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Flip Bitcoin LocalBitcoins: Incredibly Simple, Consistent Profits

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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.

  1. Find a site to flip on
  2. Advertise that you’re looking to buy bitcoin
  3. Buy Bitcoin under market rate
  4. Advertise your Bitcoin for sale (this is free)
  5. 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.

Requirements

You need a few things before you can start. The requirements are reasonable and simple to fulfill.

  1. A LocalBitcoins account
  2. Starting capital
  3. A bank account
  4. 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.

LocalBitcoins registration form
Registering an account with LocalBitcoins

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.

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

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.

Go to the Settings page on LocalBitcoins, then click on the Verification tab. No matter whether you’re looking to buy or sell, you’ll have to verify your identity.

Verification tiers on LocalBitcoins
  • 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.

Find trades that allow super low trade limits!

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

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.

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

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.

LocalBitcoins post a trade section.
Going to the post a trade section

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.

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.


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.

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

Wait for a customer

LocalBitcoins gets 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.


FAQs

I've been interested in everything technology, money, and business-based, since a child. I hope to grow these passions into something spectacular.

26 Comments

  1. La Nave Del Caos Reply

    This is a good and updated article on how to use LocalBitcoins. I’ve found it very useful! Thanks for the post & keep the good work.

  2. It is a nice method. But localbitcoins require you to maintain 0.2 btc always in their wallet to post trades? So we have to reserve 0.2 btc always is it?

    • Yes, that’s correct. Though this varies dependant on price. If this is too high, other networks may have better (or no) minimum deposit.

  3. Heimir Hallgrímsson Reply

    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!

  4. Shawn Donnelly Reply

    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.

      • Heimir Hallgrímsson Reply

        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.

  5. Mr nighthunter Reply

    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.

    Example.
    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!

    Regards

    Mr. Nighthunter

  6. WinYour Bitcoin Reply

    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.

  7. Muhammad Fahad Saleem Reply

    Visited truemiller.com for the first time and really inspired from the knowledge it has.
    I would like to know if the website owner write this content or manage someway to do this. Thanks in advance.

  8. HEY JOSH. YOU ARE AN INSPIRATION. I JUST VERIFIED MY LOCALBITCOINS.COM ACCOUNT AND AM LOOKING INTO TRADING BITCOIN ON A DAILY BASIS. I LIVE IN CANADA, IS IT STILL BEST TO TAKE THE BANK TRANSFER ROUTE RATHER THAN PAYPAL? AND ALSO, I’M STARTING OFF WITH 0.4 BTC AS YOU SAID. HOW DO I GET IN FOR THIS PRICE? IT SEEMS MOST PEOPLE ARE SELLING AT MARKET PRICE.

    • I would push to buy in bulk with bank transfer then sell in increments with bank transfer too.

      Go into paypal once you get a grip on this!

      And they’re not, you can buy large at market, and sell small at handsome margin over, easily.

  9. 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?

    • Hi Danny,

      The profit from this method comes from you buying with bank transfer, and then selling via Paypal. So to answer your question, yes, you should transfer the money back to your bank account and then buy more.

  10. 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.

  11. 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!
    Anders

If you don't ask questions, how can you expect to learn?

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