to register as a money service business. Stay under that FinCEN is unlikely to care about you, although you still may legally need to register for smaller ...
LocalBitcoins.com has person-to-person PayPal trading:
There are also discussion forums where people frequently discuss about PayPal, avoiding fraud there, etc. Here is an example:
LocalBitcoins.com features a transaction service which guarantees that bitcoins have arrived to your LocalBitcoins.com wallet.
You get a secret code when the bitcoin seller enables transaction service (escrow enabled) on the trade
When the bitcoin seller releases the transaction the seller gets SMS with the your secret code
Ask the seller and if he/she ...
The global ratings are fairly easy to manipulate as you describe, and it has been done before. There is some minor protection provided by the requirement that you need a positive OTC rating to rate anyone else.
#bitcoin-otc also supports "trust rating" (example) which can't be easily manipulated.
I can't talk about other ATMs but in BTCPoint (The Bticoin ATM of Barcelona) works the following way:
The user want to SELL bitcoin
The bitcoin machine provides a fresh new public address for the transfer
The user sends the bitcoins to that address
Bitcoin network detects the transfer sent and issues a ticket with a confirmation code
The user waits for some ...
After the withdrawal of Mt. Gox and Intersango from having a domestic bank transfer method for those in the UK, there has been a widening need for local trading.
There are two exchanges that sell bitcoins and take Barclay's Pingit for payment, Blockchain.info/wallet and a new one, BitcoinFridge.co.uk, so any local trader is competing with those methods.
In OTC, it is totally up to the mutual agreement of the two parties, if you are a financial business that has to comply with AML laws, you will have have to ask for these info, but that may mean some counterparties will shun from you.
You have to think about it simply, its exchange service lets consider that they're exchanging potatoes for tomato instead of Bitcoin for money.
you've bought 50 kilos of potatoes from a farmer, a customer gave you 2 kilos of tomato for 1 kilo of potatoes and go on, the farmer here is mining pools which is the main source of bitcoins.
So I would say Mining ...
Exchange-based transactions, ;
Exchanges bring together brokers and dealers who buy and sell these objects. These various financial instruments can typically be sold either through the exchange, typically with the benefit of a clearinghouse to cover defaults, or over-the-counter (OTC), where there is typically less protection against counter-party risk ...
Taking a quick look here: https://en.bitcoin.it/wiki/Selling_bitcoins reveals that BTC-E is capable of doing PayPal withdrawals.
I'm not sure how closely it meets your requirements, and PayPal clearly requires you to provide personally identifiable information, but it could be helpful.
Bitcoin is compatible with almost any financial contract or derivative that exists today.
I think the scenario you are describing is this:
Bob must pay to Alice $1,000 USD worth of bitcoins.
Bob has $1,000 USD to send to Alice but has not yet bought the bitcoins. What ways are available to Bob that allows him to send the funds to Alice without exposure ...
There are a number of places to cash out bitcoins and get the payout through PayPal.
Tangible Cryptography: http://bitcointalk.org/index.php?topic=85395.0
If you dont like bitcoin-otc ( but imho its the best solution ) , you can try https://ogrr.com
There are also some trading on the marketplace section of bitcointalk :
But beware, the scammers are many on the forums, only the web of trust system on bitcoin-otc will help you avoid scammers.