Bitcoin and Litecoin HOWTO in the UK

gistfile1.txt

Here is a quick HOWTO for those wanting to trade (buy/sell) in bitcoins and litecoins in the UK. The following is a fairly easy setup, so that you will have an OTC Web-of-trust profile so that people can rate you as a buyer/seller, and especially if you wish to sell, overtime you can be trusted more.

Register on freenode.net channel #bitcoin-otc:

* Go to https://webchat.freenode.net
  Nickname: choose a nickname for yourself
  Channels: #bitcoin-otc
  
* Check you have the desired nickname in chat, and try and register it (if this doesnt work, pick a different nickname)
  /msg NickServer register <some-password> <your-email-address>

* Check email and follow instructions
  /msg NickServ VERIFY REGISTER <your-nickname> <password-from-email>

* Turn on ENFORCE mode (ensure it cant be taken from you)
  /nickserv set enforce on
  
Now register on http://bitbargain.co.uk - hopefully with the same nickname as the username

* Under your user preferences -
  E-mail -> verify
  Phone -> verify if you wish
  Web of Trust -> OTC username = <nickname>

Generate a gpg key

(ubuntu) $ sudo -s
(ubuntu) # apt-get install rng-tools
(ubuntu) # echo HRNGDEVICE=/dev/urandom >> /etc/default/rng-tools
(ubuntu) # /etc/init.d/rng-rools start
(ubuntu) # exit
(ubuntu) $ gpg --gen-key
               - realname: <nickname>
               - comment:  <nickname>
               - email:    <your-email>
               - RSA and RSA
               - 4096
               - lasts forever (0)
(ubuntu) $ PUBCODE=$( gpg --list-keys --keyid-format long | grep pub | awk -F\  '{print $2}' | cut -d/ -f2)
         $ echo $PUBCODE
               - check you have a single hexcode
         $ gpg --send-keys --keyserver pgp.mit.edu $PUBCODE
         $ gpg --send-keys --keyserver subset.pool.sks-keyservers.net $PUBCODE

Back in #bitcoin-otc freenode:
  /msg gribble eregister <nickname> <PUBCODE>

Follow the link in your private message room with gribble

(ubuntu) $ curl <link> | gpg --decrypt
               - this gives you a one-time password beginning freenode:#bitcoin-otc etc.

  /msg gribble everify <full-one-time-password>
  /join BitBargain
  !bbconnect <nickname>

Now you will be able to be rated as a seller and a buyer. This will increase your trust rating over time.

Now to buy Bitcoins (BTC) or Litecoins (LTC), use the top menu on bitbargain.co.uk

- Buy BTC, 
- Payment method: Bank Transfer (or choose another)
- I want to buy -> Bitcoins or Litecoins as appropriate
->Find Matching Offers.

Find an offer you like and click on the Sellers name
- Their stats appear on the right, and their verification on the left.
- Look out for a fully verified left section - they will have had to send their passport and photos into the site to prove their identity
- Look at their successful sales, abandoned and disputes to see their stats.
- Click their name again at the top (OTC-WoT as XXXXX) - to see their web of trust on #bitcoin-otc

Buy coins
- When you've found a trustworthy user consider buying from them. 
- The site will lead you through the 4 step process.
    - Register intention to buy
    - Seller confirms with payment details within 1 minute
    - You send payment within 30 minutes and confirm
    - They check payment has arrived and send coins to you within 3 hours.

Sell coins
- The reverse of that process
- Ensure you have full trust and verification set up first.

Bought coins
- Are held in the site until you transfer them out to your private wallets on your own machine.
- Your coins are taxed every week if you keep them on the site
- Keeping them on the site is highly advised AGAINST.