Friday, October 4, 2013

Buying Bitcoins the smart way - tracking liquidity

Today we launched a new minor feature on LocalBitcoins, which should make certain type of trading much easier. It is the "track liquidity" option, which is possible to enable for buy ads.

Example scenario: I want to invest 1000 USD each month from my paycheck to Bitcoins. What is the smart way to do this? I create an advertisement with max amount 1000 USD for the payment method of my choice, and offer speedy payouts. Each time an order comes in, my max sellable amount is automatically deducted, meaning that I can't buy more than I have.

Good buying equation for this kind of trading is for example min(min(bitstampUSD, USD_24h), mtgoxUSD). See more examples in the pricing guide.

4 comments:

  1. The Tracking Key $139.00 at Amazon is made entirely of plastic, save for the metal magnetic mount, which lets you position the unit anywhere inside or outside of a vehicle. vehicle tracking

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  2. Great website you have. Do you already accept Bitcoins? I would recommend to sign up at who-accepts-bitcoins.com. They will generate the traffic you need as their database is often searched by bitcoin spenders. It's free though!

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  3. If I use the track liquidity option, when does the max amount "reset"? Is this a monthly liquidity? Please explain that functionality a little more...

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    1. Never mind... I think I see now... The max amount just decreases when a new trade request comes through... nice!

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