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What is LocalBitcoins Exchange?
LocalBitcoins was the pioneer platform that started off P2P (peer-to-peer) trading. Instead of keeping and directly selling cryptocurrency to users, LocalBitcoin organizes trades between two users: the buyer and the seller. The seller places the ad, a buyer finds the ad, they make an exchange and LocalBitcoins keeps 1% of the transaction. Buyers can also place ads and await for a seller in which case LocalBitcoins keeps 1% of the buyer’s transaction.
Not to mention, LocalBitcoins has been hacked several times since its inception in 2012 and has lost more users with each hack. When LocalBitcoins works as intended, it’s arguably the best platform in the world to buy crypto for your next online casino trip. Unfortunately, it’s not all roses.
LocalBitcoins was founded in 2012 in Helsinki, Finland. Because Bitcoin trading was highly irregulated back in those days, the creator of LocalBitcoins got the idea of creating an escrow system for all Bitcoin transactions. The LocalBitcoins Escrow service would automatically create a wallet for holding both the buyer’s and seller’s funds until the transaction has gone through thus eliminating the risk of one party scamming the other.
On paper, the idea seemed sound and the platform became very popular. However, because of its lack of regulation, limited usability, and questionable security, LocalBitcoins slowly became synonymous with a platform for getting scammed.
There were numerous reports of people getting scammed and having their Bitcoins stolen while using LocalBitcoins. This combined with many hacker attacks that happened over the years left a bad impression on most users.
Thankfully, the situation seems to have calmed down. Nowadays, LocalBitcoins is still a popular choice for buying Bitcoins but not really a good choice for storing or keeping them.
Pros and Cons of LocalBitcoins Exchange
- The platform has been hacked many times in the past
- Only offers Bitcoin trading
- Many users got scammed while using this exchange
Using LocalBitcoins in Online Casinos?
If you are careful and only deal with trusted individuals (who have a good reputation at LocalBitcoins), you are looking at probably the best and most affordable place to fund your crypto casino trips.
Despite all the negativity surrounding LocalBitcoins, those who know how to use it can get their Bitcoins for the best possible prices available.
With that said, you should only use LocalBitcoin for buying (and selling) Bitcoins. After buying them, you should probably send them to a different wallet to keep them safe. Even though LocalBitcoins isn’t too advanced for new users, you should still have some basic understanding of how Bitcoin works before using this platform.
While you can technically use your LocalBitcoins wallet to directly play at online casinos, this really isn’t recommended because of potential hacks.
Creating a LocalBitcoins account
To create a LocalBitcoins account follow these simple steps:
- Visit the website’s homepage and click on the Sign up for free button
- Fill out your basic information (account name, password, email address, etc.) and click Register
- Wait for the confirmation email to arrive and click on the received link to verify your account.
- Congratulations, you have successfully created an account and a wallet at LocalBitcoins.
In order to trade more than the minimum amount, you need to submit more personal information on your account page (such as Physical address, bank statement, Utility Bill, etc.).
LocalBitcoins Accepted cryptocurrencies
Back when it was first released, Bitcoin was the only cryptocurrency that LocalBitcoins. Unfortunately, even 10 years later, not much has changed. Even though there are several stable cryptocurrencies that have stood the test of time, LocalBitcoins still only allows trades in Bitcoin.
Users can, however, pay for transactions using fiat payment methods but the only cryptocurrency available on the platform is Bitcoin. Fortunately, seeing how every single online crypto casino accepts Bitcoin this isn’t such a huge issue. Regardless, LocalBitcoins really should allow more cryptocurrencies to be traded.
Just like most other crypto exchange platforms, LocalBitcoins does not have a dedicated PC application. Instead, users can buy and sell Bitcoins through any Internet browser. By using any up-to-date Internet Browser, you can safely buy and sell Bitcoin at LocalBitcoins.
LocalBitcoins has a dedicated mobile app on both PlayStore and AppStore. Using the app is similar to the browser version but a bit more intuitive. Most users find the improved UI to be the main reason why they use the mobile app instead of the PC app.
The Mobile app can also be equipped with features like TouchID, FaceID, two-factor authentication, and various other security features. Most players who game at online casinos like to keep the mobile app on standby in case they ever run out of funds and wish to continue playing.
Security isn’t LocalBitcoins strongest trait. Since the company started its business, the platform has been hacked several times. Each time the hackers made off with a lot of Bitcoins. LocalBitcoins did manage to reimburse some of their users but not all of them.
These hacks led to a decline in userbase, but because of the platform’s low trading fees for sellers, and no fees for buyers, users are still flocking back to the platform.
Because of this, we recommend you only use LocalBitcoins for buying cryptocurrencies, and when you do, immediately send them to a different wallet.
If used cautiously, and only buying from reputable sellers, LocalBitcoins may just become the best platform for buying Bitcoins.
