LocalBitcoins is a peer-to-peer, crypto exchange platform where buyers and sellers interact and trade local currencies for Bitcoins. In simpler terms, LocalBitcoins is an online marketplace for buying and selling Bitcoins.
Ever since the conception of cryptocurrencies, traders faced several challenges finding reliable exchange platforms. The available platforms had numerous issues ranging from transaction delays to mega fraud. Fortunately, with the emergence of LocalBitcoins, traders can breathe a sigh of relief as they now have a platform they can trust.
How is LocalBitcoins Unique?
LocalBitcoins was one of the very few platforms that previously allowed buyers and sellers to meet in person, in a location of their choice, and trade in their local currencies. This was more convenient for traders as it allowed for more anonymity. However, this option is no longer available due to security reasons and in compliance with European anti-money laundering regulations.
Getting Started with LocalBitcoins
For you to trade on LocalBitcoins, you have to create an account. In any case, having an account makes it easier for you to find genuine traders, follow transactions, view trade history, and transfer funds safely.
What is even more amazing is that LocalBitcoins allows traders from all over the world. The platform is available in over 249 countries around the globe. Considering this, you can easily and conveniently find a buyer or a seller near you and open a trade.
Moreover, signing up for a user account on LocalBitcoins is free and very easy. You just need to create a unique username and provide your email address. You also need to create a strong password to secure your account from unauthorized access. You will receive a free Bitcoin wallet as soon as you confirm/verify your email address.
Trading on LocalBitcoins
LocalBitcoins makes it easy for everyone to buy and sell Bitcoin. The platform provides traders with a wide range of options for easy trading. Some of the most notable features include:
- Quick sell
- Quick buy
- Ads for sellers
- Location-based ads
Buying Bitcoins on LocalBitcoins
Buying BTC on LocalBitcoins is very easy. You may either use the quick buy option to search for quick deals or find local sellers using the adverts displayed on your dashboard.
Buyers may post trade requests to available sellers on the platform. A seller may respond to the trade request and contact the buyer directly on the LocalBitcoins platform. When you receive a trade request from a seller, you ought to respond to it accordingly to begin the purchase process.
As the name implies, the Quick Buy option is the fastest way to buy BTC on this platform. You just need to fill out the spaces available by entering the amount of BTC you want to buy, the currency you wish to trade, your location and your preferred payment method. Once you click the search button, LocalBitcoins will display a list of sellers that meet your preferences.
Alternatively, you may click on any of the public adverts posted on the LocalBitcoins. Each advert displays the name of the seller, available payment methods, Price/BTC rates, and trade limits.
Importantly, you are advised to check on the seller’s reputation score before initiating a trade. The seller’s reputation score is determined by several factors such as experience, membership period, response time and the number of trades completed successfully.
After finding your preferred seller and agreeing to the terms of trade, you may start the trading process. The seller will ask you how much BTC you want to buy. Once the agreement is finalized, the seller will move the amount of Bitcoin you want to buy into Escrow.
You have to complete the payment using the agreed payment method within 6 hours lest the trading agreement expires. The seller will then confirm the transaction and your Bitcoins will automatically move from Escrow into your online Bitcoin wallet. You may then transfer your Bitcoins to a third-party wallet or leave them in your LocalBitcoins wallet.
Buying Bitcoin with WebMoney
Buyers have several options when it comes to making payments. The most popular payment methods include:
- Cash deposit
For this post, we are going to discuss how to buy Bitcoin on LocalBitcoins using WebMoney.
WebMoney is a universally accepted payment method with over 30 million subscribers around the world. Moreover, it is quick, safe and convenient. It is therefore not surprising that some traders prefer using this option.
