It is an exchange platform that allows bitcoin buyers and sellers to get in touch. This blockchain ecosystem startup has been active since 2012 and its headquarters are located in Helsinki, Finland. Localbitcoins is available almost everywhere in the world (with the exception of some countries with sanctions and restrictions) and allows you to buy and / or sell in the local currency where you are. Because you can choose the payment option you want you can buy or sell to people in your own country by bank transfer or even in cash.
How does it work?
Bitcoin sellers have to create ads that reflect the number of cryptocurrencies available, the exchange rate they have established and the payment methods chosen. There are variations in the rates for each offer, that is, depending on the bank used and the amount to buy, the price may be more or less accurate.
Buyers just have to go to the sales section and look at the different offers in search of one that seems appropriate. If they find it, they can contact the seller through the platform and complete the operation.
Each offer of traders has specified a minimum and maximum limit. This limit is set by the seller, Localbitcoins does not set limit amounts. So the percentage we buy from each currency will be limited by the seller.
However, for an ad to appear on the Localbitcoins homepage, you must have a minimum of 0.2 bitcoins in the platform wallet to sell in the online payment category and 0.1 if you want to Make the payment in cash.
Create an account
It is not possible to sell or buy Bitcoin on this platform if you do not have a personal wallet of the service, therefore, we must register our data to start negotiations. To open an account you need a valid email. It is advisable to be one that is used regularly.
To open the account you must access their page https://localbitcoins.com/, click on the option to register for free and fill in the blank fields with the typical personal information that is usually requested, username, email and password.
You will then receive a confirmation email in which a link will appear that you must access to verify the email and you can start using the platform.
Once registered in the system, you will be able to access the data verification option, which allows you to provide personal data that increases your reliability within the platform, in order to be more likely to be chosen for negotiations. In this clause you can specify address, full name, identity documents and other data related to KYC. You must complete 3 levels of verification in order to have a 100% reliable account.
To perform the verification process, simply enter the “Account Settings” tab. In turn, from this tab we can see our levels of transactions and the options to incorporate the next level of verification.
It is noteworthy that all users will have until September 1st to perform this entire update process. After that date, the accounts that do not have any of the aforementioned documents, will not be able to carry out any operation through LocalBitcoins.
In general terms, the platform is very safe. In order for a user to sell through it, it must offer a quantity of bitcoins which are retained in its platform wallet. If a buyer makes the payment and does not receive the agreed amount of bitcoins, he has the right to communicate it to the platform and they will investigate the case and transfer it to you.
However, not everything depends on the platform. If you start a negotiation with a user, and decide to release the Bitcoins relying on the resources attached by the buyer and do not personally confirm that the money is in your account, you may not be able to receive a refund because you validated the transaction. It is always advisable to be certain before you successfully send you tokens.
Transactions and withdrawals
The platform offers a large number of payment and withdrawal methods such as:
- National and international bank transfer.
- Direct deposit of money.
- Credit card.
- Cash payment (meetings).
- Western Union.
Although not all countries allow you to use all the options offered by the platform, as there are so many alternatives there is always one that can be used in each country.
In case of doubts about the payment methods that are available in your country, you can consult by accessing the same page and in the ‘quick buy or sell’ tab select the region and the available payment options will appear in the drop-down menu.