Bitcoin Bumblebee

Buzzing about Bitcoin

How to use Hodl Hodl

Whether you are unable to use a Bitcoin exchange in your country or have concerns over your privacy, there are many ways you can buy bitcoin anonymously over the internet.

Hodl Hodl is known as one of the fastest and easiest non-KYC platforms to use.

In this article, we’ll be reviewing Hodl Hodl and show you how we successfully bought 100 euros’ worth of bitcoin from another anonymous user.

What is Hodl Hodl?

Hodl Hodl is a global platform where you can buy and sell bitcoin directly from other users in an anonymous, cheap and secure way. You can sign up and use the platform without submitting any personal information, such as your identity or your phone number. The fees are also kept very low- you will never be charged more than 0.3% per transaction.

Rather than keeping users’ funds in custody, Hodl Hodl relies on an escrow system to ensure security and privacy. The bitcoin is locked in a 2 of 3 multisig contract where both the buyer and the seller hold a key, and Hodl Hodl holds the third one to mediate any possible disputes. The funds are released to the buyer’s address once the seller confirms that they have received the money.

You can use Hodl Hodl with virtually any payment method including bank transfers, online payment systems such as Apple Pay, Strike or PayPal, money transfer services like Moneygram, or even gift cards which you could purchase with cash for maximum privacy. If you would like to use a payment method that is not on the list, you can request it to be added to the platform.

Before you start using Hodl Hodl read their security guide and make sure you understand how it works!

Creating an account

As you can see, the sign up process is very simple and unintrusive. Hodl Hodl only knows you by an email address and does not require your real name, phone number or any documents. For additional privacy you could even set up an email address just for using the platform, for example with ProtonMail, a privacy-oriented email service.

Hodl Hodl won’t ask for your name or any type of personal information

Shortly after signing up, you will receive an email to confirm your account.

Hodl Hodl has a referral program. Follow this link to sign up, using the code HMHU to tell them we sent you!

Setting up

Once you have logged in with your new account, you need to do two things before you can start trading on the platform:

  • Create a payment password. This is the password Hodl Hodl uses to encrypt the keys to the escrow contract.
  • Add a release address. This is where the bitcoin you purchase will be sent. It will also be used to return your bitcoin in case a sale doesn’t go through.

Click on Dashboard on the top right of the page, and navigate to Settings.

Just a couple more things before you get started

Picking an offer

To begin the process of buying some bitcoin, click Buy BTC on the top left corner of the page and set up filters to narrow down the offers. Even when the market is quiet there should still be plenty of offers to pick from if you’re using a major fiat currency such as US dollars or euros. The prices on Hodl Hodl can be a bit higher than on a centralized exchange, however you should be able to find an offer within 5% of bitcoin’s spot price.

We found plenty of offers to match our criteria

Click on an offer to see more details about the user and their offer, including ratings and reviews from their past trade counterparties. Once you are ready to enter a trade, enter the amount you wish to buy and click Accept offer and generate contract at the bottom of the page.

You can look at your trade partner’s reviews before entering a contract with them

Closing the deal

Once you accepted a trade offer, Hodl Hodl will guide you through the steps required to complete the transaction. The process is very straightforward- upon confirmation that the seller has sent the bitcoin to the escrow contract, you can transfer them the money using the agreed-upon method. They will release the bitcoin as soon as they receive your payment. There is also a chat window where you can message the seller in case you encounter any problems.

For us, the entire process took roughly 40 minutes from entering the contract to receiving the bitcoin to our address.

Summary

Here’s what we learnt from using Hodl Hodl:

  • Buying KYC free bitcoin doesn’t have to be complicated.
  • The process felt safe throughout. There is some trust involved in the dispute mitigation process but the platform seems to have a good track record.
  • Your bitcoin goes straight into an address that you control which means you don’t have to trust an exchange with your coins even for a minute. Not your keys, not your coins.
  • A small premium on price is a fair trade-off for privacy, and Hodl Hodl’s fees are very low.
  • For us the whole process was relatively fast- it took us less than hour from creating an account to receiving some bitcoin.
  • The escrow system makes use of Bitcoin’s multisig capabilities introduced with SegWit in a way that would make Satoshi himself proud.

No matter your level of Bitcoin knowledge, we would definitely recommend Hodl Hodl to any privacy minded user or to those who simply cannot use centralised exchanges.

If you found this guide useful please consider subscribing to the blog, and following us on Twitter @bitcoinbumbleB

Posted at block 770973

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