1
00:00:00,660 --> 00:00:06,480
Now that we have our wallets set up in this lecture and the next lectures we're going to discuss how

2
00:00:06,480 --> 00:00:10,030
to buy bitcoins anonymously.

3
00:00:10,110 --> 00:00:15,540
Now there are a number of ways to buy bitcoins but not all of them are anonymous.

4
00:00:15,630 --> 00:00:23,130
So if we go back to our wallet right here you can see that if we click on the receive you'll see our

5
00:00:23,130 --> 00:00:24,660
RECEIVING ADDRESS.

6
00:00:24,660 --> 00:00:30,480
This is the only piece of information that you'll be sharing when you want to receive money into your

7
00:00:30,480 --> 00:00:31,340
wallet.

8
00:00:31,380 --> 00:00:33,890
And when you receive money into this.

9
00:00:33,990 --> 00:00:39,480
Like I said this will be stored in a public ledger in the block chain.

10
00:00:39,480 --> 00:00:46,220
Therefore anybody can come in and analyze the block chain and see who sent you money.

11
00:00:46,260 --> 00:00:53,700
So if you send money to this address using your bank account or using a service that verifies your identity

12
00:00:54,090 --> 00:01:01,200
then your identity will be linked to this address and then any transfer you make from this address will

13
00:01:01,200 --> 00:01:02,070
be known.

14
00:01:02,190 --> 00:01:05,610
And again will be traced back to your real identity.

15
00:01:06,240 --> 00:01:14,040
So so far we're anonymous because this address is not linked to anything but if you use on an anonymous

16
00:01:14,040 --> 00:01:20,380
way of transferring money into this wallet then this wallet will be linked to your identity.

17
00:01:20,430 --> 00:01:27,690
And then whenever you use this wallet all the transactions could be easily traced back to your real

18
00:01:27,690 --> 00:01:28,880
identity.

19
00:01:28,890 --> 00:01:35,250
Therefore it's very very important that you buy your bitcoins anonymously.

20
00:01:35,250 --> 00:01:42,270
So the first way of doing this is to create bitcoins yourself and to do that you're going to have to

21
00:01:42,270 --> 00:01:44,600
mine bitcoins.

22
00:01:44,610 --> 00:01:50,880
So if you remember when we spoke about how Bitcoins work we said that there are computers right here.

23
00:01:50,880 --> 00:01:57,780
The yellow ones and we call them miners and these computers keep a copy of the block chain and they

24
00:01:57,780 --> 00:02:02,330
use their computation power to keep the block chain working.

25
00:02:02,340 --> 00:02:09,150
They do this by solving mathematical problems and calculating hashes so that the block chain functions

26
00:02:09,390 --> 00:02:11,310
as it should.

27
00:02:11,460 --> 00:02:17,760
Now these mathematical problems and the calculations they take a lot of computation power and a lot

28
00:02:17,760 --> 00:02:22,050
of electricity therefore not anyone can afford to do this.

29
00:02:22,140 --> 00:02:30,180
But if you can afford to do it then it is a really good way of generating bitcoins anonymously.

30
00:02:30,180 --> 00:02:36,360
Now we're not going to go into this because we can literally make a big course live just on how to mine

31
00:02:36,360 --> 00:02:37,710
bitcoins properly.

32
00:02:37,710 --> 00:02:40,270
So we're not going to cover it here.

33
00:02:40,520 --> 00:02:48,350
The next option is to use an exchange now using exchanges is not anonymous because when you use an exchange

34
00:02:48,560 --> 00:02:54,980
they will ask for your bank information and they will ask you to verify your identity.

35
00:02:55,010 --> 00:03:03,170
So using an exchange is not anonymous but we can combine using an exchange with what's known as Bitcoin

36
00:03:03,170 --> 00:03:05,270
tumblers or mixers.

37
00:03:05,270 --> 00:03:10,610
These are services that attempt to mask where the money is coming from.

38
00:03:10,640 --> 00:03:16,160
There is a lot of debate of how good or how how anonymous this is.

39
00:03:16,160 --> 00:03:19,610
It adds an extra step when you're transferring the money.

40
00:03:19,610 --> 00:03:25,970
Therefore it's a little bit complicated and because of all of this debate I do I wouldn't feel very

41
00:03:25,970 --> 00:03:28,880
secure or very anonymous by using this method.

42
00:03:29,510 --> 00:03:34,840
But this is a really good method because exchanges work all over the world.

43
00:03:34,880 --> 00:03:40,700
So if you couldn't get bitcoins any other way then you might have to use this way where you use an exchange

44
00:03:40,940 --> 00:03:43,740
with a tumbler or a mixer.

45
00:03:43,940 --> 00:03:50,510
Now if you just go on Google and look for a bitcoin exchange you'll see a lot of websites that will

46
00:03:50,510 --> 00:03:51,940
allow you to do this.

47
00:03:52,100 --> 00:03:58,320
Now on bitcoin Web site itself you can see that they're recommending the following exchanges.

48
00:03:58,370 --> 00:04:01,690
You can just click any of them to open their Web site.

49
00:04:01,700 --> 00:04:07,220
Now the most popular one is Coinbase which I already have open right here.

50
00:04:07,220 --> 00:04:10,260
Like I said this is really really easy to use.

51
00:04:10,310 --> 00:04:13,040
All you have to do is click on get started.

52
00:04:13,040 --> 00:04:18,650
It will take you through a number of steps where you create a new account it will automatically create

53
00:04:18,740 --> 00:04:20,060
a web wallet for you.

