Crypto Currency Exchange

LocalBitcoins Exchange Review 2020: Is it Beginner friendly?

If you’re an expert or Just started with Cryptocurrency (or thinking too), finding a good and reliable cryptocurrency exchange platform is troublesome. Coinpedia lists out all the standard crypto exchanges in the space and presents a detailed review and this review is about LocalBitcoin Exchange. This review will represent  Origin, Pros and Cons, Fees, Supported coins, and the other authentic details you can rely on.

Table of Content 

LocalBitcoins – A Curtain Raiser

Localbitcoins, the finest peer-to-peer (P2P) Crypto trading marketplace is one of the oldest and worldwide popular Bitcoin exchange platforms. Users can Buy and Sell Bitcoin by Interacting with each while the bitcoins are held in LocalBitcoins escrow wallet and can be released to the buyer only after the seller confirms the payment from the buyer. 

Localbitcoins was started in 2012 by Jeremias Kangas along with his brother Nikolaus Kangas and currently based out in Helsinki Finland. Having users worldwide, Localbitcoins is spread over 250 countries having active users buying and selling bitcoins. 

With Global popularity, The company also has media coverage on big platforms such as Forbes, Business Week, and others. 

Recent Updates

2 June 2020

Russia happens to be the leader in Global BTC trading volume on LocalBitcoins for April and May 2020 months. 

9 June 2020

Egypt has recorded an all-time bitcoin trading volume, a high of 2.2m EGP has been traded on Localbitcoins.com 

 18 March 2020

LocalBitcoins did not serve in german on the account of BitLicense issue, But the terms have been updated and Germany users can also Buy/Sell bitcoins over Localbitcoins. Follow this to Read more

Did you know? Localbitcoins has now stopped the anonymous buying option, Users now will have to update KYC to place orders. 

Pros and Cons

Pros

  • The only option to buy bitcoin in some regions.
  • Offers maximum payment methods.
  • Highly Secure Account management and Buying and Selling. 
  • Consumes Less time to Buy/Sell bitcoin 
  • Relatively high liquidity
  • Supports on Transaction disputes and Resolutions. 
  • Good User experience. 

Cons

  • Easy to Scam. 
  • Not Suitable for Large Buyers
  • The support system falls a little slow. 

LocalBitcoins fees

LocalBitcoins do not charge on Buying and Selling, rather 1% is charged on successfully completing orders( Advertisements). 

Transactions of Bitcoins from the LocalBitcoin wallet to another platform or wallet will be subjected to the standard Bitcoin Network fee. However, the fee depends on how crowded the network is.

*For more security with your Bitcoins, you can transfer your Bitcoins to your own personal wallet rather than maintaining them in the LocalBitcoins wallet.

Buying Limits

Depending on the verification level, LocalBitcoins set the limits for trade. 

  • T0 – LocalBitcoins requires your name, country, email address, and phone number for verification. And the limit for trade is 1000 Euros per year.
  • T1 – Requires T0 plus physical address, ID verification, and KYC info. The limit for trade is 20,000 Euros per year.
  • T2 – Requires T1 plus proof of residence. The limit of trade is 200,000 Euros per year.
  • T3 – Requires T2 plus extra ID verification while there is no limit for trade.

Payment option

The exchange has more than 35 payment options including Paypal, Wire transfer, SEPA, NetTeller, MoneyGram, Skrill, Payoneer, Payza, WeChat, etc.

*Different payment options have different exchange rates with different risk levels. So it is advised to have an ‘insurance’ for the possible frauds.

Supported Countries

LocalBitcoins is available worldwide with seller listings from 248 countries. However, New York, Iran, and Germany traders cannot avail of LocalBitcoins services.

Still, thinking why to use LocalBitcoins?

Why should one use LocalBitcoins?

What if I say Localbitcoins allow the traders to directly contact other traders and buy/sell Bitcoins? That is the main concept that P2P works on. 

The services at the exchange enable traders to find local buyers. People can post an advertisement on this site. 

They can also mention the rate of exchange and mode of payment they would prefer. Thus, a buyer can connect with the seller directly eliminating any extra intermediary charges. 

An interested trader can reply to the advertisement and also meet the other trader in person. The purchase Bitcoins would appear in the LocalBitcoin wallet.

In the ongoing trait for P2P exchanges of Security, Localbicoins offers the maximum security in the space. 

This platform is totally decentralized and is not influenced by any government institution or entity. The Bitcoin transfers are instant and transactions are easy to process. 

