How to buy and sell bitcoins on Localbitcoins | Localbitcoins review
In this tutorial, I’ll teach you everything you need to know about Localbitcoins, including;
- How to register on Localbitcoins
- How to buy bitcoin on Localbitcoins
- How to sell bitcoin on Localbitcoins, and
- Why I think Localbitcoins is one of the best Cryptocurrency websites to use for bitcoin transactions today.
Also Read: How to buy and sell bitcoin on Paxful
What Is Localbitcoins?
Localbitcoins is a peer-to-peer cryptocurrency marketplace/website – meaning you don’t buy bitcoin from the company. Instead, all the transactions are from person to person (buyer and seller); with Localbitcoins just acting as an escrow (to hold the bitcoins till payment is made and confirmed).
Localbitcoins is both a marketplace, and a bitcoin wallet! So, you are not limited to only meeting bitcoin buyers and sellers on Localbitcoins.
You can also use the online wallet they provide to you – to send bitcoin, receive bitcoin, and store/hodl bitcoin!
Should I Trust Localbitcoins?
Yes! Localbitcoins is a very trustworthy marketplace!
- They are available in over 200 countries around the world, including third world countries – and they really make buying and selling bitcoins in such countries easy and safe.
- Localbitcoins has been around since 2012, and has its Headquarters in Finland.
- Localbitcoins is very secure – it has never been hacked!
- Localbitcoins is decentralized! There’s no verification needed at all… All you need to do is to verify your phone number and your email – that’s all (some buyers and sellers may however request a form of ID from you; in order to trust you).
- When you send bitcoin from a Localbitcoins wallet to another Localbitcoins wallet, you don’t need to pay any fee (it’s free and secure)! Remember to turn-on 2-Factor authentication to increase the security of your coins.
Localbitcoins Registration/Wallet Creation:
Opening a new Localbitcoins account means you will also have a bitcoin wallet! To register an account with Localbitcoins;
- Step 1: Go to Localbitcoins SignUp page on their site’s homepage.
Enter your Sign Up user details (i.e., Username, Email and Password), then – Tick the ‘I’m not a robot’ Captcha box.
- Step 2: Click the ‘Register’ button
I strongly recommend you use a very strong Password! As your bitcoins are going to be stored in your Localbitcoins wallet (pending if you choose to transfer them to your more secure wallet – i.e., a Hardware/Paper wallet, or a Blockchain.com online wallet).
After the registration form is submitted, a verification Email will be sent to the email address you entered during SignUp.
Click the Verification link in the email that was sent to you.
You now have a user account with Localbitcoins!… Now, don’t get carried away mate,… The next step, is to verify your Mobile Phone number on Localbitcoins.
You can find the option for Phone number verification, under ‘Edit Profile’, on Localbitcoin’s Menu header bar.
Enter your mobile phone number in international format (by first selecting your country’s Zip code, then typing your complete Phone number into the second box).
In a few seconds, you’ll receive an SMS message containing a mobile verification code. Input this code on the website,… And Localbitcoins knows you’re the owner of the phone!
Phone number verification is very important (especially if you want to add more security protocols to your Localbitcoins account – Like Two-Factor authentication).
How to Buy Bitcoins on Localbitcoins:
Step 1: Make sure you’ve already created an account (as I showed you towards the beginning of the post). SignUp Here if you haven’t.
Step 2: Go to the main page and in the search box fill in the form with the amount you want to buy in your currency, your location and choose a payment method.
If you’re unsure how you want to pay, choose “All online offers” as your payment method. The site will list bitcoin traders available in your region.
Step 3: From the list of advertisements, choose one from a trader with a good reputation score and a high amount of trades.
The response time indicator shows if a trader replies within five minutes (green), within 30 minutes (yellow) or slower than 30 minutes (grey). You can click the ‘Buy’ button to view more information about an advertisement.
Step 4: After you press the ‘Buy’ button you’ll see more information about the advertisement, including the terms of the trade.
