Understanding the working of one of the most reliable peers to peer marketplace: LocalBitcoins.com
Cryptocurrencies as currency
Let us see what LocalBitcoins.com Platform is all about? Cryptocurrencies, from the day one were intended to be used as a form of decentralized currency, in contrast with the centralized one, but the condition of cryptocurrencies these days seems to be far away from a currency and more of an investment asset. As the market has not gained maturity, a number of investors like venture capitalists and hedge fund investors are pouring into the industry. In this millennial generation, buying and selling Bitcoins is not any lesser obsession then clicking a selfie and posting it on social media. Hence out of Fear Of Missing Out (FOMO) a number of millennials are jumping onto the Bitcoin bandwagon in order to buy them so that they do not get a temptation that they are being left behind which has led to a number of countless hacks and scams in the name of Bitcoin. Hence, one needs to be careful about the Ponzi schemes that run around in the name of Bitcoin and safeguard ourselves from such lawbreakers.
Localbitcoins.com is one of the Bitcoin buying service provider, used by the user in order to purchase or sell Bitcoins by putting on advertisements on LocalBitcoins.com. Localbitcoins.com is not a cryptocurrency exchange it is just a local service which helps in buying and selling of cryptocurrencies between various users without much security compliances. This method is generally preferred for the long-term investors are those who just want to try Cryptocurrencies. however, this device high brokerage fee when compared to the cryptocurrency exchange which implies minimum fee for trading purposes.
Step by step let’s understand how to use services offered by LocalBitcoins.com in order to buy a certain amount of Bitcoins.
1. First of all, a user needs to register himself on the website. On completing all the registration formalities a user gets a unique Bitcoin wallet absolutely free of cost automatically without any extra work being done. If by any chance a particular user has already registered with localbitcoins.com then one can skip this particular step.
2. After the completion of the first step, the user is automatically taken to a next window where two options are available for buying and selling Bitcoins respectively. A user has to choose the number of Bitcoins, the Fiat currency (whichever is easily accessible for him), the country and the kind of offer. Kind of offer means, what kind of advertisement does he want to post. For example, if he wants to send Bitcoins he can receive the cash from the person, through Altcoins or through a number of money transfer portals like PayPal, MoneyGram, etc.
3. After selecting the appropriate locality the advertisements Bitcoin seller advertisements would be displayed to the user and he can choose any particular user to undertake transactions. The seller ratings can be checked for a better transaction. The reviews and ratings of the seller must be good enough as this is an indicator of good reputation and reliability. The response time of a particular user must also be kept in mind prior to initiating a transaction.
4. Once a particular user is selected from the list, his personal terms and conditions are displayed and if the buyer doesn’t same to fit in, then we can go back and select another user. After selecting an appropriate user after a number of trial and error. The user needs to enter the number of Bitcoins and a message to the seller which is optional and click on send trade request button.
5. Once a trade request is initiated a countdown timer starts after the completion of which, the trade automatically gets canceled if the payment or any activity is not detected. Once the payment is completed the user must click on I have paid button in order to verify the same, then the LocalBitcoins.com escrow service would release the amount of Bitcoins into the wallet address provided by it.
Is LocalBitcoins.com safe?
Founded in the year 2012 by Jeremias Kangas, the company has never been attacked by any kind of security threats. The team members are well versed with the headquarters in Finland. It offers a very easy and an interactive way to buy or sell Bitcoins privately without the intervention of any cryptocurrency exchange, by the application of the escrow service. The response time of the customer service provided by the company is very less and the seems to respond immediately to any problems related to the previous transactions. So Yes, Localbitcoins.com seems to be legit enough because it has been operating since 2012.