The LocalBitcoins option
I love when in crypto, you find new options to do things instead of having to stick to just one. It's known that in order to do trading, buy, or sell; you must do it on an exchange platform.
Exchanges bring back the centralization to cryptocurrencies. They must also aby by government regulations that have gotten worse through time, and I result, so have the Know your customer (KYC) protocols.
LocalBitcoins is a peer to peer online site where you can buy or sell your Bitcoins directly to someone else and exchange it for your local currency. I tried it with a friend, and the process of signing up is straightforward and buying as well, it was great not having to go through KYC. Overall the site is very user-friendly.
“At LocalBitcoins.com, people from different countries can exchange their local currency for bitcoins. The users of the site publish advertisements in which they specify the exchange rate and forms of payment for the purchase and sale of bitcoins. You can respond to these ads and stay in person to buy bitcoins in cash, or trade directly through electronic payments. Bitcoins are stored in your LocalBitcoins.com portfolio, from where you can pay directly for your bitcoin purchases.”
Imagen using cryptocurrency frequently and traveling; you would probably have to have different accounts on local exchanges. Until we have massively leaped to decentralized exchanges, I believe this can be a great option.
But is it all great in Localbitcoin?
First, we must understand that the platform is attractive if we have enough people offering Bitcoin, and at times it might seem appealing for smaller purchases. If you are someone that wants to buy a large sum of Bitcoin, it may not be the site for you because of the limited volume available.
Another factor we must keep in mind is the fact that the prices are set by the sellers and published on the site, unlike exchanges where prices reflect on the current market situation or other orders are placed by traders to hit a specific market target price.
What about security?
Initially, I thought well its peer to peer how am I going to place an order and have to trust the person on the other side would effectively wire the correct amount.
LocalBitcoins has a two-factor authentication available on the platform.
"For each exchange, LocalBitcoins.com offers transaction and escrow services to protect the buyer from bitcoins.”
By: Carolina Pérez