@bitsclusive

www.bitsclusive.co
 Table of Contents
I. Introduction ............................................................................................ 3
A. Who We Are .................................................................................... 3
B. The Birth of Bitsclusive .................................................................... 5
II. Gaining the Bitcoin Perspective ............................................................... 6
A. What is Currency, Anyways? …. ....................................................... 6
B. What is Bitcoin?.............................................................................. 7
I. Virtual Gold ............................................................................ 7
II. The Infrastructure .................................................................. 8
III. Bitcoin Trading 101 ........................................................................... ……10
A. Getting Started…………………………………………………………………………….10
I. Bank Account ....................................................................... 11
II. LocalBitcoins Account........................................................... 12
B. Buying Your First Bitcoin................................................................ 14
I. How Do You Find a Good Deal? ............................................ 15
II. The Process of Buying .......................................................... 15
C. Selling Your First Bitcoin ................................................................ 19
D. Tips on Preventing Fraud and Being Scammed .............................. 23
E. Final Thoughts……………………………………………………………………………..24
F. Buying Bitcoin From Other Websites……………………………………………24
G. Accounting and Taxes .................................................................... 25
I. How to Calculate Profits....................................................... 25
II. How to Account for Taxation ............................................... 26
IV. UPDATES ON BITSCLUSIVE and Addendum ............................................ 26

@bitsclusive
www.bitsclusive.co
 Introduction

Who We Are

Stone Ross, 21 Pratik KC, 20

(Pennsylvania) (Connecticut)

Stone grew up in Kennett Square, Pennsylvania and attended Penn

State University after graduating high school. He had always aspired to
achieve success taking the path less traveled, through bringing change to the
world. Positive change. After freshman year of college, he dropped out.
Through his connections, Stone met some individuals who operated a Bitcoin
hedge fund. He became fascinated by the concept of Bitcoin and its
revolutionary nature and became a broker for their firm. Taking his
experience of Bitcoin and trading knowledge, Stone left the firm and sought
out to create his own business.
@bitsclusive
www.bitsclusive.co
 Pratik grew up in Mansfield, Connecticut and attended the University of
Connecticut, pursuing a degree in Management Information Systems. After
completing his freshman year, he dropped out to pursue and focus on
entrepreneurship full time. Pratik had always been interested in the IT field,
having started his own computer security services business when he was 15.
This experience furthered his knowledge on computers as well as basic
business management. After realizing how vital technology was in the
business world, his interests shifted from solely IT to Bitcoin, and its
integration in businesses.

Around March of 2014, Pratik found Stone through an Instagram post.

Being the avid tech enthusiast he is, Pratik reached out to Stone out of
interest in what he was doing. Little did they know, this would be the
beginning of a prosperous friendship and business partnership. After
connecting and realizing how similar their vision was, they began researching
how to trade Bitcoin on their own. They started with an algorithm that
averaged an ROI of 2.5% bi-weekly. Shortly after, they began looking into
other methods of trading and discovered exchanges such as LocalBitcoins
and Coinbase. After trial and error, they devised a system to buy and sell
consistently which resulted in daily ROIs of 4-9%. This turned out to be a very
lucrative endeavor and over the next 6 months, they traded daily utilizing
this method.

Aside from the financial success they achieved, the experience and
knowledge they gained helped them understand the ins and outs of trading
Bitcoin.

@bitsclusive
www.bitsclusive.co
 The Birth of Bitsclusive

Throughout Stone and Pratik’s experience with trading Bitcoin, many

people reached out to them, curious as to how they achieved their success.
Many people were and are still unaware of Bitcoin and they saw this as an
opportunity to turn their experiences into education. After a friend of theirs
brought up the idea that they should take the information they learned
through trading and package it into a PDF, they seized the opportunity.
After releasing the program to the public, it caught on like wildfire and
day by day, people around the world were being introduced to the concept
of Bitcoin trading. Stone and Pratik didn’t expect things to move this fast.
They decided they wanted to take it much further than just selling an
informational PDF and instead create an exclusive community of Bitcoin
enthusiasts around the world. Thus, Bitsclusive was born.

