Bitcoin Forum

i was thinking about gathering 1-2btc and 1-2k$ and to start an exchange service with 5-7%
do you think it would still be profitable? with coinbase and localbitcoin and all..

It can be profitable if you find buyers and sellers at the same time, it depends how do you think to start your exchange service, selling and buying locally or how, some people don't care too much about small difference on fees, they only want to buy in cash and avoiding online ID verification.

Definitely...if you time it right. People on localbitcoins routinely sell their BTC for 10% above the market price or more. People are willing to pay that much since they don't have to upload their license to Coinbase or another site and can buy BTC straight from you.

It is profitable because many here are earning there, it is depend on your strategy and your funds

I think yes, it's still profitable but you need increase your trust on this forum. So, it's make people here trust you and use your service and you also can do the exchange on your local too.

If there is a lot of people is using your exchange you will get profitable, but it's too difficult for start exchange service for now because it needs more funds and you need having a good trust to make everyone interested in using your service.

That is very true. I am trying to buy Bitcoins off localbitcoins and everyone is selling for such high prices. Your service is coming at a good time if you decide to start it. A lot of people are buying and some people are selling.

That's right, but at first, you can try to increase your trust and make many people are interested in using your service. because this time is great to sell their bitcoin for a lot of people.

yes it's profitable especially if your exchange have low fees and interesting rate than regular exchange i'm sure people will start to trade with you but you must built your own trust on these forum first because people here want to safe trade

Bitcoin Currency Exchange is set to be profitable but you need to meet certain criteria.

1.  You must make your exchange popular to get lots of  users.
2.  Make sure your security is at it's best, to avoid hacking and making you lost all your users fund deposited in your site.
3.  Have a marketing strategy and apply the reward system.  In short make your client Happy!
4.  Make sure your profit exceeds your site maintenance well doing those first 3 will make sure this will always happen :D

Definitely. However, how are you going to get customers with those rates is a big problem. Customers probably won't pay that much of a premium when they can buy it elsewhere way cheaper.

But yeah, good luck :)

It could be profitable if you are located in an area where people are interested into using Bitcoin and there aren't many services selling Bitcoins around like Localbitcoins traders or ATM machines. Actually some people aren't comfortable buying Bitcoins online on the exchanges so if you offer them over the counter purchase with no ID for low fees I think you will have a lot of customers. But this business depends on the local demand for such a service. You would know best what the situation is where you live.

People on local Bitcoins sell for about 10% over the market price. You definitely could make profit, but you would have to find buyers and maybe even sellers that might want to sell to you for good prices. It really all depends on how much of your time you are willing to spend.

Its still profitable because That percentage you are giving its high i think because many exchanger site are giving below percentage you mention..
So i think its profitable.. also the price is increase high fast.. so it would be profitable..

It can be  profitable even if you don't live in such area where Bitcoin is popular, remember you are  doing this online, pretty much your service can cover almost the whole world where  internet is accesible.  You just need to promote, and market your stuff.  And make sure you are affiliated with local remittances and banks for fund transfers.

why not do it on localbitcoins as another one of the exchangers that are active there?

anyways, as long as you are legit and can gather some trust over time you can be successful. you can also do some things in order to stand out. for example accepting some payment processors that people have money in and want to buy bitcoin with that eg. okpay
or other ideas that you may have to make yourself unique and better than others.

the second point. as long OP don't enable API to make his service automatic it's not going to be a problem,hacker can't take control to the address because it's not connected to the website database and all of control is owned by OP

You have bad reputation here, I'm not sure you can really do it with honesty ::)

The important thing to trade is your reputation.

It really depends how much you can get in terms of customers, and how much you can make a profit on each trade. If you can only make like 1% off each trade then obviously it's not that profitable.

Still, if you're dealing with large numbers, 1% of 20 BTC isn't that bad.

too high fee will only lead the business come into bankrupt,what people looking for now is an exchanger with low fees,and exchanger have to get as much customer as they can to get to profit from that small fee

I think it will be difficult. with a small capital and large fees you will be unable to compete with other major exchange. not to discourage and your spirit, but now has many exchange that offers a very low fee. The following promo that appeal to every user of the service.

i dont know what it is because i never used it before but you cant tell people what they have to do they also need to make their own desisions...

yes i think it will be still profitable.because people are still taking interest in them, therefore i personally thinking that it will be still profitable.

I definitely think there is room for another exchange. I recommend that you look at the needs of the potential customers to see what would work best like having an easy way to use fiat to buy bitcoin. If you can separate yourself from the other exchanges, you can make some money at it.