Selling on Localbitcoins vs an Exchange

[El-Pwon]

Hey Everyone,

So I am relatively new to bitcoin and cryptocurrency in general, and I wanted to get a couple expert takes on liquidating bitcoin. Right now, I have a few thousand dollars worth of bitcoin and I was thinking of using Localbitcoins instead of a trading exchange like GDAX. A lot of the research I did points to it being a safe service, and without any fees. It seems great for the amount of volume I am working with now.

But how about larger volumes? Does it scale well? Should I sell, let's say around $50,000 worth of bitcoin, would you recommend using an exchange like GDAX instead?

Basically, my main concerns are getting the best exchange rate possible, as well as having the lowest fees. Speed is a concern as well, but it takes a back seat to getting the most value when selling.

[gentlemand]

On Localbitcoins I would only consider a sale of that size to someone with thousands of transactions and peerless feedback. And that would mean that they were a professional broker who more than likely would be looking to pay below the market rate. There should be more than a few who have that much money available.

On the plus side there would be no possibility of triggering some unknown limit as can happen with exchange and you're more than just some ticket number.

If I had a GDAX account I think I'd still lean towards using that providing I was fully verified on there and my limits were clear. You could also look into Gemini and their daily auction or an OTC sale via somewhere like Genesis Trading but their minimum sell might add up to more.

[HitbtcSCAM]

It is a fact that Localbitcoins.com is controlled by the US government, the FBI. I used to be  the king of localbitcoins.com with many accounts and moving over 30,000 usd per week.I now only sell face to face with trusted people!!

The us government agents who buy on localbitcoins.com have bullet proof accounts, you can not leave them bad feedback after they try to steal from you or have your western union transfer blocked or they close your bank account.When the government agents block you and you try to leave bad feedback to warn the other potential victims the site will remove your feedback or when you leave bad feedback for their undercover agents the feeedback is always at 100% and your negative comments do not ever show. This is a proven conspiracy to allow US government agents to buy and collect information and no one can leave bad information about their plan to deceive and arrest people who move large amounts of coins.

Localbitcoins.com is the last option!

[9jaflick]

Hey Everyone,

So I am relatively new to bitcoin and cryptocurrency in general, and I wanted to get a couple expert takes on liquidating bitcoin. Right now, I have a few thousand dollars worth of bitcoin and I was thinking of using Localbitcoins instead of a trading exchange like GDAX. A lot of the research I did points to it being a safe service, and without any fees. It seems great for the amount of volume I am working with now.

But how about larger volumes? Does it scale well? Should I sell, let's say around $50,000 worth of bitcoin, would you recommend using an exchange like GDAX instead?

Basically, my main concerns are getting the best exchange rate possible, as well as having the lowest fees. Speed is a concern as well, but it takes a back seat to getting the most value when selling.

you can consider spliting your BTC bit by bit, instead selling everything at once, am a fan of localbitcoin, I trade there almost every day. To get a buyer that will buy such amount of BTC at a spot Will take you sometime and the person will have to be a professional trader.

But it will be more quicker to sell if you split it like $10,000 $10,000

[BountyX]

It is a fact that Localbitcoins.com is controlled by the US government, the FBI. I used to be  the king of localbitcoins.com with many accounts and moving over 30,000 usd per week.I now only sell face to face with trusted people!!

The us government agents who buy on localbitcoins.com have bullet proof accounts, you can not leave them bad feedback after they try to steal from you or have your western union transfer blocked or they close your bank account.When the government agents block you and you try to leave bad feedback to warn the other potential victims the site will remove your feedback or when you leave bad feedback for their undercover agents the feeedback is always at 100% and your negative comments do not ever show. This is a proven conspiracy to allow US government agents to buy and collect information and no one can leave bad information about their plan to deceive and arrest people who move large amounts of coins.

Localbitcoins.com is the last option!

I was unaware of this evolution of localbitcoins. Of course, this would not be a big problem for someone living in some other part of the world. But I agree that GDAX would be an easier way. I think Kraken too is providing same service. And Bitstamp.

