Local Bitcoins Review: As the tech literacy of the people is increasing, their acceptance of crypto market has boomed over time. There is a cumulative increase in the attracted crowd towards crypto.
Along the lines of Bitcoins, rapid price surge within few week is so remarkable that they are filling the news feed of general and unaware public as well.
What I am sure for the people who were once doubtful, in terms of Bitcoins and other Altcoins are now steadily getting involved in the mass of crypto family.
After the successful use of Bitcoins among the crowd, many Altcoins started emerging gradually. Some of them were clones while some of them came up with the idea which was better and distinct in some way or another.
So in this situation, the most common question arises in your mind is how to acquire your pie of Bitcoins for a greater return in near future.
This question was on my mind too when I was a newbie to the crypto space and its working.
The most common thing we are all aware is that we need to find a secure exchange platform to get our Bitcoins. However, among all the available and mass choices which one is most suitable for us takes a lot of brain work.
If you are a newbie and looking for the exchange platform then you should also involve some of the key factors in your research for platforms before you take your final step. These factors involve:
- Transaction limits
- User-friendliness, and so on
Remember, I have already discussed BitPanda, BitQuick, Kraken in my earlier posts which are also the exchange platform that gives you the facility to buy, sell, or trade your Bitcoins via money trasnfer, credit card and so on.
So, today I am going to give you a detailed review of Local Bitcoins which has distinguished itself as one of the best cryptocurrency exchange to buy Bitcoin with Cash, Paypal and Cards.
So without any further ado, let us get started.
- 1 What is Local Bitcoins?
- 1.1 How does it work?
- 1.2 How to get started with Local Bitcoins?
- 1.3 What makes it different?
- 1.4 Which crypto-currencies are supported by Local Bitcoins?
- 1.5 Which Countries are supported?
- 1.6 What are the accepted payment methods?
- 1.7 Local Bitcoins Interface and Mobile App:
- 1.8 What is the fee structure?
- 1.9 How long does it take to receive your funds?
- 1.10 Is there any transfer limit?
- 1.11 How good is the Customer Support?
- 1.12 How to choose the seller wisely?
- 1.13 Pros and Cons:
- 1.14 Local Bitcoins vs Other exchange platforms:
- 1.15 History:
- 1.16 Is it safe to use Local Bitcoins?
- 1.17 My take on Local Bitcoins:
What is Local Bitcoins?
Local bitcoins is a peer-to-peer exchange where buyers and sellers meet to complete their trade.
The trade is done directly between the buyer and seller without the interference of the platform. It acts as a dating site but here is date is set to trade Bitcoins.
Local Bitcoins was founded in June 2012 and is originally based in Helsinki, Finland but it is available worldwide.
You must be wondering by now that how you could meet up your buyer and seller on a personal basis. How would you come to know about the traders of Bitcoin in town. Right?
Let me make you clear with the detailed review of how does it work.
How does it work?
Local Bitcoins recall the decentralized characteristics of Bitcoin, meaning that there’s no third party involved in the transaction.
First of all, Localbitcoins is completely different from the traditional exchange as you do not need to link your Bank details and fund the account.
There are two parties one on Buyer side while other on seller side and each has a different role. Here it is:
Being a buyer you need to create an account and a Bitcoin wallet
Now you need to search for a Bitcoin seller
Inorder to close the deal, you need to message the seller and you can also negotiate the price. You can go through the seller’s profile and their rating for a safe deal.
If the seller is nearby locality, you can go ahead and meet personally to complete the trade. This is why the company is named Local Bitcoins. However, you can send the more online through Paypal or Debit/credit card.
The money will be released to the sellers’ account when the buyer confirms the deal and meanwhile, the money is kept in the escrow.
If you are on the seller side, then you just need to create an account. List the number of Bitcoin and the amount of which you are willing to sell.
Once a seller contacts you, just get the deal done as per the mutual interest.
However, this is not as simple as it seems. There have been reports of scam and thefts both by the buyers as well as the sellers.
