LocalBitcoins Exchange Review: is it Safe or a Scam
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] |
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 |
|---|---|
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. |
Trading platforms | Bitcoin P2P trading platform |
Minimum deposit | For sale - the minimum limit is 0.4 BTC. |
Payment methods
- Paypal
- Bank Transfer
- SEPA
- Neteller
- MoneyGram
- Skrill
- Cash deposit
- Payoneer
- Payza
- 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 in the UK?
Let's continue our review of Localbitcoins with step-by-step instructions:
Step 1: Register an account on Localbitcoins.
In this step, you will need to provide the following information:
To learn more about registering at Localbitcoins, watch the video below.
Step 2: 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
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
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
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.
LocalBitcoins Review Summary
We have analyzed key features of LocalBitcoins based on 3 important criteria for choosing crypto exchange:
- Trustworthy
- Usability
- Fees
Based on researches and our own tests, we have made an independent rating.
