Last Updated on January 22, 2021 by harsh vasistha
Are you looking for a LocalBitcoins review?
We know that Bitcoin is the ‘king of the capital’ and if you buy, trade, and sell bitcoins through LocalBitcoins exchange then you are at the safest spot until you do something unlawful like in Kenneth’s case.
Do you know the reason why LocalBitcoins exchange has garnered a lot of popularity worldwide?
Well, LocalBitcoins.com is the best P2P exchange that has been in business since 2012.
LocalBitcoins allows users to buy, sell, and trade bitcoins online as well as offline methods.
One of the biggest selling points of LocalBitcoins is that you can buy, sell, and trade bitcoin at a very competitive price with more than 60 payment methods across 248 countries.
Are you curious to dig LocalBitcoins deeper?
We have reviewed the LocalBitcoins exchange so that you can have a better understanding of the exchange features. How does it work? And concluded whether Local Bitcoins is safe and secure to invest?
What is LocalBitcoins? – LocalBitcoins.com review
So, what is LocalBitcoins.com?
LocalBitcoins is the biggest peer-to-peer marketplace to buy, sell, and, trade bitcoin located in Helsinki, Finland. It is in the world of crypto exchange since 2012.
LocalBitcoins holds its global reins over 13744 cities in 248 countries.
What is best about LocalBitcoins P2P exchange is that it lets sellers (person) and buyers (person) interact directly instead of matching them in an automated process via the exchange platform.
How to Create an Account at LocalBitcoins.com within minutes
How to create an account on LocalBitcoins.com – well, it’s actually easier done than said!
Yes, you heard that right.
The only requirement is an email id. So let’s find out.
Step 1: Once you type LocalBitcoins.com on your browser their page link will appear.
Step 2: Open the link and click on the green Sign up free button given in the middle of the page as you can see in the above image.
Step 3: As you can see in the above image. You will be redirected to the new page where you have to enter a suitable username, your email address, set up a strong password, Verify the captcha, Click at register.
Step 4: Then you will receive a verification email. Visit your email id. Verify the mail. Set up the 2-FA Authentication, and that’s it.
You are ready to buy, sell and trade Bitcoins at localbitcoins.com
If you’re creating a master company account, tick the checkbox “this is a company account” at the register page.
In order to create a master company account. Your company should be registered.
However, the features of a personal account and company account are the same.
What makes LocalBitcoins.com Best P2P Exchange? – Localbitcoins Exchange Features
Now, let’s talk about the amazing features LocalBitcoins has in store for you and what makes Localbitcoins one of the Best p2p cryptocurrency exchange
1. The Protection Shield of Escrow
The website implemented an escrow payment system and provided a conflict resolution service on the platform since its launch.
All Bitcoin trades are protected by escrow.
When a trade is requested on the platform, the traded Bitcoins are stored in escrow service.
It means the amount of Bitcoins for the trade is automatically reserved from the seller’s LocalBitcoins Wallet.
This means that if the seller runs away with your money and does not release your Bitcoins LocalBitcoins.com support can release the Bitcoins to you from escrow.
And If you’re selling Bitcoins, never release the escrow before you know that you have received money from the Bitcoin buyer.
Once the seller confirms trade completion the Bitcoins are automatically released from Escrow.
Thus, Escrow gives full protection to buyers and sellers and is one of the USP of Localbitcoins exchange.
2. The Assurance of Regulated Compliance
LocalBitcoins has always been dedicated to upgrading their level of compliance.
Localbitcoins.com promotes trust, confidence, legitimacy, reliability, and secured growth through its P2P exchange platform.
Traders need not face any trouble because bitcoins are regulated in a compliant manner.
3. A plethora of payment Methods
Localbitcoins marketplace supports more than 60 payment methods. This makes Localbiitcoins unique from other cryptocurrency exchanges.
You can buy and sell bitcoins using your favorite payment methods from Bank transfer to Gift cards.
The payment methods supported by the Exchange can be categorized into 6 categories.
Credit cards, Bank Transfer, Local payment methods, cryptocurrencies, Gift cards, Cash, and other online payment services
4. Find Reputable Parties Quickly
Every trader on the exchange platform gets a reputation rank.
Also, their past records remain visible publicly.
So, when you go to buy or sell through the platform identify reputable other parties to avoid suspicious offers.