The exchange platform is open to any partnerships from institutions or financial investors who may be interested in launching affiliate programs or invest in the Bitcoin venture.

How to Begin with LocalBitcoins

Register Localbitcoins

Signing up and logging in to LocalBitcoins is very easy.

  • To register a new account, log on to the official website. 
  • Then click on the tab “sign up free” and fill out all the requirements, such as username, email ID, and password. 
  • Click on “register

How to use LocalBitcoins?

Buying/selling at LocalBitcoins

Buying and selling Bitcoins are quick and easy services at the exchange. 

  • The user can enter the amount he wishes to trade. 
  • The user can then select the regional currency and the country and select one of the payment methods as listed in the drop-down menu.

The site shows the advertisements posted by the buyers and sellers so that a user may browse directly to them. The advertisement shows the username, price/BTC, payment method, and limits. Thus, it makes it easier for everyone who has a requirement. Another feature on this platform is forums.

The user can also post a trade and include details such as trade type, location, currency, opening hours. The user may state terms and conditions for the same.

Secured Trading at LocalBitcoins

  • The platform provides escrows to protect the Bitcoins. Once a buyer starts a request for Bitcoins, the platform locks that amount. Then there will be a release of the amount only when the seller confirms that the transaction is authentic and complete.
  • Another aspect is two-factor authentication. a user can download Google authenticator and scan the QR code of his account. Once the two accounts are synced, the 2FA is activated. Thus, every time the user tries to log in, a 6-digit code goes directly to the registered mobile number.
  • There is another feature of the Login guard. The server of LocalBitcoins remembers the IP address of a user’s browser. If a login occurs from a new browser, the email confirmation is essential to proceed.
  • Each trader has a reputation rank and all his past transaction history is publicly displayed.
  • LocalBitcoins has a dedicated supporting team, ready to answer user’s queries and also resolve conflicts between the user’s if any.

Until recently, Bitcoin was bought anonymously, but now for the new registrations completing the KYC process is mandatory. Additionally buying Bitcoins with cash has been removed from the website.

Additional Tips for Secured Transactions

  • Find a reliable seller and some of the checkpoints in selecting the seller can include
  1. A seller should have traded min 100BTC with a minimum of 100 trades.
  2. The feedback score is very important. Consider the seller with more than 95%.
  3. The older the seller’s account, the more you can trust the seller.
  4. The identification details of the seller should be verified.
  5. The seller should be known to at least 10 people in your contacts.
  • Maintain good communication with the seller. Initially, you are required to contact the seller requesting a trade and wait for a response. Kindly consider the points during the communication.
  1. Do not provide any additional information until the seller responds.
  2. Do not discuss any trade out of the LocalBitcoins platform as you will not be protected by the escrow service.
  3. Payment needs to be done only on the LocalBitcoins platform.

Conclusion

LocalBitcoins is an alternative escrow service for Bitcoin trading. The service can be used when your crypto trading exchange is suspended or you do not find a regulated exchange in your region. But make sure not to keep bitcoins in the exchange wallet. The exchange has a history of scams, so it is always better to do extra background checks before getting into a trade.

LocalBitcoins

David


Ease of use
Fees
Security
Reputation
Stability

Summary

LocalBitcoins is a P2P Bitcoin exchange. Buyers and sellers agree on trade terms, and LocalBitcoins is used as escrow.

3.8

FAQ’S


Who owns Localbitcoin.com?


LocalBitcoins is a bitcoin startup company based in Helsinki, Finland.


What is the average withdrawal time for LocalBitcoins?


The maximum withdrawal time on LocalBitcoins is around 12 hours. However, users can withdraw bitcoins typically in 2 to 3 hours.


What are the payment methods on the LocalBitcoins platform?


Localbitcoins allows buyers and sellers to transact via a wide range of payment methods. These include:
COD or Cash on Delivery
Cash via mail
PayPal
Webmoney
Western Union
Wire exchange


What is the Login Guard feature of LocalBitcoins?


Login Guard is a security feature of the platform. The server of LocalBitcoins remembers the IP address of a user’s browser. If a login occurs from a new browser, the email confirmation is essential to proceed.

Summary
What is LocalBitcoins | LocalBitcoins fees | LocalBitcoins exchange
Article Name
What is LocalBitcoins | LocalBitcoins fees | LocalBitcoins exchange
Description
LocalBitcoins exchange is a peer-to-peer trading website. Get detail guide on What is LocalBitcoins?, LocalBitcoins fees, and trading at LocalBitcoins
Author
Qadir A K
Publisher Name
Coinpedia.org
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David

David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.

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