There are many sites that offer digital currency trading services to users. One of the most popular ones in this field for a long time is the LocalBitcoins site. Sellers and buyers of digital currencies from around the world can register and trade their bitcoins on this site.
In this article, we will teach you the security tips for trading on the local Bitcoin site.
Local Bitcoin Accepted Payment Methods
You can use different payment methods on the Local Bitcoin site:
- Wire transfer
- Western Union
- Webmoney – Common in Iran
- Pay by email
- Cash payment (card to card or payment from the seller’s personal portal) – common in Iran
You cannot use international credit cards (such as MasterCard and Visa) because you are dealing with people on this site. However, this site allows you to shop with a PayPal credit card if you do not have one. Each payment method has different fees. Among these methods, buying with PayPal at Local Bitcoin is more risky for the seller.
Why is buying with PayPal more risky?
Bitcoin is unlike any other physical or digital product. Bitcoin is a form of money that is almost untraceable. For this reason, many companies (such as PayPal) do not offer any guarantees for buying and selling Bitcoin with a credit card.
Using payment methods such as cash or wire transfers, where reverse payment is very difficult, is usually better for buying bitcoins.
If you only want to use the local Bitcoin site to buy bitcoins, the services of this site will be free for you. In fact, the site only receives royalties from bitcoin sellers, which is 1%. No more. Of course, once you receive the bitcoins, you will have to pay the usual bitcoin network fees to transfer them to your bitcoin wallet.
Received bitcoins first enter your wallet on the local bitcoin site. We strongly recommend that you transfer these bitcoins to your secure bitcoin wallet immediately.
It is true that sellers do not charge a transaction fee, but instead pay a higher exchange rate; Consider this when trading.
Local Bitcoin site with its features helps you make safe trades:
- Validation: The amount of credit and records of each trader on this site is clear.
- Money support: The money you send for the transaction remains on loan (blocked) at the Local Bitcoin site. The money is released after the seller confirms the completion of the transaction process.
- 2FA: This feature is the same as two-step authentication. Of course, this option is not enabled by default and you have to enable it yourself. This means that every time you log in to your account, you have to enter another PIN code that is sent to your mobile phone. This feature prevents your account from being hacked.
- Login confirmation: If you always use a browser to log in to the site, Local Bitcoin will recognize you. But if you change your browser, the site will ask you to confirm your email again.
- Dispute Resolution Support Team: Local Bitcoin has a support team that answers both users’ questions and helps resolve disputes between buyers and sellers.
Check out people’s views on Local Bitcoin
In bitcoin forums (such as Reddit and Bitcointalk), you can see other people’s views on local bitcoins. Of course, there are different opinions about this site, but in general, the comments are positive. For example, most of them believe that this platform works very well or that the traders and traders are quite reliable.
How to trade in local Bitcoin without fear of fraud?
Local Bitcoin is a great platform, but sometimes bad traders can be found on it. Either way, you’re dealing with people, and you better be careful.
Select the seller
There is a long list of sellers on this site. But you can narrow down this list by specifying your location and payment method. You can then choose one of these people to trade. Never choose a seller based solely on the price they offer. Sometimes paying 5% more for a transaction is better than buying from an unreliable person. Look at the seller’s transaction history and see how he has acted in the past.
After selecting the seller, log in to his account and check the following:
- The number of transactions made by this person is important.
- His feedback rating is at least 98%.
- At least one year has passed since the creation of his / her account.
- The phone number, email address and account of the company in which it operates must be clearly specified.
- At least 10 other users trust him.
Find a salesperson who has all of the above. But if you can not, at least choose someone who has done great and successful deals in the past.
After checking the seller’s account, look for his username in the local bitcoin forums (forums). If you find even one negative thing about him, skip the deal.
Contact the seller
You can now send your purchase request to the seller.
Do not do any of the following:
- Do not send any information to the seller until he has responded.
- Do not talk to the seller anywhere outside of Local Bitcoin for a deal, as you will not be able to use the “Money Support” service on this site.
- Do not send your payment information to the seller in any other way (such as email, text message or phone call) other than Bitcoin Local Mailbox. Only use the messenger of this site.
Note: You can cancel the transaction until you select the payment confirmation button.
Now you have to wait for the bitcoins to enter your local Bitcoin account. If there is a problem, try to solve it with the seller first. Do not worry about losing your money, Local Bitcoin will support your money.
Early in your arrival, reputable sellers may not be willing to deal with you; This is because you have not yet received enough positive feedback. To gain the trust of big sellers, you first need to make a few small deals with regular sellers and get good feedback.
Now that you know how to use Local Bitcoin, don’t worry about scams anymore. By following the tips mentioned, you will have up to 99% safe transactions. If you have any other questions, ask the local bitcoins on the FAQ page. The support team will always be responsible for you.