How to Buy Bitcoin on LocalBitcoins: A Step-by-Step Guide

Peer-to-Peer (P2P) marketplaces are ideal for buying Bitcoin without a centralized or decentralized exchange. Exchanges require some technical knowledge to work, but P2P marketplaces simplify things.


If that sounds good, it’s time to take a look at the step-by-step process of buying bitcoins on LocalBitcoins, one of the world’s leading P2P crypto marketplaces.


1. Set up a LocalBitcoins account and get verified

Centralized exchanges also provide platforms for trading Bitcoin P2P, and you can check how to buy Bitcoin with Binance P2P if that is what you prefer. However, just like Binance, the first step to buying bitcoins on LocalBitcoins is to set up an account.

Congratulations if you already have one – you can proceed to the next step. Otherwise, follow the steps below to create a LocalBitcoins account.

  1. Visit LocalBitcoins. It is important that you visit the right website as there are many phishing scams these days. Note that all screenshots in this guide include the address bar so you can see them clearly.
  2. click Register in the top right corner or scroll down and click the blue Create account button if you are an individual and not a company. This guide is intended for individual users.
  3. Provide the required details, namely a username, email address and password. As a rule, your password should be easy to remember but difficult for others to guess. It is important that you use a working email address as you will need to verify it later.
  4. If your password was created correctly according to the instructions, proceed and check the small box below to agree to LocalBitcoins Terms of Service and Privacy Policy. After that, check the i am human Check box directly below to prove you’re human. Then check all applicable boxes in the drop-down menu and click To verify button below.
  5. Once you click Confirm, the Next button will light up. Select it and go to the next step. On the next page, the first confirmation page, you will get a popup asking if you want to save your password. Again, this is entirely up to you.
  6. The system will immediately send an email to your registered email address. Go to your inbox and click the link in the email to confirm you own it. This is the first review.
  7. Once you click the link you will be taken back to the confirmation page and will see that your email has been verified. Click the Next button to continue. As shown on the page, you need to provide profile information, verify your phone number, provide information about your occupation and PEP, what type of activity you wish to engage in on the platform and provide ID verification and you are done.

2. Look for offers

After you’ve completed the necessary verification, the next step is to look for available offers. In order to buy bitcoin, you need to search for offers (unless you create ads as a merchant). Immediately after logging in, you will be taken to the Search offers page by default.

  1. Enter the specifications of your trade, including the currency and the payment method you want to use, then click Look for offers.
  2. All available offers that match your search will be displayed.
  3. You can then browse through the available listings, select a seller whose terms you agree to, and click Obtain button on the far right of the display. Usually those with the best offers in terms of price are at the top, so the first offer you see is the cheapest and you can take it if you accept the seller’s terms.

    ​​​​​

  4. You still need to enter the amount you wish to spend in your chosen fiat currency and see the bitcoin equivalent you will receive upfront. This depends on the seller price, which is usually slightly above the official market price.

3. Send your money in exchange for bitcoin

Well, if you are happy with the offer, the next thing you need to do is to make a payment for the bitcoin. Next, fill in the information the seller requires and then click the button to accept the terms and send a trade request.

If the seller is happy with you (based on multiple factors including reputation) they will accept your trade and you can complete the payment. It may take a while for the bitcoin to be deposited in your wallet. You can then use it to buy things with bitcoin or hold it as an investment.

Remember to transfer to a more secure personal wallet once you receive the bitcoin as the LocalBitcoins wallet is not completely secure. Cold wallets are preferable as they are generally more secure than hot wallets.

The amount of Bitcoins you can buy may be limited at first, but will gradually continue to increase as your reputation improves.

How to report problems with LocalBitcoins

There is usually no problem with trades on LocalBitcoins. However, in some cases, there may be misunderstandings regarding the deal. This can be due to delays by the seller in releasing the bitcoin you paid for, mainly because they didn’t receive payment – or are trying to be fraudulent.

Luckily, LocalBitcoins has a system in place to prevent and fix such issues.

First, if you mark the trade as paid, the bitcoin you paid for is stored in escrow and the seller has no control over it. Therefore, you can “start a fight” and LocalBitcoins will take care of it. If it is credible, the locked bitcoin will be released to you.

  1. Go to the trade you are having a problem with and click Report this ad right side.
  2. Enter the email address you want to use for the contact. Your registered email address will be added by default. In the message box, clearly write the issues you are having with the trade. Add screenshots of conversations and other details you think will help your case and click the report ad button below.

The support team will review the report and get back to you with a solution or request for more information.

Why not try LocalBitcoins?

LocalBitcoins remains one of the most popular P2P Bitcoin trading methods. It’s fast, secure, and you’ll likely secure a very good price for buying bitcoin with a variety of payment options. What’s not to like?

Read  How to save money as food inflation jumps more than 11% in a year

Leave a Comment

Your email address will not be published. Required fields are marked *