is this a dumb idea or a good idea?

[WishIStartedSooner]

I posted this on craigslist.

I don't forsee a whole lot of demand in my area locally, which is good cause I don't have a whole lot of money. But as bitcoin grows maybe this could grow with it.

What do you guys think, can you see any flaws in this plan (other than lack of a whole lot of startup capitol, which I'll have to compensate for by limiting the number of transactions I can fulfill, and by charging higher fees at first, as explained in the post) or am I just being stupid?

I'm in Central Ohio if anyone wants to take me up on this, btw.

Hi there,

Want to buy bitcoin but find the process complicated? Want to buy a small amount of bitcoin anonymously, and immediately, from a real life person? Want to cash out a little bit immediately to pay a bill and not have to wait at all?

I'm willing to buy or sell small amounts of bitcoin for profit.

I'm just getting started at this thing, so I don't have much to work with yet. Fees are negotiable, but I'd have to at least make enough to buy back the same amount from mount gox (through bitinsant) plus a tiny bit of profit (five or ten dollars).

For the current price of 92 dollars a bitcoin as of this writing, I'd probably buy a single bitcoin for about 70 bucks, or sell you a bitcoin for 115 dollars. Message me to negotiate something for different quantities of bitcoin, or for whatever the current market value is. I'm still kind of playing this by ear. I know this sucks, and as I establish a flow I could probably charge less, but this is what would make it worth it to me as of right this moment. Certainly though, the fees would vary as the market price varies.

Send me a message to find out how much fiat or BTC I currently have available. I think it would be kind of neat to, in time, build a business in real life exchanging digital currencies locally. So this is my first foray in that direction. Until I've made plenty of capital to hire a lawyer and meet AML requirements I'd have to keep it under 3 grand, which I have nowhere near right now.

I also have some litecoin to work with so I can do that too.

As of right now I live in Newark but work in Columbus. If we did it in Columbus I'd probably have you come to me. If we did it in Newark I'd probably come to you. I'm picturing us planning something, then I'd load the BTC into a wallet on my phone, and send it to your phone wallet with a QR code, then you could stand there and wait til it confirms (or vice versa).

Soon I'll be moving to Columbus.

[Mike Christ]

You can try posting at localbitcoins.com, you'll probably find a lot more people after you.  It would be wise to get the Bitcoin first, then sell them   But if people go for it the way you're doing it, then they'd be paying for the convenience, which I don't see a real problem with.

[Mike Christ]

You can try posting at localbitcoins.com, you'll probably find a lot more people after you.  It would be wise to get the Bitcoin first, then sell them   But if people go for it the way you're doing it, then they'd be paying for the convenience, which I don't see a real problem with.

I already have bitcoin on hand.

localbitcoins will be your best bet then I'd post in both places, then, if you have a lot to sell.

[WishIStartedSooner]

You can try posting at localbitcoins.com, you'll probably find a lot more people after you.  It would be wise to get the Bitcoin first, then sell them   But if people go for it the way you're doing it, then they'd be paying for the convenience, which I don't see a real problem with.

I already have bitcoin on hand.

localbitcoins will be your best bet then I'd post in both places, then, if you have a lot to sell.

I don't have alot to sell. only two bitcoin atm. thats why I wanna see if anybody responds to this first. small peanuts.

once ive built up more i could go to localbitcoin

[BTC Books]

It's a useful service.  You might want to run your ad copy through a spell-checker.

I've never used localbitcoins.  Are the markups always that high?

[giszmo]

It's a useful service.  You might want to run your ad copy through a spell-checker.

I've never used localbitcoins.  Are the markups always that high?

$115/$92 is 25% is high but it depends. If you trade $12, you will naturally ask higher % fees for the handling. Also if in your area it is hard to get bitcoins (Iran) you would also charge serious fees. I would consider 5% reasonable or even high for trades of $1000 in the US.

[WikileaksDude]

Localbitcoins will be your best bet.

Been, selling there for a while, now im out of coins lol

[GideonGono]

It's a useful service.  You might want to run your ad copy through a spell-checker.

I've never used localbitcoins.  Are the markups always that high?

