How do traders make money while trading bitcoin in localbitcoin.com ?

[RasAlGhul]

I am new to bitcoin and loving it. I have an account with localbitcoin and i see, there are so many people buying and selling btc. I am wondering, how do they make money while trading using localbitcoin ? And can it be a good business ? 

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[OmegaStarScream]

I am new to bitcoin and loving it. I have an account with localbitcoin and i see, there are so many people buying and selling btc. I am wondering, how do they make money while trading using localbitcoin ? And can it be a good business ? 

People can make money using any over exchanges (including Localbitcoins) , the idea is simple , basically they buy low (when bitcoin price is low) then they sell it again when the price rise once again , however you need few bitcoins to start with so the trading is profitable otherwise you won't be making good profit at all .
also I suppose if you want to do buy low and sell high you should use some other exchanges because Localbitcoins is decentralized and may take time to trade with the users .

[Cryptology]

I am new to bitcoin and loving it. I have an account with localbitcoin and i see, there are so many people buying and selling btc. I am wondering, how do they make money while trading using localbitcoin ? And can it be a good business ? 

You need to either be a market maker (buy and sell in localbitcoins) or an arbitrageur (buy/sell on Localbitcoins sell/buy in other market).
If the spread you make covers all your costs then you make money.
One word of caution though since you're a noob. Selling bitcoins is an extremely risky business. Every trader I know was scammed selling bitcoins at least once during their learning phase. That includes me of course.
There is a wealth of information in this forum on how to become a profitable coin trader. Read, learn and don't let greed blind you.
good luck.

[svn]

I am new to bitcoin and loving it. I have an account with localbitcoin and i see, there are so many people buying and selling btc. I am wondering, how do they make money while trading using localbitcoin ? And can it be a good business ? 

You need to either be a market maker (buy and sell in localbitcoins) or an arbitrageur (buy/sell on Localbitcoins sell/buy in other market).
If the spread you make covers all your costs then you make money.
One word of caution though since you're a noob. Selling bitcoins is an extremely risky business. Every trader I know was scammed selling bitcoins at least once during their learning phase. That includes me of course.
There is a wealth of information in this forum on how to become a profitable coin trader. Read, learn and don't let greed blind you.
good luck.

.I Do not understand that unless it is impossible to trade here on Bitcoins?

[Mickeyb]

I am new to bitcoin and loving it. I have an account with localbitcoin and i see, there are so many people buying and selling btc. I am wondering, how do they make money while trading using localbitcoin ? And can it be a good business ? 

You need to either be a market maker (buy and sell in localbitcoins) or an arbitrageur (buy/sell on Localbitcoins sell/buy in other market).
If the spread you make covers all your costs then you make money.
One word of caution though since you're a noob. Selling bitcoins is an extremely risky business. Every trader I know was scammed selling bitcoins at least once during their learning phase. That includes me of course.
There is a wealth of information in this forum on how to become a profitable coin trader. Read, learn and don't let greed blind you.
good luck.

You did a pretty good explanation mate! Let me just add that the trust rate is everything on localbitcoins.com! If you are new seller or even buyer, you will have to work hard to build up your trust and this means that you will in the beginning be obliged to operate with losses just in order to offer better rates so you can attract customers because the competition is fierce on localbitcoins!

This is slow and painful process where you have to know very well what you are doing so you don't get scammed and you even need to have some luck in order not to get scammed!

[Amph]

they make more there, or at least they could i theory because, it's easy to sell at 5-10% above market, the same way you can do it here in the marketplace

people are more willing to pay more there, for a faster service, especially locally

[yurinov]

It is very hard... I think the people make money from tricking people of very high rates, I have seen some charge over 30% and people still buy.

[btckold24]

You can sell and make money but buying at least in my area is always way overpriced! So if you can purchase the bitcoin somewhere else you can mark it up on Local. It can be a hassle but if your making $50 a bitcoin it could be worth it if your not afraid of moving the money around.

[twister]

If you take a closer look at their prices, they are offering to buy lower than the market price and are selling over/same the market price and this is where they make money and they offer various payment methods to buy/sell and the prices for each of them is different but it's still risky, if the price drops, you're going to have to take a loss or hold the sales until it goes up.

[Denker]

I am new to bitcoin and loving it. I have an account with localbitcoin and i see, there are so many people buying and selling btc. I am wondering, how do they make money while trading using localbitcoin ? And can it be a good business ? 

The prices at localbitcoin are in general a bit more expensive.
But you can buy without the need to give your identity, when you deal via p2p for instance.
Many people appreciate that and therefore are willing to pay a higher price.
And the sellers at localbitcoin know that.

[Gohs]

Let me just add that the trust rate is everything on localbitcoins.com! If you are new seller or even buyer, you will have to work hard to build up your trust and this means that you will in the beginning be obliged to operate with losses just in order to offer better rates so you can attract customers because the competition is fierce on localbitcoins!

This is slow and painful process where you have to know very well what you are doing so you don't get scammed and you even need to have some luck in order not to get scammed!
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I heard from someone that localbitcoins.com has escrow for both buyers and the sellers, so I do not see how you will get scammed since the other person cannot refuse to trade once he is held up by escrow.

[Rubberduckie]

Let me just add that the trust rate is everything on localbitcoins.com! If you are new seller or even buyer, you will have to work hard to build up your trust and this means that you will in the beginning be obliged to operate with losses just in order to offer better rates so you can attract customers because the competition is fierce on localbitcoins!

