Localbitcoins business easy profit?

[Shawns]

I've noticed that I can buy bitcoins at market rate on coinbase.com and then resell them on localbitcoins.com for plus 12% of market value. Obviously, there is a little work involved. Dealing with numerous emails, small transactions, etc, and the potential for fraud.

However, it's not a lot of work, mainly just pushing the escrow release button 4-5 times a day after verifying deposits into my bank account.

Since I can sell around $1200 in coin per day, minus 1 percent for localbitcoins and 1 percent for coinbase, I can net about $120 per day, which is currently more than my day job.

Now, if something seems too good to be true, it generally is. In other words, the profits seem too easy for the work involved, that I worry that I'm missing something? I would think that the ease of profit would encourage more people do to it, thus making more competitive prices on localbitcoins and driving the price down.

What am I missing?

EDIT: I live in Europe, the laws are different here than in USA for banks.

[jeffytune]

You got everything right except one that is you are binding yourself to sell at 10% profit while price can rise way more at the same time or after an hour or at the same day.

[dossantosleite]

You got everything right except one that is you are binding yourself to sell at 10% profit while price can rise way more at the same time or after an hour or at the same day.

But I think you could adjust 10% profits and it would be for any price. like if 10% is for $1000 and if the price would rise to $2000, the same 10% would be set.

[Vaskiy]

Profiting through localbitcoins in a much easier way is by the common strategy of buying low and selling high. This is not possible all the time, so it's good to make a minimal profit margin and continue trading. This gives almost a stable earning even when the price doesn't move higher.

[dossantosleite]

Profiting through localbitcoins in a much easier way is by the common strategy of buying low and selling high. This is not possible all the time, so it's good to make a minimal profit margin and continue trading. This gives almost a stable earning even when the price doesn't move higher.

In your opinion, what profit margin is best to set on localbitcoins in order to start receiving orders?

[Dudeperfect]

Well, in my country the price is above 10% to 15% than international markets most of the times so there are plenty of traders on localbitcoins offering numerous payment options. It's is really a nice business in these days of price fluctuations and it works best with multiple types of payment solutions as most of the buyers and sellers do not have multiple options so they look for the one which is convenient for them and they even pay surplus amount without hesitation for using that particular payment option.

[goradyne]

I agree, Arbitrage is super profitable. I'm thinking of going into it when I get a free 0.2BTC. Doing it to other countries and exchanges is also realistic and done now more than ever.

[Serpens66]

Isn't localbitcoins very risky?
There is not a single online payment method that can not be reverted in case of fraud. At least your account is closed if someone sent you stolen money.

[wantjokull]

Lol. I think you have got everything on your selling boat! Dude you already making profits that are actually pure. You have cut the fees and captured 12% of market before selling them out. That percentage is giving you more value and margins to sell with ease. I think your strategy is pretty unique and profitable. Keep it up.

[amaral1977]

Everything right but the 12% rate. You cant be sure if people on local bitcoins are willing to pay over market and how much over market.

Don´t forget BTC is still not regulated in Europe. If you get chargebacks and problems your bank account can be suspended. It happen before in several countries.
 So dont use you main bank and main bank account to deal.
Then remenber that being regulated as an asset if you take Portugal as an example you should declare your winnings and pay 28% tax. When you are dealing through bank accounts is rather dangerous to take profit and not declare it.

[Idrisu]

Op thank you for sharing this nice idea with us. I have see bitcoin price at most of the wallet providers far cheaper than localbitcoin exchangers in my area. I will study this idea and try to practice it and if I got positive results I will post how I do it here.

[zeze18]

Isn't localbitcoins very risky?
There is not a single online payment method that can not be reverted in case of fraud. At least your account is closed if someone sent you stolen money.

May be in some countries have available a variety of facilities and infrastructure that provides bitcoin transactions, but not in my country. So up to now still use localbitcoin as a means that has facilities about bitcoin transactions to exchange into fiat currency

[death69]

it is much more easy in where I am living because it is hard to send money through the international bank from my country. Well, it is good to hear that lol. Everything seems very great to you

[CyberKuro]

I've noticed that I can buy bitcoins at market rate on coinbase.com and then resell them on localbitcoins.com for plus 12% of market value. Obviously, there is a little work involved. Dealing with numerous emails, small transactions, etc, and the potential for fraud.

However, it's not a lot of work, mainly just pushing the escrow release button 4-5 times a day after verifying deposits into my bank account.

Since I can sell around $1200 in coin per day, minus 1 percent for localbitcoins and 1 percent for coinbase, I can net about $120 per day, which is currently more than my day job.

Now, if something seems too good to be true, it generally is. In other words, the profits seem too easy for the work involved, that I worry that I'm missing something? I would think that the ease of profit would encourage more people do to it, thus making more competitive prices on localbitcoins and driving the price down.

What am I missing?

EDIT: I live in Europe, the laws are different here than in USA for banks.

Everything looks so smooth for you, how about (1) bitcoin transactions fees and (2) confirmation time? How long you have to wait until bitcoin received on localbitcoin? Have you tried it before? As bitcoin price could change in matter of minutes, what might seen high in the beginning may end loss if the price suddenly drop.
Please update in here after you have tried it, we would like to see how is it going. Good luck.