How to avoid getting scammed at LocalBitcoins?
To easily and quickly avoid scams at LocalBitcoins follow these steps:
- Avoid trading with users outside the platform – a lot of sellers may contact you before you buy Bitcoin from them and offer you an even better deal if you agree to trade outside the platform. This kind of behavior is almost always a scam. By trading outside the platform you are essentially giving your money away to the scammer. Always trade directly on the platform.
- Avoid trading with users who have a low reputation – The LocalBitcoins platform has a built-in reputation system based on the seller’s transaction history. For each successful transaction made, users receive one positive point. Users who have a high amount of positive points are usually safe to trade with. Avoid making trades with new users or with users who have no positive feedback. A Reputable seller usually has at least a 98% positive rating.
- Avoid selling Bitcoin if the other party is using the Paypal payment method (or other reversible payment options) – While this isn’t a common practice anymore, buyers can simply reverse charges using their PayPal account. Back in the day, this used to be a very popular scamming method but it’s much less prevalent today. With that said, if you do happen to be selling Bitcoin avoid selling it to Bitcoin Buyers who only use PayPal (through PayPal or from their PayPal balance) and have few or no reputation points.
The main draw of LocalBitcoins is low to non-existent fees. If you just want to buy Bitcoins for your next online casino visit, the process is pretty straightforward – simply find one of many posted offers, pay using fiat currency and you should get your hands on crypto in no time. The best part about all this is that you don’t have to pay any fees as the buyer.
Even if you want to sell your cryptocurrency, the platform only takes a 1% cut for each completed transaction. This alone makes LocalBitcoins one of the most economical platforms for crypto trading to date.
LocalBitcoins Customer Support
LocalBitcoins offers an extensive FAQ page, basic social media posts, and email support. They do not offer direct phone support nor do they offer live chat. We find this a bit disappointing because a lot of things can go wrong at LocalBitcoins and having live chat or phone support would go a long way. It usually takes about 1-3 days for the email support to respond so users just have to be patient.
What users like
Casino players who use LocalBitcoins really like how they don’t have to pay any fees. According to many players, once they learned how to properly use the platform, they don’t feel the need to ever use a different exchange platform again.
A lot of casino players are also happy with how little information they need to give when it comes to creating an account. Unlike many other crypto exchange websites out there, there isn’t a huge KYC procedure at LocalBitcoins.
What users dislike
Users dislike that the platform, in general, is unsafe for storing Bitcoins. Even though sellers have no choice but to place their Bitcoins in an escrow account, they aren’t happy because of how many times the platform got hacked.
A lot of users are complaining about how the platform, even 10 years later, still hasn’t started accepting other cryptocurrencies. Ultimately, users dislike the fact that many transactions carry a potential risk of getting scammed.
LocalBitcoins Review Summary
When it comes to gambling using cryptocurrency, LocalBitcoins is one of the most affordable crypto exchange platforms for buying and selling Bitcoin. Unfortunately, it is far from being one of the safest platforms.
If you are experienced with crypto trading and are confident when it comes to finding the best prices on Bitcoins, you will probably be to able put this platform to good use. Otherwise, you should probably gain some experience with crypto trading before you join LocalBitcoins.
Is LocalBitcoins safe?
LocalBitcoins is relatively safe. Unlike most centralized exchanges, LocalBitcoins is a decentralized exchange making it harder for hackers to break in. Unfortunately, this has happened several times in the past. While the chance of a hack happening nowadays is low, users should be especially careful of other users who are actively selling Bitcoins because many of them may be scammers.
Is LocalBitcoins good for online casinos?
If used properly, LocalBitcoins is fantastic for online casinos. LocalBitcoins fees are nonexistent for buyers and sellers don’t complain too much about the 1% transaction fee.
With that said, users should not use their LocalBitcoins account as their main wallet because the platform has been hacked several times.
Is LocalBitcoins available in my country/region?
LocalBitcoins is available in about 248 countries. It is, unfortunately, not available everywhere in the USA (mainly, in New York and Washington) because of its history of scams and regional crypto trading laws.
How to withdraw money from LocalBitcoins?
Users can withdraw Bitcoin from their LocalBitcoins account by sending their funds to a different crypto wallet. Users who sell Bitcoin on the platform can withdraw money using Paypal, Wire Transfer, Neteller, Skrill, WeChat, and other payment methods.
Which exchange is better than LocalBitcoins?
If you are looking for a traditional trading platform (where you are buying cryptocurrency from the company and not other users), there are many other trading platforms out there. We recommend using CoinBase or Binance as these two trading platforms have proved to be the most reliable ones.
Can I get scammed on LocalBitcoins?
Yes, you can get scammed on LocalBitcoins if you aren’t careful. Make sure you only trade with reputable users while avoiding those that seems unsafe to you are you should have no problems while trading at LocalBitcoins.