Read through them before submitting the trade request, if you don’t agree with them you can go back to the previous page and choose another advertisement.
To start the trade, type in the blue box how much you want to buy, enter a message for the seller and click the Send trade request button to the start the trade.
Be sure you’re ready to pay when clicking the button, if you don’t pay before the payment window is over, the trade will be automatically canceled.
Step 5: Once you have made the payment, click the ‘I have paid’ button.
Once the trader has verified that your payment has been received your Bitcoin will be released from escrow and they are instantly available in your Localbitcoins wallet.
And that’s all there is to it, congratulations on your first Bitcoin trade!
How to Sell Bitcoins on Localbitcoins:
- Step1: Make sure you’ve already created an account (as I showed you towards the beginning of the post). SignUp Here if you haven’t.
- Step 2: Go to the main page and in the search box select the option QUICK SELL. Fill in the form with the amount you want to sell in your currency and choose a payment method.
If you’re unsure how you want to be paid, choose All online offers as your payment method. The site will then list all Bitcoin offers available.
Note about payment methods: Some payment methods are considered high risk. Bitcoin transactions are completely irreversible.
Once you sell your Bitcoins it’s not possible for you to recover them, even if the buyers payment is reversed.
That’s why we recommend you sell with a low risk payment method to experienced users with a large amount of previous trades and 100% feedback.
- Step 3: From the list of offers, choose one where the trader has a good reputation score and a high amount of completed trades.
The response time indicator shows if a trader replies within five minutes (green), within 30 minutes (yellow) or slower than 30 minutes (grey). You can click the sell button to view more information about an offer.
- Step 4: After you press the Sell button you’ll see more information about the offer, including the terms of the trade. Read through them before submitting the trade request and if you don’t agree with them you can go back to the previous page and choose another offer.
To start the trade, type in the blue box how much you want to sell, enter a message for the buyer and click the Send trade request button to the start the trade.
Once you start the trade your Bitcoins will be moved from your wallet to the trade escrow.
- Step 5: After you’ve sent the trade request the buyer will ask you for your payment details (e.g. if you want to sell for a bank transfer the buyer will ask for your bank account information).
After you have given the seller the payment information the buyer will pay for the Bitcoins and confirm it to you.
Please make sure that you have received the money into your account before releasing the bitcoins. NEVER release Bitcoins before you have received payment.
Bitcoin transactions are irreversible, once you send the Bitcoins to the buyer there no way to get them back, even if the buyers payment doesn’t show up.
Once you have confirmed that the payment has been made you can scroll down the page and select Release bitcoins. This will send the Bitcoins from the trade escrow to the buyer and complete the trade.
You’re reading the post: How to buy and sell bitcoins on Localbitcoins
Here Are The Pros and Cons of Trading on Localbitcoins:
- 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
- Localbitcoins itself does not impose any limits on its users. Users are free to decide on their own prices and limits.
- No buying or selling limits imposed by Localbitcoins
- There are many scams and you need to use caution
- Limits And Liquidity: How Much Are You Buying?
- Some sellers will require ID verification for larger amounts.
Review Buyers/Sellers Easily on Localbitcoins:
Explore The Plethora Of Payment Options:
- Buy BTC with cash
- Buy BTC with prepaid cards
- Buy BTC with wire transfers
- Buy BTC with payment gateways
- Buy BTC with gift cards
- Buy BTC with other cryptocurrencies
Escrow Your Bitcoin Trade Always:
Give Feedback For The Deal:
How much are Localbitcoins Fees?
How is the Customer Support of Localbitcoins?
Whom Is Localbitcoins For?
- Wants to get started in BTC and buy their first BTC
- Want to buy BTC in cash or any other payment method
- Wants to make a career in trading
- Wants to convert other currencies in BTC
- Wants to sell BTC for cash
- Wants to trade BTC with an escrowed service
- Want to avoid banking system and live on crypto, etc
Is Localbitcoins safe to use?