@bitsclusive
www.bitsclusive.co
 Gaining the Bitcoin Perspective

What is Currency, Anyways?

Click this video. It explains the history of money, our world’s current
monetary structure and how Bitcoin serves as a revolutionary replacement.

Currency is an odd manmade idea; as a society we deem and apply value to

an otherwise relatively valueless object used to purchase goods and services. The
inherent value of this currency is insignificant and inconsistent in valuation. By using
a resource that carries no real inherent value, modern currency is regulated at the
mercy of a governing body.

That is why for millennia, civilizations have used gold as an ultimate currency;
where the value of the actual currency is correlative to the value of the
representative object. Gold in one country will retain its tangible value in a different

@bitsclusive
www.bitsclusive.co
 country –currency on the other hand, does not. Virtual gold – Bitcoin – is changing
the way people view currency across the world.

What is Bitcoin?

Virtual Gold

Here is a simple video (click to watch) that explains what Bitcoin is.

“Bitcoin is a type of digital currency in which

encryption techniques are used to regulate the
generation of units of currency and verify the
transfer of funds, operating independently of a
central bank.”
@bitsclusive
www.bitsclusive.co
 In everyday terms, this means that a Bitcoin is akin to a piece of gold
that exists only on the internet as a commodity that can be used to pay for
goods or services and be traded like any other currency.

Bitcoins are stored on a digital wallet, either on a website, on your

computer, or on your phone. You can transfer Bitcoin to anyone with a
wallet, anywhere in the world for a miniscule fee.

The value of a Bitcoin is determined by the value we as a society deem

it to have, synonymous with the value of the US Dollar, for example,
EXCEPT:

No one person, government, or financial institution

controls or runs this technology.

So who created it?

This is an interesting plot twist; no one really knows for sure.

Back in 2009, an entity or group called “Satoshi Nakamoto” claimed to

have created this revolutionary technology, but when the world researched
more into this mysterious man, no traces of his existence were found. This
enigma lives on, casting many theories; from nerds in basements to upper-
echelon CIA operatives, hell-bent on creating a ‘one-world’ currency.

The Infrastructure

What makes the Bitcoin clock tick? A technology known as the

Blockchain. A public ledger on which every Bitcoin transaction is recorded
and contained, the Blockchain is the public archive of every Bitcoin
@bitsclusive
www.bitsclusive.co
 transaction since its inception. This allows for seamless recording of wallet
balances, verifying of ingoing and outgoing transactions, as well as
transparency to the highest degree. Every transaction contains the amount
of Bitcoin sent, as well as the address of the wallet the Bitcoin were being
sent to.

Bitcoin wallet IDs appear as a string of numbers mixed randomly with

uppercase and lowercase letters. When a Bitcoin, or any division of one
down to eight decimal points, is sent to another address, a transaction ID is
also issued. All three of these aspects that were generated are recorded in
the Blockchain for all to see.

Every transaction of Bitcoin between wallets goes through a verification

process, ensuring the correct amount goes to the correct location. This is
done by each wallet generating its own “private key” with which it uses to
sign every transaction, thus preventing the transaction from being altered
after it is sent. The network confirms it within ten minutes, through the
process of “mining,” which then makes transaction visible in the Blockchain.

Mining is the second main part of what makes up Bitcoin besides the
Blockchain, and is the act of computer software calculating and proving the
private key equations generated by the wallets. Only after the mining side of
the software confirms the payments, are they broadcast on the Blockchain.
These transactions are molded into algorithmically-calculated “blocks” for
the “miners” to mine.

Miners, which is software on a computer, in hardware, or in the

“cloud,” perform this duty, and are rewarded in Bitcoin. Here, the metaphor
to physical gold rings soundly. As each block is mined, the next one becomes
increasingly difficult. Which is why, of the potential 21 million Bitcoin that
could be minted, only 12,446,725 have been minted.

@bitsclusive
www.bitsclusive.co
 Bitcoin Trading 101

Getting Started

Unlike FOREX or stock trading programs, which detail at length the

cumbersome and complex electronic markets, our Bitcoin trading
system is magnitudes easier to master. The following will detail our
system on how to begin trading Bitcoin for profit TODAY.

