LocalBitcoin.com Review – How to Buy Bitcoin at LocalBitcoin.com
Is LocalBitcoin.com a legitimate exchange? That’s a question that will be answered in this Local Bitcoins review.
Overview & Company Info
LocalBitcoins is a peer to peer exchange allowing for trades of bitcoin for local currencies. LocalBitcoins was founded in 2012 in Helsinki, Finland.
How Does Local Bitcoins Work?
LocalBitcoins functions as an escrow service, essentially. Users post advertisements on the site either offering to buy or sell bitcoin, which other users are able to respond to. When a bargain has been reached between two users, they agree to buy bitcoin with either cash or through online banking. LocalBitcoins holds the bitcoin in escrow until the transaction is completed and verified.
The site has a reputation system and conflict resolution process in cases where one or more parties are aggrieved.
How To Create Your Account (Is there an ID/Verification Process?)
It’s necessary to create an account to either buy or sell bitcoin on LocalBitcoins. However, it’s not necessary in all cases to provide some form of valid ID in order to complete a transaction. It’s up to the users as to whether they want to require their partner to provide identification.
How To Buy Bitcoin At Local Bitcoins
There are two methods for buying bitcoin on LocalBitcoin. The first would be to respond to an advertisement that another user has posted. Assuming you meet the requirements and you agree to terms, you would then either meet up with the user to exchange cash or complete the transaction via online banking.
The other method for buying bitcoin would be to post an advertisement of your own stating your willingness to buy some quantity of bitcoin. If someone is willing to sell you bitcoin, they’ll respond to your ad and the process would work like described above.
What Are The Deposit/Payment Options, Fees, and Limits?
There are no limits imposed by the site. It’s all up to the user. LocalBitcoin does not charge an initiation fee, though they do require a minimum BTC deposit in order to make transactions.
Cash/online banking payments are made between the two parties involved in the transaction, at which point LocalBitcoin releases the bitcoin from the selling party to the buying party.
Does Local Bitcoins Charge Service or Transaction Fees?
LocalBitcoin takes a 1% commission of the total trade value of the transaction.
What Are The Withdrawal Options, Fees, and Limits?
LocalBitcoin doesn’t require users to deposit currency of any other kind on the site, as all payments are made directly from user to user. As such, there is no fee or limit in terms of non-bitcoin currency.
Does Local Bitcoins Have A Trading Platform?
The trading platform for LocalBitcoin is the marketplace of advertisements. Depending on your physical location, you’ll be shown buyers or sellers in your area, with the option to search other areas if you so desire.
Customer Support Options
LocalBitcoin has a support staff that you can contact via the site if you run into any issues. This includes instances where a transaction is disputed. The site also provides pages showing guides for how to do most of the things you’d want to do on LocalBitcoin.
Additionally, forums exist on the site where users are willing and able to provide guidance or advice.
Pros and Cons of Local Bitcoins
– Commission on trades is relatively low
– LocalBitcoin is one of the most private ways to buy and sell bitcoin, as you are not required to link your real name/ID to the transaction
– LocalBitcoin allows for nearly any kind of payment type
– In some countries, LocalBitcoin may be the only way to buy and sell BitCoin
– LocalBitcoin is one of the oldest exchanges around, and is definitely not a scam
– LocalBitcoin does not impose any buy or sell limits on users
– While LocalBitcoin itself is not a scam, some percentage of its users are scammers
– LocalBitcoin allows for certain methods of payment (like Paypal) which are reversable, and should not be used by someone trying to buy bitcoin
The general consensus with regard to LocalBitcoins is that it’s a great exchange, especially if you value privacy, but it’s necessary to be very careful. Check the reputation of the individual users you’re dealing with, and try to do business with people who have an established and solid reputation on the site.
There are definitely scammers, but if you avoid transactions with either unknown users or users with multiple bad feedback results on their record, it’s a safe way to buy local bitcoins.
That concludes this LocalBitcoins.com review.