Exchange Reviews

How to get started on Localbitcoins; a beginners guide

Localbitcoins is one of the leading Bitcoin to Fiat exchanges around the globe. The company was founded in 2012, and it’s based in Helsinki, Finland.

It allows users to post advertisements on the website where they state their exchange rates and their preferred method for buying and selling bitcoins.

Before any trade is finalized on the website, users can communicate with prospective buyers and sellers and confirm all the necessary details.

The beautiful thing about Localbitcoins is that it acts as a gateway to the world of Bitcoin trading for new users. They can quickly get accustomed to buying and selling Bitcoin using the platform.

So far Localbitcoins has managed to build a good reputation and establish it self in over 248 countries around the world.

How to sign up on Localbitcoins

Localbitcoins

You can start by visiting the localbitcoins official website and clicking on the ‘sign up for free’ tab. That will take you to a page where youget to register a new account. Fill in the necessary details and then click on‘Register’ the new account.

Once you have created your account, you can begin to search for Bitcoin sellers within any preferred area. The website allows its users to conduct different searches including seller location, the accepted payment methods and also ID verification requirements.

The Localbitcoins site enables users to check the reputation and trading history of each buyer/seller and also to discuss the relevant issues. Once one has completed searching and verifying the vendor, a trade can be started by clicking on the ‘Buy’ button.

Localbitcoins

After clicking the buy button, you will be taken to the next page where you have to confirm the amount you would like to purchaseand then send a trade request. However, to be safe on the Localbitcoins site, always ensure you chose traders that have many trades on them and a good reputation.

Localbitcoins

Localbitcoins allows buyers and sellers to carry out trades using a wide range of payment methods including, Mpesa, PayPal, National bank transfer, Webmoney, Western Union, Cash on Delivery, Wire transfer andmany more.

Security features offered on Localbitcoins when trading

  • There is an escrow service in place when making trades that protect users from fraud. The funds are only discharged after one confirms a successful exchange.
  • There are reputation ratings where users rate each other based on their activity. The trading history and feedback is displayed openly for all to see.
  • The site offers customer support viaemail, and the team is always quick to respond. There is also a forum whereusers can interact and advice each other on various issues.
  • There is a conflict resolution center incase a user runs into any issues. The customer support team looks into anydisputes that arise between buyers and sellers and try to solve them.
  • To ensure your account is secure fromhackers, the site offers a two-factor authentication that provides an extralayer of protection. It’s a feature you should ensure you activate as a newuser. It helps confirm sign-ins by having a PIN code sent directly to your phone.
Localbitcoins

Fees charged on Localbitcoins

The Localbitcoins site charges a commission of 1 percent that is usually taken from the sellers. Buyers need to be aware that prices posted on the site are generally higher compared to more centralized exchanges.

This is because sellers get to set their own prices. That’s how vendors get to generate profit from trades. However, vendors run the risk of selling Bitcoin to peoplethat may initiate a chargeback through PayPal or (money reversal in the case ofMpesa). 

It’s another reason why the prices are higher on the localbitcoins platform in order to mitigate the risk.

How to stay safe on Localbitcoins

There are certain measures that need to be incorporated if one needs to stay safe on Localbitcoins given that it’s a decentralized exchange. As much as the site has built a solid reputation for being safe and trustworthy, there is always a possibility of coming across conmen. To ensure you are always safe, take the following measures;

  • Always check the seller’s profile and verify that they are suitable to trade with. Its advisable to choose vendors who have conducted many trades with a feedback rating of 98 percent and above. Also have a preference for vendors that have verified names, phone number, and email address.
  • Always avoid trading outside the platform as this neglects the escrow service. Also, ensure all communication is done through the message box that is offered on the platform.
  • Ensure you explain your terms of tradeclearly.
  • If you experience any issues, make sureyou contact the customer support. Also, you can make use of the forum wherefellow users can offer assistance.

In Conclusion, Localbitcoins is one of the most straightforward and easily accessible platforms where users can acquire Bitcoins. It allows users to make purchases using various payment methods and doesn’t impose buying or selling limits.

However, both buyers and sellers should be aware of the existence of conmen that could be present on Localbitcoins. Its advisable to take all the necessary security measures to ensure you stay safe.

coinmag

Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology.

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