5. LocalBitcoins can Track Your Logins
LocalBitcoins’ user verification system is of the best quality.
When you log in to the LocalBitcoins platform it tracks whether you are logging from the same browser or different.
If you use a different browser it prompts a verification of your email id.
6. Hacking Prevention by Mobile PINS
Have you ever felt threatened by hackers in the past?
And, when it’s about dollars the threat potential quite obviously increases.
That’s why LocalBitcoins sends a PIN code to your personal mobile so that only you can access your account using the mobile PIN.
How Does LocalBitcoins p2P exchange Work?
Now, you may be thinking how does LocalBitcoins p2p exchange work, right?
The principles of OTC (Over the Counter) trading are applied to make LocalBitcoins work efficiently.
What is OTC? OTC is off-exchange trading where sellers and buyers take part without the platform being in-charge.
People prefer to buy and sell Bitcoins OTC because it allows for fast transactions and more diverse payment methods.
This creates a better user experience for the customer.
Let’s see how this happens.
For example, A is a seller and B is a buyer who went to LocalBitcoins for their respective needs.
- A posts bitcoin advertisements on the P2P exchange platform.
- B finds that advertisement meeting his needs.
- B pays through a chosen payment method.
- B receives the bitcoins.
- A receives the money.
Here, LocalBitcoins plays the role of what e-commerce sites do i.e. being a third party. LocalBitcoins can be considered as an eBay or Amazon for Bitcoins
How to buy bitcoin at LocalBitcoins exchange – a step-by-step guide
Step 1: Log-in to your LocalBitcoins account. Click on “Quick Buy” on the main page.
Step 2: Fill the form given in the search box as shown in above image. Enter the amount.
Choose the Fiat currency you wanted to open the trade.
Choose your country of residence as shown in the above image
Select a payment method of your choice as shown in the above image. Then click on search
Step 3: Now, choose a trader who has a good reputation score from the ad list. Click on the “Buy” button to see the ad in detail.
Step 4: The amount you want to buy, put it in the blue rectangular box. Leave a message for the bitcoin seller. Click on “Send trade request”. And, trade-off!
Step 5: Make the payment. Click on “I have paid” after making the payment.
Step 6: Bitcoins will be right away available to your online wallet after the trader verifies that he has received the payment.
Buying Limits – Localbitcoins review
You can buy bitcoin without your identity verification (anonymously). However, your buying limit will be limited if you do not verify your account.
Buying limit at LocalBitcoins according to identity verification are:-
- Tier 0 (T0) – Your name, email id, country name, and phone are required. The trade limit is €1,000/year
- Tier 1 (T1) – T 0 plus physical address, KYC information, and ID verification are required. The trade limit is €20,000/year
- Tier 2 – Trade limit is €200,000/year. And, Tier 1 plus proof of residence is required.
- Tier 3 – Trade is unlimited. Tier 2 plus extra ID verification is required.
Payment Methods Supported by LocalBitcoins Exchange
You can buy, sell and trade Bitcoins using more than 65 payment methods at Localbitcoins Exchange.
Localbitcoins supports a plethora of payment methods from Bank transfer, Credit cards to Gift cards, Cash, etc.
This is one of the USPs of Localbitcoins that allows users to buy and sell Bitcoins even in underdeveloped countries including the country’s local payment methods for example PayTM or UPI in India and ApplePay in the USA.
You can buy bitcoin in person to person via cash. Localbitcoins has opened a window of opportunities to every country in the world.
Apart from it here is a list of all the payment methods supported by LocalBitcoins Exchange.
AdvCash, Google Wallet, CashU, Moneygram, Western Union, Chase Quick pay, Swift, PayPal, Payoneer, Payza, Payeer, OKPay, Perfect Money, Paxum, PayTM, Gift cards, Cash app, Cash, IMPS, UPI, WebMoney, Bank Transfer, Zelle, Neteller, Credit Cards, etc.
LocalBitcoins Wallet review
LocalBitcoins has an in-built wallet.
The LocalBitcoins wallet is a web wallet, meaning that it can be accessed and used online. It is an easy-to-use solution, very common in Bitcoin exchanges. The main purpose of a LocalBitcoins wallet is to store bitcoins for trading.
