- Exchange with support of most countries
- Tons of payment methods accepted
- Exchanges go through Escrow
- Possibility of being scammed
- Sometimes it's slow
- Only Bitcoin is supported
- Bitcoin rate is too high sometimes
Localbitcoins was founded in 2012, in Finland. Through all these years it collected a huge Bitcoin seller and buyer community. The exchange allows its users to select any payment method which is preferred by the trader. And everything goes using the Escrow service to minimise opportunities for scammers. The exchange gets involved only when some misunderstanding or unfair actions happen.
Localbitcoins supports all the countries worldwide, Germany (it’s not very accurate as long as there are some active advertisements for Germans) and New York excluded. They welcome even really small countries, so sometimes it’s the only option for people from those countries to buy bitcoins easily.
Despite all these good features mentioned, this exchange doesn’t support any cryptocurrency other than Bitcoin. Oh, but we would like to see Litecoin or Ethereum one day.
That depends on the seller. Some of the orders are completed within few minutes after payment is cleared. However, exchanges made using slow methods can take a much longer, including cash.
Local itself doesn’t apply any limits, it is like that because of P2P platform is used here. But every seller writes and creates his own rules and terms which must be accepted by the buyer. So sometimes seller may ask to verify customer identity by providing an ID card or/and proof address. On the other hand, it is a settlement between two parties and what do they agree must be admitted by the exchange.
Verification process and privacy
As it is written in a previous paragraph Limits, everything depends on what the seller is and what is his rules and terms. Either you don’t have to provide any documents for a verification or you’ll be requested to provide an ID, proof of address or other paperwork. But it is not a constant and some of exchanges stay private.
We can apply that for the privacy as well – if you make a purchase using cash, it should keep your privacy. As long as Localbitcoins do not ask to complete a verification process, most of the orders will stay private.
However, in some situations administration of the exchange may require the customer to provide them with full paperwork.
Since it’s a P2P platform, everything depends on the user. So it’s highly advised to turn on all the Localbitcoins security features such as 2 Factor Authentication, login guard, authorised browsers, etc. The funds held in user’s account, are its own responsibility.
Most of the communication runs inside the trading parts. But if some issues or problems happened, customers can open a support ticket, check the forum, or join one of social communities – Twitter, Facebook, Reddit, Instagram or IRC. There also is a huge knowledge base for most frequent questions. After all, their support isn’t so bad.
Localbitcoins is a decent P2P market with hundreds of different payment methods accepted. Simple, but functional and clear design makes browsing pleasant. Most noteworthy, Local is the only place for some users where Bitcoin adopters can buy or sell some coins (example: there are no exchanges available in the region or the country is restricted from using a selected exchange).
However, scam occurs here. Incidents are pretty often for the people who aren’t very concerned about their security, or just make a risky transactions. For example exchanging Paypal, especially accepting it, is not advised. Why? It can be reversed after you send bitcoins.
Reviewed by Coinsmaniac