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Localethereum review – peer-to-peer Ether buying
Buy Ether locally, securely and easily – however you want.
If you want to buy Ether (ETH) easily, Localethereum deserves your careful consideration because it might be the service for you.
What is Localethereum?
Localethereum is a worldwide marketplace for people to buy and sell Ether. It’s a peer-to-peer marketplace where buyers and sellers can pick out each other’s listings and make a deal.
You can find people trading ETH with your local currency and choose whatever payment method works best for you as long as the other trader is happy with it.
For security and safety, it uses an Ethereum-powered escrow service to securely hold funds until transactions are concluded, and its end-to-end encryption means buyers and sellers can communicate in complete privacy.
How does trading work?
Before trading, you will need to have an Ethereum-compatible cryptocurrency wallet.
Trading securely involves a few steps.
- The buyer and seller confirm and agree on the terms of the trade.
- The seller places the Ether into a Localethereum escrow smart contract. This provides proof of funds and shows that they actually possess the Ether they’re selling.
- The buyer makes their payment to escrow.
From here, the seller confirms the payment, at which point escrow is released and the trade completed.
Generally, either party has a couple of hours to cancel a trade and withdraw their funds from escrow if it’s not in order.
If something is off, either party can raise a dispute. Localethereum then brings in a third-party arbitrator and gives them the keys to decrypt the communication between the parties. After looking at the communication, the arbitrator reaches a decision.
In what countries is Localethereum available?
This service can be used anywhere in the world, although some locations will have more traders than others.
What fiat currencies does Localethereum accept?
You can use any currency in the world with this exchange as long as you can find other traders using it.
What are my payment methods?
You can use any kind of payment as long as both parties agree to it. The most popular vary by location, but the main ones include the following:
- Bank transfer
- Cash in person
- Money transfer services
Localethereum charges a 0.25% “maker” fee and 0.75% “taker” fee. The maker fee is charged to the person who places an offer listing, and the taker fee is charged to the person responding to the offer.
These fees are included in the listings you see on the site, so there won’t be any surprises.
Other than that, any additional fees will depend on your chosen payment option. You should be mindful of bank transfer fees and the like when placing orders, and you may want to choose the more cost-effective payment options.
Also, there will be some nominal Ether transfer costs, including the cost of the transfer itself and the cost of running the escrow service. Localethereum operates on the Ethereum blockchain, so some of the features need to be “powered” by ETH.
Transfer times can range from a few minutes to a few days, depending on your chosen payment options. A transaction can’t be concluded until funds arrive in escrow, so if a bank transfer takes a couple of days to arrive, then this will be the main delay.
Localethereum has a minimum trade size of $5 or its equivalent in other currencies. This is to prevent people from attacking the system and locking it up with zero-value trades.
There’s no maximum trade size other than any transfer limits imposed by your payment option.
Safety, security and privacy
Localethereum runs its service on the Ethereum blockchain and takes advantage of smart contract systems to run escrow.
You’ll often have to deal with strangers, and there’s always a risk associated with that. You should take the usual precautions, such as meeting in public spaces, if transacting face to face.
However, this might be one of the safest peer-to-peer local cryptocurrency exchanges with a reliable escrow service and encrypted communications.
In particular, Localethereum also offers “identity icons” for wallet addresses. The slightest difference in a wallet address will show a completely different identity icon and alert you to a mistake. This helps prevent you from accidentally sending funds to the wrong address.
Customer service and contact
You can get in touch with the Localethereum support staff by opening a support ticket on the website.
Pros and cons of Localethereum
- Competitive fees
- Operates worldwide
- Lets you choose your own payment options
- Encrypted communications and a proven escrow service offer security
- Relatively straightforward and easy to use
- You may not be comfortable with peer-to-peer transactions
- May require some knowledge of how Ethereum works
- You’ll need to compare the listing value next to current market value
How to sign up
Once you’ve done your due diligence and are ready to get started, just sign up at Localethereum. Then either start browsing the listings or make your own.
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