Topic: A Sustainable Method Of Selling Bitcoins To New Users While Making A Profit (Read 981 times)
November 06, 2013, 08:52:12 PM
There's really no way to guarantee you'll make a profit. When you buy the BTC from when you sell them they could rise $100 or drop $100. BTC really isn't the right kind of business your looking for if you're trying to use that set-up.
November 06, 2013, 08:51:26 PM
If you're not located in the US where you can use Coinbase, or China where you can do instant bank->exchange transfers, it gets a bit more tricky.
What you have do to in this case, is keep a pool of fiat on the exchange, enough to fund all the sales for the length of time it takes you to fund an exchange account.
if you're in Europe, this might be a few thousand €.
Every time you make a local sale, initiate a market order for the same amount on the exchange using your pre-staged Euros and initiate a bank->exchange transfer.
Just make sure your pool of fiat is large enough to float the transfer delay based on your sales volume.
What you have do to in this case, is keep a pool of fiat on the exchange, enough to fund all the sales for the length of time it takes you to fund an exchange account.
if you're in Europe, this might be a few thousand €.
Every time you make a local sale, initiate a market order for the same amount on the exchange using your pre-staged Euros and initiate a bank->exchange transfer.
Just make sure your pool of fiat is large enough to float the transfer delay based on your sales volume.
Thanks you.
November 06, 2013, 08:46:53 PM
If you're not located in the US where you can use Coinbase, or China where you can do instant bank->exchange transfers, it gets a bit more tricky.
What you have do to in this case, is keep a pool of fiat on the exchange, enough to fund all the sales for the length of time it takes you to fund an exchange account.
if you're in Europe, this might be a few thousand €.
Every time you make a local sale, initiate a market order for the same amount on the exchange using your pre-staged Euros and initiate a bank->exchange transfer.
Just make sure your pool of fiat is large enough to float the transfer delay based on your sales volume.
What you have do to in this case, is keep a pool of fiat on the exchange, enough to fund all the sales for the length of time it takes you to fund an exchange account.
if you're in Europe, this might be a few thousand €.
Every time you make a local sale, initiate a market order for the same amount on the exchange using your pre-staged Euros and initiate a bank->exchange transfer.
Just make sure your pool of fiat is large enough to float the transfer delay based on your sales volume.
November 06, 2013, 07:49:04 PM
Yes, but there would still be a few hours between between the time I receive the cash, deposit it in my bank account, fund my exchange account, and buy more bitcoins. The previous poster pointed out that the the price could just as easily fall during this time lag. If the odds of the price falling against the price rising were 50/50 then I would feel comfortable, but my worry is that because bitcoin is trending up in the short, medium, and long term, the odds of the price rising during the time between sale and purchase are significantly higher, maybe 60/40 or 70/30. If this is the case, then it seems like this would not be profitable.
Trust me, I've been doing this all year. It works.The key is robust pricing formulas, not just a simple commission.
Check out the example here: http://localbitcoins.blogspot.com/2013/06/this-is-first-in-series-of-posts.html
November 06, 2013, 07:45:03 PM
Create an account on LocalBitcoins.
Get a fully verified account on Coinbase.
Get a couple bank accounts separate from your existing one(s).
Link bank accounts to Coinbase.
Buy some bitcoins and send them to your LocalBitcoins wallet so that you can fund sales instantly.
Sell Bitcoins. Take the cash you receive and deposit into one of your bank accounts. Buy more bitcoins with Coinbase.
Make sure to charge enough so that you don't lose money.
Get a fully verified account on Coinbase.
Get a couple bank accounts separate from your existing one(s).
Link bank accounts to Coinbase.
Buy some bitcoins and send them to your LocalBitcoins wallet so that you can fund sales instantly.
Sell Bitcoins. Take the cash you receive and deposit into one of your bank accounts. Buy more bitcoins with Coinbase.
Make sure to charge enough so that you don't lose money.
Yes, but there would still be a few hours between between the time I receive the cash, deposit it in my bank account, fund my exchange account, and buy more bitcoins. The previous poster pointed out that the the price could just as easily fall during this time lag. If the odds of the price falling against the price rising were 50/50 then I would feel comfortable, but my worry is that because bitcoin is trending up in the short, medium, and long term, the odds of the price rising during the time between sale and purchase are significantly higher, maybe 60/40 or 70/30. If this is the case, then it seems like this would not be profitable.
November 06, 2013, 07:30:37 PM
Create an account on LocalBitcoins.
Get a fully verified account on Coinbase.
Get a couple bank accounts separate from your existing one(s).
Link bank accounts to Coinbase.
Buy some bitcoins and send them to your LocalBitcoins wallet so that you can fund sales instantly.
Sell Bitcoins. Take the cash you receive and deposit into one of your bank accounts. Buy more bitcoins with Coinbase.
Make sure to charge enough so that you don't lose money.
Get a fully verified account on Coinbase.
Get a couple bank accounts separate from your existing one(s).
Link bank accounts to Coinbase.
Buy some bitcoins and send them to your LocalBitcoins wallet so that you can fund sales instantly.
Sell Bitcoins. Take the cash you receive and deposit into one of your bank accounts. Buy more bitcoins with Coinbase.
Make sure to charge enough so that you don't lose money.
November 06, 2013, 07:16:30 PM
Buy coins in advance. Besides a minor crash can occur while you are installing the coin to someone else, so you may profit instantly.
November 06, 2013, 07:11:40 PM
I live in a large city with millions of people who have never heard of bitcoin. Now is a golden opportunity to spread the word and help people download wallets and acquire their first bitcoins. However, I do not want to sell my own bitcoins, I want to buy bitcoins on an exchange, sell them in-person for cash, then as soon as possible reinvest the money to buy more bitcoins, and repeat the process. Is there a technique for doing this to ensure that it is profitable? I am concerned that, for example, I sell bitcoins at 265 but buy the time I can repurchase I have to buy at 270. Is anyone trading bitcoins in similar way who would be kind enough to share advice?
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