Newbie Question about trading

[nirakli]

Hello my friend

Im new here. I have read a lot about trading with bitcoins and decided to join this business.
However I got some questions and hope that you will help me.



This is my model of how Im going to earn profit and if Im making huge mistake, please give me your advises.


After a few month learning how Bitcoin trading works, This is what im going to do:

Buy bitcoins on famous web sites, like coinbase and so on and then sell them on localbitcoins.
As I noticed on LBC you can sell +5 +10 $ higher.

To be honest it seems to good to be true to me, so thats why Im posting here.
Is there something that Im missing?
Or it is the right way people are earning money here.


tnx a lot.

[Amph]

if you can do it fast enough it may work 1 two time, on localbitcoin you can sell higher because it's faster, and people are willing to pay more for that(speed is very important nowadays), also is more accepted as a exchange method

but you need anyway a good trust and enough volume to build some profit

[nirakli]

tnx Amph for your replay

With your words I think that it makes some sense to join localbitoins.

As for good volume and trust I think that it requiters patient and time.

[sdmathis]

I've noticed that too. Every time I sell bitcoins on localbitcoins, I get much more than I could get at any exchange. I've always wondered how the buyers make a profit.

[pedrog]

Hide your activity from other exchanges, specially Coinbase as it is against their TOS such business model.

https://support.coinbase.com/customer/portal/articles/1905681-localbitcoins-and-coinbase

[CoinFriend]

Hello my friend

Im new here. I have read a lot about trading with bitcoins and decided to join this business.
However I got some questions and hope that you will help me.



This is my model of how Im going to earn profit and if Im making huge mistake, please give me your advises.


After a few month learning how Bitcoin trading works, This is what im going to do:

Buy bitcoins on famous web sites, like coinbase and so on and then sell them on localbitcoins.
As I noticed on LBC you can sell +5 +10 $ higher.

To be honest it seems to good to be true to me, so thats why Im posting here.
Is there something that Im missing?
Or it is the right way people are earning money here.


tnx a lot.

Hey,
your "trading model" is called "arbitrage".
With "arbitrage" you take a profit due to the price difference between two or more markets.

read more here about this kind of trade:
http://en.wikipedia.org/wiki/Arbitrage

You have created a interesting thread. I can tell you more about trading, if you want.
I trade a lot, but not with fiat currency (that means $,€ and so on). I take profit in BTC from price differences on altcoin markets only.

greetings,
CoinFriend