Flipping Bitcoin on LocalBitcoins for Consistent Profit

some dude flipping burgers on the bbq
some dude flipping burgers on the bbq

Welcome, to the fully uncovered, no bullshit guide to flipping Bitcoin on LocalBitcoins.

This is not a buy and hold strategy; you will be taking advantage of a clear, arbitrage opportunity.

It’s a really simple process, but make sure you read on so you don’t miss some important parts.

  1. Buy Bitcoin under market rate,
  2. Sell Bitcoin over market rate,
  3. Make profit,
  4. Do it all on the same site.

And trust me, it’s not everyday someone shills out this sort of information. Lets get into it…

Understand the requirements

You need a few things before you can start. They’re pretty reasonable, and simple to come buy.

  1. You need a LocalBitcoins account; this is where you will buy and sell your bitcoin.
  2. You need a little starting capital; checkout with the trading minimum is on LocalBitcoins is changes
  3. You need a bank account; so you can receive and send money, duh..
  4. ID to verify who you are. No verification, no sales, no bitcoin, no profits.

This tutorial also assumes you have some basic knowledge about what Bitcoin is. If you don’t know what it is, don’t worry, you don’t need to know.

This method is easy enough to implement without diving into the wonders of Satoshi Nakamoto and blockchain.

Can’t read? Need a video? I gotchu cuuuuh … click dat LocalBitcoins link doe …

This video will show you how to this stuff

Register an account

Goto LocalBitcoins, Register. It’s not hard, we register to things all the time; same workflow, input email, password .etc.

LocalBitcoins registration form
LocalBitcoins registration form

HOT TIP: Don’t pick an idiot name; pick a name that inspires trust, somewhat…

No one wants to buy bitcoin from “smoke_weed_666420”.

Choosing a good username for a LocalBitcoins account
Choosing a good username for a LocalBitcoins account

People will buy from users with nice names like “DrCoinBoss”, or “BitCoincidental”.

Verify your ID

Whether you’re buying or selling, on both ends, you need to confirm your identity. This process is for the safety of everyone involved in the trade.

Verification tiers on LocalBitcoins
image 44

If you don’t verify your ID then no-one will trade with you. And you shouldn’t trade with anyone that’s unverified either. Common sense, really.

Build some quick 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.

Find trades that allow super low trade limits!
image 45

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.

Opening a trade for $1 on LocalBitcoins
image 46

This process will get you accustomed to how the trades work, and build your confidence in the security of site.

Buy some Bitcoin under market rate

Once you’ve built a little feedback, it’s time to post a trade. Take a look at the prices that people are currently selling at, and tailor your buy price around the price others are buying at.

Find the lowest priced Sell option on LocalBitcoins; undercut this price in your trade
Find the lowest priced Sell option on LocalBitcoins; undercut this price in your trade

You can undercut by 0.01, and you’ll be right at the top of the board, soaking up all the traffic.

LocalBitcoins post a trade section.
Going to the post a trade section
image 49
Set a price equation that will allow you to buy under market rate.

Once the trades, up, wait for the traffic. It’ll be with you within minutes.

Sell your Bitcoin over market rate

Open another trade, start flipping Bitcoin over market rate
Open another trade, start flipping Bitcoin over market rate

Once you’ve done a few trades, stacked some Bitcoin, post another trade, over market rate.

Again, look at the price people are selling at, and undercut them. Make sure you’re selling over market-rate, for more than you paid.


  1. Hi! I’m a new seller on LocalBitcoins with only 0.4btc to my name, fuelled with inspiration from the Wall Street movies, but lacking in knowledge and understanding of basic trading. Hence, I was wondering if maybe you could help explain some stuff like I’m five?

    1. Aren’t my chances of getting sales pretty slim as buyers usually only buy from the top 6 listed at the front page?
    2. Similar to Shawn Donnelly’s question, why would buyers buy from me when they can buy cheaper from a more established seller?
    3. What if buyers want to buy more than I have in my wallet?
    4. If I announce a sale, there’s a chance nobody’s around to buy right? And that I could end up waiting days, even weeks for a single sale?
    5. Is this just a matter of buying at one price and selling at another, or does it involve price charts, technical analysis trade indicators, historical data and all that, and if so in what way?
    6. I reckon buying cheaper from another exchange is out of the question, due to all the fees, and since I don’t live in the US or China? Most if not all buyers in my country (Norway) use LocalBitcoins exclusively.

