STEP 4 – Start exchanging

Assuming that you’ve already been fully verified by Coinbase, now you can just wait for people to contact you on LocalBitcoins. The way LocalBitcoins work is by escrowing the amount of BTC requested by your buyers from your LocalBitcoins wallet. Once you see the deposit appear on your bank account you can release the escrowed bitcoins by clicking the release button. What I usually did was to immediately contact the buyer, to make sure it was serious about making the purchase and then buy the equivalent amount of dollars requested in bitcoins from Coinbase. If instead of growing your stash of bitcoins you prefer earning some old fashion dollars, simply buy the same amount of bitcoins escrowed and keep the difference.

Since now you can buy up to 1BTC instantly, even if you only originally owned 0.1BTC, you could trade that 0.1BTC over and over again without actually speeding a dime more. To give you an example, if you originally bought 0.1BTC and you trade your entire wallet 10 times at with a 5% premium, you’ll be doubling your initial investment in 2.5 days.