Review of LocalBitcoins, a person to person exchange, it is different as you don’t have an internal order book. This platform is used for purchasing and selling Bitcoin and if in your country banks have barred any transactions to the other exchanges, LocalBitcoins may be your only option to buy and sell BTC.
Founded in 2012 by Jeremiah Kangas the exchange became an irreplaceable part of the crypto industry. The CEO at the moment is Nikolaus Kangas and the exchange is having record volume with each new passing day. Many people turn to LocalBitcoins in countries with a bad economic situation and restrictions like 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 don’t have an internal order book where you have a big quantity of BTC held in a hot wallet. Overall strong password and enable 2FA authentication on LocalBitcoins will keep you safe. There is also the option to verify your identity which will up the security a bit and you will be able to create trade advertisements.
LocalBitcoins Deposit and withdraws Review
You have a BTC address on the platform upon which you deposit if you intend to sell. As this platform is connecting people to people it doesn’t hold crypto for a long period of time in an escrow until the payment with FIAT is complete and the traders can accept any means of payment such as Bank transfer/SEPA/PayPal/Neteller. You can even meet with the person with whom you are trading and do the deal directly in cash. Compared to the traditional exchange like Binance or KuCoin here you have no limit on how you can deposit or exchange FIAT to Bitcoin as it all depends on the traders.
Local Bitcoins User Interface Review
The interface of LocalBitcoins is quite straight and you have no order types or charts as this is strictly direct exchanging of Bitcoin to FIAT. You have different trade propositions/advertisement list where you can choose the offer which suits you best. When you are choosing a trader from whom you want to sell or buy BTC you should check the feedback. As you would like to know with whom you are dealing with and if the person can be trusted.
When you choose the trader this page opens up, where you set up the value in FIAT and the BTC which you want to buy. You also can write a message to the seller (optional) and send a trade request.
This is not a trading platform where you deposit and open orders or market buy the crypto. This is peer to peer exchange and the UI is enough for such a platform, it is not perfect but it is simple and effective. You don’t spend hours on this platform to trade, you come, you choose and you exchange.
Trading fees breakdown
LocalBitcoins takes a 1% fee on every completed trade, this is the only fee that the exchange has. For using cash you have an invoice system which makes the fee 1.5%, an additional 0.5% on top of the 1%. Again if you have no other option for buying Bitcoin the fee is insignificant when you know the upside potential and especially if you live in a country with high inflation and bad economic situation.
Of course, when you transact through Bank transfers, SEPA, PayPal, etc… you will have another fee for those services. So you need to calculate everything carefully if you don’t want to end up with an unexpected fee.
LocalBitcoins Options and Order types Review
Your only option here is BTC as this is an exchange only for one thing – direct buying and selling of Bitcoin.
The order type here is just one market buy/sell, you exchange at the current price directly with another person.
The LocalBitcoins affiliate program is quite good, but the unfortunate is that after a user registers through your affiliate link you will receive commissions for 1 year. From this program, you receive 20% of the trading fees. It is not much and the limitation of 1 year is unfortunate but if you many people go through you to register and trade often on the platform you can make quite the returns.
Is LocalBitcoins a scam?
LocalBitcoins is not a scam as the platform has established itself since 2012. It has been on the market for quite the period, making it one of the oldest platforms out there. Of course, there is a chance that you can be scammed by a seller or a buyer. Even if the platform tries and implements an escrow and KYC information so it can protect its user, such misfortunes happen from time to time.
LocalBitcoins Review Conclusion
This platform type is rare on the market and it is the most used in the world for peer to peer buying and selling for Bitcoin. You will not make a mistake if you start using LocalBitcoins as long as you are careful with whom you are trading. Making sure that the opposite person account has a good rating and feedback is always helpful and it will bring the risk to a minimum.
Pros / Cons
- Peer to peer exchange
- High volume
- Available in 240+ countries
- Only BTC
- Old UI design