How currency exchange business works on localbitcoins or paxful

[Bitconified]

Hi everyone
I am just thinking about starting a bitcoin exchange business on local bitcoins or paxful but i have a confusion about how it works in the long run.
For example i have $1000 to invest and i want to add 5% profit margin to stay competitive on localbitcoins.So $1000*1.05=$1050.Okay i earned $50 on my $1000 investment.But again if i want to continue trading i will have to put $1000 back in my localbitcoins account so again if i buy $1000 worth of bitcoins on localbitcoins from some other trader by paying him his  5% margin that,s $50 and here the $50 i earned is gone.So apparently for reinvesting if i buy bitcoins from localbitcoins it won,t work for me as a bitcoin trader. But how is it working for other traders on localbitcoins?
The other traders buy cheap bitcoins  from other exchanges or at market price? And please tell me from where i can buy bitcoins at a market price or at a cheaper fee?
Regards

[bigmaster23]

Hi everyone
I am just thinking about starting a bitcoin exchange business on local bitcoins or paxful but i have a confusion about how it works in the long run.
For example i have $1000 to invest and i want to add 5% profit margin to stay competitive on localbitcoins.So $1000*1.05=$1050.Okay i earned $50 on my $1000 investment.But again if i want to continue trading i will have to put $1000 back in my localbitcoins account so again if i buy $1000 worth of bitcoins on localbitcoins from some other trader by paying him his  5% margin that,s $50 and here the $50 i earned is gone.So apparently for reinvesting if i buy bitcoins from localbitcoins it won,t work for me as a bitcoin trader. But how is it working for other traders on localbitcoins?
The other traders buy cheap bitcoins  from other exchanges or at market price? And please tell me from where i can buy bitcoins at a market price or at a cheaper fee?
Regards

For example you will trade paypal to btc. In this case you can take 100$ paypal to btc from your local people and on localbitcoin you can sell 100$ payapal to 110$ btc then you can get 10% profit and you can do vice versa.

[Bitconified]

Hi everyone
I am just thinking about starting a bitcoin exchange business on local bitcoins or paxful but i have a confusion about how it works in the long run.
For example i have $1000 to invest and i want to add 5% profit margin to stay competitive on localbitcoins.So $1000*1.05=$1050.Okay i earned $50 on my $1000 investment.But again if i want to continue trading i will have to put $1000 back in my localbitcoins account so again if i buy $1000 worth of bitcoins on localbitcoins from some other trader by paying him his  5% margin that,s $50 and here the $50 i earned is gone.So apparently for reinvesting if i buy bitcoins from localbitcoins it won,t work for me as a bitcoin trader. But how is it working for other traders on localbitcoins?
The other traders buy cheap bitcoins  from other exchanges or at market price? And please tell me from where i can buy bitcoins at a market price or at a cheaper fee?
Regards

For example you will trade paypal to btc. In this case you can take 100$ paypal to btc from your local people and on localbitcoin you can sell 100$ payapal to 110$ btc then you can get 10% profit and you can do vice versa.

So you are assuming my local people won,t add any profit margin on the $100 worth of bitcoins they are selling me?

[bigmaster23]

So you are assuming my local people won,t add any profit margin on the $100 worth of bitcoins they are selling me?

You have to buy any method which is low rate and that sell to another place where that is high price. Otherwise it cant be profitable. Also you can open a service where you will buy at a low rate and sell at a high rate.