How to buy and sell bitcoins on Localbitcoins | Localbitcoins review
You’ll also learn the precautions to take for a safe trading experience on the site.
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.com 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/hold 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. Read more about payment method risk levels.
- 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.
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:Once you have seen the buyers and sellers list, filter out reliable buyers and sellers according to their reputation. The reputation can be seen in brackets against the name of seller and buyer in this form (30+, 100%). This is how you will see the trade and seller/buyer details on clicking the deal. You can vouch for feedback score of anything above 90% and confirmed number of trades above 20. At least this is how I narrow down my trades and seller/buyers, and it has worked well for me.
Explore The Plethora Of Payment Options:Another excellent feature of LBC is you can use their variety of payment options. On Localbitcoins, one can buy BTC in the following ways:
- Buy BTC for cash
- Buy BTC from prepaid cards
- Buy BTC from wire transfers
- Buy BTC from payment gateways
- Buy BTC for gift cards
- Buy BTC for other cryptocurrencies
Escrow Your Bitcoin Trade Always:All online trades on Localbitcoins are escrow protected. Meaning, when trade begins, the amount of bitcoins for the deal is automatically reserved from the seller’s Localbitcoins wallet. This means that if the seller runs away with your money and does not release your Bitcoins, Localbitcoins.com support can release the Bitcoins to you from escrow. On this note, if you’re selling Bitcoins, never release the escrow before you know that you have received money from the Bitcoin buyer. Also, note that local trades do not have escrow enabled by default, but when you request and get in the trade, it gets activated. (Source: Localbitcoins.com)
Give Feedback For The Deal:When you indulge in a trade, the option to give feedback about the seller and buyer gets activated. You can use these feedback scores to rate your trade experience with a particular trader and help Localbitcoins preserve that rating for future. In this way, with each trade, you are making LBC a better and more secure platform. And for this, there are four types of ratings or feedback one can give on Localbitcoins based on their experience of trade; Positive Negative Neutral Block without feedback This score also decides whether the trader will be listed on the top or at the bottom.
How much are Localbitcoins Fees?I was quite impressed with their fee model as registering, buying, and selling is entirely free. While creating an advertisement, the users who develop ads are charged 1% for every completed trade. And another cool thing is that while transferring BTC to wallets of other Localbitcoin users the transaction fee charged is zero. Basically, you can do free transactions to and from Localbitcoin user’s wallets.
How is the Customer Support of Localbitcoins?In my case, the LBC support team has been rather quick. Their support team is reachable on emails and replies within three days. But in events when Bitcoin trend is surging, their support comes under tremendous pressure due to which the response gets slightly delayed. But in that case too, their support is useful, and their frequent issues section is also very helpful in raising tickets.
Whom Is Localbitcoins For?Localbitcoin is for anyone who: 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? The short answer is, Yes. We have used it, and we rate it highly as a go-to service for people who want to buy Bitcoin in cash in any other third world countries where the banking infrastructure is not as supportive. However, there are certain things to note and caution while using LBC and here are those: Thoroughly check the terms of the trade while dealing in BTC on LBC. If you are a seller, never release the escrow manually before you have checked and received your money with you in your bank or your hands. If you are a buyer, wait for at least six confirmations before considering the BTC transaction successful. This can take up to an hour. If you are dealing in huge volumes, it is advisable to meet the buyer/seller in a public place. Always stick to communication on the Localbitcoins platform itself so that in case of any dispute it can be used as proof. Avoid using WhatsApp or Facebook for communication. Some other points that you need to take care are: Check the trader’s trust score or feedback score. The higher the score the better it is to trade with that trader. Also, check if a trader has done more than 20 trades. It is quite safe to trade with that trader as he/she is not a newbie. Always stick to communication on the Localbitcoins platform itself so that in case of any dispute it can be used as proof. Never release the escrow manually before you have checked and received your money with you in your bank or in your hands. Also, it is best to trade with traders who have a complete profile or you can ask for verification or ID submission for higher amounts before indulging in trade via Localbitcoins. If you do these things right, you don’t need to worry about getting scammed. Plus, Localbitcoins’ UI is intuitive to navigate which makes it a top contender amongst P2P Bitcoin exchanges. And lastly, its legitimacy speaks for itself when you see these global volume charts for Localbitcoin from 2013 and how it has grown: So go ahead and try out Localbitcoins for yourself. Create A Localbitcoins Account For Free Now time to hear from you: Have you used Localbitcoins yet? If you have, do share your experience with us in the comments below. Like this post? Don’t forget to share it! Here are a few other hand-picked reviews that you should read next:
Post Title: How to Buy and Sell Bitcoins on Localbitcoins.com