A How-to Guide On Becoming A LocalBitcoins Broker

Jump to page contents

A How-to Guide On Becoming A LocalBitcoins Broker

The cryptocurrency industry is often compared to a gold rush in the Old West due to its mystery and ability to make people rich. In the gold rush, the ones that made the real money were oftentimes not the ones searching for gold, but the businesses supplying them with tools and equipment.

Fast forward a couple of hundred years and whilst many people believe cryptocurrency profits come from mining or trading, they often overlook brokerage.

What is a Bitcoin Broker?

In simple terms, a broker is a middle person between a buyer and a seller. A crypto broker fits this description perfectly, as he or she buys currency from one individual and sells it, at a profit, to another individual.

Having the role of a broker in a blockchain-based environment might sound counter-intuitive, after all, the entire scope of the technology is to remove these middle persons. However, brokers can provide trust and stability in an increasingly suspicious web community.

A Broker on LocalBitcoins

LocalBitcoins is a peer-to-peer cryptocurrency exchange platform that presents a great opportunity to anyone venturing into the brokerage career. It offers a variety of tools and features which can aid you to set up and run your business with very little start-up costs. There are plenty of advantages to becoming a crypto broker on LocalBitcoins, including:

  • No setup or registration fees
  • Thousands of potential clients on the platform, both buyers and sellers
  • Low transaction fees
  • Free escrow service
  • User review and ratings
  • Simple design and navigation

Becoming a LocalBitcoins Broker

These are the steps to follow if you wish to start a business as a Bitcoin broker on LocalBitcoins:

  1. Research legal requirements – depending on your country of residence you may require a special license to work as a broker. Whilst you may get away with not calling yourself a broker for the first couple of sales, be aware that tax authorities are becoming very attentive to individuals making money from the cryptocurrency industry.
  2. Open an account with LocalBitcoins – this is probably the easiest step to follow. Opening an account is very easy and quick. Be sure to complete your profile and be fully verified, as otherwise you risk alienating potential partners.
  3. Search around the platform – the biggest mistake you could do as an enthusiastic new broker is to start buying Bitcoin without any research. Get acquainted with the platform and understand the different search and filter options, as well as the different payment methods and support measures, such as escrow and conflict resolution.
  4. Fill a demand – as a broker, you are a problem solver. Have a look at both buyers and sellers and seek opportunities where you can make a difference. For example, perhaps a seller would not sell to an individual whose profile is not completed, so you could act as the missing link. In another case, maybe a potential buyer cannot use the payment methods outlined by a seller, so you can buy the coins and then accept the payment method suggested by the buyer.
  5. Keep a positive reputation – if your reputation on LocalBitcoins is negative you will not have much success as a broker. Keep a positive reputation by treating your partners well. Often, reducing your profit is more worth it than reducing your ratings.

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar Guides

Latest Guides


Best Crypto Credit Cards List

What Are Crypto Credit Cards? Cryptocurrency has taken the world by storm and it has revolutionalized the financial sector and further laid an argument for cryptocurrency as the future global currency. There are now several things you can do with cryptocurrencies. You can trade, invest and exchange for goods and services. Another innovation that cryptocurrency […]

24 September, 2021

All you need to know about Litecoin ATMs

Litecoin has the reputation for being the second cryptocurrency that was created after Bitcoin, so it makes sense that Litecoin ATMs are on the rise. It can be used as a medium for payment anywhere around the world without any interference from a third party. Litecoin has $11 billion and a maximum supply of 84 […]

1 September, 2021

Comprehensive Guide For eToro UK Users

eToro is a fintech start-up and is considered among the first pioneers of social trading. It was founded in 2007 in Tel Aviv, Israel. It is headquartered in Greater London, United Kingdom, with offices in Limassol, Cyprus, Sydney, and New Jersey in the US. The fact that it’s headquartered in London makes it appealing to […]

26 August, 2021
Crypto Mining,Cryptocurrency

Make your Own Cryptocurrency

Cryptocurrency is a decentralized digital currency that is not issued by a central financial authority. Cryptocurrencies are also used as a form of exchange for products, services, and also fiat currencies. The majority of these cryptocurrencies are created by tech and financial companies to serve specific purposes. For example, the Ethereum technology is used for […]

19 August, 2021

Crypto Coin Vs Token — Which One To Choose In 2021?

There are so many things to learn about cryptocurrency, the learning never stops. When it comes to Crypto coin Vs Token, there are a few things you need to know to be able to differentiate between these two digital assets. Some of the things you need to know about these crypto-assets include their definitions, functionalities, […]

11 August, 2021

Is Reddcoin a good investment in 2021?

Reddcoin is a decentralized cryptocurrency that serves as a digital peer-to-peer medium of exchange with no central authority issuing or regulating it. It was launched in 2014, a year most consider as the peak of cryptocurrency creation and blockchain technology. There is a total supply of 28 billion with a circulating supply of the same […]

3 August, 2021

Is Litecoin a good investment right now?

Litecoin is popularly known as the second cryptocurrency to be created, as it came to life in 2011 by a former Google employee, Charlie Lee. It is an open-source software that aids peer-to-peer cryptocurrency transactions. It is quite similar to Bitcoin and most times referred to as an altcoin or spinoff of Bitcoin. We cover […]

21 July, 2021

5 Top Altcoins That Will Explode in 2021

Cryptocurrency is a concept known to virtually every human on the face of the earth. From the launch of the first cryptocurrency, Bitcoin, it has gradually become an acceptable financial concept that has the potential to take over from the traditional fiat currency. Apart from Bitcoin, which is widely known as the most popular and […]

14 July, 2021