Silk Road forums

Discussion => Security => Topic started by: club on March 14, 2012, 01:19 am

Title: bitinstant.com - confused about "destination"
Post by: club on March 14, 2012, 01:19 am
I keep hearing about positive experiences using this service:
Fill out the junk on their site, print out a slip, walk into a participating bank and hand them the slip + cash, get Bitcoins within the hour.

On their site, I dont quite get all the choices under Destination. Instead of allowing a BTC address as expected, you're forced to choose one of these 4:
CryptoXChange
Bitcoinica
MTGox
VirWox

Aside from MTGox, I havent looked into what these other options are. But I thought the point of using bitinstant was that I could avoid having to register with services like MtGox. No? I still have to go sign up with one of these 4 services? The rumors about the Man monitoring MtGox was the whole point of why I was looking for an alternative method in the first place.

What's the rumor mill about these other services and their anonymity/attention from LE?
Title: Re: bitinstant.com - confused about "destination"
Post by: chiefrogan on March 14, 2012, 05:42 am
well the point of bitinstant, at least in my research is that you can easily and quickly deposit cash into one of those 4 destinatons. they do not purchase the btc, this is something you must do. they merely provide the opportunity to deposit anonymously instead of beling linked to a bank acct or whatever. they also take a little less than 4%, and it doesn't seem to be too complicated to buy/sell on mtgox. and im not sure of 'the man' rumors or whatever but always interested to hear whats going on. its my understanding that a few btc tumbles through various wallets before entering SR is good enough.  why should anyone go after a lowly end customer right? right??
Title: Re: bitinstant.com - confused about "destination"
Post by: novakane on March 14, 2012, 07:42 am
All 4 options are exchanges.  Bitinstant puts the money in the account of your choosing to buy coins.  I use Cryptoxchange personally.  You can create a garbage account and withdrawal from it 5 times before they require ID.  Then repeat.  With cash deposits at banks, my name never gets involved in the paper trail at any point.  I have no idea about the LE situation, but Mt Gox controls the majority of transactions so I would assume they'd be the most likely to get monitored.
Title: Re: bitinstant.com - confused about "destination"
Post by: Oldtoker on March 14, 2012, 08:46 am
Bitinstant is really nothing more than a service to move money.  You tell them where to get the money (for instance Dwolla) and then give them the destination to the exhange service you use.  Currently they only work with those four Exchange Services (CryptoXChange, Bitcoinica, MTGox
and VirWox).

So they basically withdraw the funds from your source (using my example Dwolla) and deposit the funds into your exchange service.  Once the funds are in the exchange service you can purchase your Bitcoins.  Once you purchase your Bitcoins you can then move them to SR usually through a mixer such as Bitcoinfog. 
Title: Re: bitinstant.com - confused about "destination"
Post by: sourman on March 14, 2012, 11:38 am
Which one of these four exchangers do you guys prefer? I won't touch Mt. Gox unless necessary because they are known to flag tor users and worse. CryptoXchange seems promising, but are they as "hot" as Mt. Gox?
Title: Re: bitinstant.com - confused about "destination"
Post by: Oldtoker on March 15, 2012, 08:56 am
I use CryptoXchange and then send the money through Bitcoinfog.  Remember that Bitcoinfog requires a minimum of six hours to mix your coins.  It's probably unnecessary for small time buyers but, I like the feeling of security.  SL is supposed to also mix the coins prior to entering the Road but, I don't know how well it can be done in twenty minutes or so.