But if you want to buy Bitcoin anonymously, then LocalBitcoin is perfect for you.
One thing you may be surprised with is the difference in the price of Bitcoin. Unlike with the official exchanges, LocalBitcoins’ sellers decide themselves how much they want to trade Bitcoins for. Hence, the price varies from seller to seller.
On the buyer side, you will always have to pay a bit more (1% avg) then the mid-market rate. However, On the seller end, you get an opportunity to make some extra bucks.
What is mid-market rate?
How to get started with Local Bitcoins?
To get started go to their official website and sign up with Local Bitcoins.
Unlike any other exchange, LocalBitcoins doesn’t require more than just an email. As soon as your account is setup, you just have to confirm the email address, and you’re ready to trade.
However, most traders require a verified ID to start doing business with you. Especially if you’re looking into larger amounts.
What makes it different?
Local Bitcoins is way different from another exchange platform. Also, these distinct features make it stand out in the crowd. Some of these are:
- It is the most private way to purchase Bitcoins.
- It has more payment option to choose from.
- You can set your own selling price line.
- Interaction on a personal level.
- Eradicates the involvement of third-party.
- Decentralized nature.
- Works globally.
Which crypto-currencies are supported by Local Bitcoins?
This must be clear from the name itself. It supports trading of Bitcoins only.
It supports mass options of your available local fiat currency. In fact, in some countries, it is the only method to buy your Bitcoins.
Which Countries are supported?
LocalBitcoins is available globally that will consist of over 16,000 cities and 248 countries.
Liquidity will depend on the number of buyers and sellers in your area. LocalBitcoins is not available in Germany and New York. LocalBitcoins stopped their services in New York due to the Bit License.
What are the accepted payment methods?
There are more than 60 payment methods altogether. There is no rigid method you have to use. The payment methods are already mentioned by the seller in the listing.
However, it can be altered according to the mutual understanding of both the party.
Some of the payment methods are listed below:
- Wire transfer
- Credit card
- Amazon gift card
- Google Wallet
- PaySafe Card
- Money Gram
- National bank Transfer
- Square Cash
- Western Union
- and many others*
Local Bitcoins Interface and Mobile App:
In comparison to other, well-known exchanges, LocalBitcoins doesn’t have the most inviting and attractive interface. Rather it is simply designed, LocalBitcoins lacks in a modern design.
On the other hand, it’s an extremely easy service to use.
LocalBitcoins doesn’t have a mobile app, but they have a mobile-friendly version of the website which solves the purpose.
What is the fee structure?
Local Bitcoins have a very transparent fee structure and they all have kept it simple for your convenience.
If you are going to opt for putting up the advertisement then the website will only take 1% as a commission from the seller.
The sellers are free to set their own BTC price, so usually, they cover a transaction fee by asking for higher exchange rates. Their exchange rate varies from one another. It also depends on which payment method you are using for trading process.
So, make sure you choose your seller wisely.
For a detailed term and condition of fee structure click here.
How long does it take to receive your funds?
The time duration to receive your funds or bitcoins totally depends on how fast you are going to complete the transaction process.
If everything goes smoothly you can acquire your Bitcoins in 10 minutes-60 minutes.
Is there any transfer limit?
Local Bitcoins is a well suitable platform if you willing to invest in bulk on Bitcoins. This is so because limits sets for transactions totally depend on buyer and seller according to their mutual agreement.
How good is the Customer Support?
If I speak about Local Bitcoins in phrases of their customer service, then it has pretty been quite stepped forward over time. they had been without a doubt responsive in phrases of responding to their customers.
Before writing this article I was going through the reviews to check out whether the service went for me only or is it the same way for other people too.
Concluding, everything the reviews overall is quite positive. There are hardly any complaints in terms of their customer services.
However, their services include:
- Open support ticket system for specific queries.
- Well equipped FAQs section for all the general queries.
- Queries can also be done through Email which is quite instant in terms of responding.
- Online support forum for discussion.
How to choose the seller wisely?
