LocalBitcoins Review

This content has been archived. It may no longer be relevant.

IMPORTANT UPDATE: Local Bitcoins has decided to wind down its global operations from February 9, 2023, Customers will only be able to withdraw assets as part of the winding down procedure after 17 February,2023.

You can check LocalBitcoins closing announcement and settlement process, as indicated in the below screenshot below.

Accordingly, we have marked the platform as “closed.”

Check out our list to find the safest and top cryptocurrency exchanges to find a trustworthy site where you can open an account. We’ll also assist you in selecting the ideal platform.

LocalBitcoins is one of Finland’s largest and safest peer-to-peer crypto exchange services. It helps match Bitcoin buyers with suitable sellers who live in the same region enabling face-to-face and online transactions. Buyers and sellers can post their advertisements stating their payment methods and exchange rates for buying or selling Bitcoins. Others can respond to the advertisements based on their requirements and initiate the trading process.

LocalBitcoins also functions as an escrow that ensures secure and fair transactions made by its users. In this LocalBitcoins review, we will discuss “how does LocalBitcoin work?” along with its features, pros and cons, products and services offered, trading view, fees, pricing and limits, and many more.

Advertisement

Understanding LocalBitcoins

LocalBitcoins is a registered peer-to-peer trading platform established in 2012. It has expanded to become a leading P2P Bitcoin marketplace because it provides flexibility and accessibility to its buyers and sellers. The platform is headquartered in Helsinki, Finland, and was developed by Jeremias Kangas. This cryptocurrency exchange is free and easy to use. It offers a pure, no add-ons Bitcoin marketplace designed to suit the needs of absolute beginners in the crypto community.

How to Use LocalBitcoins?

LocalBitcoins is not only a simple but extremely beginner-friendly traditional trading platform. It is designed to be as accessible and easy to use as possible. Hence, it just takes a few minutes to get started on the LocalBitcoins exchange. Creating an account is a cakewalk that requires a few minutes and steps to complete. Users need to provide a username, password, and email ID to log in later. A confirmation link is sent through the email id, and once it’s opened, the user can freely log into the platform.

However, an update in 2019 has changed the process as users now need to meet the KYC requirements for buying or selling Bitcoin worth 1,000 EUR or more per year. Users need to achieve level 1 verification by providing address and identity information along with identity proof to Onfido, LocalBitcoins’s KYC partner. The valid identity proofs that LocalBitcoins accepts are driver’s license, identity card, and passport.

An Onfido verified seller can create Bitcoin advertisements, choose the currency they want to trade in, set the maximum and minimum transaction limits, select the opening hours and choose their price or margin trading. This automatically updates the price depending on the market rate. On the other hand, buyers can create their advertisements by specifying the Bitcoin amount they wish to buy and the chosen payment method.

The platform recommends that the buyer deals with a reputable seller with a clear trade history and positive feedback. Likewise, sellers should also be cautious and accept only those payment methods with low risks, like bank transfers.

Key Features of LocalBitcoins

• LocalBitcoins offers a simple user interface, and hence, there are not too many add-on features on the platform. It allows buyers and sellers to communicate and trade locally with each other. The buyers get a long list of sellers to choose from based on their requirements and chosen payment methods.
• Coming to LocalBitcoins fees, for every successful trade, the platform charges a 1% nominal fee. Additionally, users can store their Bitcoins on the LocalBitcoins wallet through an Escrow service. The platform also provides a mobile app for traders to carry out on the go.

LocalBitcoins Reviews: Pros and Cons

Create an Account With LocalBitcoins 

To start reaping the benefits of LocalBitcoins trading, users need to follow the steps mentioned below and create a LocalBitcoins account:–

• Go to the official website – LocalBitcoins.com and click Sign-up on the home screen.
• The following page will contain a form to fill in with personal details, including name, email ID, and password. Users need to verify themselves in the “I am not a Robot” checkbox.
• After reading the Terms of Service and the Privacy Policy carefully, click on the checkbox beside I Agree to proceed to the next step.
• The trading platform will send a confirmation mail to the given email ID for users to confirm.
• On confirmation, users have to fill in other details, like contact numbers, trade volumes, etc.
• Once the phone number is verified, the account will be registered successfully, and users will have two options – They can either sell Bitcoin or buy Bitcoin from their preferred seller.

