Located in Finland, Localbitcoins launched in 2012, offering services that aim to connect bitcoin sellers and buyers with a safe, reliable, peer to peer market. The site is loaded with features that allow users to list and create ads, confirm details of a transaction before finalizing a trade, and communicate with other sellers and buyers.
Considered one of the best altcoin exchanges, Localbitcoins operates as a gateway to the world of altcoin trading, allowing new users to easily and quickly get used to selling and buying bitcoin.
Overall, this exchange has developed a great reputation, and it’s currently used in over two hundred countries around the world.
Operating as a decentralized marketplace, Localbitcoins will allow members to directly trade bitcoin. To begin, users are directed to the account sign up page and prompted to sign up for an account.
Once you’ve created an account, you can begin searching for altcoin sellers in your neck of the woods. The site will allow you to conduct a variety of searches, such as verification requirements, accepted payment methods, and seller location.
When the verification process has been completed you can complete the transaction by hitting the buy bitcoin button.
Searching for Bitcoin Sellers
When you conduct a search, you’ll notice that several possible vendors will pop up on the screen. Before you decide to go with one of these vendors you can check out their trading history and reputation and speak with each seller directly.
But before you’re able to buy, you must also confirm your method of payment, the amount you want to purchase, the form of identification you’ll use, and how you’d like to receive the currency.
The trading process is very straightforward. In order to keep trades in motion with fewer issues, the site utilizes a number of factors designed to enhance your trading experience. The security measures taken to ensure a safer trading process including the following:
• Escrow service: When you make a trade, the escrow administration will hold onto any cash until the vendor has confirmed a successful trade.
• Reputation rating: Each trader is given their own ranking, which is based on feedback ratings, trading history, and their activity.
• Customer support: This exchange offers support through email only, however, they typically respond quickly. You’ll also find a Localbitcoins forum where you can interact with buyers and sellers and discuss issues.
• Conflict resolution: If you run into any issues, the exchange also offers a conflict resolution service through its customer support. The team will investigate every case and determine a way to effectively resolve any issues between sellers and buyers.
• Two-factor authentication: An extra pin code offers another layer of protection against someone hacking into your account. The two-factor process allows a user to confirm their sign in by using a code that’s sent straight to their smartphone.
You can sell or purchase bitcoin using a wide range of payment methods including:
- Cash through the mail
- Web Money
This site charges a one percent commission for sellers. If you’re a buyer, keep in mind that the price of bitcoin will usually be higher than what you’ll find on a centralized exchange. Bigger exchanges have the ability to generate revenue by charging a high commission across all trades. But because Localbitcoins operates as a peer to peer marketplace, sellers usually choose to generate more revenue by increasing the selling price. A seller can also end up selling to buyers who may try to go for a chargeback, which, as a result, brings the price up higher in order to reduce the risk.
It’s necessary for buyers and sellers alike to incorporate safety measures to ensure a successful purchase or trade, considering the site operates as a decentralized exchange. While the site has certainly earned a good reputation as being trustworthy and safe, there’s always the risk of running into an immoral seller.
Using this exchange, in order to avoid possible scams, you must:
• Look into a seller’s trading history, check their profile, and ensure they’re suitable to trade with. Try to find a seller that has been trading on the site for at least a year. They should also have a rating of at least ninety-eight percent and the completion of over one hundred trades. You can also take the extra step of verifying the seller’s identification by looking at their profile information which should list their phone number, account details, and their email.
• When trading, contact the seller and require an exchange through the platform only. Always avoid trading with a seller off the platform because this will negate the escrow service. We also recommend speaking with the seller via text or email. Instead, only communicate with a seller through the Localbitcoins chat box.
• If you run into any issues, contact customer support and be sure to use the forum if you’re having issues or have certain doubts about a particular seller. While this site is very straightforward it’s possible for a buyer to run into issues.
- Easy user interface
- Low transaction costs
- Excellent customer support
- User forum
- Trading process is very straightforward
- Great trading safety precautions
- No buying or selling limits
- Escrow service
- Beginners can end up losing out on money if they fail to look into each seller’s trading history and background.
- This site only trades in bitcoins.
- The site doesn’t accept debit card or credit card payments.