Final notes

This type of exchanges won’t make you rich, but they could easily generate a few hundred dollars every week. Using this process I was able to grow my (small) Bitcoin stash of about 10% daily. While I haven’t of course accepted all the requests, I received enough trade requests to exchange even $10,000/day, so there’s definitely a huge demand.

Try to keep your margin smaller at the beginning (but keep in mind that 2% of the transaction will go towards transaction fees) to create a positive history and start accumulate positive ratings. People will be willing to pay a higher premium if they know they can trust the seller.

One thing one needs to pay attention to is the price trend of Bitcoin, since during a meteoritic rise of the price, even few minutes delay in buying back the coins could mean losing all the margin (or more). It’s actually easier to make money on down trends since often a few minutes delay will increase the spread between your LocalBitcoins exchange and Coinbase exchange.

You can try other payment methods other than cash deposit but beware that Paypal, Chase Quickpay, Venmo and other services allow chargebacks and are often use to scam Bitcoin sellers. LocalBitcoins does a great job in explaining all the different methods and their risk level.

If you are in South Florida and you are interested in Bitcoin and crypto currency, don’t miss the upcoming Refresh Miami on the future of money on Jan 30th.

Disclaimer

If you plan to this consistently and with a volume superior to $1000/day, make sure to register as a money business service and follow all the given regulations.