I also live in an area where the bitcoin participation rate is very low. I've had quite a few occasions where I've been bitcoin rich but fiat poor and I had to trade at very unfavorable rates at localbitcoins

@OP I think you should try it out, post on both craigslist and localbitcoins and anywhere else you can think of simultaneously because people willing to do this will be few and far between. I think it's possible to build up from there (anything is possible with bitcoin, just ask the guy who created Satoshidice) but it requires massive patience. I'm thinking of doing this too. Let us know how it goes.

Good luck

[WishIStartedSooner]

It's a useful service.  You might want to run your ad copy through a spell-checker.

I've never used localbitcoins.  Are the markups always that high?

No, I'm admittedly charging alot for two reasons:

1) Bitcoin participation seems to be low in my area and I would pretty much be the only local option I see (that's logged in in a long time).

2) I only have a couple bitcoin to start so I'd have to limit the # of transactions I can handle until I establish some kind of a decent flow.

I think this sucks, and someday when I have a bigger hoard maybe I'll take a crack at this at reasonable prices-- but I'm just feeling out the market to see if anybody responds. I figure maybe somebody wants to buy something from silk road without being seen on camera making a deposit. Or maybe somebody needs money like NOW, and would be willing to part with BTC for way less than market value.

I will proofread better.

$115/$92 is 25% is high but it depends. If you trade $12, you will naturally ask higher % fees for the handling. Also if in your area it is hard to get bitcoins (Iran) you would also charge serious fees. I would consider 5% reasonable or even high for trades of $1000 in the US.

Nope don't live in Iran. Live in Ohio. Lol. But yes I agree, my starting rates are high. That's why I was asking if this is a dumb idea.

Localbitcoins will be your best bet.

Been, selling there for a while, now im out of coins lol

Don't wanna run out of coins yet. Wanna keep em stocked up as consistent as possible.

It's a useful service.  You might want to run your ad copy through a spell-checker.

I've never used localbitcoins.  Are the markups always that high?

I also live in an area where the bitcoin participation rate is very low. I've had quite a few occasions where I've been bitcoin rich but fiat poor and I had to trade at very unfavorable rates at localbitcoins

@OP I think you should try it out, post on both craigslist and localbitcoins and anywhere else you can think of simultaneously because people willing to do this will be few and far between. I think it's possible to build up from there (anything is possible with bitcoin, just ask the guy who created Satoshidice) but it requires massive patience. I'm thinking of doing this too. Let us know how it goes.

Good luck

Thanks for the encouragement! I'll give it a shot and let you guys know how it goes. If nobody responds to either of these I'll go ahead and post on localbitcoins.

[WishIStartedSooner]

According to FinCEN's 18 March Guidance, you would need to register as a money transmitter, in order to sell Bitcoin to the public.

Granted, enforcement might be light at the moment, but you don't want to be the turkey who thinks that life is great, until the day before Thanksgiving.

Do not underestimate the seriousness of financial crime in the USA.

The "Perversion of Justice" video at the bottom of the page—click the link—tells the story of a woman whose only crime was walking envelopes filled with cash to a local Western Union office:

Even for peanut amounts?

I took down the ad now that you reminded me of this.

[giszmo]

As with all activities deemed illegal, the biggest promotions go to those who arrest biggest players.  Still, you want to tread carefully, when it comes to financial stuff in the USA.

… unless that player is too big to jail in which case he may launder money as if there was no tomorrow.

[instaBoost]

I second localbitcoins. I don't believe real people still use craigslist 

[lukestokes]

According to FinCEN's 18 March Guidance, you would need to register as a money transmitter, in order to sell Bitcoin to the public.

Granted, enforcement might be light at the moment, but you don't want to be the turkey who thinks that life is great, until the day before Thanksgiving.

Do not underestimate the seriousness of financial crime in the USA.

I was thinking about this also. I have some friends that want to get into Bitcoin but don't want to deal with the hassel. Has anyone looked into how difficult it is to get registered as a money transmitter or at what levels it matters?

I just emailed a guy who handles "money transmitters" in my state. I'm curious as to how he'll reply.

[WishIStartedSooner]

just conducted more research.

the forms to register and the necessary info appears to e freely available online.

to my surprise, i dont see where they are charging a ten thousand dollar fee...

i think im gonna dig deeper on this, hang tight guys...

i dont wanna accept the idea that someone with the motivation isnt legally allowed to start a business from not jack shit like this in this country without bajillions for legal counsel.