Selling bitcoins on localbitcoins for prfoti?

[shogdite]

Can someone explain why anyone would buy bitcoin on LBC for such a high price?  Someone posted in a forum that right now on LBC that BTC is worth around $249 now.  But you have ppl on LBC looking to buy at $300+ for a BTC.  Thus if they buy btc from coinbase, it would cost them only $ 249 plus a 1 percent fee.  Can someone explain why there are ppl that are buying at this price?  Makes no sense.  Because why don't someone just buy a bunch of btc now and pay 1 percent fee then sell it all to those buying $300+ per btc?

Not entirely sure, it might be because you have to get verified / provide personal information on exchanges like Coinbase (as far as I know) whereas LBC you can sign up with just an email address. People charge even more for btc on Ebay.

[loan4]

Surely, you can earn profit from Localbitcoins but it's not much unless you trade with a large number of Bitcoin

[notlist3d]

Surely, you can earn profit from Localbitcoins but it's not much unless you trade with a large number of Bitcoin

I think the biggest thing is risk not only of losing money but legal.  Look at money laundering if you are in US.  Selling on localbitcoins across state lines and not having proper paperwork can be money laundering.

I know this is a "big fish" but look at Charlie Shrem: http://www.coindesk.com/bitcoins-first-felon-charlie-shrem-begins-2-year-sentence/  He got "aiding and abetting the operation of an unlicensed money transmitting business." for not having proper paperwork and trading btc for currency on large scale.

[SirChiko]

I see that you could sell bitcoins on localbitcoins to ppl who offer cash deposit and other online payments.  I also see they offer you higher rate than the current price as well though not that much more.  Example if btc is worth say $250... i would see ppl offer $255 or $260 for it.  If thats the case, isn't it better since if you do that as oppose to withdraw through coinbase, you have to pay 1 percent fee?  Thus not only do you get money faster, someone is actually paying you a vig for it?


I see lot of ppl on localbitcoin seem to have very good feedback and they offer boa cash deposit.  I had read cash deposits are reverisible but only till the end of the banking day.  Is that correct?  Thus once they deposit it, bank closes, then they cannot reverse a cash deposit no matter what?  ]


I believe online boa transfer is reversible but as long as its a hakced account?  The thing is im curious if anyone here had lot of good feedback about localbitcoins b/c couldn't one just buy bitcoin for 1 percent fee... then sell it to someone on localbitcoins for a profit since most pay more than 1 percent vig?  the negative though is you have to meet them so that would be using up time and thats the inconvenience?  Thus most dont meet with others unless its minimum say $500 worth of btc trade?

Yep you can do that but you also gotta count with fees etc so you won't profit so mutch.
Also one bad transaction and you are in loss so think twice before you jump to that.