Selling bitcoins on localbitcoins for prfoti?

SirChiko

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Quote from: viking02 on March 22, 2015, 11:13:45 PM

I see that you could sell bitcoins on localbitcoins to ppl who offer cash deposit and other online payments. I also see they offer you higher rate than the current price as well though not that much more. Example if btc is worth say $250... i would see ppl offer $255 or $260 for it. If thats the case, isn't it better since if you do that as oppose to withdraw through coinbase, you have to pay 1 percent fee? Thus not only do you get money faster, someone is actually paying you a vig for it?

I see lot of ppl on localbitcoin seem to have very good feedback and they offer boa cash deposit. I had read cash deposits are reverisible but only till the end of the banking day. Is that correct? Thus once they deposit it, bank closes, then they cannot reverse a cash deposit no matter what? ]

I believe online boa transfer is reversible but as long as its a hakced account? The thing is im curious if anyone here had lot of good feedback about localbitcoins b/c couldn't one just buy bitcoin for 1 percent fee... then sell it to someone on localbitcoins for a profit since most pay more than 1 percent vig? the negative though is you have to meet them so that would be using up time and thats the inconvenience? Thus most dont meet with others unless its minimum say $500 worth of btc trade?

Yep you can do that but you also gotta count with fees etc so you won't profit so mutch.
Also one bad transaction and you are in loss so think twice before you jump to that.

notlist3d

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Quote from: loan4 on March 31, 2015, 07:54:33 AM

Surely, you can earn profit from Localbitcoins but it's not much unless you trade with a large number of Bitcoin

I think the biggest thing is risk not only of losing money but legal. Look at money laundering if you are in US. Selling on localbitcoins across state lines and not having proper paperwork can be money laundering.

I know this is a "big fish" but look at Charlie Shrem: http://www.coindesk.com/bitcoins-first-felon-charlie-shrem-begins-2-year-sentence/ He got "aiding and abetting the operation of an unlicensed money transmitting business." for not having proper paperwork and trading btc for currency on large scale.

loan4

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Surely, you can earn profit from Localbitcoins but it's not much unless you trade with a large number of Bitcoin

shogdite

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Quote from: viking02 on March 31, 2015, 12:25:47 AM

Can someone explain why anyone would buy bitcoin on LBC for such a high price? Someone posted in a forum that right now on LBC that BTC is worth around $249 now. But you have ppl on LBC looking to buy at $300+ for a BTC. Thus if they buy btc from coinbase, it would cost them only $ 249 plus a 1 percent fee. Can someone explain why there are ppl that are buying at this price? Makes no sense. Because why don't someone just buy a bunch of btc now and pay 1 percent fee then sell it all to those buying $300+ per btc?

Not entirely sure, it might be because you have to get verified / provide personal information on exchanges like Coinbase (as far as I know) whereas LBC you can sign up with just an email address. People charge even more for btc on Ebay.

cloud36649

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Quote from: crodbtc on March 30, 2015, 05:55:06 PM

and there are so many scammers on LBC it's tremendous! go look at the forums and you can see for yourself..

It looks like BitQuick makes sure that there's no way you can get scammed. They walk the buyer and seller through the process so you don't need to go by trust ratings.

viking02

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Can someone explain why anyone would buy bitcoin on LBC for such a high price? Someone posted in a forum that right now on LBC that BTC is worth around $249 now. But you have ppl on LBC looking to buy at $300+ for a BTC. Thus if they buy btc from coinbase, it would cost them only $ 249 plus a 1 percent fee. Can someone explain why there are ppl that are buying at this price? Makes no sense. Because why don't someone just buy a bunch of btc now and pay 1 percent fee then sell it all to those buying $300+ per btc?

crodbtc

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yep if you're new and asking on here your too late and a bunch of people are already doing it..

for one you can't buy cheap coins on coinbase and try to sell it on LBC you will be blocked from your account so good luck on that..

and there are so many scammers on LBC it's tremendous! go look at the forums and you can see for yourself..

notlist3d

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Quote from: shogdite on March 30, 2015, 10:54:12 AM

Unless your buying and selling a lot of btc it doesn't seem worth the hassle, making just a few dollars on each bitcoin isn't going to amount to much. Also bare in mind that your bank account might get flagged if you start receiving large amounts of $$$$ from lots of different people. I'd argue you could make more profit by purchasing btc from btc-e (normally the cheapest price but hassle to deposit funds) and arbing to other exchanges.

In most cases it is not worth the trouble. That is why the ones who do it have such high fees. And not only will it create lots of transactions in your bank account. Coinbase will shut you down if they find out that your selling coins on localbitcoins from them.

