The first cryptocurrency exchanges appeared relatively recently, 8 years ago. Since then, the digital currency industry has changed a lot. Today, a large number of exchanges, both large (daily trading volumes are estimated at hundreds of millions and even billions of dollars) and smaller regional platforms, are operating successfully. All of them are probably similar, but in this article we will look at Local Bitcoins exchange (from which you can even trade in cash) from different perspectives. In the end of the article we will conclude whether you should pay your attention to it or pass it by.
1. General Information about the Local Bitcoins exchange
The Local Bitcoins site has a fairly solid age (as for the cryptocurrency industry), it began its work back in 2012. The company was registered in Finland.
The main goal of the project developers is to provide the possibility of acquiring cryptocurrencies in those countries where this cannot be done using traditional banking systems. Exchange users have guarantees that their financial assets are outside state control. The platform interface is translated into the following languages:
The Local Bitcoins exchange was often discussed in media. People who live in more than 100 different countries around the world have a physical ability to interact with Local Bitcoins. The site supports a huge number of national fiat currencies.
2. The basic principles of the platform
The mechanism of interaction between users is extremely simple. Some users place orders (for sale or purchase), independently indicate the desired exchange rate, payment method, as well as the maximum and minimum value of the transaction deal. Other users have an opportunity to choose the most profitable application and confirm transaction just in one click.
3. Details about registering on Local Bitcoins
The procedure for registering on the Local Bitcoins site is quite simple, absolutely anyone who has ever registered on any simple portal, can handle it. In order to create an account on the Local Bitcoins exchange, you need to have a working email address, and you also have to come up with a more or less complicated password. After filling out application, a confirmation letter will come to your e-mail. And after account is confirmed, a user immediately receives its own Bitcoin wallet, but without a private key.
To increase security, developers recommend to install two-step authentication.
4. How to buy and sell BTC on Local Bitcoins?
Let’s analyze the procedure for buying and selling coins on this platform in details. Let’s divide these processes into 4 stages for conveniece.
How to buy BTC?
- You need to log into account and go to the main page. Then it`s necessary to enter the desired amount of BTC, country of residence, method of payment and payment service in the special field. Then the platform will display a list of suitable options, taking into account the specified filters.
- Choose the most suitable option from the list. When making a choice, it is very important to consider not only a financial point of view, but also reputation, reviews and number of seller`s transactions.
- Before confirming this or that transaction, you need to examine details carefully. If all the conditions are clear, and the seller’s reputation is good, then it’s time to enter desired amount of coins and confirm the request. Then the exchange will freeze the number of coins that are necessary for transaction, and will give time to pay.
- After payment occurred, click “I paid”. This will give trader a signal to check the payment, and if everything is ok, then the corresponding amount of BTC will appear on buyer’s wallet after a while. At this point transaction can be considered as completed.
How to sell BTC?
The sale process is almost identical, so it is pointless to describe it in details step by step. It is very important not to transfer BTC to a buyer until he or she has paid for the transaction by fiat. The fact is that after coins are credited, the buyer may suddenly reject the transaction, and since the transactions in the blockchain are irreversible, the seller risks to remain without coins and without fiat.
5. Exchange Commission
It is worth mentioning that the exchange does not handle transactions that occur in fiat. The process of transferring national currencies occurs without participation of the exchange, that is, directly between users. For this reason, no additional fees are charged by Local Bitcoins for such transactions. Local Bitcoins takes a commission only from the sellers, it is only 1% of each transaction.
6. Security and support
Work safety is achieved by a successfully implemented rating system. That is, new users cannot place orders for large sums. To expand your limit on Local Bitcoins, you should first conduct several successful transactions. After each transaction, the parties can exchange assessments and leave mutual feedback about each other. These assessments will continue to serve as an indicator of user`s integrity.
The exchange creators recommend to choose traders who have special green indicators, which tells about the following:
- presence of a sufficient number of positive reviews;
- long-term cooperation with the service;
- possibility of payment using a variety of payment services;
- availability of constant sufficient trading volume.
To increase the level of security, developers have implemented two-step authentication and captcha confirmation.
As for the support, it does not work perfectly. Sometimes it takes 3 days to get an answer on some questions. But it should be noted that the support service responds to absolutely all requests.
7. Main advantages and disadvantages
- The possibility of buying and selling cryptocurrency for cash. This feature favorably distinguishes Local Bitcoins among other exchanges. Of course, cash trades are more developed in million-persons cities, but similar offers can be found also in smaller towns since recently.
- The ability to pay by variety of payment services. For those users, who prefer to trade online, there is a big choice of various services.
- Impressive trading volumes.
- Generous referral program, according to which you can earn 20% of income from each user brought over.
- The ability to interact with the service through VPN. This can be useful for residents of those countries where Local Bitcoins is officially blocked, as, for example, in the Russian Federation.
- No mobile apps. Working through a smartphone browser is not the most convenient way to interact with the service.
- The lack of support for altcoins, that is why cryptocurrency exchange is not possible yet.
Local Bitcoins is a unique service which allows people from different countries to acquire BTC, bypassing government regulation. The exchange has been successfully operating during six years, and has reached an impressive trading volume. The Local Bitcoins interface is pretty simple and clear. The service can definitely be used not only by beginners, but also by experienced traders.
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