LocalBitcoins Review: how to use it
LocalBitcoins Review: buy and sell bitcoins securely
LocalBitcoins is basically a peer-to-peer Bitcoin exchange. They are a marketplace where users can buy and sell Bitcoins to and from each other. Users, called traders, create advertisements with the price and the payment method they want to offer. Users can browse the website for trade advertisements and search for a payment method that prefers. There is the possibility to find traders buying and selling Bitcoins online for more than 60 different payment methods.
Be protected against scammers
All online trades are protected by escrow. When a trade is started the amount of Bitcoins for the trade is automatically reserved from the seller’s LocalBitcoins Wallet. This means that if the seller runs away with the buyer’s money and does not releases the Bitcoins, LocalBitcoins.com support can release the Bitcoins to you from escrow.
Anyway, local trades don’t have escrow enabled by default.
Main payment method accepted
Below is the list of the main currently supported payment methods on LocalBitcoins.com according to their risk.
HIGH RISK*: OKPay, Paypal, WebMoney, Neteller, PerfectMoney, Payza.
MEDIUM RISK**: Moneygram, Western Union, MobilePay, Yandex Money, Pingit, PostePay, Xoom.
LOW RISK***: National bank transfer, SEPA (EU) bank transfer, Cash deposit, QIWI, Swish.
* It is easy for the buyer to reverse the payment, reversals can occur weeks or months after the trade. The payment provider may lock your account without a refund after receiving payments for Bitcoin. LocalBitcoins are aware of several cases of fraud or other problems with trades. Proceed with caution
** The payment is reversible and LocalBitcoins receive the occasional report of fraud
*** The payment method is irreversible or almost irreversible
Local trade vs Online trade
LocalBitcoins provides two different types of trades: local trades and online trades.
Online trades occur online entirely through their trading platform without you ever meeting your trading partner. Escrow is automatically enabled and funded for Online trades, meaning that as a buyer you’re automatically protected by our escrow system. Most of trades on LocalBitcoins are online trades.
Local trades are meant to be carried out face-to-face, and escrow is not automatically enabled. Because of this it is not safe to pay the seller using an online payment method in a local trade.
PROS vs CONS
- LocalBitcoins offers one of the most private ways to purchase bitcoins
- Sometimes, in specific countries, it can be the only way to buy and sell bitcoins
- Provides a lot of different payment methods
- You can meet many scams and you need to use caution
- Fees can be slightly high when buying with some payments method