LocalBitcoins Review: Is It A Scam Or A Legit Crypto Exchange For Canadians?

UPDATE (09 Feb, 2022): LocalBitcoins account that service is discontinued and after 16th Feb 2023, LocalBitcoins customers will only be able to log-in to withdraw their Bitcoins. The trading and Wallet services will no longer be available at this point.

LocalBitcoins is a peer-to-peer bitcoin exchange. We made a LocalBitcoins account to see if it’s worth using in Canada in 2024. Here is our LocalBitcoins review.

LocalBitcoins Summary

With LocalBitcoins you can trade bitcoin directly with other people all over the world. 

LocalBitcoins Features

LocalBitcoins is quite simple. It is for buying and selling bitcoin directly with other people. Traders set their own price which can be higher or lower than market rate, but you can often find a good deal. Additionally, you can choose a trader that offers the payment method you wish to use. Many people offer Interac e-Transfer for Canadians. 

LocalBitcoins Registration & Verification

To register with LocalBitcoins you’ll need to enter your username, email and password.

Once you have verified your email address, fill in the rest of the required details including name, phone number and your estimated trading volume. 

You’ll get a verification code via SMS, which you have to enter. Once that is done you can use LocalBitcoins to trade up to 1,000 EUR per year. 

To increase your trading limit or to deposit bitcoin to your account, you will have to verify your account. There are several tiers, each with a different trade volume allowance. The next tier allows you to trade up to 20,000 EUR per year but you will have to provide a government-issued ID and answer some questions about your trading activity. 

Unfortunately, when it comes to actually buying and selling bitcoin, some traders require that you provide them ID and proof of address before they will trade with you. Some traders will not accept a trade unless you provide them with this information. Their requirements can be seen when you click “buy” next to their offer.

Since this is the case with many traders, you may wish to complete the verification process anyway.

LocalBitcoins Fees

• Free to buy/sell
• 1% fee to have your buy/sell offer appear in search results

With LocalBitcoins it is free to buy and sell bitcoin. It is also free to make transfers to other LocalBitcoins wallets. To send bitcoin to external crypto wallets costs a small network fee. 

When trading with LocalBitcoins, you can choose to trade with the person offering the lowest price if you’re looking to buy bitcoin, or the highest price if you want to sell bitcoin.

To make a trade advertisement (to have your offer appear when someone searches for buying/selling offers) you will be charged 1% of the trade volume for each completed trade.

Each trader will have a limit to how much you can trade with them.

LocalBitcoins Currencies & Deposit Methods

LocalBitcoins only works with bitcoin. You cannot deposit fiat currency or other cryptocurrencies. You must deposit bitcoin to your account in order to sell it. If you’re looking to buy bitcoin, you will agree to the trade with the seller, then use their preferred payment method to send them the money. You can choose to trade with someone offering Interac e-Transfer, PayPal, or other payment methods. 

LocalBitcoins Security and Safety

Is LocalBitcoins safe for Canadians to use? Yes, we think so. 

Your bitcoin is protected with escrow. When you trade with someone, the amount needed for the trade is automatically held in escrow, so that you do not need to worry about someone taking your money without sending you the bitcoin, or taking your bitcoin without sending you the money. Once the seller has received the cash payment, they can release the bitcoin from escrow to the buyer. 

You can also see how well-rated each trader is, so you can approach the trader with confidence that many people have been satisfied already. 

To help protect your account you can enable two-factor authentication. 

LocalBitcoins Mobile and Desktop app

The LocalBitcoins app has a 3.7-star rating from 127 ratings on Google Play and a 3.9-star rating from 27 reviews on the App Store. Some people have complained that they are unable to login with the app, but this might just be a small bug.

With the app, you can see all of the buy or sell offers, your wallets, and your trading activity. 

LocalBitcoins is simple to use. Since you can only buy or sell bitcoin, there are no confusing features. Simply click “buy” or “sell” at the top of the platform, and then you will see all of the buying or selling offers. 

Simply enter the amount you wish to buy or sell and then request the trade. You can also send the trader a message to let them know you are ready to send/receive the money. 

If you’re buying, follow the seller’s instructions. They will give you their bank information. Then you must make the payment and then wait for them to release the bitcoin to you. Their bitcoin will be held in escrow as soon as the trade is accepted, so they will not be able to scam you. If the seller does not send you the bitcoin after you have paid, you can file a dispute.

You can read reviews of each trader, and once you have made a trade, it is a courtesy to leave a review. 

LocalBitcoins Customer Support

You can create a support ticket online and the average response time is 1-3 days. 

Conclusion

Is LocalBitcoins legit? Yes, definitely. LocalBitcoins makes it easy to buy and sell bitcoins directly with other people. You might be able to find a better offer than if you were to buy or sell bitcoin on a centralized exchange. Buying and selling is free, and you don’t need to worry about making fiat deposits to your account. 

If you’re simply looking to trade bitcoin, then LocalBitcoins is a great choice. Keep in mind that a lot of traders will require you to verify your account, so be prepared to do that or search for a trader with fewer requirements. You can sign up here.