Become a Bitcoin Dealer
Dealing bitcoin is simple
Tank can inspire you if you aren't already inspired.
There are four basic operations that I do when certain conditions pressure me into them:
1. I raise the price of my bitcoins. I do this when I'm getting too many trades. Getting too many trades might mean that I don't have enough time to serve everyone very well. It could also mean that I don't have enough bitcoin.
2. I lower the price of my bitcoins. Either I'm not getting enough trades, or I just bought a lot of bitcoin and the price is so high that I am afraid they will drop in price.
3. I offer more cash to other sellers. When I'm low on bitcoins or I feel the price is depressed, this is how I deal with it. I like to pick up more when the price seems low to me. And obviously, as a bitcoin dealer, I have to maintain a healthy supply so that I don't lose good customers.
4. I offer less cash to other sellers. I think by now you can guess why I might do this, so I'll leave that as an exercise.
I always assume my trading partner is trying to scam me, but I am very nice, even to scammers. I give them the benefit of doubt right up until they want me to trust them.
There are people who think that they will be happier screwing people over, and they devise ingenious ways to do that. The safest thing you can do to protect yourself from this is to ask your trading partner (who might be a scammer) to help you find a way to hunt him (or her) down. Would you give a new contact a way to hunt you down? I'm a bitcoin dealer, and if you can't find me, I can't trade with you, so of course I would. I even encourage people to become bitcoin dealers to compete with me. A scammer will not want you to be able to hunt him down, and this desire will leak out no matter how hard the scammer tries to hide it.
A common way to do this is by getting your trading partner's real name, and some proof of that. A picture of a person and a picture of a government-issued ID are both pictures, but they say nothing about the person that sent them to you. However, if you request a picture containing information not available until recently (I like to use the "trade reference number" from LocalBitcoins), then your trading partner will have to take a new photo, and if you request that this new photo include their face, you're on your way to scaring the scammers away.
This newsletter is getting too long now, so I'll say good night and ask that you leave comments on Facebook or reply to this newsletter to let me know what else you'd like me to write about. And thanks to "Sam Friend" for inspiring me to write this intro!