Every account in LocalBitcoins has access to a free Bitcoin wallet to send out transactions. Accounts that are verified for at least Tier 1 also have their own receiving wallet addresses to credit transactions into their LocalBitcoins’ wallet.
The LocalBitcoins wallet facilitated to send and receive Bitcoin among each other.
LocalBitcoins wallet is also required to lock bitcoins during trades.
Let’s find out how you can receive, send, and earn bitcoins at local bitcoins exchange
Step 1: Log-in to your LB account. Click on “Wallet” on the dashboard.
Step 2: Click on “Receive bitcoins”.
Step 3: Provide the following bitcoin wallet address to receive bitcoins to the LocalBitcoins wallet
Step 1: To send BTC, click on “Wallet” from your exchange dashboard.
Step 2: Click on “Send bitcoins”
Step 3: Add your personal wallet address to transfer Bitcoins that you’ve bought at the Exchange
How to Sell Bitcoins on LocalBitcoins
Selling bitcoins on LocalBitcoins is the same as Buying the Bitcoins. Follow the steps given below.
Step 1: Log-in to your account on the exchange platform. On the main page click on “Quick Sell”.
Step 2: Fill the form given in the search box with the amount of currency and your location. Then, select a method of payment.
Step 3: Also, you can choose an advertisement from a trader having a good reputation score. Click on “Sell” to view more details about the ad.
Step 4: Enter the number of sales in the blue box. Here, you can enter a message for the buyer. Click on “Send trade request”. And, trade-off!
Step 5: Once you receive payment on behalf of your trade scroll down the page. Can you see “Release Bitcoins”? Click on that.
Step 6: Thus, you’ll send BTC from escrow to the buyer to complete the trade cycle.
Whether you’re buying or selling bitcoins it absolutely costs you zero.
But, if you create ads then you have to pay 1% of fees per trade.
Fiat & Cryptocurrencies Supported by LocalBitcoins exchange
The primary cryptocurrency available to buy, sell and trade on the LocalBitcoins platform is Bitcoin.
Fiat currencies supported by LocalBitcoins are,
And, 120+ other fiat currencies are also supported by LocalBitcoins exchange
LocalBitcoins Review – Fees
LocalBitcoins charges a flat 1% trading fee for users who created the advertisements on completion of the trade.
There is no Bitcoin deposit Fee and Withdrawal fee (network charge may apply)
Transactions to wallets of other LocalBitcoins users are free.
LocalBitcoins customer support review
LocalBitcoins provides 24*7 email support. Support response is instant. Disputes are resolved swiftly.
LocalBitcoins vs. Paxful review
Isn’t the name of Paxful evident to come while talking about LocalBitcoins exchange?
Of course, it’s! Now, what’s Paxful?
Paxful is another popular P2P crypto exchange just like LocalBitcoins.
Basically, both of the sites, Paxful and LocalBitcoins, offer quite similar services to its users at a similar fee.
However, LocalBitcoins is more reliable as it has been around longer.
And, LocalBitcoins has a wider range of buyers and sellers.
LocalBitcoins is the largest P2P Bitcoin trading platform, LocalBitcoins continues growing with more than 4000 new sign-ups every day.
How to trade safely at LocalBitcoins Exchange?
Localbitcoins is a safe and secure bitcoin exchange platform but it is always advisable to follow the below points before opening a trade. At the end of the day, you’re trading with strangers so you have to make sure you’re taking precautions.
Always look for a reliable seller. Never prioritize Bitcoin price over seller reputation. Visit the seller profile and look for the following qualifications:
- Has a feedback score of 98 percent or higher
- Has 100BTC or more in trading history
- Made 100 successful trades
- Have account older than one year
- Should be KYC verified
- Should be trusted by 10 or more people
However, it is not necessary that a seller without the above qualifications will be a fraud or scam. Because as soon as the user opens the trade Bitcoins will be locked in the escrow.
The idea is to do your homework and see that the seller actually has a solid trading record in the past.
Additional safety tips
- Enable Login Guard from the security settings of your account to prevent logins to your account without e-mail confirmation. This is not enabled by default for older accounts, please make sure it is turned on.
- Enable Two-Factor authentication on your LocalBitcoins account, this adds a second layer of security in case your password falls into the wrong hands.
- Make sure you do not store the backup code electronically, write them down and store the code safely. Enable it from your security settings.
- Never agree to trade outside the LocalBitcoins platform.