And the most scary part... if you would happen to get a audit on your accounts. I cant imagine trying to explain it unless you did a good job with book keeping to show the exact profit made and amount that was not profit.

loan4

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Surely. Unless you always have many many many BTC in your pocket.

shogdite

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Unless your buying and selling a lot of btc it doesn't seem worth the hassle, making just a few dollars on each bitcoin isn't going to amount to much. Also bare in mind that your bank account might get flagged if you start receiving large amounts of $$$$ from lots of different people. I'd argue you could make more profit by purchasing btc from btc-e (normally the cheapest price but hassle to deposit funds) and arbing to other exchanges.

memai

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You can earn profit from LocalBitcoins if you have many Bitcoin to invest in trading. Buy BTC from the exchange and sell it at LocalBitcoins for higher prices

cloud36649

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Quote from: HI-TEC99 on March 25, 2015, 08:03:03 AM

Quote from: cloud36649 on March 23, 2015, 10:44:33 AM

Quote from: Kprawn on March 23, 2015, 09:48:09 AM

I am also worried about the fake trust issues.... those people selling at those prices.. would be suspect to say the least...

If that was possible, every Tom..Dick 'n Harry would be doing it. Make sure you using people there with VERY high trust ratings and begin with small amounts, to reduce your losses if they decide to turn bad and run.

It's a mine field out there.... Sad

I recently heard of this new site called BitQuick, it looks like they're basically solving this problem. They seem to be a streamlined LocalBitcoins, without the possibility of being scammed.

It's an escrow service, so the business takes care of sending the BTC to the buyer and ensuring that there's no fraud. There's no trust ratings. What do you guys think?

If it becomes an established way of doing business I might consider using it, but if t's brand new I would not trust it.

I think they've been around more than a year or so, close to 8,600 transactions according to their front page.

chmod755

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Cash trades are usually good - just make sure to check for security features on the bills you receive.

You should read learn about the risks of payment options, before you start doing anything else. Trading with Phone/Email/ID verified accounts improves your operational security, but you still have to be careful.

mrhelpful

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Wait so whats your profit margins?

$5 per transaction? I know they take a huge cut due to "fees" then what do you make?

Unless its a huge margin, then I say its not worth it in my view. Only since, because one sour transaction can cause a huge potential loss. This is similar to check cashing business, if a check goes bad of the increment eg: $200 how do you recover that loss? or gain that back.

If you know how to fight the reversal deposit for that 1 day, what youre assuming is everyone wont do this to you. Which is pretty naive, just one bad transaction can be 1 weeks worth of transaction, unless you do a huge volume.

HI-TEC99

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Quote from: cloud36649 on March 23, 2015, 10:44:33 AM

Quote from: Kprawn on March 23, 2015, 09:48:09 AM

I am also worried about the fake trust issues.... those people selling at those prices.. would be suspect to say the least...

If that was possible, every Tom..Dick 'n Harry would be doing it. Make sure you using people there with VERY high trust ratings and begin with small amounts, to reduce your losses if they decide to turn bad and run.

It's a mine field out there.... Sad

I recently heard of this new site called BitQuick, it looks like they're basically solving this problem. They seem to be a streamlined LocalBitcoins, without the possibility of being scammed.

It's an escrow service, so the business takes care of sending the BTC to the buyer and ensuring that there's no fraud. There's no trust ratings. What do you guys think?

If it becomes an established way of doing business I might consider using it, but if it's brand new I would not trust it.

cloud36649

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Quote from: Kprawn on March 23, 2015, 09:48:09 AM

I am also worried about the fake trust issues.... those people selling at those prices.. would be suspect to say the least...

If that was possible, every Tom..Dick 'n Harry would be doing it. Make sure you using people there with VERY high trust ratings and begin with small amounts, to reduce your losses if they decide to turn bad and run.

It's a mine field out there.... Sad

I recently heard of this new site called BitQuick, it looks like they're basically solving this problem. They seem to be a streamlined LocalBitcoins, without the possibility of being scammed.

It's an escrow service, so the business takes care of sending the BTC to the buyer and ensuring that there's no fraud. There's no trust ratings. What do you guys think?

Kprawn

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I am also worried about the fake trust issues.... those people selling at those prices.. would be suspect to say the least...

If that was possible, every Tom..Dick 'n Harry would be doing it. Make sure you using people there with VERY high trust ratings and begin with small amounts, to reduce your losses if they decide to turn bad and run.

It's a mine field out there.... Sad

notlist3d

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Quote from: pooya87 on March 23, 2015, 02:25:02 AM

there was a topic some time ago on bitcointalk on localbitcoin trust issues, that i cant find it now; but it pointed out that a lot of the users there are scamming the trust feature by giving fake trust to each other or maybe with alt accounts.

That would not be too surprising since people on there look at feedback as one of the biggest deciding factors on who they pick. There are a lot of possible flaws with their system.

pooya87

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there was a topic some time ago on bitcointalk on localbitcoin trust issues, that i cant find it now; but it pointed out that a lot of the users there are scamming the trust feature by giving fake trust to each other or maybe with alt accounts.

bitbaby

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You're right but the competition is already there and if you're starting new, usually buyers would not buy from you, they'd prefer to go with someone who is more experienced and is better rated. But one has to start somewhere, just make sure you do your own research on what payment methods are safe and accept only those to sell bitcoins. LBC has an escrow service so if you get into any trouble with a buyer you can open a dispute but remember to have a lot of proofs.

Topic: Selling bitcoins on localbitcoins for prfoti? (Read 2843 times)