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The sellers and buyers decide and agree on the transaction terms, and LocalBitcoins facilitates the transaction along with the escrow service for the protection of the trading parties.
The nature of this method makes it one of the most private methods of buying selling out there.
Now that you have an idea of what LocalBitcoins does, you’re wondering how well it executes its mission.
Keep reading, and you’ll find out!
Due to the nature of LocalBitcoins, it’s available in any country that doesn’t ban Bitcoin or the exchange itself. We’d recommend checking to see if there are offers in your country. If so, you’re good to go!
From what we can gather, the only two places in the world that ban the use of the service is New York, and Germany. New York support was removed after the introduction of the BitLicense.
LocalBitcoins supports a wide array of fiat and cryptocurrencies. While the site is called LocalBitcoins, they offer altcoins like Ethereum, Monero, and more. There are competing sites specializing in altcoins but they haven’t gotten anywhere near as much traction.
The site includes plenty of payment methods giving an option for everyone. These include but are not limited to:
So what you have to understand about LocalBitcoins is that it’s an escrow service. People are free to set whatever price on their offers. That being said, in addition to premiums exchange users place on price, their escrow service incurs a 1% fee. This fee is absorbed by the maker.
LocalBitcoins has somewhat lower limits due to the privacy nature of the exchange. Here’s an official LocalBitcoins chart displaying how limits and verification tiers scale.
LocalBitcoins was founded by Jeremiah Kangas in 2012. It is one of the oldest Bitcoin exchanges. LocalBitcoins was one of the first Peer-to-Peer (P2P) Bitcoin exchanges. It is now the largest one.
It is currently headed by Nikolaus Kangas, who is the CEO. LocalBitcoins has its headquarters in Helsinki, Finland. It has its operations in about 248 countries and about 14000 cities.
As stated above, vendors on LocalBitcoins will charge higher premiums than other methods, but because it is an option we will provide a tutorial. A requirement for a LocalBitcoins account is a phone number.
First, create an account on LocalBitcoins if you do not have one already. Using the menu on the main page, enter the amount of Bitcoin you want to buy, as well as selecting a payment method. Click search.
At the time of this writing, Bitcoin is selling for $7600. Considering the first option is selling Bitcoin for $8350, this is a 10% premium minimum, and increases fast as you move down. LocalBitcoin charges 1% fees, Paypal charges around 3% so these fees really start to add up.
Select a seller, and you’ll be taken to a page similar to this. Read the sellers rules and send a trade request.
If the seller agrees to sell after viewing your account then you both can proceed the transaction using Localbitcoins as an escrow service.
Congrats, you have successfully used LocalBitcoins to purchase Bitcoin!
LocalBitcoins is one of the most private ways to buy Bitcoin, a close second from Bitcoin ATMs. For transactions under 1000 Euros, just an email and phone number are needed. Higher than that will require ID verification.
LocalBitcoins is one of the most known cryptocurrency exchanges in the space. Just to be safe, choose a vendor with a good rating and a high amount of feedback.
Yes, to signup and transact on LocalBitcoins you need to validate your account. Validating your account requires you to use a real identity with a valid ID and phone number.
The actual exchange provides infrastructure for users to trade. Other people on the exchange know people will pay extra for the convenience and privacy LocalBitcoins provides. LocalBitcoins itself only charges 1% for its services.
LocalBitcoins is one of the best Peer-to-Peer (P2P) cryptocurrency exchanges with many advantages over its peers. It is good for users on the basis of various criteria like speed of transactions, availability in almost all countries of the world, payment options, Altcoins options, etc.
The main downside of the service is the methods can be a bit more time consuming and fee intensive.
We reccomend this service only for people who care about privacy and are paying with a method like cash.
If you have any questions about the service or want to share your experience with it, let us know in the comments!