Localbitcoins cryptocurrencies biggest peer to peer marketplace has been around for quite some time, but has recently been witnessing resurgence in patronage due to the challenges a lot of the major exchanges have been facing this year. China has been in the news recently with its ban of all new ICOs shortly after which its biggest exchanges announced they were closing shop on Mainland China which is one of Bitcoin’s biggest markets.
Interest in cryptocurrency has only increased despite the ban of ICOs, and the closure of exchanges, however trade has changed for Chinese customers who are now flooding the peer-to-peer market. Buying on Localbitcoins is unlike buying from an established exchange. Here you buy from an individual instead of a company. The modes of payment are much more flexible ranging from PayPal, Western Union, Cash by Mail or simply cash in hand payments. They almost never require any identification and rarely restrict the amount of cryptocurrency you can buy at any given time.
Demand is surging for Bitcoin especially through this less formal channel. With greater risks of fraud and theft, one needs to be extra careful when conducting transactions on Localbitcoins. In order to choose the right seller you can buy from the following should be part of your considerations;
- Find a seller who has considerable trade history to his credit. Preferably find someone who has sold over 100 Bitcoins as well as conducted a minimum of 120 transactions in their lifetime
- A seller with a very good feedback is always a safer bet. Choose someone with over 98% positive feedback. This is someone you can safely trust to trade with.
- Find a Seller whose account isn’t new. The minimum age of the seller you should trade with should not be less than 1 year old on Localbitcoins
- Make sure the seller you choose is a verified one with a company account and other contact details that you could verify.
- Start trading small then gauge the quality of service the seller gives you. Communication and speed Is a key ingredient to what makes a greater seller.
- Always demand for an escrow, and never trade outside Localbitcoins for safety purposes