Buying Bitcoin online using WebMoney is relatively simple. However, you first need to register with WebMoney before you can carry out any transactions. Here are the steps to register:
- Visit the WebMoney official website (www.wmtransfer.com)
- Click on Sign up
- Enter your phone number in international format
- Fill out your personal information
- Set a password to your WebMoney purse
- Confirm your email address
You may add funds to your WebMoney wallet using the following methods:
- Add funds by bank transfer
- Exchange cash in one of the WebMoney Exchanger sections/offices
- Add funds using a credit card
- Add funds by cash deposits in local banks
- Transfer funds using a WebMoney Card
- Exchange other e-currencies into WebMoney
Once you fund your WebMoney wallet with adequate cash, you may purchase Bitcoins from LocalBitcoins by following these steps:
- Log in to your LocalBitcoins account
- Click on “Quick Buy”
- Enter the number of Bitcoins you wish to buy
- Select WebMoney as your preferred payment method
- Click the search button
- Go through the various traders accepting WebMoney as a payment option
- Click on your preferred seller to view their profile and full information
- Initiate a trade once you find your preferred seller
- Click on Buy
- Enter your WebMoney ID and the number of your WebMoney purse
At the time of writing, LocalBitcoins was charging a 1% fee on all transactions via WebMoney.
How Long Does It Take to Receive Purchased Bitcoins?
Trade transactions on LocalBitcoins are relatively fast. However, the duration it will take to receive your purchased Bitcoins depends on a number of factors, including how fast you complete the transaction.
As mentioned earlier, you have to pay for your purchase within 6 hours after agreeing with the seller. The transaction will expire within this period; thus, it is important to pay in time.
Other factors that may affect the duration of the transaction include the transaction fee and the Bitcoin network. In most cases, low-value fees may cause a delay in the transfer of Bitcoin to your wallet since the transaction requires multiple confirmations. In the same breath, network congestions may also cause a delay in the transfer of BTC to your wallet.
Fortunately, most transactions on LocalBitcoins take between 10 minutes and 60 minutes. Sometimes the transaction could take 5 minutes or less considering that LocalBitcoins does not require buyers using WebMoney to upload documentation as proof of payment.
How to Cancel LocalBitcoins Transactions
One major benefit that LocalBitcoins has to offer is that the buyer has total control over all transactions. When you initiate a trade process, LocalBitcoins will transfer the amount you intend to buy into Escrow.
If you change your mind or detect that the seller is a fraudster, you may cancel the transaction at any time. Canceling a transaction is a privilege only given to buyers. You may cancel a trade at any time before finalizing the purchase.
Alternatively, you may cancel a transaction by simply declining to pay within the set timeframe of 6 hours. LocalBitcoins will automatically cancel non-paid purchases within 6 hours after opening a trade.
The only way that a seller may cancel your purchase transaction is by opening a dispute process. Sellers have only 24 hours to lodge a complaint in the event that a buyer has marked a non-paid transaction as “paid”.
How to Avoid Scams on LocalBitcoins
WebMoney is a highly secure and trusted payment settlement service. However, like any other online platform, you are advised to take extra precautions when buying Bitcoins on online exchanges particularly when using WebMoney. This is because canceling WebMoney transactions takes a long time.
Here are a few tips on how to avoid scams on LocalBitcoins:
- Verify the profile of the seller
- Make sure the seller has a valid photo ID
- Check the reputation score of the seller
- Confirm the number of trades the seller has completed in the past month
- Trade with active sellers only
- Confirm the WebMoney details of the seller
Is it Worth Trading on LocalBitcoins using WebMoney?
Very few Bitcoin exchange platforms accept WebMoney as a payment method. Essentially, it is very difficult to find a specific WebMoney-Bitcoin exchanger. Moreover, the few that are there are not very reliable considering that some of them have become havens for scammers and fraudsters.
Fortunately, LocalBitcoins is among the few Bitcoin exchangers that are safe and reliable. They support a wide range of payment methods, including WebMoney. What is even more convincing is that LocalBitcoins has an escrow service to safeguard transactions between buyers and sellers and keep fraudsters at bay.
Moreover, WebMoney is a safe platform given that they monitor all transactions around the clock and block any fraudulent activities. This goes a long way to protect clients from falling victim to online scams.