LocalBitcoins peer-to-peer cryptocurrency exchange – 2020 review

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Find Bitcoin buyers and sellers near you on LocalBitcoins.

  • Good for peer-to-peer Bitcoin trading with escrow and ID
  • Bad for cash payments, no-ID trading, risk of scams

Check out our full list of pros and cons or read on.

134

Fiat currencies

1

Cryptocurrencies

Details

Product Name LocalBitcoins P2P Exchange - UK
Fiat Currencies AUD, USD, EUR, GBP, CAD, CNY & 120+ more
Cryptocurrencies BTC
Deposit Methods Bank transfer (ACH)
Cash
Credit card
Cryptocurrency
PayPal
Trading Fee None
Deposit Fees Fees vary
Withdrawal Fees -

Pros

  • Available in more than 200 countries.
  • Can be cheaper than other bitcoin and money transfer providers.
  • No minimum or maximum transfers.
  • Many methods for fiat currency delivery.

Cons

  • May not be many sellers in some countries.
  • You'll need to handle transfer details yourself.
  • Buyers and sellers may set transfer limits.
  • Some methods are considered high risk.
Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.

Learn more about LocalBitcoins:

What fiat and cryptocurrencies are supported?

  • Supported fiat currencies: AUD, USD, EUR, GBP, CAD, CNY & 120+ more
  • Supported cryptocurrencies: 1 cryptocurrencies
  • BTC

Which payments methods are accepted?

  • Bank transfer (ACH)
  • Cash
  • Credit card
  • Cryptocurrency
  • PayPal

What’s it like to use LocalBitcoins?

Fees and limits

The fees below are accurate as of 11 October 2019.

Transaction typeFee
Buying and sellingFree
Posting a successful advertisement1% on completion of the trade
Transactions between LocalBitcoins walletsFree
Merchant invoicing service0.5%
Custom work (e.g. research of external issues)EUR€200 per hour. Minimum billable amount is EUR€200.

How fast will my funds be available?

Deposits

Clock icon for transfer speed

Varies

Fiat payments. How long a payment takes depends on the payment method you and the other trader use.

Withdrawals

Clock icon for transfer speed

Upon received payment

Bitcoin release from escrow. Bitcoin sellers will typically release BTC from escrow as soon as they receive your payment.

Is LocalBitcoins safe to use?

  • Regulation. LocalBitcoins operates around the world in compliance with local laws. Traders are required to provide identification for most transactions, and reputable traders on LocalBitcoins will typically require identification from their counterparts.
  • Verification process. LocalBitcoins has different verification tiers, with all except the lowest requiring users to provide ID documents.
  • Security features. LocalBitcoins has ongoing bug bounties and only gets involved in trades between users as the escrow provider. However, scams from other LocalBitcoins users are a constant problem.

How to avoid scams on LocalBitcoins

LocalBitcoins requires buyers and sellers to verify their identity for most transactions, and it has an escrow service to help prevent scams. But even with these precautions, there are still two common scams to watch out for when using LocalBitcoins.

1. Chargeback fraud

This scam targets Bitcoin sellers.

How it works

A scammer buys Bitcoin with credit card, bank transfer, PayPal or another service with reversible payments.

After the payment is made, they claim a chargeback through the payment service.

Now the scammer has the Bitcoin and the money, while the seller has no Bitcoin and no money.

How to avoid chargeback fraud
  • Deal only with well-known buyers with a high reputation score on the platform.
  • Check the buyer’s platform trading history for any gaps. These could mean the scammer purchased or otherwise acquired a high-reputation account to perpetrate the scam.
  • Only deal with verified, identified buyers.
  • Only make small transactions to reduce the amount lost if you become a scam victim.
  • Be wary of offers that are too good to be true or even slightly too good.

Outside of cash payments, which are not allowed on LocalBitcoins listings, there are no guaranteed ways of avoiding chargeback fraud.

2. Man in the middle scams

This scam targets Bitcoin sellers.

How it works

The scammer tricks someone into unknowingly purchasing Bitcoin, which is sent to the scammer’s wallet. This type of scam has two victims. Victim A (VA) is someone who wants to buy something online. Victim B (VB) is someone who wants to sell Bitcoin on LocalBitcoins.

The scammer offers to sell something to VA. This can be anything sold online, such as a car, clothing or anything you’ll find on eBay or Amazon.

Once a price is agreed, the scammer offers to buy exactly that amount of Bitcoin from VB and presents VB’s payment details to VA.

Now VA ends up paying VB, who releases the Bitcoin to the scammer after receiving payment. Naturally, VA will typically not receive the goods they thought they were buying and will typically initiate chargeback procedures.

Consequently, this scam can lead to innocent Bitcoin sellers losing money and being labelled as fraudsters and even having their bank accounts cancelled.

How to avoid man in the middle scams

All the same rules as avoiding chargeback fraud apply – only deal in small amounts and only with reputable and identifiable buyers. In addition, you can do the following:

  • Where possible, ensure that the payment method incorporates ID, such as a bank account name, and that this matches the buyer’s ID.
  • Ask for photographic confirmation of the payment, such as requiring the buyer to take a photo of themselves physically making the payment.
  • Have smaller payment windows (e.g. require payment to be made within half an hour of a purchase being requested).
  • Require a detailed description, including the purpose of the payment, on the buyer’s bank transfer.

Scams are a risk on any peer-to-peer cryptocurrency trading platform, and LocalBitcoins is not any better or worse than the others in this regard.

You can reduce your chances of being scammed by being careful, but there are no guarantees and even experienced traders sometimes fall victim.

If you don’t want to worry about the risk of scams, you should look for large, reputable cryptocurrency exchanges instead.

Compare popular large cryptocurrency exchanges.

How do I create an account at LocalBitcoins?

What else do I need to know about LocalBitcoins?

LocalBitcoins is based in Helsinki, Finland.

It was founded in 2012 and has been a significant name in the cryptocurrency trading ecosystem since then.

In earlier years, it was best known as a no-ID cash-in-hand trading platform, but it now requires verification in most cases, and users can no longer select cash in person as a preferred payment option.

In a nutshell

Pros

  • Low fees. The platform trading fees are low or even non-existent in some cases..
  • Many traders. It’s a busy and global platform, making it easy to find trading counterparts.

Cons

  • Risk of scams. Scams are a constant risk, and users need to be vigilant.
  • Prices vary. In many markets, you’ll find a large spread between the buy and sell rates.

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Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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2 Comments

  1. Default Gravatar
    Sarah
    March 4, 2019

    Where can I sell bitcoin near Wolverhampton?

    • Avatarfinder Customer Care
      Joshua
      March 4, 2019

      Hi Sarah,

      Thanks for getting in touch with Finder. I hope all is well with you. :)

      Regarding your question, I can’t provide a straightforward answer. The location would depend on your agreement with the seller. When using LocalBitcoins, you can search for ads created by people near Wolverhampton. When you found an ad, you can then get in touch with the seller and discuss where you want to meet in Wolverhampton. So, basically, you would need to use LocalBitcoins to find potential sellers in Wolverhampton.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

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