Whether you’re new to the cryptocurrency world, or you’re looking for a new exchange to start trading your cryptocurrencies on, we can help. At BetKing, we understand that there are a number of different levels of understanding amongst our audience, and to make the entire process of depositing and withdrawing your funds on our site easier, we’re putting together a number of guides on how to buy Bitcoin and other cryptocurrencies on a number of different exchanges on the market. In our first edition, we’re taking a closer look at how you can buy Bitcoin on the exchange LocalBitcoins, and everything you need to know to ensure that the process is seamless from start to finish.
What Is LocalBitcoins?
LocalBitcoins is an exchange based in Helsinki, Finland, and facilitiates the trading of local currency for Bitcoin in countries around the world. This particular exchange is decentralised, and operates on a P2P network, where users are able to post advertisements in order to sell and exchange Bitcoin for local currency. This can be carried out in a face-to-face meet, or via online bank transfers.
Register For An Account
First of all, you must create an account on LocalBitcoins. In order to do this, you will need to create a username, fill in your email address, and create a password. Once you have carried this out, you will then need to verify that you are a human and click Register! A major benefit of LocalBitcoins is that once you create an account on the platform, you are provided with a free online Bitcoin wallet to store your funds in.
Choose How Much You Would Like To Exchange
Once you have registered an account with LocalBitcoins, the next step is to head on over to the main page of the site, and fill in the form on how much you would like to buy in the currency of your choice (if you’re based in South Africa for example, then you will fill in the number of ZAR you would like to exchange), choose your location, and choose your payment method. If you’re unsure on how much you want to pay, then you can opt to view a full list of available Bitcoin traders who are active in your region at the time of your search, in order to give you a full choice. If this is your first-time exchanging funds on the platform, then you may want to consider this option.
Choosing A Trader
Before choosing a trader, there are a number of things that you should look out for. The first is a good reputation score, which is represented as a percentage next to the Username and number of trades. In order to find a trustworthy trader, you should also look at the number of trades that the user of your choice has carried out. Generally, the more trades a person has carried out, the more trustworthy they are likely to be. Finally, you will be able to view just how quickly this particular trader will respond, with the coloured dot situated next to the reputation percentage. The key for this is as follows:
- Green – trader responds in 5 minutes
- Yellow – trader replies in 30 minutes
- Grey – trader replies in more than 30 minutes
On the platform, you will be able to see the following:
Trader Username (1000+; 99%)° < with the circle being one of the listed colours above to indicate response time.
Located next to the trader username, number of trades, reputation percentage, and response time code, you will see a description of the accepted payment method. Generally, this will be National Bank Transfer, transfer with a specific bank, or international wire, although other options may be available dependent on your location.
Therefore, the platform will look like this:
Trader Username (1000+; 99%)® | National Bank Transfer
To the right of this, you will see the Price/BTC ratio, dependent on the current market value of BTC.
Trader Username (1000+; 99%)® | National Bank Transfer | 125,716.99 ZAR
Finally, you will see the limits that you are able to purchase via that particular trader, and a ‘Buy’ button, which can provide you with more information on the offer provided by the trader.
Trader Username (1000+; 99%)® | National Bank Transfer | 125,716.99 ZAR | 1,000 – 10,000 ZAR | Buy
Please note, that this is an example on LocalBitcoins in relation to South African Rand. The format is the same across all currencies around the world.
Buying Your Bitcoin
In order to purchase the Bitcoin you desire from the trader of your choice, you are able to press ‘Buy’ in order to find out more about the terms of trade, and any other information provided about the advert on the site. It is important that you read through all of this information carefully, in order to ensure that you are completely aware of all terms and conditions related to trading with this particular individual. Remember, due to the blockchain network, any verified transactions cannot be undone, deleted, or reimbursed. Once the exchange has occurred, it cannot be reclaimed.
If you do not agree with any of the terms stipulated by the trader, then you should revert back to the previous page and opt for another trader. If however, you decide to go ahead, then you are able to type into the blue box exactly how much you would like to trade, and enter a message if you deem appropriate. Once you have done this, you are able to click the Send Trade Request button, and the trade will start. It is important to ensure that you are ready to make the payment when you click the button. If you do not pay, prior to the payment window being over, the trade will automatically cancel.
Finalising The Trade
Once you have made the payment, you should ensure you click the ‘I Have Paid’ button. As soon as you have done this, the trader is able to verify your payment, meaning your Bitcoin will be released from the escrow. As soon as your Bitcoin has been released, you will be able to access your funds immediately from your LocalBitcoins wallet. It’s as simple as that!
Due to the P2P platform on which LocalBitcoins is based, it is important to ensure that you leave feedback for the trader, and the trader will leave feedback for you. The more you do this, the more reputable you will appear as a buyer, providing you with access to some of the best market rates when you’re looking to exchange.
Staying Safe When Buying Bitcoin On LocalBitcoins
There are a number of things that you should ensure you put in place when you buy Bitcoin on LocalBitcoins. Follow the steps below in order to ensure you are as safe as possible and you are protected from any form of security threat:
- Set up two-factor authentication on your LocalBitcoins account
- Enable Login Guard in your security settings
- Use a different email address for our LocalBitcoins account which is not used for anything else
- Don’t use the same password on LocalBitcoins as you do on other accounts
- Be wary of images, links and other files
- Be wary of any form of fraudulent activity
Now you know how to buy Bitcoin from LocalBitcoins, you are able to use your purchased cryptocurrency to deposit onto our site. Register an account on BetKing online, and start placing your bets, today!