LocalBitcoins Fees

LocalBitcoins have a simple fee structure with a flat 1% fee applied to every trade, and sellers have to pay this transaction fee. LocalBitcoins is free for those who want to buy Bitcoins. Hence, the platform is unlike other similar platforms in the sense that the trading fees are entirely borne by the makers, while the takers use the platform free of cost. Advertisements on LocalBitcoins can be made for free by both buyers and sellers; however, a 1% fee is charged to the advertisers for every successful trade. For instance, a sale of $10,000 is subject to a 1% fee or $100.

Though buyers are not charged any fee for purchasing Bitcoins, they need to be aware of the deposit fees charged while funding their accounts with BTC. Traders are also subject to a small withdrawal fee, but transferring Bitcoin to other LocalBitcoins users is fee-free.

LocalBitcoins Deposit and Withdrawal Methods

As per major LocalBitcoins reviews and our research we can say that it is a leading peer-to-peer Bitcoin marketplace that allows vendors and buyers to choose from a wide variety of payment methods for buying or selling Bitcoin. Starting from cash deposits, bank transfers, wire transfers, MoneyGram, and Western Union, a variety of payment methods are available in almost all regions. However, a few regions have limited payment options, and customers belonging to those regions can only find vendors accepting payments in those payment options. Certain vendors also accept payments in other cryptocurrencies, such as Ripple’s XRP. Ethereum and Monero XMR.

The LocalBitcoins’s sellers can also refill their accounts by sending Bitcoins from their external wallet to LocalBitcoins’s wallet, while buyers can send the fiat currency payments directly to their sellers depending on their preferred payment method. It is important to note that LocalBitcoins is a non-custodial wallet which means it does not hold custody or store its clients’ fiat funds.

Coming to the limits, there are NO LIMITS on the platform! The sellers can sell Bitcoin of any quantity and set a minimum or maximum purchase amount for every buyer. For instance, the buyers can purchase a minimum of 50 USD and a maximum of 100 USD. Hence, while there are no limits for sellers, buyers are subject to purchase limits set by their chosen sellers.

LocalBitcoins Supported Payment Method

LocalBitcoins offer multiple payment options to its buyers and sellers and here are the main ones:–

• Bank/Wire transfer
• PayPal
• Cash via mail
• Cash in person
• Western Union
• WebMoney
• Skrill
• Credit Card
• Debit Card
• Perfect Money
• Tele2

Note that traders can not use credit cards as a payment option since they buy or sell Bitcoin to individuals. Additionally, if users do not have any PayPal balance, they can use PayPal with their credit cards. Based on the chosen payment method, users are charged different fees. For instance, if a user purchases Bitcoin using PayPal, the seller is subject to more risk than the buyer.

LocalBitcoins Mobile App

LocalBitcoins did not have a mobile app before, but it has recently released its app for both Android and iOS devices in 2021. There are only a few apps in the app stores that permit trading on LocalBitcoins. The company does not encourage the use of those apps for various security reasons. To avoid risks, the platform advises using the official LocalBitcoins mobile app that ensures transparency and safety for its users to trade Bitcoin.

LocalBitcoins Security

There are several security features available on LocalBitcoins to allow traders to buy and sell Bitcoins confidently. The platform offers multiple layers of security to monitor and protect transactions within the exchange.

The security features are:–

Escrow Services

At the time of the trade, LocalBitcoins holds Bitcoins in its funds through an Escrow account. LocalBitcoins does not store any funds or crypto in its wallet. These funds are safely released from the Escrow account when the seller confirms the trade and completes it.

