There are various measures taken to ensure the security of trading on LocalBitcoins, These are;
- Reputation System: Past trading activity and rating of each Trader is made public for individual assessment. This is to aid you to decide if you want to trade with the trader or not.
- Escrow: This has been explained above.
- 2 Factor Authentication (2FA): The 2FA is an optional feature; It simply means that on each log into your account, you will have to enter a pin code that will be sent to your phone.
- Login Guard: Each time you log in from a different browser or IP, you will be required to verify it’s you by clicking on a link sent to your email address.
- Support and Conflict Resolution: LocalBitcoin has a support team 24/7 ready to answer questions and resolve conflicts if any.
A lot has been said about LocalBitcoins, and a lot is still being said. You can check out community opinions by searching LocalBitcoins on Facebook, Reddit, Trustpilot, Cryptocompare, etc…I found out it needs to work on its customer care system, it takes a lot of time to get a reply from the customer care. Most opinions identify the site as being legit. Some users complained of lost funds from trading with the wrong person. Since you are dealing directly with an individual on the site, you have to take caution because people are not always trustworthy. Although LocalBitcoins have put measures in place to discourage scam, you can never be too careful because people still get scammed. I have taken the time to highlight measures you should take so as not to get scammed on LocalBitcoins.
Watch the video below to learn how to trade on local bitcoins.
This Guide ensures you are 99.99% safe when trading on LocalBitcoins
The top listed price is usually the cheapest, it might be tempting, but ‘NEVER CHOOSE A SELLER BASED ON PRICE.’ Sellers and Buyers are filtered based on their IP. You are only shown Sellers and Buyers from your geo-region. When choosing a seller, follow these rules. They are strict, but if you don’t want to lose your money, you should follow them: Make sure that:
- The user has traded over 10BTC in total on LocalBitcoins.
- He has at least 100 confirmed trades
- He has at least 10trade partners
- His feedback score is at least 98%
- His account is being active for at least 6 months
- He has a verified phone number, email and company account.
- He is trusted by at least 10 people.
All this information can be found on the seller’s public profile.
If the seller meets the above criteria, send a message to him requesting a trade, do not provide any other information about yourself until you receive a reply.
Once you receive a reply and feel comfortable to buy from the seller, make payment using the details provided by the seller on LocalBitcoins. After making the payment, Mark payment as ‘made’ (Only do this when you have made the payment or else you might be denied transaction). Wait, your Bitcoin will be released to you by LocalBitcoins’ escrow once the seller confirms. If you have any issue, try to resolve it with the seller first before contacting the LocalBitcoins Customer Support.
- Make payment and mark it as paid within the allotted time.
- Never trade outside LocalBitcoins with the seller even if he offers you a lower price. If you do so, you will not be protected by the LocalBitcoins escrow hence you might get scammed.
- Send your payment details to the seller using only the LocalBitcoins Payment interface. Do not send it to email or another medium.
- Once you have bought Bitcoin, always move your Bitcoin to your personal Bitcoin Wallet. Do not leave it in LocalBitcoins wallet.