LocalBitcoins is a very interesting Finland-based crypto currency exchange. It is the largest peer-to-peer service, which means that ter LocalBitcoins people from all around the world can exchange their local currency to Bitcoins. It also helps to match Bitcoin buyers and sellers who live close to each other, enabling face-to-face and online transactions. Users can postbode advertisements where they say their exchange rate and payment methods for purchasing or selling Bitcoins, and the other members can reply to thesis advertisements and agree to meet the person to purchase Bitcoins with contant. LocalBitcoins is also used spil escrow, which is used to ensure fairness of every transaction made by the users.
The company is one of the oldest exchanges te the industry. It wasgoed founded ter 2012 by Jeremiah Kangas, a programmer and entrepreneur. LocalBitcoins presently operates ter 248 countries and 13774 cities, and it is especially popular ter the US, UK and China.
LocalBitcoins respects the anonymous nature of Bitcoin. That’s why it doesn’t require any individual information and it doesn’t have a mandatory I.D. verification.
The only thing needed for signup is the email address. Spil I already said, the exchange doesn’t require any private details. However, some buyers or sellers may request identification te order to proceed with the trade.
When it comes to fiat currencies, users are free to trade ter any currency. This means that if there’s someone willing to accept your local fiat currency, you can purchase Bitcoins for it, which is pretty awesome.
However, no altcoins are supported and the exchange permits only trading with fiat currency for Bitcoin.
LocalBitcoins tends to keep things ordinary and leaves everything to the users. It’s the same with the transaction fees. Ordinary 1% toverfee is applied to all trades and the seller pays the toverfee. This means that LocalBitcoins will be free to use if you’re only looking to buy Bitcoins.
Keep ter mind that standard Bitcoin network fees apply for all transactions. The sellers themselves don’t have a transaction toverfee. Instead, they charge higher exchange rates, so when making a trade, take that into account.
It’s very recommended to stir your Bitcoins to your own secure Bitcoin wallet and not to leave them lounging around te LocalBitcoins’ wallet.
LocalBitcoins doesn’t have a typical brokerage business prototype. Instead, it’s a peer-to-peer network which connects the sellers with buyers ter the local area. The traders postbode ads on the toneelpodium, stating accepted payment methods and exchange rates for purchasing or selling Bitcoins. Other users reply to thesis ads. They arrange to meet the trader ter order to make a transaction, online or te person.
LocalBitcoins also has a terugkoppeling mechanism and reputation system to help the users distinguish the legit traders from the scammers. The trading podium also offers a conflict-resolution service which helps users overcome any misunderstandings, and an escrow service ter order to help establish trust inbetween the parties.
When trading on LocalBitcoins, users are advised to be cautious because it’s possible to get scammed. After all, the overeenkomst is made inbetween individuals, so it’s very recommended to be enormously careful. Thesis are some of the things that you should keep your eye on when it comes to trading.
Go overheen the seller’s profile and make sure that he meets thesis qualifications:
- Has traded overheen 100BTC te his lifetime
- Has a ondergrens of 100 trades
- Has a terugkoppeling score of 98% or higher
- Has an account that is more than 1 year old
- Is trusted by at least Ten people
- Is a verified seller (company account, email, phone number)
Also, do not postbode ads for purchasing Bitcoins, because that will just attract a lotsbestemming of scammers. Instead, you should look for users who are actively selling Bitcoins. Also, you shouldn’t choose your seller based solely on the price. Look at the seller’s transaction history to see how he did te the past, and sometimes it’s worth paying 5% more te order to conduct a transaction with a more reputable seller.
You’ll most likely be good if you go after thesis rigorous rules. If you can’t find a seller that matches all of the above, attempt to find the next best thing, because the idea is that the seller has actually ended large successful trades te the past.
Afterwards, search the LocalBitcoins’ forum for that seller’s username, because if any complaint comes up you’ll very likely find it there.
When it comes to communication, you should send a message to the seller requesting a trade and wait for their response.
- Send more information before you receive a response from the seller
- Agree to trade outside the exchange because you will not be protected by LocalBitcoins’ escrow service
- Send payment information outside the exchange (no phone calls, emails or text messages). You should use only the LocalBitcoins interface.
