How to make some quick money with Bitcoin for fun

As I mentioned in my previous blog post, when I try to fully understand a new technology, I like to explore multiple aspects of it. Sometime I’m lucky and I end up making some money while learning (if only college was like that…). In this post I will show you how to easily make some extra money or increase your Bitcoin stash by spending only a few minutes a day and with a few mouse clicks. I promise to spill some of my numbers before the end of this post 😉

One thing that always fascinates me is finding arbitrage opportunity and with Bitcoin there are a few points that are fairly easy to exploit one. The most visible one is the price difference between different Bitcoin exchanges; for instance as I’m writing this blog post, Bitcoin is exchanged on Mt. Gox against the Dollar for $110 more than on BTC-e.

Another arbitrage opportunity, which I experimented in the past few days and that I’ll explain in this post, is taking advantage of the Bitcoin price on Coinbase and what you can sell those bitcoins for on LocalBitcoins. Coinbase is probably the easiest site to purchase bitcoins and LocalBitcoins is a platform that allows users to sell and buy bitcoins between each other with cash or other payment systems. Basically we’ll try running a currency exchange service.