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.
