LocalBitcoins has established a solid reputation in more than 248 countries and is known to be the most established Peer-to-Peer Exchange amongst Bitcoin buyers & sellers. This P2P Marketplace provides a secure Escrow solution that offers sellers and buyers from around the world to trade Bitcoin with the preferred local currency
As a P2P platform, Localbitcoins.com provides a service that facilities over-the-counter trading of local currency for Bitcoin and has since become a popular marketplace for Bitcoin traders especially in regions of the world where the regulatory environment seems to be more anti-Crypto or when there are no alternative marketplaces like existing Crypto Exchanges & Brokers. The website offers a service that facilitates the locating of other Bitcoin users who wish to meet others in person to exchange Bitcoin via Fiat currencies. Localbitcoins is a great Marketplace for casual traders seeking more privacy and reliable escrow system
The company behind this P2P exchange was founded in June 2012 by two brother Nikolaus and Jeremias Kangas, who has been actively working on an escrow system and marketing Localbitcoins services since day one. With little funding in the beginning and run by a relatively small team of roughly 20 employees worldwide, LocalBitcoins is one of the longest-running company in the CryptoSpace
By 2013, LocalBitcoins started to generate millions in revenue and managed to attract traders with over 4 million accounts registered indicating a healthy number of individuals to engage in Bitcoin trading. Often times dominating the entire P2P of the countries that Localbitcoins supports (Remitano: has been on outpacing Localbitcoin’s user growth in the South East Asia Region but this marketplace remains to be No.1 most preferred P2P Market)
As for Trading Fees, LocalBitcoins seems to above Market standards when compared to Remitano or Mesisto charging a 1% commission per completed trade for those that create listings basically, anyone that makes a proposal to buy or sell will be subject to this fee
It is completely free to sign-up with Localbitcoins to buy Cryptocurrencies, as a customer you will not be charged a fee. But as a seller or whenever you make a listing on Localbitcoins, you’ll be subject to a 1% commission fee.
When transferring Bitcoin a standard network fee applies which varies over time and is based on the current network congestion. Users should also keep in mind that when depositing BTC into LocalBitcoins Wallet the deposit amount has to be greater that Network Fee, if not it will not be credited to the account, so try to avoid sending small amounts to Localbitcoins because of high transaction fee imposed by Bitcoin Network
When it comes to fiat currencies, users are free to trade in any currency and also get to decide the form of payment channel, this means that you can find an individual that uses your preferred Bank, Credit Card or third party services. Fees may apply as there could still be hefty charges for using third-party services when depositing or withdrawing Fiat currencies however most interbank transfers are Free but options like Paypal & WesternUnion are known to have much high commission charges. Depending on what payment channel you use, there may be additional charges that may be unaccounted so the overall cost of using Localbitcoins is inflated
If you’re interested in keeping up with the latest Trading Fees charged by LocalBitcoins, visit this Link.
As for the past, LocalBitcoins has made headlines for many wrong reasons as reports of money laundering have been addressed in several court cases and few setbacks such as the ceasing of LocalBitcoins services in New York, Germany and Russia in order to comply with the local financial regulation.
Since Bitcoin’s legal status is different in different countries, each country or State has a different approach regarding this subject. Generally, the users are qualified in offering “money transmitting” services, as you’re willingly engaging in trade between two parties. In some countries, new regulations are set up, so users must comply with AML/KYC regulation but LocalBitcoin’s P2P marketplace only required clients to verify an email address in the past. The company behind LocalBitcoins does not want to get in legal battles, so it may discontinue its services in countries that impose strict Cryptocurrency regulations
There have been few incidents of hacks but LocalBitcoins escrow is still recognized secure and the current system used offers high security with additional safe layers like Email, 2Factor and Phone authentication.
Over the years, it has become easier to find a reputable buyer & seller on LocalBitcoins due to the built-in reputation ranking that would let traders review each other’s History and leave a feedback. Avoid listings of individuals that have a low rating on LocalBitcoins or new users with no track record, because there is a lot of risks involved when comes to dealing with strangers, plus Customer Support will take their time to help resolve an issue if there is a dispute
It is incredibly easy to travel to a foreign country and trade on LocalBitcoins, as there is no KYC requirement and there are a number of listing to choose from that allow different types of payment options. You could be a Tourist, that is instructed to directly bank-in money via cash into the seller Banks account and receive Bitcoin without having to expose your identity or the need to register a bank account.
It seems that LocalBitcoins offers one of the best solutions for those who value privacy as there is no KYC requirement enforced user who wishes to begin trading on the platform, the fact this P2P is so popular has led to a more diverse international marketplace where its possible for anyone to trade Bitcoin almost anonymous with the desired local currency
Note that around April 2017, LocalBitcoins issued a warning to all it’s users with significant trading volume to submit personal ID via a KYC procedure, a move that leaves many wondering over the new motives behind regulatory measures & policies of its service. It’s recommended not to engage in High volume trading on Localbitcoins as Customer Support will reach out to with unexpected warning message forcing you to comply with a KYC procedure, if not you’re not allowed to continue trading
If you’ve never traded on a P2P Exchange before we highly recommend you to consider using LocalBitcoins as the first and preferred choice, especially if you want to find a reliable trading partner. Over the years, there have many attempts to create and maintain a P2P Exchange that would not provide security but also the trade volume needed for a liquid Market, it seems that LocalBitcoins is the only P2P platform that has stood the test of time and also enjoys the first mover advantage in providing a marketplace for all Bitcoin enthusiasts who value a more decentralized trading approach
