Bitrated allows two parties to pre-select an arbitrator and create a multi-signature transaction. No need to trust (no matter how trustworthy LocalBitcoins.com has been) a centralised 3rd Party with your bitcoins.
Bitcoins UK will charge 0.5% to act as your arbitrator in case of dispute when selling bitcoins using your bank.
How It Works
- If you are selling bitcoins for GBP, you are considered the buyer in this transaction – You are purchasing some kind of strange government token in exchange for real money, Bitcoin.
- Negotiate terms with the seller of this funny government “money”. It is strongly recommended you check the seller’s ID and agree the transfer will be completed using a bank account in the same name.
- Initiate a Bitrated multi-signature transaction, selecting BitcoinsUK (or someone else if you prefer) as your arbitrator. For the “terms” we suggest you adapt the template found here.
- The other party will be sent notification and asked to approve the terms.
- You can now safely fund the transaction. Funds will not be released to the other side unless either you, or your arbitrator, says so.
- Once your GBP has arrived, simply release the bitcoins.
- If the funds do not arrive by the time specified in the terms, contact us and we’ll have the BTC returned to you.
- Bitcoins UK cannot steal your money because we have only one of the required two signatures.