Localbitcoins is a peer-to-peer digital currency market based in Helsinki, Finland. Its service facilitates instant over-the-counter trade of local currency for etherically deposited bitcoins. Users post ads on the site, where they list payment methods and exchange rates for purchasing or selling local currencies. The process is simple and safe. All that is needed is a valid email address with which to register.
Localbitcoins follows a unique double-sided marketing strategy. First, it allows its members to develop their own profile page, which contains information about the types of localbitcoins traded and any special offers available. Second, localbitcoins conducts regular market surveys, awarding points each time a survey result is released. These points, which are real money in the case of trading, can then be redeemed for various goods and services on the site.
Currently, the most popular type of localbitcoins traded on the site are those that are traded in fiat currencies. Although this is not a novel concept, it does have some unique advantages. For instance, unlike trades in traditional core markets, trades in fiat currencies do not involve conversion fees, since the value of the unit is derived from the price of a fiat currency.
Because localbitcoins allow users to trade using any available computer, the ability to create advertisements on the site for sale of local currencies makes it accessible to anyone with internet access. The ability to transfer money from one local currency to another makes it easy to conduct cross-marketing from one local area to another. Many employers in nonvirtual areas allow their employees to use localbitcoins to make purchases at their place of business. This feature further increases liquidity because of the ability to transfer the money from one local currency to another, if necessary.
Since buyers and sellers use digital signatures to facilitate transactions, both parties are protected. Unlike traditional forex transactions, localbitcoins trades are secured by the guarantee of a third party. Also, the lack of money transmission costs often results in lower transaction fees. Some sites even charge a small transaction fee to cover costs, though this is often waived for new members. Finally, the lack of credit checks on buyers or sellers eliminates the possibility of fraud. These factors make localbitcoins particularly appealing to those who would not otherwise be able to engage in such transactions.
As mentioned above, one of the key differences between traditional currency exchanges and localbitcoins is the lack of credit check requirement for buyers or sellers. Sellers generally do not require any form of credit check because they do not trade in cash. On the other hand, buyers are usually required to pay for any expenses associated with the transfer of funds, including transaction charges. This requirement might cause some sellers to choose localbitcoins over other exchange platforms due to the lack of credit verification. However, buyers can enjoy many benefits by taking advantage of localbitcoins incentives and promotions, such as discounts and free transfers.
Because the nature of localbitcoins transactions is characterized by instant, real-time interactions between buyers and sellers, it is no surprise that buyers appreciate the lack of credit verification. Because escrow accounts are required in localbitcoins transactions, it is imperative that users become familiar with the payment method used by the site. A user can learn about localbitcoins reputation through reviews and forums. A review of the reputation of a site can be useful, but a user should also take into consideration any advertisements placed on the site, including advertisements for competing online gambling casinos.
While some sellers do not mind using localbitcoins, others thoroughly enjoy this peer-to-peer trading system. It is easy to find localbitcoins buyers and sellers in this environment. Since the transactions are typically done through local area networks, there is usually little to no foreign exchange required. Localbitcoins allows buyers and sellers from all over the world the opportunity to meet and communicate, thereby increasing the chances for successful transactions. This form of peer-to-peer transaction is very popular among buyers and sellers, and is rapidly becoming the preferred method of buying and selling throughout the world.