LocalBitcoins Crypto Exchange Review

Rating: 4.5/5

Bitcoin Trading Verified

     Get A FREE Personal   

Account Manager!

What Is LocalBitcoins?

LocalBitcoins is a popular peer-to-peer bitcoin exchange founded in 2012 by Jeremias Kangas. The exchange is headquartered in Finland, but it has gained international recognition and is now used by traders from more than 250 countries.

Many people wonder if LocalBitcoins is safe. The purpose of the platform is to secure the interaction between BTC buyer and seller, and to ensure and develop their direct contact. It is a safe place to buy cryptocurrency without intermediaries, with zero buying or selling fees and technical customer support. Check out our LocalBitcoins review for more information on the topic and answers to questions.

Criteria

Value

Site

Social Media

Date of foundation

2012

Head Office

LocalBitcoins Oy Porkkalankatu 20 00180, Helsinki, Finland

Types of support

E-mail: [email protected]
Online contact form
Help Center
Instagram
Facebook

Languages

English, French, Spanish, Italian, Portuguese, Russian, Chinese

Manager

Sebastian Sonntag

Exchange Commission

Transaction fee 1%

Advantages and Disadvantages

LocalBitcoins is a convenient way to buy BTC directly. Let's take a closer look at the advantages and disadvantages of this platform.

Advantages

Disadvantages

  • No transaction fee for buying and selling BTC inside the exchange
  • A variety of payment methods available in any country
  • Escrow services
  • Options for conflict resolution
  • Advanced security features such as reputation ratings, two-factor authentication, secure login, etc.
  • Easy to use, no middlemen
  • For BTC sales only
  • Not all sellers can be trusted
  • The average response time of customer support is 2-3 days

Key Features

Key features of LocalBitcoins include an escrow service to secure your transactions, selection of reliable sellers by rating, and a dispute resolution mechanism in case of a dispute.

Criteria

Value

Supported cryptocurrency

Bitcoin

Supports fiat currency from

100%: Beginners can practice with a demo account. Moreover, they can get help from the customer support

Regulation

LocalBitcoins is registered in Finland and is therefore fully accountable to the Finnish Financial Supervisory Authority as its primary regulator.

Account levels

There are 4 levels of account verification: T0, T1, T2 and T3.

T0- only selling and buying bitcoins from other LocalBitcoins users.

T1- a verified account that allows you to activate additional listing and deposit feature.

T2 and T3 - verified accounts with confirmation of additional information, such as residence address.

Trading platforms

Bitcoin P2P trading platform

Minimum deposit

For sale - the minimum limit is 0.4 BTC.

For buying - the limit is set individually.

Payment methods


  • Paypal
  • Bank Transfer
  • SEPA
  • Neteller
  • MoneyGram
  • Skrill
  • Cash deposit
  • Payoneer
  • Payza
  • WeChat
  • Trastra VISA card
  • And more than 30 other methods

NOTE: It is important to remember that the final method of payment must be determined by each individual trader on mutually beneficial terms and through a convenient system for both sellers and buyers. Credit cards are not usually the preferred or frequently used method of payment for most traders. If you would like to transfer funds by credit card, you can start by transferring money from your credit card to an account with a payment system such as PayPal or Skrill.

Each payment method has a different exchange rate or commission, which provides a different degree of security. The cheapest way to buy BTC through LocalBitcoins.com is to use an irreversible payment method such as a cash deposit, bank transfer, or mobile transaction.

LocalBitcoins fees and limits


Trading fees

LocalBitcoins does not charge any fees for registering your account or for buying and selling BTC.

However, users who plan to promote their listings must pay a 1% commission for each transaction they make on the platform.

Fees for transfers

There is no fee for transactions between LocalBitcoins exchange members. However, if you want to send your newly acquired BTC to an external cryptocurrency wallet, the standard bitcoin network fee will apply. The amount of commission varies all the time and is calculated based on the BTC blockchain's workload. The same principle applies to receiving BTC to your LocalBitcoins account. You will be charged a deposit fee based on your payment.

Other Fees

Although LocalBitcoins does not withhold a commission for selling and buying bitcoins within the exchange, the service does charge a fee for working on individual orders, with a minimum of €200 per hour.

Limits

The platform offers limits, the size of which is directly related to the level of verification of the LocalBitcoins account. There are four types of limits, the lowest being 1,000 euros for users without verification and unlimited for users who meet all LocalBitcoins verification criteria. To upgrade your account, you will need to provide additional information, including proof of identity, physical address, and proof of residency.

Level

Verification requirements

Limits

T0

Name, country of residence, email address and phone number

1000 GBP per year

T1

Name, country of residence, email address, phone number, physical address verification, identity verification, KYC information.

20000 GBP per year

T2

Name, country of residence, email address, phone number, physical address verification, identity verification, KYC information, proof of address

200000 GBP per year

T3

Name, country of residence, email address, phone number, physical address verification, identity verification, KYC information, address verification document, additional identity verifications

no limits

How to trade on LocalBitcoins?

Let's continue our review of Localbitcoins with step-by-step instructions:

Step 1: Register an account on Localbitcoins.

Register an account on Localbitcoins

In this step, you will need to provide the following information:

  • Username
  • Email
  • Country
  • Phone number

To learn more about registering at Localbitcoins, watch the video below.

Step 2: Search for ads

Search for ads

To find a matching ad, visit the home page. Specify the amount of BTC you want to buy, then choose your preferred currency, country and payment method. When searching for ads, we advise you to pay attention to the reputation of the trader, the number of transactions they have made, as well as the time and relevance of the ad you are interested in.

Step 3: Select an Ad

Select an Ad


When you find an ad you are interested in, click on it for more information. Don't forget to look at the trader's rating and the number of successful trades this person has made through the platform.


Step 4: Make the Payment

Make the Payment

Click "Buy" to complete the transaction. You will receive more information about the deal, terms and payment method. Select "Agree to Terms & Conditions & Submit Transaction Request" to proceed.


Step 5: Mark the payment as completed

After you send your payment to the seller, click "I've Paid". When he receives it, your LocalBitcoins wallet will have the specified amount of BTC in no time at all.                                                                              

Buy and sell bitcoins on LocalBitcoins

Buy and sell bitcoins on LocalBitcoins
  • To see other traders' offers, go to the QUICK BUY / QUICK SELL tabs;
  • Select your country from the drop-down menu;
  • Select your preferred payment method from the "All Offers Online" drop-down menu and then click "Search";
  • You will see a list of traders who match your criteria;
  • Select an offer from the list;
  • Next to each offer, there is a "Buy" or "Sell" button that you will click to find information about that user. Here you can examine the reputation of the seller/buyer, the number of transactions he has made, his rating in the system and his verification status;
  • By launching a transaction, buyer and seller agree to all its terms. They can also communicate directly to agree on the terms of the deal - the exchange rate, time and place of the meeting (if agreed to a personal meeting), etc;
  • Leave feedback after the transaction is completed.

If you want to create your own trade offer, you need to go to the "Post an ad" section.

Is LocalBitcoins Safe?

LocalBitcoins is a safe and secure platform that boasts the latest security features such as two-factor authentication that prevents over 99% of attacks on user accounts, a secure login - Login Guard that protects against unauthorized browsers, and seller ratings and LocalBitcoins reviews. One more tip from us: never use Tor browser for shopping, don't buy from public devices and make sure you are visiting the official LocalBitcoins website.

Jack Evans


I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments.
All articles of the author