LocalBitcoins Review: Is It A Scam Or A Legit Crypto Exchange For Canadians?

UPDATE (09 Feb, 2022): LocalBitcoins account that service is discontinued and after 16th Feb 2023, LocalBitcoins customers will only be able to log-in to withdraw their Bitcoins. The trading and Wallet services will no longer be available at this point.

LocalBitcoins is a peer-to-peer Bitcoin exchange. As someone who has tested over 50 crypto exchanges since 2016, I created a LocalBitcoins account to determine if it’s worth using in Canada in 2024. Here is our detailed LocalBitcoins review.

LocalBitcoins Summary

With LocalBitcoins you can trade bitcoin directly with other people all over the world. 

LocalBitcoins Features

LocalBitcoins is a straightforward platform designed for buying and selling Bitcoin directly with other people. Traders set their own prices, which can sometimes be higher or lower than the market rate, giving you the opportunity to find a good deal. You can also select traders based on the payment methods they offer, and many support Interac e-Transfer, making it convenient for Canadians.

LocalBitcoins Registration & Verification

To register with LocalBitcoins you’ll need to enter your username, email and password.

Once you have verified your email address, fill in the rest of the required details including name, phone number and your estimated trading volume. 

After signing up for LocalBitcoins, you’ll receive a verification code via SMS, which you’ll need to enter to activate your account. Once verified, you can trade up to 1,000 EUR per year without additional steps.

If you wish to increase your trading limit or deposit Bitcoin to your account, you’ll need to verify your account further. LocalBitcoins offers several verification tiers, each with a different annual trade volume allowance. For instance, the next tier allows trading up to 20,000 EUR per year, but requires you to provide a government-issued ID and answer questions about your trading activity.

Unfortunately, when buying or selling Bitcoin on LocalBitcoins, some traders may require you to provide ID and proof of address before they agree to trade. These requirements vary by trader and can be reviewed when you click “buy” next to their offer. It’s important to check these details beforehand to ensure you’re comfortable with the trader’s conditions.

Since this is the case with many traders, you may wish to complete the verification process anyway.

LocalBitcoins Fees

Using LocalBitcoins is free for buying and selling Bitcoin, and transferring funds to other LocalBitcoins wallets is also free. However, sending Bitcoin to external crypto wallets incurs a small network fee.

When trading, you have the flexibility to choose the lowest-priced offer if you’re buying Bitcoin, or the highest-priced offer if you’re selling.

If you want your trade advertisement to appear in search results for buying or selling offers, you’ll be charged a 1% fee on the trade volume for each completed transaction. This fee applies only to those creating advertisements.

Each trader will have a limit to how much you can trade with them.

LocalBitcoins Currencies & Deposit Methods

LocalBitcoins is exclusively for Bitcoin and does not support fiat currency or other cryptocurrencies. To sell Bitcoin, you’ll need to deposit Bitcoin into your account first.

If you’re looking to buy Bitcoin, you’ll agree to a trade with a seller and use their preferred payment method to transfer the funds. LocalBitcoins provides flexibility, allowing you to choose traders who accept Interac e-Transfer, PayPal, or other payment methods that suit your preferences.

LocalBitcoins Security and Safety

Is LocalBitcoins safe for Canadians to use? Yes, we believe it is.

LocalBitcoins uses an escrow system to protect your Bitcoin. When you initiate a trade, the agreed amount of Bitcoin is held in escrow. This ensures that you won’t lose money or Bitcoin if the other party fails to complete their end of the trade. Once the seller confirms receiving the payment, they release the Bitcoin from escrow to the buyer.

Additionally, each trader has a rating system, allowing you to review their trading history and reputation. This gives you the confidence to trade with well-rated individuals.

For added account security, you can enable two-factor authentication (2FA), offering an extra layer of protection for your transactions and account.

LocalBitcoins Mobile and Desktop app

The LocalBitcoins app has a 3.7-star rating from 127 ratings on Google Play and a 3.9-star rating from 27 reviews on the App Store. While some users have reported issues with logging in, this seems to be a minor bug.

The app allows you to view all buy and sell offers, manage your wallets, and monitor your trading activity, providing a convenient way to trade on the go.

LocalBitcoins is straightforward and easy to use. Since it only supports buying and selling Bitcoin, there are no overwhelming or confusing features. To get started, click “buy” or “sell” at the top of the platform to view all available offers.

Enter the amount you wish to buy or sell and request the trade. You can also send the trader a message to confirm that you’re ready to send or receive the payment, making the process smooth and efficient.

If you’re buying Bitcoin, simply follow the seller’s instructions. They will provide their bank information for payment. Once you’ve made the payment, you’ll need to wait for the seller to release the Bitcoin to you. Since the Bitcoin is held in escrow as soon as the trade is accepted, the seller cannot scam you. If the seller doesn’t release the Bitcoin after you’ve paid, you can file a dispute to resolve the issue.

You can also read reviews of each trader before initiating a trade to ensure reliability. After completing a trade, it’s considered courteous to leave a review for the trader, helping others in the community make informed decisions.

LocalBitcoins Customer Support

You can create a support ticket online and the average response time is 1-3 days. 

Conclusion

Is LocalBitcoins legit? Yes, absolutely. LocalBitcoins provides a simple way to buy and sell Bitcoin directly with other people. Often, you can find better offers than those on centralized exchanges. Buying and selling on LocalBitcoins is free, and you don’t need to worry about depositing fiat currency into your account.

If your primary goal is to trade Bitcoin, LocalBitcoins is an excellent option. However, be aware that many traders may require you to verify your account, so it’s a good idea to either prepare for verification or search for traders with fewer requirements. You can sign up here to get started.