What Is LocalBitcoins?
LocalBitcoins is a P2P Bitcoin exchange platform. This means that buyers and sellers meet and discuss the sale or purchase of any amount of Bitcoin. The platform LocalBitcoins is used as the escrow until the deal is finalized.
Where Is It Available?
LocalBitcoins is available in nearly every country with an Internet connection. Because the platform itself isn’t hosting an exchange it gets around the banking regulations on buying and selling Bitcoin. Each user becomes an independent buyer or seller of Bitcoin. You connect with that buyer or seller and not the platform to negotiate the sale.
What Is The Process?
The process is very simple. There is little to no information required by LocalBitcoins. Rather you will need to abide by the requirements of the buyer or seller that you have selected. Some require certain types of verified identification. Others don’t require anything. Most buyers and sellers have their prices posted. If you like their terms then you make a connection and see if they are around. Once you have initiated the deal the Bitcoin will be held in escrow until the seller confirms your payment. Once the payment passes the seller will release the Bitcoin and you will be the proud owner of a bunch of 1s and 0s.
What Payment Methods Are Available?
The site is organized by many factors that you may be looking for in the purchase. The main one is the payment method. There are more payment methods available than you could ever use or want to use. Have gift cards lying around? Those can be used. Have a PayPal account? That can be used as well. This flexibility will cost you. There is a price for flexibility. However, if you are looking for security, privacy, ease, flexibility, and increased access then LocalBitcoins is your absolute winner.
Pros:
- It is the most private way to purchase Bitcoin.
- It has the most options on how to purchase Bitcoin.
- It may be the only way to purchase Bitcoin in some countries.
- LocalBitcoins does not impose limits on buying and selling Bitcoin.
- LocalBitcoins only takes a 1% fee on the transaction.
- Bitcoin is available instantly for transfer.
- LocalBitcoins is one of the oldest trading platforms and is not a scam.
Cons:
- Some buyers and sellers need ID verification for purchases negating the privacy of the market.
- Fees to the buyers or sellers can be higher due to the cost of instant privacy.
- Not all buyers and sellers are online at any given time.
- Your sale is dependent on the speed of the other party.
- Even though the reputation of the platform is high your experience is dependent on the reputation attached to the parties in your transaction.
