About LocalBitcoins
LocalBitcoins was founded in 2012 in Helsinki, Finland, to make Bitcoin trading hassle-free for everyone and “Bring Bitcoin Everywhere“. LocalBitcoins focuses on bringing financial inclusivity and accessibility to developing countries and regions. The platform allows one to trade directly with the counterparty, and their escrow services protect all transactions, helping you keep anonymous. Bitcoins are released only after confirmation of payments. More details are given below.
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LocalBitcoins – a P2P platform with an extensive worldwide coverage for trading bitcoin
LocalBitcoins Sign Up Process
You need a working email to set up an account on LocalBitcoins.
• First, you need to verify your email, after which you need to accept the Terms of Service and the Privacy Policy.
• The next step involves filling up your personal information and estimating your trade volume in Euros for the next 12 months. Click on the registration link sent to your email address.
• After completion, you will have a Wallet that enables you to trade Bitcoins. You can see the number of Bitcoins you have next to the Bitcoin ‘B’ at the right corner of the top toolbar on the home page.
Trading on LocalBitcoins
LocalBitcoins provides a secure way to trade Bitcoins. You can set your price for the Bitcoin you are looking to sell, and it also provides you with the option to trade in your own country or internationally with various payment options. Once you choose an offer with the counterparty, your transaction is locked and protected by LocalBitcoins’s escrow to ensure a secure transaction for both concerned parties.
Buying Bitcoins
• Register an account with LocalBitcoins.
• In the search box, fill out your location, choose a payment method, and fill in the amount you wish to buy. Alternatively, you can also click on “All online offers” to look at all traders in your region.
• You can choose a trader according to their reputation score, the number of trades, and response time. Click on “Buy” to view additional details and continue.
• If you wish to trade, send a message or a trade request with the amount you want to buy to start the trade and make the payment. And then mark the payment as complete, after which you will receive your Bitcoins.
Selling Bitcoins
• Register an Account and go to the main page
• Click on the “Quick Sell” option and fill in the amount you want to sell your Bitcoin for along with a payment method.
• Select a trader from the list with several trades, a good reputation score, and response time. Click on “Sell” to view information about the offer.
• Start a trade request with how much you want to sell, after which your Bitcoins will move to the trade escrow.
• Once the buyer makes the payment, verify it and release the Bitcoins.
Note: The buying and selling limits change according to the four-level account verification system for individuals; these four levels include.
Tier 0 – Transaction Limit of 1,000 Euros per year.
Tier 1 – Transaction Limit of 20,000 Euros per year.
Tier 2 – Transaction Limit of 200,000 Euros per year.
Tier 3 – No Transaction Limit
For businesses, there are Tier A (to commence the account activity) and Tire B (when the annual trading volume reaches 500,000 Euros) accounts.
Payment Methods and Countries Supported
LocalBitcoins supports buying and selling of Bitcoins only. The available payment options include:
• Debit/Credit Cards
• Wire Transfers
• PayPal
• SEPA
• Skrill
• Payza
• Payoneer
• Webmoney
• OKPay
• Swish
• Tele2
• Western Union
• Mobile Money (Selected Regions)
• Cash by mail or in-person
The platform has not restricted trading from any country; however, some nations such as the US, China, North Korea, etc., have regulations prohibiting their citizens from trading in crypto using P2P platforms such as LocalBitcoins.
LocalBitcoins Fees
Trading Bitcoins on LocalBitcoins is free. Exchanging Bitcoins through wallets of other LocalBitcoins users is also free; however, a sending fee is levied when doing transactions with other Bitcoin wallets.
They also charge 1% for advertising your sales on all the trades which are completed. Lastly, if you face any external problem(s), they offer their services for looking into the issue for you, at 200 Euros per hour.
LocalBitcoins Security Measures
LocalBitcoins has employed some excellent security features, including:
• Monitored IP Login: The website marks and records the IP Addresses of the users used for account creation and the browser used regularly.
• Escrow Protection: LocalBitcoins also uses escrow payments. All Bitcoins are moved from the user’s wallet to the escrow and are only released until the concerned party marks the amount as received.
• KYC: A Know-Your-Customer protocol is also present on LocalBitcoins preventing scammers and threats from accessing the exchange to steal Bitcoins from users.
• Two-Factor Authentication: The website also has 2FA providing users with an additional layer of security.
LocalBitcoins Customer Support
The support staff at LocalBitcoins offers a long list of Frequently Asked Questions to answer any general questions. You can also take your queries to LocalBitcoins’ social media accounts on Twitter, Facebook, Instagram. Alternatively, you can also reach them online via email or a Support Ticket, which takes more time (average response time is 2-3 days).
Conclusion
LocalBitcoins offers a competitive P2P system for Bitcoin trading. The website provides various payment methods and a long list of serviceable regions and gives power to the users to control the transactions while maintaining anonymity. Their user interface may not appeal to some, but overall it does the job well.