The Top LocalBitcoins Alternatives in 2019 — Trade More, Make More
LocalBitcoins is one of the earliest Bitcoin exchanges to have come into existence. Among the first generation exchanges, it was also one of those that spread rapidly across different regions of the world.
As the name implies, LocalBitcoins made it possible for people to buy Bitcoins from sellers around their immediate locality. The platform operates as a meeting point for buyers and sellers from all parts of the world. However, trading on the platform happens across those who at least share the same local currency and can transact within the same economic jurisdiction easily.
LocalBitcoins is a decentralized Peer-to-Peer (P2P) Over-the-counter (OTC) platform that allows buyers and sellers to connect directly. The system that is operated on the platform allows sellers to place advertisements of the Bitcoin that they have for sale. Buyers find these ads and get into an agreement with the seller on how to conclude the transaction. Originally, both parties could either decide to meet physically to carry out the transaction, or choose to complete it online.
LocalBitcoin plays a role that is similar to that of a middleman by providing escrow services through its hot wallet. On agreement of transaction terms, the Bitcoin in question is locked in the platform’s wallet until the seller confirms the reception of agreed funds from the buyer. This is when the locked Bitcoin can be released to the buyer and transferred to their wallet.
Many Bitcoin users had their first and initial Bitcoin experiences through the LocalBitcoins platform. However, as the industry grew and became more dynamic, the people wanted much more than the platform could handle or provide. This led to the introduction of various alternative platforms that provide Bitcoin and cryptocurrency solutions for users within the ecosystem.
In June 2019, LocalBitcoins announced that it had terminated the in-person cash transaction system of trade on its platform. As a matter of fact, all pending in-person transactions on the platform were cancelled, leaving concerns from some users that insist that such development defeats the original philosophy of the exchange.
In-person transaction involved a physical meeting between the parties involved in a trade, and the seller is paid in hard cash before releasing the coins in question. This method was convenient for many people, especially those who do not have bank accounts, or are in regions where they cannot access banking systems. It represented the fullness of an unregulated transaction system.
Unlike other payment systems that involved the bank in one way or the other, meaning that the privacy of transactions can be encroached, in-person transaction models did not involve any of those. However, while it was a most convenient method of transaction for many users, some others decried the risks that came with it.
It is easier for any of the parties to be robbed of either cash or their Bitcoins through such systems. The seller can be compelled to confirm cash reception under duress when they haven’t been paid, or the buyer can be robbed of their cash without the seller confirming the transaction. In any way, these are some of the inherent risks that comes with the in-person transaction system, just like every other system that has their own pros and cons as well.
The most likely reason for the policy adjustment by LocalBitcoins borders around regulatory and compliance obligations. Clearly, it will be very difficult and almost impossible to regulate the in-person transaction method. Therefore, as Bitcoin and cryptocurrencies are making significant inroads into the mainstream, regulatory bodies are trying to re-adjust in order to finely accommodate the emerging technology. This is after trying for so long to fight and resist the system.
This new policy by LocalBitcoins, and some of the limitations that existed within its internal operational systems has given rise to alternative implementations that are serving the crypto community. Some of these alternatives are listed below:
This exchange solves a versatility problem that LocalBitcoin does not. While LocalBitcoins allows users to buy and sell only Bitcoins, LocalCoinSwap offers trading opportunities on several dozen cryptocurrencies.
The system of transaction is similar in that it is Over-the-Counter and Peer-to-Peer. However, it is possible with many cryptocurrencies and not Bitcoin alone.
Users on this platform have the option of going through KYC verification or not, with specific implications for each of those conditions. Also, a trading fee of 1% is applicable on the platform, even though there is a referral program that users can use to offset such fees.
The offerings of BitQuick and that of LocalBitcoins are not that far apart in variance. However, one thing that BitQuick has working for it is that it is an older platform that has survived for a very long time.
This sentiment alone satisfies the expectation of many traders, especially the older generation who are usually critical of newer innovations. Most people believe that for a system to stand the test of time, it must have some guarantee of robustness and must have fulfilled certain fundamental criteria for stability.
BitQuick is a P2P platform and charges a 2% trading fee. The platform was originally started as BuyBitcoin.us before changing its name to BitQuick.
Vertex is one of the recent and versatile P2P cryptocurrency trading platforms that exists today. Over 1200 cryptocurrencies can be traded on the Vertex platform, including tokens that are yet listed. The platform also facilitates cryptocurrency purchases through popular payment gateways, like Neteller and Skrill, directly through Vertex.
Individual traders, institutional investors and all levels of crypto users find the Vertex platform as a very useful resource.
Trading on platform is easy and convenient, and the platform represents an ideal liquidity avenue for cryptocurrency trading in the current market and even for the market of the future.
Making cryptocurrency accessible is fundamental towards the mainstream adoption of the new technology. It is the convenience and ease of operation on a given platform that determines its rating in terms of accessibility.
Looking at the configuration of the industry, and the possible deliverables at the moment, it is clear that users prefer platforms that offer various options, with a guarantee of excellent service at a fair cost. If that is what you are looking for, then you should be checking out Vertex.Market as a one-stop solution to your cryptocurrency needs.