- Never send more information before getting a response from the seller
- Do not send payment information outside the exchange (no emails, phone calls, etc.)
- Get your account KYC verified to trade in a larger volume. It also opens opportunities to trade with trusted and reputed traders
Conclusion – is LocalBitcoins.com safe & legit to use?
Yes, LocalBitcoins is completely safe, buddy!
Without a doubt, Localbitcoins is one of the safest and reputed Bitcoin exchange to buy, sell, and trade Bitcoin. Escrow service implemented by the platform works quite efficiently.
For login 2FA authentication is mandatory.
LocalBitcoins remembers your web browsers and verifies logins are coming from the same browser. If an unknown web browser is encountered, an email confirmation is required before the login can proceed.
But if there are any issues, talk to the seller directly. Disputes are resolved timely.
You’ve got the LocalBitcoins’ escrow service protection guard. So, don’t worry about losing your hard-earned money.
Reputation system also helps in finding and filtering trustworthy sellers and buyers.
Dynamic pricing system with hundreds of sources ensures your prices are always up to date.
Did you know LocalBitcoins has a 4.8 rating on Trustpilot reviews?
I have been using LocalBitcoins since 2016 and have made more than 2000 trades till now. I have never encountered any issues.
Hundreds of Bitcoin traders from all over the world already earn a living trading Bitcoins on LocalBitcoins. And the number is consistently growing.
LocalBitcoins is certainly one of the best place to buy bitcoins at a very competitive price.
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Frequently Asked Questions
Does the LocalBitcoins platform have a mobile app?
LocalBitcoins exchange has no native mobile app. But, you can access the website from your smartphone browser. However, if you are an Android user, you can use the LocalTrader app for accessing and making updates on the platform.
What’s the average time taken for LocalBitcoins withdrawal?
You can withdraw your bitcoins within 2-3 hours.
Is LocalBitcoins available in India?
Yes, Localbitcoins is available in India. You can buy, sell and trade Bitcoins with more than 60 payment methods in India.
Is LocalBitcoins exchange is registered and licensed?
Yeah, Localbitcoins exchange is registered. The Finnish Financial Supervisory Authority, FIN-FSA, has registered LocalBitcoins as an official virtual currency provider.
What are the alternatives to LocalBitcoins?
LocalBitcoins exchange is amazing with unusual methods of payments such as cash, PayPal, or Western Union. But, if you are one of those who want a general trade-off you can try the Paxful and Bitvavo crypto exchange. But Localbitcoins stands head and shoulder above the rest of the peer to peer exchanges.
What is the minimum amount to trade on Localbitcoins?
You can trade as low as $1 to an unlimited amount at LocalBitcoins exchange depending on your account level.
Is localbitcoins available in the USA?
Yes, Localbitcoins exchange is available in the USA. USA's residents can buy, sell and trade bitcoin with more than 60 payment methods including Apple Pay, Amazon gift cards, etc
Can I trade anonymously at Localbitcoins exchange
Yes, you can trade anonymously at LocalBitcoins exchange but your buying limit will be limited.
Why is it so expensive to buy with Paypal? or Credit card? Why are some payment methods cheaper?
One of the best features of Bitcoin is that it gives you control over your money, but it's also this feature that makes it very different from traditional money.
Bitcoin transactions are irreversible, most traditional payment methods can be charged back.
This creates risk for the person selling the Bitcoins, as PayPal or a bank can take the money someone paid him out of his account after he has sent away the Bitcoins.
That is why traders need to have a high price for certain payment methods, to protect themselves against this risk.
That is why Localbitcoins recommend for you to get the best price to pay using a hard to reverse payment methods, such as Cash Deposit, bank transfers, and mobile payments (Like Qiwi in Russia).
When you search to buy Bitcoins, select All online offers as a payment method and you will see offers for all payment methods and you can choose one that is convenient for you and offers a better price.
What happens when you pay, and the seller doesn't release the Bitcoins?
All online trades at Localbitcoins Exchange are protected with escrow to prevent this from happening. When the trade is started, the Bitcoin amount for the trade is taken from the seller's wallet and is held by LocalBitcoins for the entire time of the trade. If the seller is trying to scam you, it's easy for you to open a dispute on the trade and our support staff will contact you to ask for proof that you have paid and then give the Bitcoins to you.