4 Ways To Buy Bitcoins:
Before you can buy Bitcoins, you’re going to need a wallet to hold them. If you’ve watched our previous episode about wallets, then you’re all set.
However, if you’re completely new to Bitcoin, or if you can’t quite recall what we talked about in the video, here’s a short refresher:
Bitcoin wallets are programs that help you send and receive Bitcoin.
They generate your Bitcoin address, which serves as your personal address for receiving Bitcoins.
If you’re buying small amounts of Bitcoin, you can use any trusted software wallet.
It could be a mobile wallet or a desktop wallet, it doesn’t really matter.
For large amounts of Bitcoin though, you’ll want to use only Hardware or Paper wallets.
These wallets aren’t connected to the Internet, and so they eliminate the possibility of someone stealing your funds unless they’re actually holding your physical wallet.
To make it easier on you, we’ve listed some recommended wallets, depending on your device and operating system, at the bottom of this video.
Once you choose your wallet, open it and copy your Bitcoin address.
You’ll need it later on.
Got your address? Good, you now need to ask yourself a very important question:
How much money do you intend to invest in Bitcoin? Bitcoin is a VERY risky asset.
This means you should never buy any amount you can’t afford to lose. It’s important to think this through. If this is the first time you’re buying Bitcoins, choose an amount that won’t affect you financially if Bitcoin were to drop to zero.
In general, we tend to be overly optimistic when we invest, and we forget about the very real possibility of a downside.
Our personal rule of thumb is to never invest more than 5% of your disposable income or total wealth. Keep in mind that you can always buy less than 1 Bitcoin.
One bitcoin can be divided up to 8 decimal points. This means that you can buy half a bitcoin, a quarter of a bitcoin, or even one-hundredth of a bitcoin.
Of course, the amount you’re going to spend on Bitcoins will lead you to your next step: choosing an exchange.
Choosing an exchange is hard work. Each exchange has different rules, accepted payment methods, and fees, along with other factors to take into account.
If you want to avoid the hassle, you can use our “Buy Bitcoin” page, which matches you up with the best exchange based on your location.
There’s a link to that page at the bottom of this video as well. This, of course, is a very rough match, but it will give you the best result 95% of the time.
If you want to do your own due diligence, however, here’s what you need to look out for.
The first thing you’ll want to check is that the exchange accepts users from your country.
Not all exchanges accept customers from all around the world. The second thing you’ll want to check is what payment methods are accepted by the exchange.
Some exchanges accept a wide variety of payment methods, and some accept only wire transfers.
Payment methods that allow the buyer to request his money back, like credit cards or Paypal, will usually be accompanied by higher fees.
This is because the seller is taking the risk that you’ll cancel the payment after you get your coins.
On the other hand, payment methods that can’t be reversed, such as wire transfers, are usually cheaper.
The third thing you’ll want to check is how much you’ll need to pay in fees for your transactions.
There are three kinds of fees: deposit fees, transaction fees, and withdrawal fees.
Each one is different and can affect the total amount of money you’ll receive in the end.
The fourth thing you’ll want to be aware of is the exchange rate. Some exchanges have low fees, but their exchange rates are higher relative to the competition.
This means that the fees are “hiding” in the exchange rate.
Fifth, you’ll want to know your buying limit.
Your buying limit will depend on your payment method and your identity verification level.
If you’re looking to buy a large amount of Bitcoins, some exchanges won’t allow it due to their low limits.
Finally, you’ll want to check out the exchange’s reputation.
Is it well known in the community? How well is the support in the event you get lost in the process?
Have there been a large number of complaints against the exchange? Keep in mind that no exchange is free of negative reviews, but it’s important to consider the volume and the content of those reviews.
One important distinction to make is difference between trading platforms and brokers.
Trading platforms are sites that automatically connect buyers and sellers.
This means that you buy from people who’ve placed sell orders on the site without ever communicating with them directly.
The platform usually takes a small fee for the service.
Conducting transactions on trading platforms like Bitstamp or Kraken
is usually the cheapest way to get bitcoins, but often it’s not very user friendly. Trading platforms have options like limit orders and stop loss that can confuse inexperienced users.