Listed below are the three sections showing instructions on how to

begin trading Bitcoin.

Setting up an account on https://localbitcoins.com.

How to execute successful Bitcoin buys.

Selling Bitcoin for profit.

This guide provides valuable tips from personal experience obtained

from our years of trading. We share our experience on all aspects of Bitcoin
trading including the three most commonly used strategies for detecting
and protecting yourself from fraudulent transactions, buying/selling
strategies to maximize your profit and how to quickly build and maintain a
successful online trading business. This is an all in one step-by-step guide
for your personal Bitcoin trading success! What is LocalBitcoins.com?

LocalBitcoins.com is a popular and reputable site where people can

buy and sell Bitcoin. While there are other sites you can use to buy and
sell bitcoin, we prefer localbitcoins.com because of its simplicity and large
user base.

@bitsclusive
www.bitsclusive.co
 “At LocalBitcoins.com, people from different countries can exchange
their local currency to bitcoins. The site allows users to post
advertisements where they state exchange rate and payment methods for
buying or selling bitcoins. You reply to these advertisements and agree to
meet the person to buy bitcoins with cash, or trade directly with online
banking. Bitcoins are placed in LocalBitcoins.com web wallet from where
you can pay your bitcoin purchases directly.” (LocalBitcoins.com)

In order to begin utilizing our method with LocalBitcoins.com, you need

to have a bank account. Bitcoin transactions are made in the form of cash
deposit directly into your bank account. Similarly, when buying Bitcoin,
you’ll make cash deposits into the seller’s bank accounts.

Bitcoin Hot Tip #1 – Establish a bank account with a reputable bank

that has locations nationwide. Remember, the safest, easiest and most
efficient way to execute a Bitcoin transaction is through cash deposits
directly into your account. Select geographically diverse
banks such as Bank of America, TD, and Wells Fargo to name a few.

How does LocalBitcoins.com work?

When a trade request is made on LocalBitcoins.com, the specified

amount of Bitcoin you wish to buy are held locked in the LocalBitcoins.com
escrow service. After initiating a buy request, the Bitcoin are reserved from
the wallet of the seller and put into escrow. The Bitcoin are not released
until the seller confirms the payment has been completed. Essentially
LocalBitcoins.com serves as a middleman which allows the seller and the
buyer both to have safe and easy transactions.

@bitsclusive
www.bitsclusive.co
 Bank Account

Note: If you already have a bank account at one of the banks we

mentioned above, you don’t need to open a new account.

Bitcoin Hot Tip #2 – We recommend keeping your personal banking

separate from your Bitcoin trading business and suggest using an account
dedicated solely for the purpose of Bitcoin trading.
Once your bank account has been established, you will need to establish
an account on LocalBitcoins.com.

LocalBitcoins Account

Go to http://www.localbitcoins.com

@bitsclusive
www.bitsclusive.co
 Create your free account by clicking “sign up for free.”

@bitsclusive
www.bitsclusive.co
 To register for an account, you must supply your username, email and
password. To begin trading, you will need to verify your account. To
do this, click on the account profile icon and select “edit profile.” We
suggest verifying your phone number, real name, as well as setting up
‘Two-Factor Authentication’ to guarantee full security on your
account, since your Bitcoin will be held on it!

Bitcoin Hot Tip #3 – Be sure to complete the introduction section

of your profile. This information will be shown on your public profile
and will help to establish your online credibility. Information about
your commitment to safe and reliable transactions will go a long
way in earning trust with potential buyers

@bitsclusive
www.bitsclusive.co
 After verifying your information, it’s time to make your first transaction!

Buying Your First Bitcoin

When buying Bitcoin from LocalBitcoins.com, we suggest cash

transactions because it allows the Bitcoin to be released instantly, once
the payment is received by the seller.

Click “buy Bitcoin” on the top middle of your screen. This will take
you to a page with ads for Bitcoin. Select cash deposit only by clicking the
“Show more…” and selecting cash deposit as illustrated in the picture
below:

@bitsclusive
www.bitsclusive.co
 Cash deposit transactions will allow you to receive the Bitcoin once
the seller receives the payment.

How Do You Find a Good Deal?

