LocalBitcoins is a well-known bitcoins based startup located in Helsinki, Finland. It provides over-the-counter trading service for bitcoins.
Way of Working of LocalBitcoins
A user who wants to sell their Bitcoins placed their advertisement on the LocalBitcoins platform set their exchange and also briefly specify their preferred medium of exchange.
Other users who want to buy bitcoins approach these advertisers and buy bitcoins from advertisers after mutually agreeing upon the terms and conditions of the sellers.
This is what you should expect
LocalBitcoins has by default review and feedback mechanism by which you can know about the credibility of the seller. Apart from that, Local Bitcoin offers escrow and conflict resolution service to the trader at their platform.
As of September 2019, Bitcoin has an active 110,000 traders and 1700 – 3,000 trade volumes that sounds like a huge transaction.
About the History of LocalBitcoins
LocalBitcoins platform was established by Jeremias Kangas. He revolutionized the way of trading bitcoin by creating an escrow system for the marketplace by the end of the year 2012.
Since its inception, the website has started creating an enormous amount of revenue. In the year 2013, Local Bitcoin has suffered from the biggest data breach, when thirty bitcoins were stolen from its active users.
In the year 2013, LocalBitcoins has ceased its financial operation in New York State because sellers were restricted to purchase a license to buy bitcoins from the New York Department of Financial Services to fulfill the legal requirements of financial regulatory institutions.
In August, LocalBitcoins has succeeded to enhance its marketplace through acquire 1.35 million different customers from 249 different countries, and the weekly trade volume of Bitcoin transactions exceeds US$14 million.
Time Zone in LocalBitcoins
Your trade counterparts don’t like to pursue with you unless if you don’t respond to their message. If you set your opening hours you can limit the time when your advertisements are shown to exactly those times when you are available for trade.
It is strongly recommended to set the time zone according to your local time zone, but before setting the time make sure that you have your time zone in user settings.
Method of Using LocalBitcoins Platform for Trading Bitcoins.
Now I’ll be discussing the step by step method of using local bitcoins platform for buying and selling bitcoins. The process is pretty much simple but now we’re focusing on the method of buying Bitcoins from the Local Bitcoins platform.
1. Register an Account with Local Bitcoins
The first step of using LocalBitcoins for trading Bitcoins is to register an account with Local Bitcoins. By registering your account with the LocalBitcoins platform, you’ll receive a free secure wallet and you do not need additional apps. If you already have a LocalBitcoins account, you can skip to the next step.
2. Look for an Advertisement
Head over to the main page of LocalBitcoins and in the search box fill the amount that you want to buy or sell in your local currency. After doing that, insert your location and your preferred payment option. If you aren’t sure which payment option is the best choice for you to choose “All online offers” as your default payment method. In this way, this site will list all available bitcoin traders in your region.
This is what you should expect
3. Select an Appropriate Advertisement
From the list of advertisements, choose a seller who has a good reputation and a high volume of trades. The response time indicator depicts how fast the trader will response to your request. To view more information about the buyer click the buy button.
This is how it looks like
4. Pay the Seller
After pressing the buy button, you’ll receive complete information about the buyer that includes terms and conditions of trade. Before submitting trade requests thoroughly read the terms and conditions of advertisements. If you aren’t satisfied with the terms and conditions of the advertisement, go to the previous page and select another advertisement.
This is how it looks
5. Mark Payment as Completed
Once you have released payment, click the button I have paid. Once the trader has verified that payment has been received your Bitcoin will release from Local Bitcoin trade escrow to your LocalBitcoins wallet. This is how you can get Bitcoins.
This is how it looks like
LocalBitcoins Transaction Fee
LocalBitcoins charges a 1% transaction fee on every transaction that the seller has to pay. Sellers are allowed to raise the price depends on the medium of payment that they have selected or they find an appropriate buyer.
Buying Bitcoins Online from LocalBitcoins with Vanilla
If you want to buy Bitcoins from LocalBitcoins, they offer their clients two different methods of a transaction such as browse offers which include bank transfer, online transfers, pre-paid debit cards, remittance, and other payments. Another well-known methodology of payment in LocalBitcoins is Browse pre-paid Debit cards such as vanilla and serve2serve.
This is what you would expect if you are looking for a seller whose default payment method is Vanilla
LocalBitcoins Compliance with FinCEN
The financial crime enforcement network is the bureau of the US department of treasury. Its work is to collect and analyze complete information about financial transactions for restricting money laundering, financial crime, and terrorist funding.
FinCEN doesn’t regulate LocalBitcoins because they have found two LocalBitcoins users involved in illegitimate activities; although, they were caught and prosecuted by undercover agents of FinCEN. Just because of past illegitimate activity FinCEN stays away from regulating FinCEN.
Net Worth of LocalBitcoins
Since the launch of the Bitcoin trading platform LocalBitcoins‘, it has managed to grow at an exponential rate. At the time of publication, this non-custodial platform has about 56,000 from different cities across the world. According to the statistics revealed by the staff members of Local bitcoins $200M worth of transactions have already been done on this platform.
LocalBitcoins in Russia
Trading of Bitcoins isn’t legalized in Russia. As of November 2016 official promulgation, trading of Bitcoin isn’t allow in Russia; however, in December 2017, deputy finance minister of the Russian Federation has said that they are legalizing cryptocurrency payments in Russia.
Russia, Venezuela, and the USA comprise a large marketplace in LocalBitcoins. Peoples of Russia are buying and selling Bitcoins on LocalBitcoins because it is one of the well-known peer-to-peer marketplaces for Bitcoins. The most common method of payment used by peoples of Russia for buying and selling Bitcoin is a direct cash deposit.
This is what you would expect when you intend to buy Bitcoins from LocalBitcoins.