Trading Bitcoins at LocalBitcoins.com
2017-09-23 00:00:00:
The difference between the cryptocurrency market and the stock markets is that the level of volatility on it is significantly higher than what stocks, futures and fiat currencies have. Significant investment is required to make substantial gains in the stock markets. Then, as for Bitcoin trading, this is not necessary.
Specialists distinguish the following types of work related to cryptocurrency trading:
Trading that is considered classic. He repeats the strategies used in the foreign exchange and stock markets.
Arbitration between different cryptocurrency exchanges.
An investment made at the initial stage of the development of a cryptocurrency project or fork.
Carrying out work with derivatives (derivatives) of Bitcoin.
Use for work of PAMM accounts.
Today, the use of arbitrage between exchanges has practically lost its relevance. Despite the fact that many trading systems continue to work automatically in this direction.
Getting involved in forks on the starting line is a business with a fairly high level of risk. There are equal chances and much to gain, and no less to lose. In addition, only if insider information is available can a successful transaction be guaranteed. But this information is not always legal in nature and is most often very doubtful.
The principle of operation of cryptocurrency exchanges does not differ from what underlies the usual stock and currency counterparts. For an experienced trader, a short period of time is enough to understand the essence of the features of a particular resource and start working in new conditions. But for a beginner - it is like a lottery.
LocalBitcoins.com - Bitcoin Trading Site
People from different countries, LocalBitcoins.com is used to exchange local currency for cryptocurrencies. Bitcoin trading is very simple. It is enough for the user of the site to place the corresponding announcement. It contains information about the exchange rate of interest to him and the ways in which payment for the sale or purchase of Bitcoins can be made. An interested person responds to this announcement. At the same time, a payment method and a meeting place are agreed, if such a need exists.
How is LocalBitcoins.com different from other exchanges?
This exchange carries out transactions with people who are commonly called over-the-counter trading. Due to this, the exchange process occurs very quickly and on mutually beneficial conditions. This is explained by the lack of an intermediary organization on LocalBitcoins.com. Getting Bitcoins happens instantly. To create convenience for users, the exchange supports any payment method. All this explains why already more than one million people living in 249 countries of the world are registered users of LocalBitcoins.
A large number of users prefer to purchase and sell Bitcoins using the over-the-counter method. Since at the same time, transactions are faster, and there is the possibility of using a variety of payment methods. The operation of centralized exchanges that carry out Bitcoin trading is low in speed and cumbersome.
Hundreds of Bitcoin traders around the world provide their material wealth by trading crypto coins on LocalBitcoins. At the same time, they use more than 60 payment methods.
About the benefits of trading on LocalBitcoins.com
Among the advantages that take place when bidding on LocalBitcoins.com, we can confidently include the following:
An increase in trading volumes on the largest Bitcoin exchange for individuals over the past 12 months. They grew 2 times.
Through the exchange, users are provided with access to a global trading platform, which unites more than one million customers from all over the world.
The method of trading on the exchange is simple and fast.
The escrow system ensures the security of transactions. At the same time, both the seller and the buyer are protected.
When searching and selecting trusted customers, a reputation system is used.
The relevance of the requested prices is ensured by the dynamic pricing system com, which has hundreds of sources.
Using the API, each client has the opportunity to create their own trading applications to automate trading.
How is trading at LocalBitcoins.com
For example, you can take an online transaction in which Bitcoins are sold to a client. The choice of this particular type of operations is due to the fact that they are the most common.
First you need to start creating an online announcement about the implementation of Bitcoins. In the process of creating an ad, a payment method is selected, a price is set, and the conditions and conditions of the transaction are negotiated. LocalBitcoins free ad form
Next, you should make sure that you have the required number of Bitcoins on the LocalBitcoins wallet. And in case of shortage, replenish it. Only if the necessary amount is available in the wallet, customers will have the opportunity tothe ability to send a request for a posted ad.
At the beginning of the transaction by the buyer, the agreed amount is transferred from the seller’s wallet to the deposited account. In this case, the buyer is notified of the payment, after which he pays for the transaction. LocalBitcoins notifies the seller that an eager to complete the transaction has appeared using e-mail or SMS.
After the buyer has paid for the transaction and the “Mark payment as completed” button is clicked, the seller is notified of the payment for the transaction. An e-mail or SMS is also used for this.
After confirming the receipt of payment, the seller sends Bitcoins. As a result of this action, the coins are transferred from the deposited account to the buyers wallet.
At the final stage, a customer review is compiled, which should encourage him to send a response. The user’s reputation on com is directly dependent on the number of reviews, and this, in turn, helps to make more transactions.
How to get started at LocalBitcoins.com
Before you start trading, you should decide which payment method is best for your job. And for this, you need to study each of them to understand how the system as a whole works. Experts do not recommend stopping the choice on particularly risky methods if the user first starts trading. For starters, a good stop at the transfer from a specific bank. This is especially true for countries where the number of traders is small.
For a new account holder who does not have a transaction history, it is recommended that you start by responding to several existing ads hosted on LocalBitcoins. It is advisable to make several sales and purchases. This will help to understand the essence of trading. In addition, a trading history will appear that will make users imbued with trust in the account.
How ads are created on LocalBitcoins.com
Ads are created on a special page. You can get to it if you click on such a menu item as "Publish a deal." The announcement should contain several parameters that are mandatory for conducting Bitcoin trading online. These include:
The location. This should indicate the country in which the ad should be placed.
Payment method. In the drop-down menu, select the payment method that is preferred.
Currency. Here it is necessary to choose a currency using the available list for this.
Profit or pricing equation. The easiest way to set prices is to introduce a percentage of the profit that must be received on top of the value of Bitcoin in the market. To exercise control over the set cost, it is possible to use the field of the pricing equation. Thanks to this, it will be possible to create an improved pricing algorithm.
Minimum / maximum transaction limit. The minimum transaction limit is the smallest amount that can be purchased. Accordingly, the maximum limit stipulates the largest amount that can be accepted.
Terms of a transaction. This is where the text is visible to the buyer before the transaction begins. It is desirable to have instructions explaining to the buyer how the transaction should be conducted. In addition, this section displays special conditions, if any.
There are also a number of additional parameters, the installation of which is desirable, although not required. Their list is as follows:
Limit amounts to.
Opening hours.
Payment details.
Minimum volume.
The minimum rating reviews.
Restriction for new buyers.
Transaction rate.
Show link.
Type of link.
Payment window.
Monitor liquidity.
Only for authenticated users.
A real name is required.
SMS required.
Only verified users.
Thanks to additional parameters, the ad is configured for a specific trading strategy, according to which Bitcoin will be traded online. It is not difficult to understand, LocalBitcoins.com, deservedly occupies a leading position in the online Bitcoin trading market.