Finding a good deal is important because it will increase your

profit – plain and simple. But first, you need to understand what a good
deal looks like.

Bitcoin Hot Tip #4 – Bitcoins for sale that are 3 – 5% above market
price are the deals you want!

What this means, is the seller is selling the Bitcoin for that
percentage over the actual Bitcoin market price. For example, if the
current market value of Bitcoin is $200, a seller might choose to sell for
3% above the market price which would be $206 per Bitcoin. Bitcoin
owners decide their own selling price – a key feature that allows for an
open competition market. Why would people pay over the market price
for a Bitcoin? Because obtaining Bitcoin instantly is highly sought after!
Oftentimes using other sites, people can get Bitcoin for much closer to
market price, but have to wait several business days. This is the reason
our trading system is so lucrative.

Bitcoin Hot Tip #5 – When you sell the Bitcoin you own, your
target selling price should be 8 – 12% above the current market price.
We will explain this further below in “Selling Your First Coin.”

@bitsclusive
www.bitsclusive.co
 The Process of Buying

When you have found the Bitcoin you want to buy, click on the ad
and type in the value in dollars you’re looking to buy. This will show you
how much Bitcoin you get as well as the US dollar value.

Bitcoin Hot Tip #6 – MAKE SURE you read the Bitcoin seller’s deal
requirements BEFORE you agree to them as this could be a significant
pain point if you don’t pay attention to these details!

@bitsclusive
www.bitsclusive.co
 After entering the amount you wish to buy, click “Send trade
request”. After placing the trade request, send the seller a message
asking for their bank account number and the name on the account.

@bitsclusive
www.bitsclusive.co
 Once the seller sends you the account number and name on the
account, you should find a branch location nearest to you. We are using
TD Bank in this example. Once at the bank with the cash in hand for the
amount requested to buy, you will need complete the transaction at the
teller window. Instruct the bank teller that you’d like to make a cash
deposit into an account (not your own). Give the bank teller the account
number and name on the account and the cash to deposit into the
account. Make sure you double-check the account # and name so it
matches the one the seller gave you.

IMPORTANT NOTE: A lot of people have been asking why they

can’t do a bank to bank transfer via mobile app or the web but a cash
deposit is NOT the same thing. Even though they are both instant, they
are NOT the same thing.

The reason why vendors prefer cash deposit is that it is non-

disputable whereas a bank to bank transfer could be disputed as an
unauthorized transaction. Don’t let the fact that it is non-refundable scare
you away though because LocalBitcoins escrow system helps mitigate the
risks.

Bitcoin Hot Tip #7: Before you leave the bank, make sure the bank
teller gives you a receipt proving the transaction was made! This is
important because many sellers will ask for receipt verification and you
may not be able to get another receipt after you leave the bank

Sometimes, sellers will ask for specific verification noted in the

example seller instructions above. “After you made the payment,
upload the receipt for proof with the proper information written on it,

@bitsclusive
www.bitsclusive.co
 and marked the transaction as paid. I will go check my account to see
if the money is there and release the BTC.”

In this example, you will need to upload a picture of the receipt

you received after completing the cash deposit at the bank with your
user name and reference number which is found at the bottom of the
picture illustrated below and with “no reversal” written on the receipt.
Once complete, you must upload a picture of the receipt into the
message box to fulfill the instructions required by the seller.

Finally, mark the payment complete below the reference number

or reference message shown below as well:

Once that’s done, the seller will release the coin from escrow and
then be placed in your digital wallet shown at the top right of your
screen. Now you have Bitcoin to sell.

@bitsclusive
www.bitsclusive.co
 Selling Your First Bitcoin

The Process of Selling

Now that you have Bitcoin, it’s time to list them for sale. Click “Post a
Trade” as shown below. Once you’re on that page, proceed to complete
the following fields.

