Key facts:
LocalBitcoins is one of the first bitcoin exchanges, launched in the year 2012.
At LocalBitcoins you can exchange bitcoin to any local currency in the world.
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LocalBitcoins is one of the best known and oldest exchanges, with 10 years in the market without interruptions and with a very high reputation. It is characterized by being P2P (peer to peer), where the platform simply functions as a trusted intermediary or custodian between two unknown (or unknown) users who transact with each other. In other words, bitcoins are not bought or sold from this company, but from other people.
At LocalBitcoins buy or sell bitcoins through ads. The user who creates the ad sets the payment method and price, while his counterpart decides which offer to accept. It is a fairly simple way to make exchanges between individuals, and it has a wide variety of payment methods, including bank transfers to countries such as Venezuela, Colombia or Mexico.
LocalBitcoins is not like other exchanges that have dozens of services, here the purpose is quite clear: buy or sell bitcoin and altcoins like Tether (USDT). If you are one of those who want to do different types of trading, it is better that you select other alternatives such as Binance or Coinbase.
Registration on the LocalBitcoins P2P exchange
The experience with LocalBitcoins begins with the registration process. It’s quick to create an account on the exchange. Username, email and password are requested, requirements similar to those of competing platforms such as LocalCryptos or Paxful.
After verifying the email, you must complete a series of personal data (it is mandatory to operate), such as:
- Name and surname.
- Phone number.
- Country of residence.
- Estimated business volume.
- Indicate if you are a politically exposed person.
- How is the KYC verification in LocalBitcoins.
When you complete the registration data in Localbitcoins, you start as a level 0 user. With this level you have an annual trading limit of 1,000 euros, quite low for the average trader. However, it is to be remembered that the purpose of this platform is not trading, but rather casual exchanges of money.
To increase this limit to 20,000 euros per year, it is required to fill out a level 1 form, address validation and identity verification.
Verification at this first level is somewhat annoying, especially when uploading the images of the proof of address and the identity document. With the vast amount of personal data shared, you might think that this is more than enough to operate.
Level 2 has an annual limit of 200,000 euros and level 3 is unlimited. The problem is that, the higher the trading volume you want to trade, the stricter and more detailed the KYC verification iswhich can become a headache for many and a waste of time.
For level 2 they request annual net income, net worth, source of income and verification of your home address. To go to level 3, the requirements are proof of vitality and filling out a level 3 form.
The experience of buying and selling bitcoins at LocalBitcoins
After completing registration and KYC verification, it’s time to start trading on LocalBitcoins. The first thing you notice when entering the platform are the two tabs Quick purchase Y quick sale. So even if it’s your first time using a cryptocurrency exchange, you’ll know right away what to do. There are many offers available with little price difference, which is synonymous with good liquidity on the exchange.
Making deposits at LocalBitcoins is quick and easy, and one advantage is that the platform no longer charges fees for deposits. The minimum amount is 0.0002 BTC, and three confirmations from the Bitcoin network are required for the funds to be reflected in your wallet.
The process of buying and selling bitcoin as such is easy, as if you were buying a product from someone on the street. The bad thing is you must ensure that the buyer is available at the time of trading, otherwise you could wait a long time for it to show up. Also, take the time to read the merchant’s own conditions.
If you are the one who sells bitcoins, after verifying that the funds were received, the BTC must be released to the buyer. Otherwise, you will be the one who has to wait. Even if the process is finished, you can continue to communicate in the platform’s chat. It is necessary to leave feedback on the trader, rating the exchange as positive, neutral or negative.
Important: never trade or trade outside of the Localbitcoins platform, no matter how much your counterpart insists. If you do this, the company will not be able to help you in the event of a scam, since there will be no record of the transaction.
Create a listing for sale on Localbitcoins
In case you want to be the one to create the ad, you have to meet certain requirements to do so. Some of the requirements are having a minimum of 0.04 BTC in your LocalBitcoins wallet and paying a listing fee, which is 1% of the total transaction volume for each completed transaction.
Creating an ad is not complicated, but it takes more time than simply accepting an offer. More data must be entered, such as location, type of transaction (buy or sell), currency, bank, minimum and maximum transaction limit, margin, price equation and add liquidity or security options.
