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But did you know that there are few similar but perhaps even better sites out there? So I am aiming to share these great LocalBitcoins alternatives with you.
Did you know that LocalBitcoins is one of the most popular Bitcoin trading sites amongst thousands of traders?
This is because of a couple of key things. Namely at LocalBitcoins you can trade BTC with others and buy/sell using a wide range of payment methods. From PayPal, to cash, bank transfer, cheque, coupons, Skrill, Neteller, etc.
Pretty much any payment method you can think of. And this is really unique if you compare to the commonly used cryptocurrency exchanges where bank transfer and card is often only available.
Another key thing is that you (could) buy Bitcoin anonymously at LocalBitcoins. But this has changed and with the new rules this is no longer possible.
How p2p marketplaces like LocalBitcoins work
And to give you a brief explanation of how peer-to-peer (p2p) marketplaces like LocalBitcoins work.
You sign up to the platform, and then as a buyer you look for sellers. Either via the existing offers that are listed on the site. Or you can put up an offer yourself.
Here you list your wanted purchase price. For example $6850 per 1 BTC. And how you want to pay for (which payment method). And then you agree on a price and payment method with the seller. And then you pay in the money via LocalBitcoins.
And LocalBitcoins then holds your funds in escrow and release them to the seller when they have sent the BTCs. So that you won’t get tricked by the seller.
Why P2P marketplaces (like LocalBitcoins) are so popular
As mentioned above there are a few reasons for why p2p marketplaces are so popular. Even though it can be sometimes be a bit more laborsome than using a traditional online exchange.
The main reasons are:
1 ) You can use so many more payment methods. From cash, to bank transfer, to PayPal, Skrill, Neteller, Moneygram, Swish, to god knows how many.
2 ) Another key aspect was that you could stay anonymous. This is no longer true for LocalBitcoins, but true for some of the alternatives on this list.
3 ) You can find local sellers. Meaning you can meet up with other Bitcoin fans and pay them with cash in person. Or set up some other way of transacting between you. This is of course extremely popular in countries where online transactions are less common, or easy.
The 3 best LocalBitcoins alternatives
Ok so it’s time for me to share my three favourite alternatives to LocalBitcoins. You might have heard about these ones before, or perhaps they are all completely new to you.
Either way I will share some information about them and how you can get started using either of these LocalBitcoins alternatives to start trading Bitcoin.
1 ) LocalCryptos
Ok, so this P2P marketplace was originally called LocalEthereum. And this was because they started out as an alternative to LocalBitcoins, but of course serving Ethereum and Ether.
So similar to how LocalBitcoins was only trading Bitcoin this site was originally only trading Ethereum. But as the name change suggest this is no longer the case.
Because today you can trade both Ethereum and Bitcoin on LocalCryptos.
Otherwise the two are pretty much the same. But I honestly like the look of LocalCryptos better. It has a more modern look to it and is slightly more user-friendly.
Otherwise LocalCryptos has escrow, the same number of payment methods (more or less) available and features like LocalBitcoins.
But with two clear advantages and why I think this is as good, or better p2p marketplace site to use.
- Is because it has both Ethereum and Bitcoin, whereas LocalBitcoins only has Bitcoin
- Because you can still use LocalCryptos to buy both ETH and BTC anonymously
How to get started using LocalCryptos
Ok, so to get started using LocalCryptos to buy either BTC or ETH you first head over to its site – www.localcryptos.com.
And then while on LocalCryptos you should start looking for a buyer/seller in order to start trading.
If you can’t find one directly simply put up an offer on the site and wait for someone to contact you.
2 ) Paxful
Second out on this list is Paxful. And it resembles the two previous options. It is a p2p marketplace where you can buy and sell Bitcoin with other people across the world.
Either with locals from where you are based. Or globally with someone based in a whole different country or continent than you.
What makes Paxful different than the others is that you can also buy Bitcoin instantly using the site.
So not only can you buy from other people via the p2p marketplace, but you can also buy Bitcoin using a credit card or debit card via Paxful using any of the connected sellers.
How to get started using Paxful
Ok, so if you would prefer to use Paxful to start buying and selling Bitcoin then go to www.paxful.com.
And then it is just about finding a seller/buyer and agreeing on terms after you have selected the payment method and price.
You can use Paxful and avoid the KYC but only to limits of:
- $1500 USD in trade volume = must provide ID for verification
- $10,000 USD in trade volume = provide ID and address verification
3 ) LocalCoinSwap
Third option and alternative to LocalBitcoins is LocalCoinSwap.
This p2p marketplace site works like the others on this list, but it has a lot more cryptocurrencies available for trading on its site.
How to get started using LocalCoinSwap
Ok, so LocalCoinSwap works in the same way like previous options. You can also use LocalCoinSwap without any KYC. So you can use LocalCoinSwap to buy and sell cryptos without giving away your identity.
To start using LocalCoinSwap simply head over to www.LocalCoinSwap.com and then you register an account with them.
After that you look for willing sellers, or buyers if you are planning to sell cryptos on the site.
Agree on terms for the price, payment methods and then complete your purchase. LocalCoinSwap has an escrow service in a place like the others to help protect you and your cryptos.
But these ones on this are all reputable and trusted by millions of traders around the world.
I think any of those, or LocalBitcoins including would make a good choice.
Remember that they all have escrow in place to help you keep your cryptos safe while transacting on the sites.
How do you choose which LocalBitcoins alternative to use?
For me that goes down to a few key things:
- What payment method do you want to use? If it doesn’t matter then you can use any of them. Otherwise, start comparing them based on that
- Is KYC important? Would you prefer to buy without an ID? Then you should use LocalCryptos, Paxful or LocalCoinSwap
- What’s the price? Of course, this will always be one of the most important parts so compare the prices between the offers
Find other guides
- Best way to invest in crypto
- Bitcoin investing guide
- Best Litecoin wallets
- Buy IOTA guide
- Best Cardano wallets
Per Englund – Founder of Go CryptoWise a cryptocurrency and tech fan that want to see better and smarter products and services that make our lives better and easier