    That’s all — cheers and thanks a lot for this article!

  2. I already have bitcoins so I didn’t buy them at a specific price, I was paid in BTC. So when I go to make my first sale, since advertising with 0 trades is probably out of the question how would I find a buyer that will purchase a small amount (amount you listed) at higher than market price? Current BTC to USD is $776 right now, I believe. So I have to find a buyer offering to buy at $776+…so roughly like $800? Sorry for the noobness of my question, but I’m just a little confused. Thanks so much for the article and taking the time to reply to this, if you do.

    • This is a really good question and I’m pleased youve asked.

      The money in this method lies solely in posting trades.

      When you post a trade you can buy bitcoin at a lower bound and sell them at the upper bound of where the current Buy/Sell rates are.

      You’ll notice that it’s more expensive to buy in LocalBitcoins than it is to sell, when you don’t post a trade.

      When you post a trade, you’re the one that is making the profits.

      If you’ve got any more questions drop a comment.

      • You’ll notice that it’s more expensive to buy in LocalBitcoins than it is to sell, when you don’t post a trade.

        You mean we get some sorta discount from other sellers when we ourselves become sellers?

        • … when you don’t post a trade.

          When you post a trade, you can buy at the sell price, or under; on the flipside, when you post a trade you can also sell at the buy price, or over.

          The buy price is always higher than the sell price; there is a gap in the market spread. This is where you make your profit.

  3. Hello Josh, I’ve been looking for an article like yours for some time now.
    I do have a question.

    How is it possible to transfer bitcoin so fast when dealing with bank transfers.

    If someone sends me money to buy it takes almost 3 days to get the payment.
    So fast bitcoin release is out of the question, or do I have to ask my bank when a payment is been done or on the way?

    Feedback is appreciated!


    Mr. Nighthunter

  4. Your article got me into trying this method, with the exception that my banking is in the usa. So I’ve been buying through coinbase, selling on lbtc for paypal money, then sending their paypal payment back to my bank. I only work with verified and trusted traders but im still paranoid about having a paypal chargeback, especially since most of my trades were filed under goods and services.
    I’m also trying to figure out whether what I’m doing is operating an exchange, and therefore illegal. I’m aware in my home state one needs to pay a fee and register to become a money transmitter. However Im not sure what kind of profit I’d need to see before worrying about that.
    Any feedback or suggestion is appreciated.

    • I’m pleased that my article got you to try the method out!

      What I’d advise is you buy larger amounts via Bank transfer on LBTC then sell in smaller amounts with bank transfer again.

      It’s best you get to grips with it before diving in to paypal too as you need to be able to prevent charge-backs, which comes with experience!

      If your state has laws on this then you may have to go through a legal route, but unfortunately I can’t advise you on this.

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  7. Hi Josh, just reading the article and seems to be very good this kinda of stuff, i was justing thinking about the end part, after you send the invoice to the buyer and receive the money in paypal, after that i have to transfer the money to bank account or should i buy more bitcoins directly with paypal?

  8. I’m really glad that you’ve asked this question. There’s one simple answer to this. The prices always fluctuate. Sometimes you’ll have more competition, sometimes less. The 50% is a figurative example as I explain in the article. But you might find your self flipping for anywhere between 5% to 50%. In some cases you might flip for more! What you must understand is that despite whether or not you do a flip for 5% or 50%, it’s still profit that you made in a second. Profit you can reflip, and reflip, and reflip. The concept is what I’d called “Accelerated Compounding”. You accrue a percentage every time.

  9. Hi Josh 🙂
    Great article. Must say I’m pretty curious about this. Never heard of flipping bitcoins like this before, and for a 50% profit it sounds lucrative.
    How do you know you are gonna get a 50% profit each time? I can see people are selling and buying bitcoins at different rates all the time, so how do I make sure I get the right profit? Do you have a minimum/maximum rate you buy/sell for?
    Thanks again!