What about LocalBitcoins payment methods?
One of the best attributes of LocalBitcoins is the huge number of payment methods available.. There are more than 100 national currenciesincluding bolívares, Argentine pesos, Colombian pesos, Chilean pesos, Mexican pesos, pounds, euros and Brazilian reais.
Some of the methods are Domestic Transfer, International Transfer, Zelle, Paypal, Apple Pay, Credit Card, Payoneer, Neteller, OKPay, Google Pay, Cash Deposits, AirTM and more.
Is there a scam risk in LocalBitcoins?
The truth is that in all the P2P platforms there is a risk of fraud, and LocalBitcoins is no exception. Now, the exchange has several measures to reduce the chances of being scammed. An advantage is that, before accepting any offer, you can check the details of the user you want to trade with.
Information such as trading volume, number of trades, comments from other users, if you have verified phone number, email and ID, if you have been blocked by others, when the account was created and the average time of funds release are displayed.
Remember that you must take certain measures to avoid scams when buying or selling bitcoins on P2P platforms. One of the most important is never release the funds before verifying if you have received them to the agreed address or account.
Regarding the security measures of LocalBitcoins, it has two-factor authentication and notification in case of detecting a change of IP address. To release funds in a transaction, it is a requirement to enter the code provided by the Google authenticator.
Among all LocalBitcoins payment methods, some are higher risk than others. Zelle, Paypal, Skrill, Neteller, Visa and Mastercard are high risk, while bank transfers are more secure. Methods such as Paypal are considered high risk due to the possibility that, through a claim against the company, your counterpart may request that the money deposited be returned to you.
If either party defaults, you can initiate a dispute in which LocalBitcoins will be the intermediary. When starting a transaction, the platform locks the funds in an escrow. This ensures that neither party has access to the funds until the process is complete, unless the dispute is initiated.
LocalBitcoins exchange fees
One of the reasons why LocalBitcoins remains one of the most used platforms is its low fees. Users do not pay commission when buying or selling bitcoins. There are no commissions for deposits or transfers to LocalBitcoins wallets. The platform only charges a fee when the shipment will be made to a wallet external to the exchange, which is 0.00009 BTC, although it can vary according to the level of congestion in the Bitcoin network and other factors.
In comparison, the LocalCryptos commission scheme is different. This platform does charge a fee to buyers and sellers. The commission is 0.25% for the makerthe person who makes an offer through a buy or sell advertisement, and 0.75% for the takerthe one who accepts the offer.
Paxfulanother renowned P2P exchange platform, It does not charge commissions for buying, but it does charge commissions for selling. The fee is 1% for most payment methods, except for bank transfer, which is 0.5%.
Is the LocalBitcoins mobile app good?
The functions of the app are similar to the web version of LocalBitcoins. The design of the app is simple. The app has multiple security mechanisms to log in, even more than in the desktop version.
It is actually convenient and convenient to exchange bitcoins from the LocalBitcoins app, and no inconvenience was experienced. The simple design of the web version remains in the mobile version.
conclusion
LocalBitcoins it is a good exchange platform, as long as your only wish is to buy or sell bitcoin and altcoins for national currency. The exchange provides its services in an impressive variety of countries, with multiple national currencies and payment methods available.
Compared to platforms like Paxful and LocalCryptos, LocalBitcoins commissions are average, with the advantage that you will not have to pay a fee to buy or sell, only if you decide to create an ad. Its interface is as simple as that of LocalCryptos, with the addition of having a mobile app.
Usually, LocalBitcoins works well for its designed purpose the exchange, and has advantages over Paxful and LocalCryptos, such as the number of offers, its longevity, and the trust of its users.
The Review
LocalBitcoins
PROS
- Simple interface.
- Wide variety of payment methods, including altcoins
- good liquidity
- Available in more than 200 countries.
CONS
- Mandatory KYC verification.
- Low purchase limits at initial verification levels.
- A minimum of 0.04 BTC is needed in the wallet to create an ad.
- It does not provide its services in Cuba.