1.I want to… select “sell your Bitcoins online”

2.Location- enter state name
3.Currency- should be set at USD
4.Payment Service/Bank Name- whichever bank you choose, fill in the
name
5.Margin- the percentage you’re going to sell your Bitcoin for, anywhere
from 8% to 12% is recommended, depending on the competition in the list
of other offers.
6.Payment details
TD Bank
Personal Checking
Pennsylvania

@bitsclusive
www.bitsclusive.co
 Name: …
Account Number: …
Once you have made your deposit, please write “NO REFUNDS” in pen on
your receipt, tear it in half, and send a photo.
7.Minimum transaction limit- 99 USD
8.Max transaction limit- 2999 USD
9. Fill out the days you want to trade on
10. Terms of trade- Here will detail your terms and conditions the
buyer must follow to complete the transaction.

Bitcoin Hot Tip #8 – Here is a terms and conditions template that you
can use.

TD BANK CASH DEPOSIT ONLY!

INSTANT RELEASE
Specify which state you are depositing in! I DO NOT SELL TO NEW
YORK RESIDENTS
DEPOSIT A UNIQUE AMOUNT so I can distinguish each trade (for
example, instead of buying $400.00 worth, buy $401.29)
Your deposit MUST be the same amount that you have selected to buy
on this site.
Once you have made your deposit, please write “NO REFUNDS” with
pen on the receipt the teller gives you, tear it in half, and upload it in
the chat box.
We DO NOT associate with any illicit activity
HAPPY BITCOINING 

The reason for excluding New York residents is because NY requires

any one of their residents that buys or sells Bitcoin to have a “bit license”.
This is a hassle to obtain (requiring a non-refundable $5000) so it is just
easier to not sell to NY residents.

Unique deposit amounts into your bank account make it easier to

identify the amount sent by individual people. If you had 5 sales of $100

@bitsclusive
www.bitsclusive.co
 each, it’s hard to tell who made what transaction. This will make keeping
track of payments easier.
“No Refunds” is a necessary, to prevent the possibility of a buyer deciding
to try and cancel their order after depositing. This won’t happen; just a
precaution.

Bitcoin Hot Tip #9 – Have the buy rip the bank receipt in half to make it
harder to photoshop a fake receipt.

LocalBitcoins Notifications

Once you have completed your listing and your Bitcoins are on the
market, you will be notified when a buyer has requested a trade by a red
number 1 next to messages on the top middle part of your screen shown
below. You need to set up email notifications in the settings as well as on your
phone so you can be promptly alerted whenever someone wants to buy from
you.

Click on messages and it will alert you of a new trade request. Once you
click on the trade request then you can send your bank account number and
name on the account via the message box!

@bitsclusive
www.bitsclusive.co
 You will receive notification alerts for messages, completed payments
and trade requests.

@bitsclusive
www.bitsclusive.co
 After sending the buyer your bank info, they will then proceed to your bank
and complete the cash deposit into your account. They will they upload a
picture of the receipt with no refund written on it and ripped in half, if they
do not complete this you must ask them to follow the steps provide in your
terms of trade.

Once the buyer has completed this they will mark payment complete
and now you must decide whether or not to release the coin from escrow.

Bitcoin Hot Tip #10 – Before you release ANY Bitcoin from
escrow, you must check to make sure the correct amount was
deposited by the buyer. After verifying this, you release the Bitcoin
to the buyer by clicking release Bitcoin. The trade is now complete
and you have sold your first Bitcoin!

Tips on Preventing Fraud and Being

Scammed

Below are 3 guaranteed ways to ensure that you as a seller do not

get scammed. We have made all the mistakes in the book so you don’t
have to! You will be protected if you make sure of the following:

1. The buyer sends a receipt of the deposit.

2. Checking your mobile banking app/online banking to see if the
correct amount was placed in your account. It’s a cash deposit
so it will show up instantly as long as the buyer actually made
the deposit.


3. If the money is not in your account and the buyer claims they made
the deposit, they did not make it because it should appear instantly.

@bitsclusive
www.bitsclusive.co
 Final Thoughts

But how do I actually make money selling Bitcoins!?

So when you bought your Bitcoin, you purchased the coin

between 3-5% above market price (hopefully as we recommended).
The listing you created has your Bitcoin for sale anywhere from 8% to
12% above market. That margin is where the money is being made. Say
you bought $1000 worth of bitcoin at 4% above market price. You then
sell that same $1000 worth of coin at 9%, which is a profit of 5%. 5% of
$1000 is $50 – which is the profit off of that one trade. Now $50
may not seem like a lot but when you complete multiple trades per
day, the profit adds up. This is where the fun begins. We
recommend you trading for several days and eagerly showing your
returns to your family and friends. Get them to loan you money to
trade with!

