LocalBitcoins is a peer-to-peer marketplace. It provides users with an alternative way to obtain and trade Bitcoin. Started in Finland, in 2012, the site aims to connect Bitcoin buyers and sellers via an open, peer-to-peer marketplace.
Buyers and sellers create offers and must agree on a price and terms of a trade before a transaction can be made. It’s possible to buy bitcoins with no ID on the platform either by buying bitcoins with cash deposit or meeting in person and trading cash.
LocalBitcoins is available anywhere where there is a willing seller.
LocalBitcoins sellers/buyers accept a variety of payment methods. Here’s a list of the main ones:
- Wire transfer
- Westren Union
- Cash by mail
- Cash (in person)
If you’re only looking to buy Bitcoins then LocalBitcoins will be free to use. The site only takes a commission of 1% from the sellers. Keep in mind that once you receive the Bitcoins into your account you will need to pay standard Bitcoin network fees to get the money into your personal Bitcoins wallet.
The difference between Local Bitcoins and most exchanges is that LocalBitcoins does not require personal information when making good trades.
Unlike other exchanges, which require ID verification and personal information, Local Bitcoins allows you to buy bitcoin without connecting your name to the bitcoin you’re buying.
LocalBitcoins allows for secure trading through the use of several measures:
Reputation system – Each trader has a reputation rank and also public history records showing their past activities.
Escrow – When you request a trade the money you send is held on LocalBitcoins’ escrow service. Only after the seller confirms the trade is completed are they released.
2FA – Two factor authentication means that whenever you log into your account you will require to enter an additional PIN code sent to your mobile phone. This prevents people from hacking into your account. However this option is not enabled by default – you need to enable it.
Login guard – LocalBitcoins is also able to verify you are always logging in from the same browser. If a login from a different browser occurs, email verification will be required.
Support and conflict resolution – LocalBitcoins has a support team ready to answer user questions and also resolve conflicts between buyers and sellers in case that happens.
- LocalBitcoins is one of the most private ways to purchase bitcoins
- In some countries it is the only way to buy bitcoins
- It allows you to buy bitcoins with many payment methods
- There are many scams and you need to use caution
- Fees can be slightly high when buying with cash
LocalBitcoins is available in nearly every country. Liquidity will depend on the amount of buyers and sellers in your area. LocalBitcoins is not available in Germany or the state of New York.