LocalBitcoins Review

Low transaction fees

Something else you will appreciate when you buy and sell BTC on LocalBitcoins is the low transaction fees. There are absolutely no fees for buyers regardless of how much BTC you are purchasing and sellers only pay a 1% commission on each trade.

If you want to transfer your Bitcoins from your LBC wallet to your personal one, you only pay a 0.0001 BTC withdrawal fee plus whatever miner fees are associated with the transaction.

Well-designed platform

LocalBitcoins provides a secure platform that makes it easy for buyers and sellers to make educated choices about whom to do business with.

1. There’s a reputation system that allows users to provide feedback about people they trade with. There's also a public record history that details each user's past activities. As a general rule, you want to strictly buy and sell to the most reputable traders who accept the payment method you want to use.
2. When a trade is initiated on LocalBitcoins, the appropriate amount of Bitcoins is automatically removed from the seller’s account and placed in escrow. When the seller receives the payment, he/she then releases the coins. That equally protects sellers and buyers alike. For the seller, it gives them an opportunity to confirm receipt of the payment before releasing coins. For the buyer, it ensures the seller can’t simply run away with your money without releasing the Bitcoins you paid for. If there is a disagreement between the two parties, LBC will act as a moderator and investigate the transaction before deciding if the coins should be released or not.
3. LBC provides its users with multi-factor authentication as an added layer of protection. That means you will need to enter a pin to log in and transfer Bitcoins from your account. This makes it a lot harder for would-be hackers armed with your personal details to steal your cryptos.
4. LocalBitcoins also uses login-guard to verify your browser every time you log in. Email verification is required anytime the security system detects you are logging in from a different computer.
5. There’s a responsive support staff that’s there to quickly resolve any issues between buyers and sellers. There is also a huge forum where users share tips and report suspicious users.

The LBC scammer problem

Most people who have traded on LocalBitcoins have nothing but positive things to say about the platform. It’s an excellent place to buy and sell Bitcoins especially if you already know the basics about the cryptocurrency world.

The fact you rarely have to give up personal information is an added plus.

Since you’re buying and selling with individuals when trading on LBC, the risk of getting scammed are higher than other major exchanges like Coinbase where you actually buy from and sell to the company itself.

Since LBC allows virtually anyone to trade on their platform with minimal verification, there will always be some shady characters who are looking for people to take advantage of.  It’s important that you pay close attention to the reputation and public history of the people you do business with. It’s obviously better to do business with a trader who has been on LocalBitcoins for five years with thousands of trades and very few complaints against him/her, than a person with an account that was opened a few hours ago with no feedback.

Resist the urge to be greedy and use common sense, and you won’t have any problems finding reputable traders to do business with.

Tips for trading safely on LocalBitcoins

1. Never choose who to do business with based on price alone. You’re begging to be scammed when you do so.
2. Stick to high volume traders when possible. Someone who has traded over 150 BTC on LBC is less likely to go rogue just to scam a few hundred bucks from you.
3. Look for active traders to do business with.
4. Search the trader’s screen name in the forum. Make sure the person has not been involved in any scandals.
5. Never send Bitcoins directly to buyers. There is no guarantee the person will send the payment after receiving the coins. LBC’s escrow is there for your protection. Use it!
6. Always listen to your gut. If it sounds too good to be true, it’s probably a scam.

There you have it. By following these simple steps, you drastically reduce the odds of you having a negative experience on LocalBitcoins. At the end of the day, the extra diligence you need to take when you trade on LBC is worth the freedom and anonymity that comes with the platform.

Bitcoins.net gives LocalBitcoins an overall rating: 4.5 out of 5