LocalBitcoins Exchange Review

LocalBitcoins Review

An In-Depth Guide To The LocalBitcoins Platform

What Is LocalBitcoins?

LocalBitcoins

Company Facts:

CEO:Nicholas Kangas
Headquarters:Helsinki, Finland
Founders:Nicholas Kangas, Jeremias Kangas
Founded:2012
Website:www.localbitcoins.com
Customer service:Contact Support

Based in Helsinki, Finland, LocalBitcoins is a person-to-person bitcoin trading platform with over 1,000,000 registered users which specializes in connecting buyers and sellers. LocalBitcoins is unique in that it has a reputation and feedback mechanism for buyers and sellers along with an escrow and conflict resolution service.

On the platform, there are hundreds of options for payment including cash, credit card, gift card, postal mail, MoneyGram, PayPal, Western Union, Square Cash, Payoneer, Payza, Chase QuickPay, WebMoney, Vanilla and cryptocurrencies.

Before making any purchase decision with an exchange always ensure to investigate the reputation of management, venture capital investors and regulatory approvals. Make sure to learn about each company’s values and core mission and to perform proper due diligence on review sites, message boards and with investment professionals. 

Is LocalBitcoins Legit?

LocalBitcoins is a person-to-person exchange for over-the-counter bitcoin trading based in Helsinki, Finland and was founded in 2012. The executive team consists of Nicholas Kangas (CEO) and Jeremias Kangas (Founder).

Countries Supported By LocalBitcoins

LocalBitcoins is supported in every country around the world (see here for specifics).

Cryptocurrencies Supported

LocalBitcoins primarily supports Bitcoin although it would be possible to perform transactions with other cryptocurrencies as well.

LocalBitcoins Wallet

The LocalBitcoins wallet is a web wallet, so it can be easily accessed on any device connected to the Internet with a web browser. It is extremely simple to send and receive bitcoin from your personal LocalBitcoins Wallet which is located within your dashboard.

Although it is a handy app, we would not recommend storing your bitcoins in the LocalBitcoins Wallet for the long haul and instead consider moving them to a secure cloud, smartphone or hardware wallet such the Trezor or KeepKey.

Verification Time

There are three ways to verify your account and they are all simple to get set up: (1) E-mail, (2) Phone number and (3) Identity verification.

If you are a company you can verify your identity with the Company Verification Form.

Fees

On LocalBitcoins registering, buying, and selling Bitcoin is completely free.

LocalBitcoins users who create advertisements are charged a 1% fee for every completed trade.

Transactions to wallets of other LocalBitcoins users are free. Note: Any Bitcoin network transaction fees are paid from your LocalBitcoins wallet when you send a transaction.

Buy & Sell Limits

On LocalBitcoins users get to create their own market limits for buy and sell orders.

On the platform, there are hundreds of options for payment including cash, credit card, gift card, postal mail, MoneyGram, PayPal, Western Union, Square Cash, Payoneer, Payza, Chase QuickPay, WebMoney, Vanilla and cryptocurrencies.

Is LocalBitcoins Safe?

LocalBitcoins provides escrow protection for safe trading which protects both the buyer and the seller. They also have a reputation system for finding and filtering trustworthy customers.

LocalBitcoins has Two-Factor Authentication (2FA) for your account which can be enabled with the Google Authenticator app or with a paper code. Reference the security guide.

Two Factor Security Authentication

Customer Service

Customer support can be reached on the support page. If you want to submit a ticket to LocalBitcoins, click on the Other tab in the contact support page and fill out your request.

LocalBitcoins has a Frequently Asked Questions (FAQ), which also has a handy glossary.

How To Use LocalBitcoins

LocalBitcoins works in two ways: (1) Users can agree to meet the seller to buy bitcoins with cash or (2) Pay with online banking.

In this guide, I am going to teach you how to buy and sell bitcoin on LocalBitcoins.

Step 1: You will need to create an account on LocalBitcoins if you haven’t already.

Step 2: In order to get started with buying and selling on LocalBitcoins, first, you need to create a Bitcoin trade advertisement. Here you will choose a payment method, set your pricing, your limits and write your terms of the trade as a free-form message.

Step 3: You will need to fund your LocalBitcoins wallet with Bitcoin. You need to have Bitcoin in your LocalBitcoins wallet in order for customers to be able to open trade requests from your advertisements.

Step 4: When a buyer opens a trade with you, Bitcoin for the full amount of the trade is automatically taken from your wallet into escrow. Give the buyer payment instructions and guide the buyer through paying for the trade. You will receive email and SMS notifications when someone replies to your advertisement.

Step 5: Once the buyer has paid and pressed the I have paid button you will receive a notification via e-mail, SMS and on the website that a trade has been paid for.

Step 6: When you’ve confirmed that you have received the payment it’s time for you to release the Bitcoins. This moves the Bitcoins from escrow to the buyers LocalBitcoins wallet.

Step 7: The final step is to Leave feedback for the buyer and encourage the buyer to do the same for you. Feedback is important in order to gain reputation and make more trades.

LocalBitcoins vs Coinbase

When comparing the two exchanges, LocalBitcoins and Coinbase they both have their unique features. LocalBitcoins is a great platform for meeting local buyers and sellers who can trade bitcoin with you, whether in person with cash or with online banking. If you have a smartphone, Coinbase is an excellent app to take on the go to buy Bitcoin, Ethereum, Litecoin, and other cryptocurrencies. Overall, I recommend checking out both as they are both excellent choices to buy Bitcoin quickly and effectively.

If you want to view more great exchanges for buying and selling bitcoin check out our full guide.

Conclusion

LocalBitcoins is an excellent platform for buyers and sellers to trade bitcoin with one another effortlessly. You have over 100+ payment options and getting started only takes 5 minutes. Users are given full autonomy over their listings and can set up shop as a merchant anywhere around the world. The platform is available in all countries. Overall, LocalBitcoins is one of the best places to get started with buying and selling bitcoins. The interface is excellent and easy to use, which makes the buying process simple and clean.

LocalBitcoins

9.3

Overall

9.3/10
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