Also, when you place an order, it may not be fulfilled immediately due to a lack of sellers at the price at which you want to buy.
In order to avoid the hassle, you can use a broker.
Brokers are sites that simplify the process by allowing you to buy coins through them at a predetermined price.
When you buy from broker sites, the process is usually much simpler, but it’s also more expensive.
In the end, it doesn’t really matter if you’re buying your coins from a trading platform or a broker.
What matters is that the company is reliable and that you’re happy with the price you’re paying.
Sometimes it’s worth it to spend a bit more money
in order to finish the process hassle free. As a side note,
if you’re looking to buy large amounts of Bitcoin, let’s say over $10,000 worth, there are specific exchanges and brokers that deal in these sort of transactions.
If this is the case for you, take a look at the resources section at the bottom of this video.
Now that you know how much you want to spend and you’ve chosen your exchange, it’s time to make the trade.
Sign up for the site you’ve chosen and complete the registration process. Most exchanges today will have a Know Your Customer process, also known as KYC, that you’ll have to go through.
This means you’ll need to supply the exchange with some additional information like your ID, a proof of residence, and in some cases even a proof of income.
As Bitcoin has become more and more mainstream, exchanges have become subject to stricter regulations by governments, and in many cases, they’re unwillingly forced to request this information from you.
Once you finish the registration and your identity is verified, you can finally buy your bitcoins.
I hate to break it to you, but the process doesn’t end there.
After the transaction is complete, it’s highly advised that you move your bitcoins from the exchange into your own personal wallet.
If Bitcoin’s history has taught us anything, it’s that if you keep your money on an exchange,
you don’t actually own that money, the exchange does.
If the exchange becomes insolvent or it gets hacked, you risk losing that money for good.
This happened in the past with MT.Gox, and it’s happened more recently with exchanges like BTC-e and Bitfinex.
Once the coins are in your account, make sure to withdraw them to the Bitcoin address you’ve copied from your wallet.
After the coins arrive safely in your wallet, then you can proudly say that you’ve bought your first Bitcoin.
Other options to buy Bitcoins include Bitcoin ATMs.
Bitcoin ATMs are machines that accept cash, also known as fiat money, and send you Bitcoins in return.
Some ATMs allow you to only buy Bitcoins and some will allow you to sell your Bitcoins as well
by giving you cash in return.
Many people love to use ATMs because of the relative anonymity throughout the purchasing process.
You don’t have to wait for long identity verification processes to finish.
Just enter your money and get your coins instantly.
Bitcoin ATMs are run by companies that usually charge a specific fee for their service, so make sure you’re aware of the fees before making the transaction.
If you want to find a Bitcoin ATM nearby use the link in our resource section below.
Before we end this lesson, I want to touch upon one other subject.
Some people will prefer to buy bitcoins from an individual and not in an exchange.
In this case, there are a few things to watch out for:
First, try to see if you can verify the seller’s identity.
Some people will want to remain anonymous, and that’s fine, but verifying someone’s identity will dramatically reduce your risk of being scammed.
Second, try to use some sort of escrow service that will hold your money until the seller sends you the coins.
If that’s not possible stick to cash and meet with the person face to face.
In any case never use irreversible payment methods like wire transfers before receiving your coins.
Finally, you’ll want to wait for the Bitcoin transaction to have at least 2–3 confirmations before considering the deal complete.
Of course, this depends on the amount of money you’re exchanging.
Smaller amounts can do with only one confirmation.
Keep in mind that buying from an individual usually involves a lot of uncertainty, and sometimes it’s just not worth the few bucks you’ll save in the process.
That’s it for today’s video.
All that’s left for you to do now is go and get your first Bitcoin.
Remember, if you ever get stuck, use the resource section at the bottom of this video, or just shoot us an email.
You’ve just read, How to buy and sell bitcoins on Localbitcoins.
Also Read: How to buy and sell bitcoin on Paxful