Localbitcoins is one of many platforms for buying and selling Bitcoins, but it has a big difference: you can buy or sell crypto currencies in your local currency contacting anyone in your country, region or even city.
The Localbitcoins operation is simple. If you want to buy Bitcoins, just register, find a seller with a good rating and an acceptable price, buy the Bitcoins you want, transfer the money and receive your crypto currencies. And that’ s all.
How to open a Localbitcoins account?
The first thing to register at Localbitcoins is, of course, to log in to the website and complete the registration form.
To do this, click on Sign up free to open the following screen:
After completing the registration form, you will need to validate your account via an email that will be sent to your account. That’s the first step, then you’ll have to verify it. How to do it? Simple. You must click on the icon indicated in the following image:
There you should search for “edit profile”, click and select “verification” on the next screen:
When you click on “Verification” you will see the following:
Okay. Good. On this page you will have to make several validations to verify that you are a real person. Don’t worry, just have a little patience.
You must first verify your identity by clicking on “verify identity”. Once in the new window (the one you can see below) you will have to upload a photo of your ID card.
When the process is complete, you can start selling and buying Bitcoins. However, it is recommended that you also validate your phone number. To do this, return to the menu and select “verify phone number”, as shown in the following picture:
With that our account will already be active and validated.
How to buy and sell Bitcoins?
We have 3 options:
- sell bitcoins directly
- buy bitcoins directly
- create our own buy/sell advertisement
Now the interesting part begins. To sell your bitcoins you need to recharge your Bitcoins account. And you can’t do that without your Localbitcoins wallet address. Click on the amount of Bitcoins you have (at the top of the menu) and then on Receive bitcoins, it will take you to this window:
In this window you can copy the address where to transfer the bitcoins. When the transaction is confirmed 3 times by the network, the Bitcoins will be in your wallet (there is a 0.00015 BTC fee for incoming transactions). Once they appear on your account, go to the top menu and search for “sell Bitcoins”, where you will see the following:
Choose and click on your desired seller (according to the price, payment options and reputation) so you see his/her profile and set the amount you want to sell to him/her:
You need to write down your C/C number, remember the seller can specify what bank/s he/she transfer to (in this case, the seller only transfers to CAIXA Bank). The buyer has to make the bank transfer in no more than 1 hour and 30 minutes.
Your bitcoins will be freezed and held by LocalBitcoins (so you can’t withdraw or sell them to another buyer) until you confirm you received the money on your bank account and the transaction gets confirmed.
The procedure is the same, but now you are the buyer. Click on “Buy bitcoins”:
Select your desired seller. In this case, we are going to buy bitcoins using cash (EUR), so we check the offers on the lower side. It’s specially important this time to check the distance from you, the number of previous transactions, the average positive evaluation and the terms and conditions of a transaction with the seller:
Remember that the demanded price is the unit price offered for a BTC.
Once you’ve made up your mind, click the Buy Now button.
Create your own advertisement
If you are not in a rush and you have it clear what is your desired price, whether to buy or sell the bitcoins, you can also create a bitcoin trade advertisement (before creating an advertisement on LocalBitcoins you have to previously complete identity verification). Click on “Post a trade” and you will see 5 different sections:
Advertisement rules and requirements:
- For your ads to display you need to have Bitcoins in your LocalBitcoins wallet. You need 0.04 BTC or more for advertisements with online payment methods and 0.04 BTC or more for local advertisements (Cash).
- Certain payment methods require you to be ID verified before your ads are visible.
- Each completed trade costs advertisers 1% of the total trade amount.
- Once a trade is opened the price is final, except when there is a clear mistake in the pricing.
- You are not allowed to buy or sell Bitcoin on behalf of someone else (brokering).
- You may only use payment accounts that are registered in your own name (no third party payments!).
- You must provide your payement details in the advertisement or in the trade chat.
- All communication must happen on LocalBitcoins.com.
- Payment methods marked High Risk have a significant risk of fraud. Be careful and always ID verify your trading partners when using high risk payment methods.
- Set whether you want to sell or buy your bitcoins
- Whether you want to do it locally or online
- Your location
- Margin you want over the bitcoin market price. If you set it positive, you will sell them over the market price or buy them below the market price. If you set a negative margin you will accept lower prices on your sells or higher prices on your buyings, so you will attract more contacts (you can leave it as 0 if you don’t want to use any margin)
- Price equation: this is an advanced option and it’s a bit complicated, so they have a FAQ. You don’t just insert a fixed price, the price is fetched from other market data sources (other bitcoin exchanges) and the price on your advertisement is updated on real time. Here you can set the price source (Bitfinex, for example), the price you want to use from the source (minimum, maximum or average) and an operator (i.e.: multiply it by 1.05)
- Minimum transaction limit (optional)
- Maximum transaction limit (optional)
- Restrict amounts to specific comma-separated values (optional)
- Opening hours: this is for your advertisement to show up: remember once they sell you bitcoins you have 90 minutes to make the transfer, so you may not want the advertisement to show up during night hours.
- Terms of trade: specially important if you are selling the bitcoins by cash.
Check this option if you want only to sell the exact amount of bitcoins you have entered as maximum trade limit. For example, if you want to sell 10 bitcoins and set it as the maximum trade limit, once someone buys 2 bitcoins from you your maximum trade limit will decrease to 8 bitcoins.
- Identified people only. Specially important if you are selling by cash
- SMS verification required.
- Trusted people only.
That’s all, you can now click on publish advertisement and wait for it to be accepted. As you can see, you have many options to configure your add to your own needs.