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Why send cash by mail?
Holding large amounts of cryptocurrency is like holding large amounts of gold coins. If a thief breaks into your house and steals your gold, there's not much you can do to retrieve it. And the more gold you have, the more incentive a thief has to try to rob you.
But what thieves don't know about, they can't steal. If you can keep your gold holdings secret, you're not as likely to be a target of attack. And the same is true of your cryptocurrency holdings.
However, due to Know Your Customer / Anti-monery Laundering (KYC/AML) laws, purchasing cryptocurrency through most exchanges typically requires giving up detailed personal information, such as your name, address, photos of your ID and other sensitive information. That information is then handed over to the US government, which they then use to decide who to audit, harass, or prosecute.
Your data also then becomes part of a trove of data, which becomes ever more tempting to thieves the larger it grows.
These are not theoretical concerns. There have been many data breaches at the biggest companies over the years. And that data was subsequently used for identify theft, ransomware attacks, and other crimes. Even US spy agencies can't keep their own spy tools secure:
- Stolen NSA hacking tool now victimizing US cities, report says
- Equifax says 143 million Americans Social Security numbers exposed in hack
- The 10 biggest data hacks of the decade
In additon, most cryptocurrencies--including Bitcoin--are difficult to use privately. All Bitcoin transactions--including sending address, receiving address, and amount--are recorded on a public blockchain that is visible to anyone in the world. Although these addresses are not linked to a real world identity in theory, in practice, they're relatively easy to link through a process called network analysis.
There are some patches and second layer solutions that, if use properly, can improve anonymity of bitcoin transaction somewhat. These include Taproot, Schnorr signatures, and the Lightning network.
However, these solutions are bandaids and crutches on a protocol that fundamentally does not support anonymous transactions. They're not implemented by default, they're difficult and costly to use, and it's easy to expose your privacy accidentally .
Second generation cryptocurrencies such as a Monero, Grin, and Zcash have emerged that make privacy a first class feature. Monero, for example, doesn't reveal the sending address, the receiving address, or the amount. The rest of this tutorial will discuss how to acquire Monero privately.
Although it's possible to get Monero by mining it, or selling some good/service, for most people, the easiest way to acquire Monero is to buy it.
But as detailed above, buying Monero on a regulated exchange means giving up a bunch of highly sensitive information to the exchange, and ultimately, to the government. (And perhaps later to hackers and theives).
However, it's still possible to buy Money from private sellers via exchanges such as LocalMonero and bisq without giving up your identity information. Private individuals do not yet have to comply with AML/KYC laws if the amounts being traded are below a certain amount.
Sending cash by mail is one of the most private ways of acquiring Monero from a private seller. The buyer need not give up any information to the seller, and the seller need not give up anything except an address to send the cash.
Warnings
Buying privately takes time, patience, and effort. Although no single step is difficult or complex, there's a learning curve.
Buying Monero with cash by mail has risks. According to a seller on Localbitcoin (a service similar to Localmonero) about 0.5% of transactions resulted in a dispute.
Some risks include:
A fraudulent seller might claim you never sent the cash or claim that the envelope arrived empty.
Corrupt postal workers might steal the cash.
Postal inspectors might detect the cash and seize it under asset forfeiture laws. You would then have to sue and prove to the government that you legally acquired the money.
The cash might be lost/destroyed in the mail system.
However, there are some steps you can take to reduce your risk:
Only buy from reputable sellers on an exchange like Localmonero or from sellers that put up a large security deposit on an exchange like bisq.
Buy small amounts at first, to gain confidence in the process, and gain trust in the seller. Don't send more cash than you can afford to lose in a single transaction.
If you're in the US, send the cash via USPS Priority Express flat rate envelope with tracking and signature required. That way, you can at least prove the envelope was delivered.
Film the process of packaging, so you have evidence that you actually sent the money.
Materials
Sharpie marker, Ultra Fine point or inkjet/laser printer.
Shipping labels, 4 x 6 for both inner and outer envelope.
Tamper resistant cash bag, 6 x 9 inch Once closed, the bag cannot be opened without destroying it. This makes it easier to tell the cash bag was opened during transit.
Mylar bag, 5.5 x 7.8 inch, Resealable Inner envelope. This will help mask the smell of cash and protect the cash from water/abrasion in case the outer envelope is damaged.
USPS Priority Mail Padded Flat Rate Envelope, 9.5 x 12.5 inch. Outer envelope. If you need faster/guaranteed delivery, use the Priority Express service instead.
Video camera. Most cell phone cameras will work fine.
Lamp. You will need a lamp to light your table as you film yourself packaging the money.
Magnifying glass. [Optional]
Methods
Register an account with LocalMonero. A free online Monero wallet is included with each account.
Write your username and trade ID on the tamper resistant bag and mylar bag. This will help distinguish your package from other packages coming from different buyers. This also will help in preventing man-in-the-middle attacks, where a scammer interposes themselves in-between the buyer and the seller, pretending to be the seller when talking to the buyer and pretending to be the buyer when talking to the seller.
Test to make sure the bills you're sending are real. Two of the tests (the security strip test and the paper test) should be done on camera before inserting the cash into the envelopes. You may wish to perform the other tests off camera. I've included the testing procedure for the $100 bill below.
Find the USPS address, including the Zip+4 zip code for both your return address and the seller's address. It should look something like this:
AMOS BURTON 10 CUSTOM HOUSE AVE BALTIMORE MD 21202-3259
The goal is to make the shipment look like as much like a routine business mailing as possible.