It’s significant to note that “power sellers” may deny to sell cryptocurrency to the fresh users because they do not have enough terugkoppeling yet. This means you may have to make a few puny trades with less trustworthy seller te order to get a positive terugkoppeling and be accepted into the “big league.”
The exchange isn’t the traditional trading toneelpodium, so it doesn’t support derivates or futures trading, doesn’t have margin trading, brief selling or any other option.
Payment Methods Accepted on LocalBitcoins
LocalBitcoins sellers/buyers accept a diversity of payment methods and here’s a list of the main ones:
You won’t be able to use a credit card because you’re buying and selling to individuals. However, if you don’t have a PayPal balance, the PayPal option permits you to pay with your credit card. Depending on the payment method you choose, you need to pay different fees, e.g. purchasing with PayPal on LocalBitcoins has much more risk for the seller.
Because Bitcoin isn’t like any other digital or physical goods that you can purchase online. It’s a form of money, and even more a form of somewhat untraceable money, so many credit card companies (i.e. PayPal) don’t insure Bitcoin exchanges that sell Bitcoins via credit card purchases.
You will usually get the best price for purchasing Bitcoins using a hard to switch roles payment method such spil wire transfers or contant deposits.
Ease of Use
LocalBitcoins.com features good vormgeving and provides well-outlined information. The entire webstek is effortless to use and spot-on, and all the information needed is available te an instant and without any need to navigate to find it.
The webstek is very swift, and the sign up takes only 20 seconds.
Given the nature of the operation, security is a major opzicht of LocalBitcoins’ activity, ter fact, it’s safe to say that it is one of its most significant aspects indeed.
The exchange permits for secure trading through the use of several measures, including:
- Reputation system – Every LocalBitcoins user has a reputation rating spil well spil public history records demonstrating their past activities.
- The escrow service – When you request a trade, the money you send is held on LocalBitcoins’ escrow service until confirmation is received from the seller, at which point, the virtual currency is released to the buyer.
- Two-factor authentication (2FA) – 2FA is another verbinding ter the LocalBitcoins security chain, and this is the same type of security feature that is presently used by Google and by banks. 2FA means that whenever you loom into your account you will require to inject an extra Speld code sent to your mobile phone, which prevents people from hacking into your account. However, this option is not enabled by default.
- Login Guard – Login Guard adds yet another layer of protection, by verifying you are always logging ter from the same browser. If a different browser is used, email verification will be required.
- Support and conflict resolution – LocalBitcoins has a support team ready to reaction user questions. It can also resolve conflicts inbetween buyers and sellers ter case that happens.
Support team on LocalBitcoins is well organized and competent, and it offers traders an unusually high number of channels to request assistance with various problems.
Their FAQ section is fairly thorough, and they typically response within 1 hour. They also suggest special forms to report phishing, lost two-factor authentication or password.
They only suggest support via email, and there is no phone support and no live talk support either. However, overall service is excellent.
LocalBitcoins is a good toneel. However, sometimes the traders on it are not so good, and many users get scammed on LocalBitcoins, primarily because of peer-to-peer interaction. There are many scam reports all overheen the web. Unluckily, this bruised the reputation of LocalBitcoins. The exchange is still a superb place to purchase or sell Bitcoins. However, it’s user’s responsibility to stay safe and educate itself about the potential dangers of peer-to-peer trading.
LocalBitcoins also offers a place for fraud and scam warnings. Here, users can postbode about their practices with other traders.
LocalBitcoins is available te almost every country, except Germany and the state of Fresh York. LocalBitcoins left Fresh York because of the BitLicense.
The LocalBitcoins is the good way to purchase Bitcoins if you’re looking to trade locally and protect your privacy. Otherwise, it may be too much of a hassle for you.
Overall, this is a fine exchange. However, it might not be the best choice for beginners.
LocalBitcoins Pros and Cons
- Swift and private
- ID verification is not required
- Ordinary to use
- Not suitable for beginners
- It is not suitable for large buyers
- There are many scams