Cryptocurrency Exchange

LocalBitcoins Exchange Review 2020: Is it Beginner friendly?

Overview

Legal NameLocalBitcoins Exchange
HeadquartersHelsinki, Finland
CEOSebastian Sonntag
Year Founded2012
Exchange TypeCentralized
Trading FeesMaker: 1.00%/ Taker: 0.00%
Deposit MethodsWire Transfer, Credit Card and Cryptocurrency
Supported CryptosBitcoin (BTC)
FiatNo
Customer ServiceEmail
Trading OptionsSpot Trading

The trading of cryptocurrencies continues to evolve and develop by introducing modern and advanced functionality. With more exchanges and choices put before traders, it can be a challenging task when it comes to finding an exchange to trade on.

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To help you choose the correct exchange, here is a summary of the reliable and stable exchange :  LocalBitcoins.

In this article, we will provide you with the complete guide on the LocalBitcoins exchange and look into its aspects such as its features, fees, pros and cons and much more. Let us look into detail in this LocalBitcoins exchange review now.

What is LocalBitcoins?

LocalBitcoins was established in the year 2012 in Finland. It was created by Nikolaus Kangas and has developed to become one of the world’s leading markets for Bitcoin without any outside funding. 

LocalBitcoins provides a forum for sellers and buyers from all over the world to meet and exchange Bitcoins. Having consumers all around the world, Localbitcoins is distributed around 280 countries with active users purchasing and selling bitcoins.

LocalBitcoins Features

  1.  Privacy: The only information needed is an e-mail address to register for an account. No personal identity authentication is required and transactions can be carried out directly with another user and not by a third party.
  2. Payment Methods: LocalBitcoins users are free to buy and sell using a range of payment methods. The payment methods available to buyers will depend on the location of the users.
  3. Transactions: Transactions are performed through a number of procedures, including off-exchange payment and communication between users.
  4.  Supported Countries: LocalBitcoins is available worldwide with vendor listings from over 248 countries. However, users in New York, Iran and Germany cannot make use of local bitcoin services.
  5. Security: LocalBitcoins allows for secure trading through the use of several effective security measures such as Escrow service, Login Guard, 2FA etc.
  6. Customer Support: LocalBitcoins has responsive customer support available 24/7. It also has an extensive FAQ page where answers to most questions can be found. 

LocalBitcoins Fees and Limits

There are no fees for signing, purchasing, and selling bitcoin on the exchange, and they charge a 1% fee for people who advertise on the exchange looking to find a trading partner. No trading costs are charged to the individual responding to the advertising.

Withdrawals to wallets outside the LocalBitcoins network would cost 0.00005 BTC. Users would also have to pay a blockchain processing fee that comes with a bitcoin transaction.

Supported Currencies & Payment Methods

LocalBitcoins supports the buying and selling of Bitcoins (BTC) only. There are no official fiat currencies that the exchange supports, since it does not hold fiat deposits.

The various payment methods supported by the LocalBitcoins exchange include:

  • Paypal
  • Wire transfer
  • SEPA
  • Neteller
  • MoneyGram
  • Skrill
  • Cash deposits
  • Payoneer
  • Payza
  • WeChat

LocalBitcoins Mobile App

There is no mobile application provided yet by the LocalBitcoins Exchange either on Google play or the apple store.

How to register on LocalBitcoins?

Step 1: Navigate to the official website. Then click on the tab “sign up free”

Step 2: Then fill out the necessary details such as username, email ID, and choose a strong password.

Step 3: Now click on “register”.

Step 4: Then Go to the Verification tab of your account’s settings to complete the verification.

How to recover the LocalBitcoins password?

Click the “Forgot password?” Option on the login page. Then input your registered Email address and click the “Send Code” button. Now check in your mailbox for the email verification code received. Then click on the link after which you can set a new login password.

How to send cryptos on LocalBitcoins?

Step 1: Login to your account, then click “Wallet” on the dashboard

Step 2: Then click “Send bitcoins.”

Step 3: Here you can add the bitcoin address of your personal wallets to transfer your purchased BTC holdings to your wallet.

How to receive cryptos on LocalBitcoins? 

Step 1: Login to your account, then click “Wallet” on the dashboard

Step 2: Then click “Receive bitcoins.”

Step 3: Here you can add the bitcoin address of the recipient to receive the the BTC to your wallet

How to buy cryptocurrencies on LocalBitcoins?

Step 1: Login to your account. Go to the main page and click “Quick Buy”.

Step 2: Now in the search box fill in the form with the amount you want to buy in your currency, your location and choose a payment method.

Step 3: From the list of advertisements, choose one from a trader with a good reputation score and a high amount of trades. You can click the ‘Buy’ button to view more information about an advertisement.

Step 4: To start the trade, type in the blue box how much you want to buy, enter a message for the seller and click the “Send trade request” button to start the trade.

Step 5: Once you have made the payment, click the “I have paid button”.

Step 6: Once the trader has verified that your payment has been received your Bitcoin will be released from escrow and they are instantly available in your LocalBitcoins wallet.

How to sell cryptocurrencies on LocalBitcoins?

Step 1: Login to your account. Go to the main page and click “Quick Sell”.

Step 2: Now in the search box fill in the form with the amount you want to sell in your currency, your location and choose a payment method.

Step 3: From the list of advertisements, choose one from a trader with a good reputation score and a high amount of trades. You can click the ‘Sell’ button to view more information about an advertisement.

Step 4: To start the trade, type in the blue box how much you want to sell, enter a message for the buyer and click the “Send trade request” button to start the trade.

Step 5: Once you have confirmed that the payment has been made you can scroll down the page and select Release Bitcoins.

Step 6: This will send the Bitcoins from the trade escrow to the buyer and complete the trade.

LocalBitcoins Pros and Cons

Pros

  • There are a wide variety of payment options
  • It is available worldwide
  • It has reasonable platform fees
  • High Liquidity
  • Quick transactions

Cons

  • Dealing with strangers opens the option for scam
  • Not Effective for large buyers
  • Usually higher exchange rates

Conclusion

Unlike other exchanges that manually pair buyers and sellers, LocalBitcoins allows users to connect directly. LocalBitcoins is a decent platform to go to purchase bitcoins when you cannot locate the payment methods you demanded somewhere else. 

However, rates are typically higher on this website, and you need to do your due diligence to stop being scammed.

localbitcoin - 8.2

8.2

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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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