LocalBitcoins UK – The Complete Guide
While many called cryptocurrency trading as “speculative gambling”, it is attracting investors globally.
With this sudden and massive boom in cryptocurrency in 2020, bitcoin trading has become a revolutionary way to earn money. 2020 saw the rise of platforms for trading and exchanging cryptocurrencies (mostly bitcoins).
One such platform for bitcoin trading is LocalBitcoins. It’s a global platform that has garnered a good reputation among the users. Can you trust the platform or is it just another pump-and-dump scheme?
Our team of experts did what they do best, i.e. analyzed the platform. Here’s all you need to know about LocalBitcoins.
What Is Bitcoin Exchange?
Bitcoin is the most renowned cryptocurrency and has become a household name. Bitcoin exchange takes place just like a conventional trade where you pay the seller bitcoins to buy assets like fiat or cryptocurrency. It is also commonly called DCE (digital currency exchange).
What Is LocalBitcoins UK?
LocalBitcoins is a company based in Helsinki, Finland that was founded in 2012. In the past few years, it has become a significant name in the bitcoin trading ecosystem. It is a secure and instant P2P bitcoin exchange platform used for selling and buying bitcoins.
The platform gives you the complete liberty to decide the trading terms and relevant exchange rates. It also claims to be the most secure and fastest way to exchange bitcoins in a P2P environment.
How Does LocalBitcoins UK Work?
This peer-to-peer bitcoin exchange platform is a private way to purchase and trade bitcoins. LocalBitcoins is used as an escrow when buyers or sellers agree on bitcoin trade terms. When the deal is successful it takes a percentage of the deal as a fee.
Here’s the gist of it:
- Post an ad for selling or buying bitcoins
- Decide on the trade terms and agree
- Confirm the trade with LocalBitcoins as the escrow
- Pay 0.5-1.0 % of the deal as a fee
How Can You Use LocalBitcoins UK?
Step-1: Creating an Account
Provide your email address, and sign up for a LocalBitcoins account by creating a login username and password. Make sure the email address you provided is active to receive emails.
Step-2: Get Verified
A standard procedure will confirm and verify your email address through a link. To buy bitcoins and increase your lifetime trading limit above £750, you’ll need to get verified by LocalBitcoins. If you provide any counterparties, most traders will require them to be verified as well.
Step-3: Fund Your LocalBitcoins Wallet
To open trades with new buyers, you’ll need to have bitcoins in your LocalBitcoins wallet. Funding the wallet is fairly simple and multiple payment options are available for the customers. Once you fund your wallet with bitcoins, you’re ready to browse ads and start trading.
Step-4: Browse Advertisements or Post Your Own
You can browse advertisements by other traders or get started by posting your advertisements through the dashboard. Initially, you may not taste success as people are suspicious of ads posted by new users. But, once you get the hang of the platform and have a good trading reputation, your ads will be more responsive.
For posting an advertisement, you’re required to provide the following details:
- Payment Method
- Terms of Trade
- Min/Max Transaction Limit
Step-5: Trade with Buyers/ Sellers
If a buyer responds to your advertisement, you will receive a notification via SMS and email. When the trade is opened by the buyer, bitcoins for the entire amount of the trade is transferred from your wallet to the escrow. The buyer will receive payment instructions and will be guided throughout the payment procedure.
Once the buyer completes the payment and presses the “I have paid” button, you will receive a confirmation email for releasing the bitcoins. The entire process is smooth and very transparent, making it the best trading platform for beginners.
What We Love About LocalBitcoins UK
P2P platforms allow you to verify your buyers and connect with them digitally before trading. As an escrow, LocalBitcoins protects the buyer’s and seller’s privacy for safe trading.
Unlike other trading platforms that are very rigid towards the trading terms, LocalBitcoins has a Dynamic Pricing System that gives you the flexibility to set your trading terms according to the up-to-date prices.
3. Multiple Payment Methods
You are free to buy or sell using any one from the wide range of payment methods available in your region.
Most online trading platforms disappoint their users when it comes to completing the transaction quickly. The speed depends on the payment method you are using. Buys with cash deposits get delivered within an hour and confirmed within 15 mins by the seller.
5. Limits and Liquidity
Users are free to set their prices and limits, LocalBitcoins imposes no limits itself. However, for transactions above £1000, the seller might require your ID for verification.
6. Globally Accepted
LocalBitcoins is used by traders in more than 140 countries and gives its customers access to the global marketplace.
7. 24/7 Customer Support
They have quick and responsive customer support that is available in over 100 countries. LocalBitcoins also have 24/7 forums where users can request help from other users of the platform.
8. Nominal Fee
The trading platform has a fixed rate, i.e. flat 1% on all trades making it a reasonable platform for bitcoin exchange.
The Verdict: Can You Trust LocalBitcoins?
LocalBitcoins is a dark horse among bitcoin exchange platforms, and we can assure you that it is not a scam. The platform provides a feedback score for every trader which can be the deciding factor when choosing a user to trade with.
Here’s why we think LocalBitcoins is the safest option for exchanging bitcoins:
- Operations comply with local laws and regulations.
- A rigorous verification process to maintain proper user documentation in case of a dispute.
- Security features like reversible payments, two-factor authentication, etc.
What Should I Do Next?
In 2020, the world hit pause, but that doesn’t mean your investment plans should pause too! LocalBitcoins gives you a great trading platform for bitcoins and fiat currencies but as a user make sure you confirm the authenticity of every trader you interact with. Do you know what is a Bitcoin Profit? Get started today with Bitcoin Trading.
Trading bitcoins is undoubtedly a complex and speculative task. But, once you get to know the market and the platform, you’ll be an expert trader who seldom gets fooled by trading scams.