How to exchange Bitcoins for money?
LocalBitcoins offer two main types of advertisements, online and local advertisements. Through local advertisements you meet up physically with your trading partner and conduct the trade face to face. This guide covers the basics on how to set up local advertisements and how to trade locally.
Why should I sell Bitcoins locally?
For extra side income, there are many people earning money by trading bitcoins. Trading locally make it easy for people to buy bitcoins, or sell them, when they need.
Is there a market/demand?
It depends on where you live, in larger cities you will find more people interested in buying Bitcoins than out in the country side. Because Bitcoin transactions are irreversible but most traditional forms of online payment are reversible, selling Bitcoins locally directly for cash makes it much safer to accept payment as cash is just as irreversible as Bitcoins.
Some people appreciate the privacy that cash trades offer. Buying a small amount of bitcoins with cash is also a great way get started with bitcoins without too much hassle.
With LocalBitcoins, it is really easy to create profitable and competitive pricing strategy. When creating an advertisement you are able to set a dynamic price that automatically updates itself against a reference market. You can see our Pricing Equation guide for more information on how the dynamic equation works.
What if I run out of bitcoins/what if I buy too many bitcoins?
If you run out of Bitcoins you can purchase more quickly from a traditional Bitcoin exchange, though that usually takes a few days as you will need to purchase using a bank transfer. You can also find other trades through other OTC marketplaces such as Mycellium localtrader.
Make sure you are easily reachable! In your advertisement, specify your favourite place and time to meet. You can include your cell phone number in the advertisement.
All traditional risks that govern money exchanging also relate to bitcoin trading. Please consider the risks carefully, and use the feedback system and other measures to ensure your safety.
There have been cases, where counterfeit money is passed to the Bitcoin seller. Please consider using a counterfeit detector when you do the trades.
OK, so what are the first steps?
- Send links to your friends, advertise in social media and locally, wait for the orders to kick in.