There’s an arbitrage opportunity on LocalBitcoins, the world’s most popular Bitcoin trading platform. It allows you to flip Bitcoin for profit by buying and selling over and over.
You may have watched my YouTube videos on how to flip Bitcoin. But if you haven’t, this guide will explain everything in depth. Because this method is atop my list of ways to make money with Bitcoin for a good reason.
This method is easily exploited. And, i’ll take you through the whole process step by step. In the only thing I ask in return, is that you sign up with my link, so I earn some referral commissions. Deal?
Now that you’ve done that, let’s quickly dive into the basics of flipping Bitcoin. Refresh if you’re already competent. It’s always good to make sure you’re on the ball!
Bitcoin flipping explained
Bitcoin flipping is a process of buying and selling Bitcoin with other people. This is done to make a profit. You buy cheaper and sell more expensive.
- Find a site to flip on
- Advertise that you’re looking to buy bitcoin
- Buy Bitcoin under market rate
- Advertise your Bitcoin for sale (this is free)
- Sell your Bitcoin over market rate
And trust me, it’s not everyday someone shills out this sort of information.
The process is very simple, and only requires you to take the step and give it a go. The requirements to flip Bitcoin are minimal. And honestly, you only need an account with a marketplace and some form of payment to trade with.
You need a few things before you can start. The requirements are reasonable and simple to fulfill.
- A LocalBitcoins account
- Starting capital
- A bank account
- ID to verify who you are
You should have some really basic knowledge about what Bitcoin is. If you don’t know what it is, don’t worry. It’s internet money, its safe to transact in, and it’s easy to transfer. And, there’s plenty of videos on YouTube that explain what Bitcoin is.
This method is easy enough to implement without diving into the wonders of Satoshi Nakamoto and blockchain. But if you are interested, you should get up to speed on what it is. It’s highly likely to user in a new age of technologies; decentralized applications and more.
LocalBitcoins is a P2P exchange (a marketplace) for Bitcoin
Yes, its safe. Check out my LocalBitcoins review if you want more information on it’s safety features.
They’ve been around for years, and provide a simple system for users to trade Bitcoin with one another.
LocalBitcoins holds the Bitcoin until payment is made and marked as received. Acting as an intermediary between buyer and seller. Making trading bitcoin seamless.
1. Register an account
Before you can flip Bitcoin, you need an account on LocalBitcoins.
LocalBitcoins is a marketplace where people buy and sell Bitcoin, as I’ve already mentioned. This the site where you will be flipping your Bitcoin.
There are alternatives to LocalBitcoins, such as Paxful, but let’s stick with this one for the time being. Its the most popular marketplace, and has years behind it proving it is safe and the number one marketplace for bitcoin transactions.
And while yes, there are numerous places where you can buy cryptocurrencies, there is a reason why we’re doing everything solely on LocalBitcoins. Stay on track with it, it will all make sense.
Go to LocalBitcoins
Once you’re on their site, you’ll see a button that says “sign up” in the top right corner. The wording may change over time, but you know the drill ..
Click it then start filling in your details.
If you fail at this hurdle, I’ll be surprised. And you probably shouldn’t be flipping Bitcoin.
Choose a good username
Don’t pick an idiot name; pick a name that inspires trust. No-one wants to buy bitcoin from “smoke_weed_666420”.
You username will be with you for the length of your time on the site. So choose wisely. Do not hinder your chances of making money by flipping Bitcoin. Yes, you can make another account, but you will lose any earned feedback from your transactions if you go this route.
Try and gear your username towards a cryptocurrency styled feel. People will buy from users with nice names like “DrCoinBoss”, “BitCoincidental”. Think about it.
Crypto-based puns will make you look like your know a thing or two about Bitcoin. If you know about it, you must be trustworthy! Knowledge is power, and not only in the mind on the beholder.
Once you’ve registered your account, you’ll have to get verified. This a pretty simple task, but will require you to dig out your ID.
2. Get verified
This is an important step, so don’t skip it. If you don’t get verified you’re not going to be flipping much.
- If you don’t verify your ID, no-one will trade with you.
- You should not trade with anyone that’s unverified.
Common sense really.
3. Build feedback
Before you can profitably flip Bitcoin, you need to build feedback.
Easiest way to do this is do a number of small trades. Buy Bitcoin from multiple people. Get to at least 10 feedback. Otherwise, people will avoid you. Hit the Buy bitcoins tab.
There’s a number of people on the site, at different prices with different payment methods. You want to trade with National Bank transfer.
Open a trade offer with someone, and type in the minimum limit into the input box.
This process will get you accustomed to how the trades work, and build your confidence in the security of site.
4. Buy Bitcoin to flip
You can’t flip Bitcoin if you can’t buy it cheap.
Goto the Buy Bitcoins section
Take a look at the prices that people are currently selling at, and tailor your buy price around the price others are buying at.
Take not of these prices, as you’ll want to price yourself competitively when you post a trade.
Post a trade to Buy
Click on the Post a trade button, and start filling out the parameters of the trade that you want to undertake.
I’d advise trading via Bank Transfer as it is the safest method. Avoid Paypal.
Undercut the competition
You can undercut by 0.01, and you’ll be right at the top of the board, soaking up all the traffic.
Once the trades, up, wait for the traffic. It’ll be with you within minutes.
5. Sell Bitcoin over market rate
We want to flip Bitcoin for profit, so we need to sell what we just bought.
Post a trade to sell
Go the Post a Trade section, and fill out the parameters of your trade.
Set your margin
Add a positive margin onto the price of Bitcoin.
Wait for a customer
LocalBitcoins gets a load of traffic. Within a few minutes, someone will contact you looking to buy your Bitcoin. It is easy to flip Bitcoin, have faith and wait!
Complete your trade
Once a customer gets in touch with you, wait for them to pay you. Never release Bitcoin before you have received your money.
Is LocalBitcoins the best place to flip Bitcoin?
It’s definitely one of the best places to flip Bitcoin. Though there are other “peer-to-peer” Bitcoin exchanges like Paxful that are just as good. However, other marketplaces aren’t as popular. Where there are fewer customers, you make less money.
Is it legal to flip Bitcoin?
In some countries, you may require some sort of licence or business type to do this. Make sure you check your country or state’s laws on cryptocurrency businesses.
Can I buy Bitcoin from other places and flip them on LocalBitcoins?
I’ve heard it’s possible, however, you will likely incur more fees; transaction fees and network fees; these may hinder any potential benefits of purchasing offsite.