Reputation and Ranking

Not every trader is allowed to trade on LocalBitcoins. Buyers should take a look at the seller’s transaction history. Only those with ranking or ratings for reputation and a good history in their trading activities with other parties belong to the platform.

Login Safety and Protection

Every time a user logs in to the LocalBitcoins platform, it confirms whether it is on the same web browser. In the case of a different web browser, the platform requires email verification again to log in successfully.

Privacy

The platform never shares its clients’ information with any exchanges or wallets. It enables users to buy and sell Bitcoins, and at the same time, it maintains the user’s privacy.

Pin Verification

Whenever a trader logs in to the LocalBitcoin account, a one-time password is sent to the registered mobile number.

Two-Factor Authentication

2FA is another important security feature on the platform’s security chain. Banks and Google use this system. Two-factor authentication refers to the two security criteria. For instance, along with the email ID and password, the user needs to enter an extra PIN code that is sent to their mobile number.

Dispute or Conflict Resolution Service

LocalBitcoins support team is ever-ready to help customer disputes and conflicts that may arise between the buyers and sellers relating to the trade or transactions. Though the platform provides top-notch security features, it is always important to be cautious while trading. Hackers and scammers can hack even the most sophisticated systems. So, it is advised to investigate all buyers and sellers in a transaction to avoid mishaps.

LocalBitcoins Customer Support

Customer Support on LocalBitcoin is competent and well-organized. The best thing about the customer support team is that they respond very quickly and offer a remarkably high number of social media channels for their traders to request assistance relating to various problems and that makes LocalBitcoins a top cryptocurrency exchange. Besides, they have an extensive range of FAQs, and they usually respond to customer queries within an hour.

The team also provides special forms to report phishing or if users lose two-factor authentication or password. They can only be reached through email since they do not have phone support or live chat support.

LocalBitcoins Reviews: Conclusion

To conclude this LocalBitcoins Review, we can say that this platform can be tagged as one of the most popular and polarizing Bitcoin exchanges. It has an excellent reputation system, and the LocalBitcoins escrow service works well to protect funds. However, the platform is developed and designed especially for inexperienced and new buyers and sellers. That being said, by performing due diligence and providing sufficient caution, LocalBitcoins offers a completely safe and secure environment to its traders. However, the platform supports only one cryptocurrency, Bitcoin, and payment methods are mostly region-specific.

FAQs

Is LocalBitcoins Legal?

Yes, LocalBitcoin is legal in more than 111 countries. Within the United States, it is allowed only in certain states, such as Kansas, Virginia, Wisconsin, New Hampshire, Tennessee, Pennsylvania, New Jersey, Illinois, and Montana.

Why Is LocalBitcoins So Expensive?

Many traders may find the fee structure on LocalBitcoins to be expensive compared to the industry global average. No platform can provide all the features and not charge fees for their service. You can rarely find the best platform bundled with excellent features and low fees. LocalBitcoins charges a 1% fee only to those who create advertisements once the trade is complete.

Is LocalBitcoins Safe?

Though the platform witnessed a minor breach of security in 2019, where almost 8 Bitcoins were stolen from traders, LocalBitcoins has managed to reimburse these traders and patch the vulnerability. Nevertheless, the security features have improved by introducing a login guard, 2FA, and the escrow system. LocalBitcoins scams and hacks are rare.

Can You Get Scammed on Localbitcoins?

Unfortunately, yes! Even though LocalBitcoins is the most commonly used peer-to-peer network globally, it is still as vulnerable as it was initially. Users can get scammed easily on the exchange, despite the security features. The platform advises its buyers to cross-check their sellers and confirm only if they are verified.

Note: LocalBitcoins Reviews are not to be considered an endorsement or investment advice of any kind. Investors are requested to seek independent advice from a financial advisor and carry out their own research before trading on crypto exchanges.