The Origins of LocalBitcoins.com
LocalBitcoins.com is a person to person Bitcoin trading site. The bitcoin exchange allows users to trade bitcoins in 14,492 cities, and 248 countries, including the United Kingdom. The business was founded in 2012 in Finland.
Buying Bitcoin through LocalBitcoins.com
Users can post adverts stating the exchange rate and payment methods for buying and/or selling bitcoins. Users can reply to the advertisements and either agree to meet in person to exchange cash, or trade directly using online banking. Bitcoins are stored in the LocalBitcoins.com web wallet. LocalBitcoins.com is different to other centralized exchanges in that it is decentralized and allows humans to deal with humans. Trades are made directly between humans without the overheads which are incurred by using a middleman.
Features and Benefits
- com supports all of the payment methods that the user community supports. This includes PayPal, debit card, credit card, and money transfer.
- They have a generous referral program – 20% of trading fees. Pay-outs are done daily after sales are finalized.
- They provide an API for programmers who want to develop applications to interface with LocalBitcoins.com.
- They sell an ATM solution which automates the bitcoin exchange business. The ATM does not require an internet connection.
- All online trades are protected via Escrow – however, the case is not the same for trades made in person.
- Mobile phone verification is an important security feature for engaging in online trades.
- 2 factor authentication can be enabled by the user.
- A feedback system is used to help users know who they should and should not trade with.