Local Bitcoins is an easy way to buy bitcoin online, especially if you are new to the whole cryptocurrency thing, but is Local Bitcoins a good way to buy bitcoin? To find out, read this review telling you all you need to know.
What Is Local Bitcoins?
In a nutshell, Local Bitcoins is a simple way to buy and sell bitcoin. People advertise that they want to either buy or sell bitcoin and then they do it. Simple as that.
For example, if someone wants to sell bitcoin, they put how many bitcoin they have to trade, what price they want, what methods of payment they will accept, and any limits they may have.
When someone wants to buy bitcoin, they look for a seller they like, put in an order, and after awhile (a few minutes to a few hours), the exchange is done.
Who Can Use Local Bitcoins?
The simple answer is anyone but life is never as simple as simple answers.
Firstly, check that Local Bitcoins is not blocked in your country. Then check what payment methods are available. Here are some of the methods listed on Local Bitcoins.
SEPA (EU) Bank Transfer
National Bank Transfer
There are quite a few others. Check to see which one is best for you.
What Payment Methods Should I Avoid?
The two payment methods I don't recommend are PayPal and credit cards. The reason is because both allow chargebacks that are easy to do.
This means that if you sell bitcoin to someone using PayPal or a credit card, they can claim that they didn't receive their bitcoin and get their money back. Obviously, this is more for sellers of bitcoin than for buyers.
In my honest opinion, the golden rule for cryptocurrencies is not to use credit cards or PayPal ever. At some point, it will end badly for someone.
How Can I Trust Local Bitcoins?
Local Bitcoins uses an escrow system. This means that when you order bitcoin from an advertiser, the advertiser’s bitcoin are transferred to a ‘holding’ account. They can only get the coins back if they can prove they haven’t been paid, and the buyer can’t prove they did pay.
However, to avoid any disputes, check the feedback of each seller. See what their rating is and how many trades they have done.
You can do this by clicking on ‘Buy Bitcoins’ at the top of the page. You will see ‘Buy Bitcoins Online in (your country)’, and then you will see the name of the sellers on the left hand side of the page under Sellers’.
By the name of each seller, you will see two numbers in brackets; for example, (250+; 100%). The first number indicates how many transactions the seller has done, the second indicates their feedback rating.
It goes without saying, but I will say it anyway, the above example is excellent, and you could trade conficently with that seller.
What Else Do I Need to Know?
Probably quite a lot and more than I have time to write in this quick introduction to Local Bitcoins.
What I recommend to everyone who asks me about Local Bitcoins is to read the guides. You can find them by clicking on ‘Help’, and then clicking on ‘Guides’. On the page that appears, you will see:
How to buy Bitcoins
How to sell Bitcoins
Introduction to trading Bitcoins online
and a few other things. My advice is to read, watch (some of the guides have videos), and understand everything thoroughly. Do not start doing anything until you are 100% sure you know what you are doing.
Thousands of people lose money online every day buying, selling, and trading cryptocurrencies because they don't know what they are doing.
Don’t be one of them!
Have I forgotten anything or do you have any questions? Then, please post them in the comments below, and I will reply as soon as possible.