This is slow and painful process where you have to know very well what you are doing so you don't get scammed and you even need to have some luck in order not to get scammed!

I heard from someone that localbitcoins.com has escrow for both buyers and the sellers, so I do not see how you will get scammed since the other person cannot refuse to trade once he is held up by escrow.
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Yes when new to selling be prepared to take losses early and sell cheap
in order to build up your rep cause why would someone buy from you being new
when they could buy from someone with 100's of trades at the same price

[bitbite111]

They buy lower at an exchange, then sell higher on localbitcoins.

ie. When a buy order is executed on localbitcoins, they will buy the corresponding amount at an exchange to sell back to the buyer at localbitcoins. It's called arbitrage.

[Bitcoinbee]

I am new to bitcoin and loving it. I have an account with localbitcoin and i see, there are so many people buying and selling btc. I am wondering, how do they make money while trading using localbitcoin ? And can it be a good business ? 

You can make good profits on buy and sell. You buy at a low price and wait for the value to rise and sell it. Just make sure your business is growing so you can see how your business improves. The bigger the investment the bigger profit it can give.

[844bankbtc]

Most people DO NOT make money on LBC. Typically only the BIG traders are profitable there.

I will explain

Jane has a Vanilla Visa gift card $50 and wants to buy bitcoin with it
Dick sells bitcoin for 15% over stamp.

On a $50 trade Dick will have a margin of $7.50

Now take into account the risk of Dick getting his credit card processing shut down because they realize he is running tons of gift cards, the processor fees and the price of bitcoin fluctuating his profit is only $2-$5.

Look at it another way.
For everyone one succesful trade Dick has, 3 people that start trades and don't finish or try scamming him. Often his buyers are new and inexperienced so he spends a lot of time typing out messages to walk them through the process amd answering questions.

If you look at the time invested a smaller trader will only make around $5 an hour profit.

Most trades are small.
Risk of scams and payment issues are LARGE
That is a LOT of work to make $5.

[romero121]

Every user can post a trading ad with certain percentage of profit margin according to users wish. This would possibly give the profit rather than its actual price at the time of selling.

[Hazir]

There are couple ways people can profit while trading on Localbitcoins:
1. Basically localbitcoins is another exchange, a little peculiar but nonetheless exchange. So Arbitrage is valid strategy, you can profit from spread.
2. If you want to buy bitcoins anonymously without any traces in the system, you might want to ask trader from localbitcoins for help. Price for bitcoins in p2p trades are usually higher by 10%-15%

[TommyBitcoin]

I am new to bitcoin and loving it. I have an account with localbitcoin and i see, there are so many people buying and selling btc. I am wondering, how do they make money while trading using localbitcoin ? And can it be a good business ? 

You need to either be a market maker (buy and sell in localbitcoins) or an arbitrageur (buy/sell on Localbitcoins sell/buy in other market).
If the spread you make covers all your costs then you make money.
One word of caution though since you're a noob. Selling bitcoins is an extremely risky business. Every trader I know was scammed selling bitcoins at least once during their learning phase. That includes me of course.
There is a wealth of information in this forum on how to become a profitable coin trader. Read, learn and don't let greed blind you.
good luck.

You did a pretty good explanation mate! Let me just add that the trust rate is everything on localbitcoins.com! If you are new seller or even buyer, you will have to work hard to build up your trust and this means that you will in the beginning be obliged to operate with losses just in order to offer better rates so you can attract customers because the competition is fierce on localbitcoins!

This is slow and painful process where you have to know very well what you are doing so you don't get scammed and you even need to have some luck in order not to get scammed!

These guys did a good job explaining it.  I'm a part-time trader on LBC.  Check out my profile:

https://localbitcoins.com/accounts/profile/bill321/

it is very competitive, and there are scammers everywhere.  Although you can make money, it is hard.  Yes, it is fun, but I have to watch my back every minute, online and offline. 

Also, the money I make (U.S.D) is hobby money.  I don't think I could live on it full-time.  Another thing you have to beware of when doing a lot of trades day in and day out is getting attention by the banks.  Forum posters tell their tales of woe when the bank closes their account(s).  It can mess with your credit score and it may be harder to open a bank account with other banks.  While many people brag of making good money, I think only a small percentage do.  Don't get me wrong, I think you can make a living at it.  But you have to be smart and bundle it with other things, like maybe website design, security, seo..or if you have other financial experience/licences.

If you want to learn the trade, localbitcoin forums can be like a textbook.  The search feature allows me to search for anything like exchanges, legal, bank, scams, etc.

Expect to be scammed at least once, and you will live to tell about it.

[pooya87]

don't start in localbitcoins if you don't know how to make money there and if you are new. because you have to have the experience and the most important part is the "trade history on localbitcoins" which will give you some kind of trust so that people can trust you when they make a trade with you.

[TommyBitcoin]

don't start in localbitcoins if you don't know how to make money there and if you are new. because you have to have the experience and the most important part is the "trade history on localbitcoins" which will give you some kind of trust so that people can trust you when they make a trade with you.

Yes, those are good points.

Before you learn how to sell, you should first get the buying part down.  Because you are new, many traders won't sell to you.  But if you look hard enough, some will, but they may offset the risk of newbies being possible scammers buy charging you a little more.

After every trade tell the trader that you will give good feedback and ask for the same back.  Like what  pooya87 said, you have to build up your trade history, and every positive review helps.  The newer the review, the better too.  If you have old reviews, and no new reviews, that gap may scare off sellers that they are dealing with a newly bought account.