LocalBitcoins is a peer-to-peer (p2p) marketplace that enables customers and vendors to transact directly with each other. The platform is one of the oldest and most popular p2p exchanges, founded in 2012.
LocalBitcoins has generally been considered a reliable and trustworthy exchange. However, in 2015, the company implemented new KYC/AML policies to comply with FinCEN regulations in the US. These policies require users to verify their identity when trading larger amounts of bitcoins.
Since then, there have been a few instances of fraud and scams on the platform. However, LocalBitcoins has taken steps to address these issues. For example, in 2017, they introduced a new feedback system that allows users to rate and review each other. This has helped to create a more trustworthy environment on the site.
LocalBitcoin offers secure trading by the use of several measures:
Two-factor authentication
2 FA is an additional security measure requiring the user to input a code from their phone to log into their account. This makes it much harder for hackers to gain access to accounts.
Reputation system
The reputation system on LocalBitcoins allows users to rate and review each other after a trade is completed. This helps to create a more trustworthy environment on the site.
Escrow
LocalBitcoins offers an escrow system to protect buyers and sellers from fraud. This means that the bitcoins are held in a LocalBitcoins-controlled wallet during the trade and therefore released to the buyer once they have paid the seller. This provides a higher level of security for buyers, as they can be sure that they will receive their bitcoins after paying.
Logins guard
LocalBitcoins offers a logins guard feature, which helps to protect users’ accounts from being hacked. This feature requires the user to input a code from their phone to log into their account. This makes it much harder for hackers to gain access to accounts.
Currencies and Payment Methods
LocalBitcoins only supports the purchase and sale of Bitcoins. However, LocalEthereum and LocalMonero are two other identical copies that have emerged. The site supports no official fiat currencies because it does not formally keep fiat deposits.
Instead, users can select any payment method they want when making a trade. The most popular payment methods on LocalBitcoins are cash deposit, Western Union, MoneyGram, and PayPal.
LocalBitcoins Fees
Registering, buying, and selling Bitcoins on LocalBitcoins is free. However, to make up for this lack of revenue from users who create advertisements, a 1% fee is charged for every completed trade by the people actively promoting their services (i.e., makers). Takers are not charged any fees.
A 0.0001 BTC mining fee is also charged when sending bitcoins from LocalBitcoins to another wallet. This fee goes to the Bitcoin network to incentivize miners to confirm transactions.
Customer Support
LocalBitcoins has a customer support team that is available to answer questions 24/7. The team can be reached through the LocalBitcoins help center or by email.
Pros and Cons
LocalBitcoins is a convenient way to buy and sell bitcoins quickly and securely. However, there are some risks to using the platform.
Pros:
- LocalBitcoins is a convenient way to buy and sell bitcoins quickly and securely.
- The site offers a wide variety of payment options, and the built-in escrow system provides greater security for buyers.
- LocalBitcoins has a customer support team that is available to answer questions 24/7.
Cons:
- LocalBitcoins only supports the purchase and sale of Bitcoins. However, LocalEthereum and LocalMonero are two other identical copies that have emerged.
- A 0.0001 BTC mining fee is also charged when sending bitcoins from LocalBitcoins to another wallet.
- The reputation system on LocalBitcoins allows users to rate and review each other after a trade is completed. This helps to create a more trustworthy environment on the site.
How to use LocalBitcoin safely
Find a reliable seller
The first step is to find a reliable seller. You can do this by checking the seller’s feedback score and reading the reviews from other buyers.
Create an account and verify your identity
The next step is to create an account on LocalBitcoins and verify your identity. This will help to ensure that you are dealing with a legitimate user.
Choose a payment method and make a trade
Once you have found a seller, you will need to choose a payment method and make a trade. LocalBitcoins offers a variety of payment options. Therefore you can choose the one that is most convenient for you. Once the trade is completed, the bitcoins will be released from escrow to the buyer.
Rate and review the seller
After the trade is completed, you should rate and review the seller. This helps to create a more trustworthy environment on LocalBitcoins.
After separating your sellers based on preferred location and payment type, you need to decide who you will work with. As a general guideline, DON’T SELECT A SELLER BASED ON PRICE.
Sometimes it’s worth spending an extra 5% to do business with a dependable seller. But first, look at the seller’s transactions to see how they are rated.
Also, don’t post a request to buy Bitcoins; that will attract a lot of scammers. Furthermore, look for people selling Bitcoins, as they are probably more legit.
Keep communication with the seller open
- Send a message to the seller requesting a trade and wait for their response.
- Send further details before waiting for a reply from the vendor.
- Accept that LocalBitcoins’ escrow service will not cover you if you transact with the seller elsewhere.
- Send your payment details somewhere else except the LocalBitcoins message box.
- No calls, texts, or emails are permitted
- . Use only the LocalBitcoins interface and not any other.
With all this information, we can conclude that LocalBitcoin is trustworthy. It all depends on individual effort. Find a licensed exchange, such as LocalBitcoins, that accepts your nation’s currency or the specified payment method. Just be sure you adhere to the safety advice.vv
