Localbitcoins noob here...

[JeRM]

Just recently decided I wanted to dabble in the LBC market to see about making some extra cash.

Just wanted to know if it's safe doing business with cash deposits to my personal account or should I go with some other form of payment?

What should I be cautious about as well? Thanks peeps

Oh and what a fair markup value is for selling coins at. 5% market value?

[haploid23]

If you're new to LBC, be prepared to take a beating first. First of all, you're competing with a lot of higher status guys that are already established. You'll have to sell at a lower exchange rate if you want anyone to bite, because there's no reason why anyone would buy from you if they can buy from someone already more trustworthy, if prices are the same.

Second, the site is littered with scammers. If you start to get higher volume, be prepared to deal with attempted scams on a daily basis. You might lose a bit as a learning lesson.

Now specifically for cash deposits, it's generally safe, but not foolproof. You're at risk of having your bank account banned if you get enough deposits (money laundering suspected), or even if the bank gets a tip off that it's a bitcoin transaction. Lastly, cash deposits are reversible. Not as easy as paypal, but easy enough (I recently just got a 4-digit cash amount reversed on me within the last 3 weeks).

[BurtW]

Start with only in person face-to-face meetings in a public place with lots of people - like a coffee shop.

Start with smaller amounts, less than $1,000 for example.

Build from there as you learn.  Good luck!

[duke1839]

One of my accounts was frozen and then closed for trading on localbitcoins. 

[BurtW]

One of my accounts was frozen and then closed for trading on localbitcoins.  

One of your bank accounts?  Happens all the time if you are taking cash deposits from all over the country/world into your bank account.  Don't do that.  Cash in person face-to-face transfers are the way to go.  Banks can go screw themselves - oh wait, they are doing that already.

[btckold24]

If you're new to LBC, be prepared to take a beating first. First of all, you're competing with a lot of higher status guys that are already established. You'll have to sell at a lower exchange rate if you want anyone to bite, because there's no reason why anyone would buy from you if they can buy from someone already more trustworthy, if prices are the same.

Second, the site is littered with scammers. If you start to get higher volume, be prepared to deal with attempted scams on a daily basis. You might lose a bit as a learning lesson.

Now specifically for cash deposits, it's generally safe, but not foolproof. You're at risk of having your bank account banned if you get enough deposits (money laundering suspected), or even if the bank gets a tip off that it's a bitcoin transaction. Lastly, cash deposits are reversible. Not as easy as paypal, but easy enough (I recently just got a 4-digit cash amount reversed on me within the last 3 weeks).

Holy crap I have had many cash deposits from my bank from btc / bookies (gambling) I'm with wells fargo and this worries me. Had no clue they could actually close my account or reverse....

[BTCfan668]

Now specifically for cash deposits, it's generally safe, but not foolproof. You're at risk of having your bank account banned if you get enough deposits (money laundering suspected), or even if the bank gets a tip off that it's a bitcoin transaction. Lastly, cash deposits are reversible. Not as easy as paypal, but easy enough (I recently just got a 4-digit cash amount reversed on me within the last 3 weeks).

How did they manage to reverse a cash deposit? Did they claim the incorrect account was credited or something?

I would think that you would at least be able to determine the scammers identity if they were to pull this off successfully (or his identity would be easily accessible to the police if you filed a police report)

[haploid23]

Now specifically for cash deposits, it's generally safe, but not foolproof. You're at risk of having your bank account banned if you get enough deposits (money laundering suspected), or even if the bank gets a tip off that it's a bitcoin transaction. Lastly, cash deposits are reversible. Not as easy as paypal, but easy enough (I recently just got a 4-digit cash amount reversed on me within the last 3 weeks).

How did they manage to reverse a cash deposit? Did they claim the incorrect account was credited or something?

This is not something I will disclose. It'll just give more ideas to scammers, or turn legit people into scammers. The only thing you need to know is that it's possible, not how it's done.