Localbitcoins Review: Worth the risk?
Localbitcoin acts to get Bitcoin traders in touch. But is it worth the effort?
Localbitcoins is the most Reputable Face to Face Bitcoin Service
“Localbitcoins enables users to buy or sell bitcoin face to face, or across the globe. Although we don’t condone using it aside from face to face transactions”
Localbitcoins has been one of our primary ways to buy bitcoin quickly for many years. Living in a vast metropolis like NYC has enabled us a view on Bitcoin that many will never see. Although our experience with localbitcoins lies solely within New York City, we encourage people to create an account and see if there are any buyers/sellers near you. It has provided us with valuable connections and insight into the cryptocurrency universe unlike any other bitcoin-related service.
Is Localbitcoin really a scam?
Localbitcoins has made the news multiple times, reinforcing the positive ang negatives. For instance, one story covering an arrest related to money laundering fails to mention the fact that it sounds like the police were entrapping these people. Our take on this is that these people were definitely up to something, irregardles of moving serious amounts of money. Could the police prove they had that much in bitocin? How did they get that much, it leaves many questions unanswered.
Localbitcoins defrauding customers?
Around the net, most notoriously, this Bitcoin talk thread (the world’s premier forum for Bitcoin enthusiasts), people are re-counting experiences of fraud when either buying or selling using the localbitcoin website.
Avoid Getting Scammed
Our belief is that the safest form of transaction for a seller on Local bitcoins is in person cash sales. This is because many forms of online payment through a third party service are reversible by the buyer of the Bitcoin. This is chargeback fraud which happens in the world of selling bitcoin.
Sticking to in person cash transactions at a safe public place and using localbitcoin to facilitate these transactions is the safest medium on Local Bitcoins. This reduces your risk of a chargeback fraud where the buyer takes possession of your Bitcoin receives the product then claims they did not receive it and has both their money back and your bitcoin which is non refundable.
There is a rating system on LBTC for profiles however these can be deceptive as positive feedback can be skewed and accounts get hacked so it is not recommended going off the strength of ones feedback profile alone. This rating system for profiles is a good starting point for gauging the legitimacy of the user base.
Linking Bitcoin Buyers and Sellers Outside of Exchanges
Outside of having a verified account at a major bitcoin exchange local bitcoins remains one of the best websites to facilitate buy and sells of bitcoins for individuals. The only issue is which form of exchange protects both parties the best. Another promising method offered by local bitcoins outside of face to face in person transaction are bank transfers. It was mentioned in the above linked thread that using bank transfers can be done safely through localbitcoins.