With the world of cryptocurrencies, investors are looking for a trustworthy place to buy and sell Bitcoins, let’s take a look at LocalBitcoins, an exchange that has been around since 2012, and how it is one of the best exchanges for trading Bitcoin in 2021.
LocalBitcoins is a popular peer-to-peer (P2P) Bitcoin exchange that serves users in countries around the world and has a strict trust system to protect buyers and sellers from fraudsters. LocalBitcoins allow users to place advertisements indicating the exchange rate and payment method for buying or selling Bitcoins. When users place an ad indicating their exchange rate or payment method for buying or selling Bitcoins, other members can respond to the ad and agree to buy the Bitcoins.
Is Verification Required – Verification Levels & Fees
Yes, verification is required on LocalBitcoins. LocalBitcoins considers verification an important process to maintain the security of both the platform and its customers. Four levels determine the buying limits of the traders on LocalBitcoins. These are
- T0: Requires verification of name, country, email, and phone number.
- T1: Requires T0 verification + physical address, ID verification, and KYC (Know your customer)
- T2: Requires T1 verification + proof of residence
- T3: Requires T2 verification + another ID verification
You can find the details about all Verification levels and processes in detail on LocalBitcoins’ verification guide page.
LocalBitcoins also has a competitive fee structure. There is no fee for registration, buying, or selling of Bitcoins. Users are charged a 1% fee on completed trades from advertisements. There is a fee on transactions that are displayed on the customer’s wallet page that is calculated according to Bitcoin’s blockchain and its activity. You can find the details about the fee here.
Payment Methods supported by the LocalBitcoins
LocalBitcoins offers a variety of payment methods for buying/selling Bitcoin. These include:
- Bank Transfers
- Credit/Debit Cards
- Gift Cards
- Mobile Wallets
- Other Cryptocurrencies
- Western Union
- Square Cash
- Cash (Mail or physical exchange)
You can even filter out advertisements for buying according to your preferred payment method.
Does the exchange provide enough liquidity?
Liquidity is a term often used to describe the ease with which any cryptocurrency can be converted to fiat currency (cash) and how quickly. When you look at LocalBitcoins, it offers the users high liquidity. You can select ads based on your choice of payment methods for both selling and buying which offers a great system for users. You can trade Bitcoins using a variety of payment methods and the money reaches you quickly. So yes, LocalBitcoins offers its users more than enough liquidity.
LocalBitcoins Security Features
LocalBitcoins has a lot of security features and protocols that it implements. You can find out more about them on LocalBitcoins’ security guide page.
- No storage: Local Bitcoins do not hold cryptocurrency on the platform, unlike other exchanges, so buyers or sellers can only use their internal wallet system or the platform’s “escrow service”. This reduces the risk of hacks on the exchange.
- Escrow: When any buy/sell transaction is initiated, Localbitcoins moves the Bitcoins involved in the transaction to a state called the escrow where neither the buyer nor the seller can access them. These are only released after confirmation by both parties ensuring there is no fraud committed.
- Reputation Management: All Localbitcoin traders have a reputation rating that depends upon their number of trades.
- Activity Monitoring: All user logins on Localbitcoins are monitored. If the user tries to log in from a new device, an email verification process is initiated to verify the login.
- 2FA: LocalBitcoins also has Two-factor authentication that will send an OTP (One Time Password) to your account’s registered mobile device for login verification.
- Anonymous Buys: LocalBitcoins also allows users to maintain privacy by making anonymous buys where their identity is not revealed to the counterparty.
LocalBitcoins also offers rewards to security researchers for reporting vulnerabilities. You can find out more on LocalBitcoins’ Whitehat page.
Is your money safe with LocalBitcoins?
In short, Yes your money is safe with LocalBitcoins. LocalBitcoins is a Bitcoin startup based in Helsinki, Finland, and offers users the opportunity to buy Bitcoins in exchange for local currencies. It allows users from more than 200 countries to trade Bitcoins and it is easy to buy and sell Bitcoins with low charges. This popular peer-to-peer (P2P) Bitcoin marketplace serves users in countries around the world, enabling them to exchange their local fiat currency for Bitcoin and use various payment methods supported by providers in their region. To avoid risks, the company recommends using the official mobile app LocalBitcoins to ensure the transparency and security of its users when trading in Bitcoin. LocalBitcoins has been offering its services since 2012 and is one of the most popular sites for trading in Bitcoin.
LocalBitcoins Pros and Cons
Following are the pros and cons of the LocalBitcoins crypto exchange platforms –
- Great security measures
- Over 200 supported Countries
- Various payment options
- Easy interface
- Reputation system to identify traders
- Compulsory verification of ID
- Unsuitable for large volume trades
LocalBitcoins is a large P2P (peer-to-peer) service, meaning people can exchange their local currency and altcoins for Bitcoin from all over the world. The exchange has been one of the best since 2012 and offers users a safe and secure exchange. With support in over 200 countries worldwide and a ton of supported payment methods, LocalBitcoins is one of the best places if you are looking to trade Bitcoin easily in 2021. With low hassle, easy account set-up, low fee structure, and security measures, LocalBitcoins is a safe place to trade when used with care and caution. LocalBitcoins is one of the only ways to buy Bitcoin in person in many countries that use non-traditional payment methods such as legacy coins and online payments processors.