LocalBitcoins is a peer to peer exchange, a different type of exchange because you do not have an internal order book. This platform is used to buy and sell only Bitcoin, and if banks in your country have prohibited transactions on other exchanges, LocalBitcoins may be your only way to get a hold of the asset. On LocalBitcoins you buy and sell BTC over the counter (OTC) by directly interacting with another person while the platform act as an intermediary to secure the exchange between the parties.
Founded in 2012 by Jeremiah Kangas, the exchange became an irreplaceable part of the crypto industry. The CEO is currently Nikolaus Kangas, and the exchange is registering record volumes with each new day. Many people turn to LocalBitcoins in countries with a poor economic situation and restrictions such as Venezuela and Zimbabwe.
LocalBitcoins Features Review
|Deposits||BTC, Bank transfers, SEPA and more|
|Max. Withdrawal Limit||None|
LocalBitcoins Security Review
The website implements the standard 2FA authentication and login guard. You have a wallet on the website, but overall you do not have an internal order book where you have a big quantity of BTC held in a hot wallet. Overall, a strong password and the activation of 2FA authentication on LocalBitcoins will ensure your security. There is also the possibility to verify your identity, which increases security a little and gives you the possibility to create trade advertisements (ads).
LocalBitcoins Deposit and withdrawals Review
You have a BTC address on the platform where you make a deposit if you intend to sell. Because this platform connects people, it does not store bitcoin in an escrow account for a long period of time until the payment is completed with fiat. The traders can accept all means of payment such as Bank Transfer, SEPA, PayPal, Neteller. You can even meet with the person you are trading with and settle the deal directly in cash. Compared to traditional exchanges such as Binance or KuCoin, there is no limit to how you can deposit fiat or exchange it for Bitcoin, as everything depends on the traders.
Local Bitcoins User Interface Review
The interface of LocalBitcoins is quite straightforward and you have no order types or charts since it is a strictly direct exchange of Bitcoin to fiat or vice-versa. You have several trading suggestions, advertisement lists from which you can choose the offer that suits you best. When you select a trader with whom you want to sell or buy BTC, you should check the feedback, because you want to know who you are dealing with and whether the person is trustworthy.
When you choose the trader, a page opens where you can set the value in fiat and/or in BTC that you want to buy. You can also write a message to the seller (optional) and send a trade request.
This is not a trading platform where you place and open orders or market buy Bitcoin. This is a peer-to-peer exchange, and the user interface is sufficient for such a platform, it is not perfect, but it is simple and effective. You do not spend hours on this platform to trade, you come, you choose a trader and exchange.
Trading fees breakdown
LocalBitcoins charges a 1% fee on each trade concluded, this is the only fee the exchange has. For using cash you have a billing system where the fee is 1.5%. Again, if you have no other way to buy Bitcoin, the fee is insignificant if you know the upside potential and especially if you live in a country with high inflation and strong capital controls.
If you process via bank transfers, SEPA, PayPal, etc., there is, of course, an additional fee for these services. So you have to calculate everything carefully if you don’t want to end up with an unexpected fee.
LocalBitcoins Options and Order types Review
As the platform name points, this is only a BTC exchange, as it is a place for one thing only – the direct buying and selling of Bitcoin.
The order type here is just a market buy and sell, you trade directly with another person at the current or negotiated price.
The LocalBitcoins affiliate program is quite good, but the unfortunate thing is that after a user registers through your affiliate link, you will receive a commission of 20% for only 1 year.
Is LocalBitcoins a scam?
LocalBitcoins is not a scam, as the platform has been established since 2012. It has been on the market for quite some time and is, therefore, one of the oldest platforms. Of course, there is a possibility that you can be cheated by a seller or a buyer. Even if the platform tries to implement an escrow account and KYC information to protect its users, such misfortunes may happen from time to time.
LocalBitcoins Review Conclusion
This type of platform is rare on the market and is the most commonly used for peer-to-peer buying and selling of Bitcoin worldwide. You will not make a mistake when you start using LocalBitcoins as long as you are careful who you trade with. Making sure that the person you want to trade with has a good rating and feedback is always helpful and will minimize the risk.