Exchanges

Localbitcoins Review

Established : 2012
Support :
Country : Finland
U.S. Clients Allowed : Yes
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Background

Localbitcoins gives users an alternative way to buy and sell Bitcoin. Founded in 2012, in Finland, the company focuses on connecting Bitcoin buyers and sellers through a peer-to-peer and open marketplace. On this platform, users can make make a listing of buy and sell offers, get in touch with proposed buyers and sellers and verify all the transaction details before finalizing each trade.

Localbitcoins serves as a gateway into the realm of Bitcoin trading and lets newcomers in the field quickly get used to buying and selling Bitcoin. Localbitcoins worked up quite a good reputation since the company was founded and currently has presence in many countries worldwide, reportedly providing services to users in more than 200 countries.

Account Verification

Localbitcoins operates as a decentralized marketplace where people trade Bitcoin directly. To begin using the platform, newcomers to the site can scroll to the signup page and create an account.

After successful account creation, users can start searching for Bitcoin sellers in their area immediately. The platform lets its members conduct a wide variety of searches, including seller location, allowed payment methods, and requirements for ID verification.

Trading Platform

As said earlier, Localbitcoins connects you to buyers and sellers of world’s most popular cryptocurrency allowing you to select from numerous offers made by other users. When searching, some potential offers will be displayed; you can compare the trading history and reputation of each vendor and also interact directly with the seller to address any critical issues. After completion of the search and verifications, you can start trading right away by clicking on the “Buy” button.

As said earlier, all transactions on the platform are peer-to-peer based. Before buying, however, it’s essential to confirm the amount you want to buy, your preferred payment method, how you would like to get the Bitcoin, and the form of ID you will be using.

The whole process is quite simple and straightforward, and to make sure traders can proceed unhindered with their purchases, Localbitcoins includes some key factors that enhance the whole experience. Be advised that Localbitcoins works as a decentralized exchange, therefore, it’s essential for you to incorporate some safety measures to safe and transparent flow of transactions. While the company has acquired an excellent reputation as a trustworthy and safe platform to buy and sell Bitcoin, there is always the chance of running into someone using the site with unscrupulous purposes. As such, make sure to take the following precautions to avoid scammers.

  1. Check the seller’s profile and make sure they meet your requirements. If you can, look for users that have been trading for at least a year, have around 98% rating, and have executed more than 100 BTC trades.
  2. Contact the seller and demand an exchange through the platform. Avoid trading with merchants externally as this neutralizes the escrow service. It’s also advisable to communicate only through the Localbitcoins message box and avoid communicating through email or text.
  3. Make your requirements known as much as possible and highlight any problems you may have. Localbitcoins lets individuals allocate prices, choose a preferred payment method, as well as Bitcoin delivery method, so it’s essential to discuss the most critical aspects of the trade.
  4. Contact customer support and make use of the forum if you are having any problems, or have any doubts about sellers. While the site is quite straightforward, it’s always likely for users to encounter problems.

Localbitcoins fees

Localbitcoins charges a fee of only 1% usually taken from the sellers (or anyone who created an advertisement). However, buyers on the site should bear in mind that Bitcoin prices will be higher than anything that can be gotten on the more mainstream centralized exchanges.

Size of deposit fees

Deposit fee will be larger than the new sending fee, generally this cryptocurrency exchange expects it to be about 3x the amount of sending fees. Subject to current transaction data withdrawal fees would approximately amount to 0.00022 BTC per one transaction and deposit fees of about 0.00066 BTC per one transaction.

Payment Methods

Localbitcoins lets buyers and sellers transact through several payment methods including COD or Cash on Delivery, Cash via mail, PayPal, Webmoney, Western Union, Wire exchange.

Localbitcoins Wallet

If you want to sell Bitcoins on LocalBitcoins exchange, first of all you need to send Bitcoins from your another Bitcoin wallet to your wallet in LocalBitcoins using a receiving address. As a rule Bitcoin transactions take from 10 to 60 minutes, if you send Bitcoins to your Localbitcoins wallet. What is receiving and sending address? Each wallet has at least one receiving and one sending address. If you want to receive Bitcoins to your wallet you have to provide your receiving wallet address to the sender.

Is Localbitcoins safe?

Localbitcoins is one of the best decentralized peer-to-peer bitcoin exchanges on the market. The site provides private purchases and can be used anywhere in the world; it also lets users make purchases through different payment methods and doesn’t place any limit on buying or selling.

However, newcomers on the platform should bear in mind that there may be deceitful sellers on the platform, and reputable sellers may have some requirements when conducting trades. Sellers may demand ID verification for more substantial amounts and decline reversible payment methods like PayPal. Prices may also be somewhat higher, as merchants prefer to charge more for Bitcoin than the mainstream exchanges.

The Localbitcoins team focuses on rendering a service that benefits both users and the community in general.

Localbitcoins is a tried and trusted system of Bitcoin trading that has been adopted by the whole Bitcoin community. The company strives to show commitment to upholding Bitcoin’s decentralized ethos and fills a very distinct niche in the cryptocurrency ecosystem. Localbitcoins is an excellent choice for those new to buying Bitcoin as well as more experienced traders.

 

Jacob Lucas

Jacob Lucas

Jacob has been active in the cryptocurrency markets since 2010, specializing in Bitcoin. He received education as Certified public accountant, specializing in taxes and cost management. Looking for alternative sources of income due to some personal struggles Jacob discovered Bitcoin 2010, showing some commitment and first to learn and get all the basics. Jacob made his fists investment in bitcoin in 2011 and has been successful in the field. Writing in the field is part of Jacob’s commitment to share knowledge with others.

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Localbitcoins exchange review

Localbitcoins exchange review
8.6

Ease of use

Fees

Support

Security

Pros

  • No buying or selling limits
  • No political intervention
  • No ID verification required
  • One of the oldest Bitcoin exchanges

Cons

  • Not suitable for large buyers
  • High Trading Fees 1%
  • Transaction speed depends on payment