Topic: Question for LocalBitcoins.com traders (Read 309 times)

Right, I guess not many LocalBitcoin traders are hanging around in this thread.

1. In case I misunderstood the question and OP is asking if prices are fixed on trade commencement: yes. Once you confirm to sell your Bitcoins, or buy them, the amount of bitcoins are immediately put in escrow hold and the buyer has to make the fiat payment at the rate of the trade. So that's locked in. I have noticed SOME abuse from traders here, given that they are allowed to cancel the trade since they are given a period of time to mark payment as complete. Some try to wait a little longer. If Bitcoin price goes up, they happily mark the payment as complete, and quickly sell off. If prices go the other way they cancel the trade. So I only trade with those I learn to trust and who honour the price of the trade.

2. If I understood the question correctly, OP is wondering how traders can leave trades open with running balances, go to sleep and not worry about price fluctuations, then it's because of they can set a running margin that adjusts to current Bitcoin market price. e.g. You can always set to buy/sell at -0.5%, the price will adjust. More advanced users can set a formula for price equation (I don't know how haha).

Lots of other options: you can set specific times, liquidity, min/max tx amount. Basically all aimed at automated trading within limits comfortable to you.

This is the risk of trading any where, whether that's localbitcoins or an exchange. Traders on localbitcoins always sell for something more than they originally got the amount for. They tend to put a premium on it too to combat the fees. I'm not sure localbitcoins is the most profitable and probably doesn't have too many advantages over an exchange.

Best practice is to only sell bitcoin to opened buy orders rather than creating sell orders with your bitcoin balance.
Also if you really want to make profit out of buy-sell price difference than you should consider creating sell order with over 10%+ profit margin so that you can remain in safe side during upto 10% price dump.

Thats true, but alborg is asking hypothetically. We have seen BTC drop 30% of its value very quickly and easily that only lasts by a few trading days and sometimes less than that. It would be good to know what strategy Localbitcoins traders do to mnimize their losses.

Yes, you can cancel all the orders that you want, but you are not going to have a perfect reputation if you reject all the trades of buy/sell that you receive, this is how it works.
But you can sell your balance, and buy more bitcoins without any limitations, it is not like the other exchanges who are going to ask you for several identifications before buying or selling.
So yes, there is no need to worry for the fluctuations because you can manage your own risks by yourself.

Good question.If you register as a trader in LBC and start to buy and sell BTC,that does not mean that you would have to be 24/7 online and whatever trade request you get,you would have to process it.If you feel that bitcoin price is very much fluctuating and present bitcoin price is much lower than what you bought,then just you could remain offline and even if you get a trade request,you could just cancel it.So,no need to worry about it.

that is what you get when you are trading bitcoin or really anything else. there are always risks involved in this and you have to accept them. and what you are asking here goes both ways. the same way the price drop may mean losing money, price rise means a lot of profit. and that is why anyone who ever invested in bitcoin wants.

From my experience:  Localbitcons isn't like your typical exchange where Coins are traded for profits. You can only exchange Fiat for Bitcoin Or Bitcoin for Fiat on the Website.. all according to the price a Seller or Buyer is willing to trade. So price fluctuation does not affect you in any way.. Once you hit the Buy/Sell button the trade goes on whether Bitcoin fluctuates or not.

It has done for a few months which can be very difficult for traders. The price isn't a certain that its going to go up either. It's one of the risks which come with trading and localbitcoins isn't any different.

But... Bitcoin's price never drops to the point where it doesn't recover and go even higher.
Literally all price drops in Bitcoin's history have been temporary.
Should there be a big drop so as to wipe all of the traders profits, they know that all they have to do is wait for the price to go back up, and it will.

Hi.  In order to trade on localbitcoins.com I understand you need a running balance of bitcoin.  How do you manage the risk of the price fluctuating while holding your BTC in your LBC account?

Theoretically any profits made from selling could be wiped out by a price drop.

Thanks.