[El-Pwon]

On Localbitcoins I would only consider a sale of that size to someone with thousands of transactions and peerless feedback. And that would mean that they were a professional broker who more than likely would be looking to pay below the market rate. There should be more than a few who have that much money available.

On the plus side there would be no possibility of triggering some unknown limit as can happen with exchange and you're more than just some ticket number.

If I had a GDAX account I think I'd still lean towards using that providing I was fully verified on there and my limits were clear. You could also look into Gemini and their daily auction or an OTC sale via somewhere like Genesis Trading but their minimum sell might add up to more.

Interesting, thanks for a concise response. Just out of curiosity, even at the volume I am trading right now, would you recommend I use GDAX over Localbitcoins?

[kimmy724]

This is the thing . If you want to trade from crypto to fiat just use localbitcoin otherwise any highly reputable exchange will be fine.

[BitcoinMarshal]

This is the thing . If you want to trade from crypto to fiat just use localbitcoin otherwise any highly reputable exchange will be fine.

I believe Localbitcoins is much better and safe place instead of exchanges for fiat trades as they have good and quick support and we can do this all very instantly but on exchanges mostly you have to wait for withdrawals and need to check limits for all your sell and buy options just try to catch good trader on localbitcoins is much better and safe for any one

[MoonIsBlue]

Hey Everyone,

So I am relatively new to bitcoin and cryptocurrency in general, and I wanted to get a couple expert takes on liquidating bitcoin. Right now, I have a few thousand dollars worth of bitcoin and I was thinking of using Localbitcoins instead of a trading exchange like GDAX. A lot of the research I did points to it being a safe service, and without any fees. It seems great for the amount of volume I am working with now.

But how about larger volumes? Does it scale well? Should I sell, let's say around $50,000 worth of bitcoin, would you recommend using an exchange like GDAX instead?

Basically, my main concerns are getting the best exchange rate possible, as well as having the lowest fees. Speed is a concern as well, but it takes a back seat to getting the most value when selling.

If you're from the US you might want to avoid Localbitcoins, I hear a lot of stories about the FBI staking out on that website and charging traders with money laundering charges etc. I don't know how much of it is true, but I have seen a guy on youtube tell his story of how he was selling/buying BTC and the feds caught him, because of the size of the transactions that he perpetually made he was charged with Money Laundering charges and tax evasion. Quite a nasty thing to do in my opinion, even worse when you think about that Bitcoin didn't even have any legal definition at that time.

50k should be easily possible for Gdax (you can also use Bitfinex which as a 10k minimum), just take a few days so you can get a good price, don't market sell or anything like that. If its more than 50k (substantially more x20) then you might want to take a look at OTC and see what they can mean for you. Only trust a big exchange with this however (Coinbase, I know Kraken does OTC aswell which seems like a trustable exchange).

[magneto]

Hey Everyone,

So I am relatively new to bitcoin and cryptocurrency in general, and I wanted to get a couple expert takes on liquidating bitcoin. Right now, I have a few thousand dollars worth of bitcoin and I was thinking of using Localbitcoins instead of a trading exchange like GDAX. A lot of the research I did points to it being a safe service, and without any fees. It seems great for the amount of volume I am working with now.

But how about larger volumes? Does it scale well? Should I sell, let's say around $50,000 worth of bitcoin, would you recommend using an exchange like GDAX instead?

Basically, my main concerns are getting the best exchange rate possible, as well as having the lowest fees. Speed is a concern as well, but it takes a back seat to getting the most value when selling.

You'll find trouble selling at good rates for amounts over $50k on LBC. To get above market price for your coins, you'll need to list your own advertisement. It will take some time for people to respond to you.

However, if you are able to wait, and break up your trades then LBC will be able to get you at least 2-3% over spot when selling.

Keep in mind though the seller is liable for any escrow fees (1% of trade amount) on LBC.

For a large amount, and when your primary goal isn't to make a profit or a living off trading, and/or time is a factor then I'd go GDAX over LBC. Unless you want to go for convenience, you can sell on LBC to advertisers, but that'll result in worse rates, although there is no verification to do so.

[El-Pwon]

Is the service itself illegal? Or are the feds just raiding larger orders due to potential tax evasion?