LocalBitcoins is currently on a high on the cryptocurrency market, dealing in billions of BTCs every day. Why is this exchange platform garnering unmatchable popularity? There must be some advantages of the platform that are loved and appreciated by users, right? Well, that’s correct.
This exchange platform is a real case of good deals and offers which claims to be dealing in the most private way, which means all your trades are screened and secured. Transfer details are encrypted and only accessible by you as this whole thing is operated on a peer-to-peer network.
While some countries are still wondering about the crypto industry, others are waiting for their turn to trade Bitcoins at LocalBitcoins. In addition, on this exchange platform, traders are allowed countless payment methods.
Know the trading limit and liquidity – how much can you actually buy?
The best thing about this exchange is that it does not impose any such restrictions on its members. Member are allowed to determine their respective limits and prices. There are actually no selling or buying limits imposed on LocalBitcoins users.
Know the countries that the exchange supports
This exchange is accessible in almost all countries in the world. Liquidity is meant to depend on the quantity of traders in a certain area. However, despite this exchange being available in nearly all countries, access in the state of New York and also in Germany has been restricted. The reason why LocalBitcoins left New York is BitLicense.
Why is LocalBitcoins better than other exchanges available on the market?
The difference is that it never requires the personal data of its users, even when you are trading heavy sums. Quite unlike most exchanges, that require identity verification and demand your personal information, this exchange allows its users to trade Bitcoins without having their name linked to the deal.
Although this exchange is enabled with all payment modes, cash deposit is still the favorite and most prevalent method. In the table below, LocalBitcoins is compared with other cash exchanges.
Security and privacy
Despite this exchange having no requirements for ID verification or personal data scanning, user activities are always secured and private, except for the email ID that you provide when signing up. While LocalBitcoins has no requirement for personal data, certain traders, otherwise called buyers/sellers, might come across a requirement for personal information in order to qualify for trading.
Exchange pace and speed: how fast or slow are your coins delivered?
The speed you will experience depends upon the payment mode you have accepted to use. With various payment modes, come various speeds. Hence, you have to make sure that your payment mode is popular enough to deliver on your speed expectation. Here are some factors that you should know about: if a user is buying Bitcoin with a cash deposit, it will be delivered within an hour and if users are buying it in person, this is the fastest and easiest to unify.
How safe is LocalBitcoins to use? What is its reputation and is it truly trustworthy?
This exchange was one of the first and largest P2P exchanges for Bitcoin trading. This is considered to be one of the oldest, hence most reputed. And, to date, no scam case has been reported. While the rest of the exchanges are trying to create better security shields, LocalBitcoins has chosen to follow a different path.
How much do you have to pay for using their platform?
This exchange charges a discounted 1% fee, irrespective of the trading size.
Origins and background history
The exchange was founded in 2012, with the aim of helping Bitcoin buyers and sellers to come to a single point of contact and do business seamlessly. More technically, the attempt was to bring both parties onto a peer-to-peer marketplace, so that there is no requirement for third-party involvement. This platform deserves to be recognized for plenty of reasons.
Here are a few key important factors of the platform:
What kind of platform is it?
It is peer-2-peer, which means completely decentralized, meaning no involvement of the capital market.
Is this platform beginner friendly?
Yes, it is.
Is this exchange mobile responsive?
Yes, it is.
Where is this exchange based out of?
It is based out of Helsinki, Finland.
When was this exchange launched?
It came into effect in June 2012.
What is their deposit method?
Users can choose different deposit methods including wire transfer, cash, PayPal and 50 other methods.
What is their withdrawal method?
Users are allowed multiple withdrawal methods such as wire transfer, cash, PayPal and 50 other methods.
What are the currencies that LocalBitcoins accepts?
How is the community trust?
Community trust is ‘good.’
How’s the security level?
The security level is claimed to be one of the best.
What is the fee for trading?
There is no fee to buy, and very low to sell.
How’s the customer support?
It’s a solid level of support.
The more you use the platform, the better judgment you will acquire. In the traditional sense, LocalBitcoins is not an exchange. Unlike other popular options, users don’t have to hand over any of their personal information, apart from the email ID (to sign up) to start trading. Well, there might be exceptions sometimes, but mostly users don’t have to provide their personal credentials. It is quite unlike capitalized banks or other financial institutions as LocalBitcoins lets you meet various other people who are interested in trading Bitcoins. However, you will have to use caution while choosing traders to conduct a transaction with. While this exchange takes care to ensure that there are no rip-offs, lodging complaint might turn out to be time-consuming and frustrating.
Why should you consider using this platform?
As it has already been hinted, this exchange is a bit different from other exchanges owing to the fact that it is not just an exchange platform. Today the crypto-market has quite a great number of exchanges ICO, and the ones dominating the space are Coinbase, Kraken, Bitstamp, Bittrex etc. Hence, when you sign up to these exchanges, they require a lot of personal details, including the list of your social media handles. Unless you provide them with all these information, you don’t qualify for the trading. However, the rules are different when it comes to LocalBitcoins. You are not asked to link your bank account straight-off, and the way to finance your transaction is by charging a minimum transaction fee.
On the other hand, when you want to buy Bitcoins through this exchange, you’ll be asked to create an account with a proprietary digital wallet. Once this is done, you search for Bitcoin buyers and sell your Bitcoins to them. Trading peaks when a certain coin’s global market value surges. Then, businesses or enterprises, who are seeking to store digital coins with a long-term investment plan to buy from individual sellers.
The process goes like this:
Whenever you are struck by an offer, which complies with your terms and price, you need to message the seller in order to negotiate (if needed) the transaction. Following a successful deal, you need to find a suitable and fast payment mode. In general, online trades are better with a cash deposit via PayPal or a bank. Or, in certain cases, you can even choose to meet your seller and hand the cash over, making the most of LocalBitcoins’ features.
Is there a way to avoid scams on LocalBitcoins?
This is an absolute peer-to-peer exchange system, hence all your transaction details are kept private and encrypted. This exchange holds the Bitcoins in escrow when the payment takes place online, so that you can easily prove that payment has already been made and the Bitcoins are then to be released. Thus, it is quite easy to avoid having to lodge a complaint, especially if you take certain precautions when choosing the traders to deal with. In fact, when you are considering to conduct a trade, click on the username of the trader, so you can dig deeper into the personal information of the trader and his trading records.
Here are elements you can take into account:
- Did they trade 50+ BTC?
- Have they done 100+ trading so far?
- What is their feedback score? Is it above 97%?
- How long have they been on LocalBitcoins?
- Are their information verified with LocalBitcoins?
- How many other traders trust this particular trader?
How to use LocalBitcoins?
As it is a P2P exchange platform, it has been designed to operate in a decentralized way and be useful from every corner of the world, on every possible device. As LocalBitcoins also allows you to pay in cash without having to link with any bank and as long as there are users in your area, you can actually trade Bitcoins using this exchange virtually from anywhere in the world (apart from in the state of New York and Germany).
On this exchange, users have the choice of over 50 methods to make payments for their respective traders. Users can also show interest in purchasing Bitcoins with iTunes gift cards in order to pay cash via email.
As far as both the parties agree to a mutual payment method, you can pay however you want:
- Cash by email.
- Cash deposit.
- Amazon Gift Card Code.
- eBay Gift Card Code.
- iTunes Gift Card Code.
- Western Union, etc.
We you enjoyed this review of LocalBitcoin and found it useful for your future endeavors. In a nutshell, LocalBitcoins is a renowned, secure platform. Remember that your success depends upon how and who you choose to deal with, and that whether you trade at this exchange or others. These exchanges are great gateway to get yourself to invest in ICOs