@bitsclusive
www.bitsclusive.co
 Buying Bitcoin From Other Websites

As time progresses and Bitcoin becomes more widespread and

available, new sites are popping up that allow us to buy closer and
closer to the current price! This makes us traders ECSTATIC! One such
site is Circle.com, which allows you to buy Bitcoin with your
debit/credit card. Once you make an account, you can buy up to $300
worth of Bitcoin instantly; anymore and you have to wait 2-3 business
days. However, in your settings you can request to raise your limits to
$3000 instant Bitcoin a week!

This is amazingly advantageous. A great trick is to get your family

and friends to open Circle accounts and have their limits raised.
Incentivize them by giving them a percentage of your profits or a set
rate each time you leverage their Circle accounts. This is done by
depositing your money into their banks and having them buy Bitcoin
through their circle, then sending to your LocalBitcoins wallet.

@bitsclusive
www.bitsclusive.co
 Accounting and Taxes

How to Calculate Profits

This is the best part in our opinion. The satisfying aspect of

crunching the numbers, tallying up the profits from each trade, figuring
out how much you’ve made after each day’s worth of trading. There
are many ways to approach this- you could download the .csv files
provided when you click on the “Dashboard” and select “Closed
Contacts” on LocalBitcoins. Calculate the profits per trade, subtracting
the amounts you paid in commission while buying Bitcoin from others…
Or you could simply track how much Bitcoin and dollars you have in the
morning, and compare it to how much you have in the evening!
The question that is also posed, is whether to keep reinvesting or
to cash out daily. This is up to you! The trend forecasting services
offered in house allow you to get a leg up on the markets, but nothing
is truly prophetic.

@bitsclusive
www.bitsclusive.co
 How to Account for Taxation

Bitcoin is a commodity after all. You are buying and selling,

obtaining a profit. We highly recommend you set aside 25% or so of
your profit for taxes. Consult your accountant on this matter! Don’t let
this side of things slip through the cracks.

@bitsclusive
www.bitsclusive.co
 UPDATES ON BITSCLUSIVE and Addendum

We are currently building a web platform. Not just any website.

But the world’s most culturally-hip hub for Bitcoin ever created. Here
we will be offering access into an exclusive community where you can
unite with other like-minded entrepreneurs and Bitcoin enthusiasts.
You will also be able to obtain daily forecasts on the market, news
resources, apparel, social media branding and consulting, and the
most enthralling: a lucrative compensation plan to allow ANYONE to
get paid to tell others about us. Sustaining, long lasting residual
income to teach others of Bitcoin and how to trade it. We are all one
big family, and the earth needs change. Bitcoin is either it, or a
stepping stone towards a free global market, unobstructed by massive
groups imposing their own greed upon the masses. Together, there is
NOTHING we cannot accomplish.

We are delighted that you have an open mind and we thank you
for purchasing this guide.

The world is on the precipice

of a massive change, and WE
are the ones to lead it.

@bitsclusive
www.bitsclusive.co
 Bitsclusive, LLC ©

All Rights Reserved. No part of this publication may be

reproduced, distributed, stored in a retrieval system,
photocopied or transmitted in any form or by any means,
including photocopying, recording, or other electronic or
mechanical method. Especially without the prior written
permission of the publisher or author, except in the case
of brief quotations embodied in critical reviews and
certain other noncommercial uses permitted by
copyright law. If any party outside of the company
(Bitsclusive, LLC) violates any of these terms, legal action
will be taken accordingly.

This publication is not designed to be considered

professional advice. None of the information provided in
this book is to be considered investment advice or
financial advice. Any information provided within is to be
used for educational, informational or entertainment
purposes only. Investing and trading involves the risk of
loss. Bitsclusive, LLC is not held liable for any losses or
volatility caused by the market. Neither the authors nor
the company are liable for any actions prompted or
caused by the information provided within this book.
ALL SALES ARE FINAL

@bitsclusive
www.bitsclusive.co