54
00:04:20,060 --> 00:04:26,540
So a wallet that you use on this Web site it will ask you to verify your I.D. So like I said this is

55
00:04:26,540 --> 00:04:27,600
not anonymous.

56
00:04:27,740 --> 00:04:33,470
But once you do once you create your account and buy some bitcoins you can use a tumbler service and

57
00:04:33,470 --> 00:04:37,740
we'll talk about Tumblr services and mixers later on in the course.

58
00:04:37,880 --> 00:04:44,870
And when you do that it will add a layer of anonymity and it will make it harder to link this account

59
00:04:44,870 --> 00:04:50,450
that you're going to create in here with your bitcoin wallet that you're going to transfer the money

60
00:04:50,450 --> 00:04:53,970
to transferring the money is always the same.

61
00:04:53,990 --> 00:04:58,760
You literally just have to put the receiving address that you have in here in the wallet that you're

62
00:04:58,760 --> 00:05:00,440
going to create on this Web site.

63
00:05:00,500 --> 00:05:04,230
And the money will go to your bitcoin wallet.

64
00:05:04,430 --> 00:05:09,170
Now don't worry about this too much because like I said if you're going to use this you'll need to use

65
00:05:09,380 --> 00:05:13,760
a tumbler or a mixer and I will cover tumblers and mixers later on.

66
00:05:13,760 --> 00:05:15,760
So even if you only use this option.

67
00:05:15,830 --> 00:05:17,940
Keeping in mind don't use it right now.

68
00:05:18,020 --> 00:05:28,120
Only use it after I cover the tumblers and mixers the next option that we have is to use a bitcoin A.T.M..

69
00:05:28,160 --> 00:05:34,260
Now this is a really really good option because some of these 80 ATMs even accept cash.

70
00:05:34,270 --> 00:05:41,890
The only problem is not all countries have bitcoin 80 ATMs so to check if your country have bitcoin

71
00:05:41,920 --> 00:05:45,610
A.T.M. you can go on this website.

72
00:05:45,670 --> 00:05:52,390
I'm going to include its link in the resources its coin A.T.M. radar dot com and all you have to do

73
00:05:52,390 --> 00:05:57,990
is just put your address in here or if you want you can go down on this map right here.

74
00:05:58,030 --> 00:06:05,090
I'm going to maximize it and look for your country zoom in on your country and see if there are any

75
00:06:05,110 --> 00:06:06,850
80 M's.

76
00:06:07,120 --> 00:06:12,850
Now I will talk about this in more details in the next lecture where I'm going to teach you how to use

77
00:06:12,850 --> 00:06:20,620
bitcoin 80 Ms in details and you'll learn how to convert real currencies such as dollars and euros to

78
00:06:20,620 --> 00:06:25,820
bitcoins anonymously using bitcoin 80 Ms.

79
00:06:26,120 --> 00:06:32,720
Last but not least we can use peer to peer services to buy bitcoins.

80
00:06:32,720 --> 00:06:38,660
Now peer to peer services allow us to buy bitcoins directly from the seller.

81
00:06:38,660 --> 00:06:41,990
So unlike coin exchanges there is no middleman.

82
00:06:41,990 --> 00:06:43,970
There is no middle institution.

83
00:06:44,090 --> 00:06:50,660
And if the seller is willing to give us bitcoins using an anonymous method such as by giving him cash

84
00:06:50,900 --> 00:06:53,510
then this will be perfect.

85
00:06:53,540 --> 00:07:00,590
Now again going back to the bitcoin Web site you can see that the list a number of peer to peer services

86
00:07:01,100 --> 00:07:08,660
now pretty much all of these services will either require to verify your identity or they will only

87
00:07:08,660 --> 00:07:12,350
use services that require your identity.

88
00:07:12,350 --> 00:07:19,970
For example Bitcoin right here will not ask you to verify your identity but in most countries the only

89
00:07:19,970 --> 00:07:25,020
method of transferring money would be a method that would require your identity.

90
00:07:25,040 --> 00:07:27,590
So you're pretty much back to the start.

91
00:07:27,680 --> 00:07:33,820
Local Bitcoin used to be a really good service that would allow you to buy bitcoins in cash so you'd

92
00:07:33,830 --> 00:07:39,060
literally meet the person and give them cash and they transfer the money to you.

93
00:07:39,080 --> 00:07:43,940
Unfortunately recently they stopped this and you can't buy bitcoins with cash.

94
00:07:43,940 --> 00:07:48,010
With local bitcoin and they also started verifying I.D..

95
00:07:48,050 --> 00:07:52,110
So again this service is not very anonymous anymore.

96
00:07:52,230 --> 00:07:58,520
Full on the other hand is a really good peer to peer service that still allows you to get bitcoins by

97
00:07:58,520 --> 00:08:03,350
literally giving cash in person to the person that will give you the bitcoins.

98
00:08:03,350 --> 00:08:07,760
So it's really really good if you can find peers in your country.

99
00:08:07,910 --> 00:08:14,310
And I will actually cover this in future lectures so that's it for this lecture.

100
00:08:14,310 --> 00:08:21,600
I just wanted to give you a breakdown of the most common ways that you can buy bitcoins anonymously

101
00:08:22,040 --> 00:08:27,900
and in the next lectures I'm going to show you how to specifically buy bitcoins from an A.T.M. and how

102
00:08:27,900 --> 00:08:32,140
to specifically buy bitcoins using a peer to peer service.

103
00:08:32,190 --> 00:08:34,420
In both cases will be using cash.

104
00:08:34,470 --> 00:08:37,730
So it will be as anonymous as possible.