Currently, I’m looking for a way to take advantage of Arbitrage opportunities. Over time, I’ve established high limits on coinbase and I’d like to take advantage of this. My plan is to keep a surplus of cash on hand, as well as coins. I want to sell coins at a premium on localbitcoin, and buy more on coinbase. Essentially, if I sell 1 BTC on localbitcoin for 110% face value, I’ll replace it right away on coinbase at the current rate earning a 10% margin. Since I’m going long and holding these coins anyway, it won’t make much of a difference if the price dips here and there since I plan to hold XX amount of coins anyway.
The problem I am facing is: I heard that coinbase will suspend your account, even freezing your coins at times, if they find out that you are transferring them to localbitcoin. I don’t think that transferring the coins through several different wallets will add enough deniability and I don’t want to run into any trouble with coinbase. I’ve thought about using a coin tumbler, like Helix, but the 2.5% fee really dips into the potential earnings. I was wondering if there was another way to “tumble” coins for free? I’ve heard that if you trade BTC for an alt coin, and then back, this essentially “tumbles” them by getting the coins on/off the blockchain ledger, Is this true? Can anyone recommend a good website/service that trades BTC for altcoins rapidly and securely in a user friendly manner?
I know that there are risks to using localbitcoin (scams, frauds, etc) so I’ll probably stick to local cash transactions in safe places. I also don’t intend on moving tens of thousands of dollars around to raise any red flags. I’m really just looking to trade, help others, and earn some extra coin! BTC