Write or print out shipping labels for both inner and outer envelope.
Gather everything you will need to package your cash, and lay it out on a table.
Position camera and lamp such that all of your materials are easily visible. Ideally, you'll record the entire packagin process in a single take, with good lighting, and as little wobble/blurriness as possible.
Start recording.
Affix shipping labels to both inner and outer envelope.
Demonstrate that the bills have the UV reactive security threads in the proper location with the counterfeit detecting pen.
Demonstrate that the bills aren't made with common printer paper by making a mark with the counterfeit detecting pen. The mark will turn black on common printer paper, but remain invisible on true currency.
Hold the bills up to the camera so that the serial numbers are visible.
With the sharpie, add custom markings to the interior of the envelopes, such as a stamp/seal, or a signature or just random movements with a sharpie inside the envelope. Cover all surfaces. This will help establish whether the seller is actually opening the envelope you've sent or a fake one. Make sure the markings are visible on the video.
Put cash in tamper resistant envelope. Seal the envelope.
Put tamper resistant envelope in mylar envelope. Seal the envelope.
Put the mylar envelope into the USPS bubble envelope. Seal the envelope.
Using three envelopes may seem excessive, but it helps ensure that if the receiving party tries to tamper with your package they will have a much harder time resealing it all in a way that would be undetectable when inspected by the dispute mediator
If you haven't already done so, purchase Priority mail postage with cash at a USPS location.
Mail the envelope.
The seller should receive the envelope in 2 - 3 business days
Once the seller receives the mail, they will send your Monero to the wallet address you've provided.
How to tell if a $100 bill is real
Security Threads. Since 2004, all bills $5 and larger have a clear thread embedded vertically in the bill that is visible when held up to the light. Each denomination has the thread at a different spot.
To see the thread, hold the bill to the light. In the $100 bill there should be an embedded thread running vertically to the left of Ben Franklin.
The thread is imprinted with the small letters “USA” alternating with the number “100”.
The thread should be visible from both sides of the note. If you shine an ultraviolet light on a bill, the security thread will glow. Each denomination glows a different color:
$100 Pink/Orange. $50 Yellow. $20 Green. $10 Red. $5 Blue.
Magnetic & Color Shifting Inks. Some counterfeit detectors can sense the magnetic properties of inks to tell if bills are real. Also, 2004 style bills $10 and greater have a color shifting numeral printed in the lower right front corner.
Watermarks: Bills from after 2004 have a watermark that is visible from either side when held up to a light.
Paper. Real currency uses special paper that is 25% linen and 75% cotton with tiny embedded red and blue fibers. Most forged currency is printed on wood pulp based paper. Counterfeit detecting pens contain an iodine solution that reacts with the starch in wood-based paper to create a black stain. When the solution is applied to the fiber-based paper used in real bills, no discoloration occurs.
Size. All seven US bills are 2.61 inches wide x 6.14 inches long and 0.0042 inches thick, with each weighing exact 1 gram.
Microprinting. Tiny lettering that looks like a simple line to the naked eye is called microprinting. On the $100 bill, you can see the micro-printed text “THE UNITED STATES OF AMERICA”on the collar of Ben Franklin’s jacket, just below his neck-scarf. (Magnifying glass required.)
Then there should be “USA 100” around the blank space containing the watermark of Ben Franklin, and “ONE HUNDRED USA” along the Founding Father’s golden quill, and also small "100's" in the note borders.
(2013) The 3D ribbon is made up of hundreds of thousands of “micro-lenses”.
For example: move the bill while focusing on the broken blue strip in the center. You will see the “bells” printed on the ribbon change to“100”s and they and the 100’s should move in an unusual way.
When you rotate the note around the vertical blue ribbon, the bells and the 100’s move up and down. When you tip the bill around its (horizontal) wider edge, they move side-to-side.
The trick is, the bells and “100”s should move in the opposite direction from the way the bill is being rotated.
Also, check that the ribbon is woven through the paper from front to back, and not just printed on top
- Tilt the note and look at the ''bell'' in the "Inkwell" and the large numeral "100" in the lower right corner of the front of the note - they should shift color from copper to green as the note moves.
Hold the note to the light and look for another (faint outline) image of Benjamin Franklin in the blank space between the upper (small) and lower large “100” on the right-hand side of the bill, partly overlapped by the Treasury seal. It should be visible from both sides of the note.
Notes
If you have more time than money, you can make a cell phone holder out of PVC pipe. You can also have a friend hold the camera for you or jury rig a stand.
If you'll be making a lot of sales / purchases, consider getting a label printer.
Tyvek bubble mailer, 6x10, opaque An alternative bubble envelope, if you decide not to use the USPS padded mailer. The bubble mailer helps protect the cash, and makes it more difficult to feel the cash from the outside. It will also provide a secondary mailer, in case the outer mailer becomes damaged.
USPS Priority Mail Express Flate Rate envelope, 9.5 x 12.5. Priority mail is typically delivered in 2-3 days, and is not guaranteed. Priority Express is delivered in 1-2 days with a money back guarantee. Priority Express costs ~3 times more than Priority.
If you already have some Monero, you can use it to buy postage from https://cryptostamps.biz/ or their Tor site: http://lgh3eosuqrrtvwx3s4nurujcqrm53ba5vqsbim5k5ntdpo33qkl7buyd.onion/
