LocalBitcoins: What it is and how to use it

LocalBitcoins is a peer-to-peer cryptocurrency exchange network. The marketplace is designed to provide digital currency investors with a simple solution to share money with others in a decentralised manner.

The platform allows people from different countries to exchange local currencies into Bitcoin. The company’s mission is straightforward: to allow the general public the ability to buy and sell crypto in a simple manner. LocalBitcoins’ goal is to bring Bitcoin to every country, person, and device globally.

The LocalBitcoins website also serves as a social network platform for traders and investors to hang out and build long-term relationships. Unlike any other exchange, LocalBitcoins allows people to interact directly with fellow traders, making this platform a popular place for investors and long-term traders who want to build strong, trusting relationships with their buyers.

How does LocalBitcoins work?

The primary service of the platform is to give users the ability to buy and sell Bitcoin. It also posts trades to maximise a user’s profits. To make these trades, the platform automatically bases them geographically. However, it provides a tab for users to be able to trade with partners all over the world.

LocalBitcoins also comes with a simple trade advertising platform to ensure a trader’s high-value opportunities are meeting their target audience. This allows traders to receive higher and better profits from their trades.

However, these advertisements do come at a cost. For a trader to be able to advertise their campaign, it will cost them 1% of the total capital exchange in the trade. Also, campaigns cannot be run unless a trader has more than 0.04 BTC in their LocalBitcoins wallet.

LocalBitcoins has created a P2P Bitcoin exchange site that allows buyers and sellers to have peace of mind that they can agree on the terms of a transaction with the safety of having a third party service to protect them.

Is LocalBitcoins right for you?

Every exchange is different and provides different services for traders. With this in mind, it is important to understand the pros and cons of each exchange to ensure you are choosing the best option. Let’s take a closer look at the advantages and disadvantages of LocalBitcoins.

Advantages

To become a member and user of LocalBitcoins, all you have to do is enter your email and go through the verification process. This makes it very easy for first-time traders to sign up and start using the platform. With this in mind, the community it provides is also a great way for beginners to learn and grow from other traders.

This element separates it from other exchanges as it has a ‘human’ feature – something that many do not have. This community allows users to seek out help from others if they feel they need it, and share tips and tricks about the trading world.

LocalBitcoins was one of the first P2P Bitcoin exchange sites created, and it is still one of the largest today by far. This track record should provide you with enough information about its legitimacy.

Another key element the platform offers is its online forums. These are available for users to write reviews and tips covering the best opportunities to trade, who to avoid, and advice for the less experienced. This is also a place for like-minded people to have general discussions about the community and recent news.

Another advantage of this platform is the security and privacy it provides. It allows users to buy and sell online and offline in a secure manner. The exchange also provides users with a variety of security measures and payment options that allow customers to have flexibility within their transactions.

Disadvantages

Even though there are several security measures in place, such as ID verification before large transactions and the ability to select who can view and interact with your trades, exchange sites are known for attracting negative activity, including hacks and people stealing assets. However, the platform ensures it has a large support team to help users make their accounts secure against hacking.

Because LocalBitcoins has a P2P decentralised nature, it is up to the users to verify the credibility of other traders and their transactions. This leads to general risks when conducting anonymous transactions.

Another disadvantage of the platform is the speed of the delivery and transaction times. The time is reliant on the seller being able to confirm the payment, which can sometimes take hours. Alongside this, the platform is known for being quite expensive. Because it attracts such high demand in the marketplace with cash deposits, the exchange creates privacy features. These features mean the platform is free to charge a premium on all cash deposits.

Final thoughts

If you are a trader who is looking to maximise profits and learn from a large network of professionals, then LocalBitcoins is the place for you. It is the oldest and largest peer-to-peer crypto network on the market, and this information alone should give you the incentive to try it out.

For guides on cryptocurrencies, exchanges, and blockchain technology, click here. Make sure you take a look at all the latest crypto and blockchain news.