One of the biggest and most common mistakes you can make is to choose a seller based on price. It is always worth to pay a slightly higher price if the seller is legitimate.
Always see the reviews and recommendations by other users. Make sure to have some contact on a personal level and then finally decide whether you want to with it or not.
Check the LocalBitcoins forum to make sure there are no complaints or unresolved issues. If not, then you should go ahead with the trade.
These are the things you Should check while looking for a seller:
- History of the transactions
- Feedback from users
- Account age should be at least 1 year
- Verification Level
- Trust level of the seller, and so on
There are few things you SHOULD NOT do while contacting the seller:
- After, you first make queries on Bitcoins available and the price involved. Let the trader get back to you, don’t make him feel that he is the only trader in town.
- Don’t agree to do the trade outside the LocalBitcoins. This will protect your transaction via Escrow.
- Don’t send any information in any other way. It is highly recommended that you should you use Local Bitcoins messenger.
Pros and Cons:
Like every coin has two sides Local Bitcoins has also some great benefits along with some disadvantages.
- Numerous payment options
- Transparent fee structure
- Operates on a global level
- You can set your own limits
- Easy to use
- Cheaper than other Bitcoin exchanges platform
- You need to be careful about the legitimate user.
- Some payment methods are risky
- It requires ID when deals are made in bulk amounts
Local Bitcoins vs Other exchange platforms:
LocalBitcoins was founded in June 2012 by Jeremias Kangas. He established an escrow system for the Local Bitcoins by the end of 2012.
In August 2015, LocalBitcoins ceased to operate in New York state because sellers would have to purchase a BitLicense from the New York State Department of Financial Services to remain in compliance with local financial regulations.
In August 2016, LocalBitcoins said that 1.35 million people from 249 countries were using its platform and that the weekly volume of transactions was US$14 million.
Is it safe to use Local Bitcoins?
LocalBitcoins is private and does not require I.D. verification or any personal information besides an email address to signup. While LocalBitcoins itself does not require personal details, some buyers or sellers may request identification before making a trade.
All online transactions are protected by escrow. When a trade is started the amount of Bitcoins for the trade is automatically reserved from the seller’s LocalBitcoins Wallet.
This means that if the seller runs away with your money and does not release your Bitcoins, LocalBitcoins.com support can release the Bitcoins to you from escrow. If you’re selling Bitcoins, never release the escrow before you know that you have received money from the Bitcoin buyer.
However, If you are doing a local trade then LocalBitcoin does not have any interference in between. So you need to be extra cautious while meeting with the other person because you might get scammed.
How To Avoid Scam?
- First of all, you should check the seller/buyer profile
- Go through the past trades
- Ask for a valid ID proof
- If you are going to meet personally, take someone along with you and meet at a public place. Don’t go to someone’s home or an uncrowded place.
My take on Local Bitcoins:
I have personally used LocalBitcoins only once in my lifetime and the trade went pretty smooth. I did a local trade hence I met the seller in a coffee shop to be on a safer side.
Though the price of Bitcoin is comparatively higher than the other exchanges, it allows you to Buy Bitcoin with Paypal, Cash and many other methods, which is a great thing.
LocalBitcoin is also useful for the people of small countries like Nepal, Pakistan etc where cryptocurrency companies are still in its infancy.
Moreover, Local Bitcoins has been one of the most reliable and oldest exchange platforms with the strong base of satisfied customers. It has been improved with user-friendly interface over the years to keep them up to date.
The only thing that I want to remind you is to search for a legitimate seller because the risk of losing money is very high. And for local trades, always take someone along with you.
In conclusion, I want to say that this platform has always gone well for me but you just need to be aware of scammers.
Now go ahead and visit their official website.
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I hope you liekd this articles, if you still got any question just comment below and we will be happy to reply back!
Till then, read these recommended articles:
- Best Bitcoin Wallet(2018) to store your crypto
- Best Cryptocurrency exchanges
- What is “HODL” and Other Crypto Terms