LocalBitcoins Review 2026: Closed, And What To Use Instead

What Happened To LocalBitcoins?

The company blamed a long crypto winter and a shrinking market share. Its CEO said that despite efforts to turn trade volumes around, it had regretfully concluded it could no longer provide the service. The wind-down was phased: no new sign-ups from February 9, 2023, no trading after February 16, 2023, and a withdrawal-only period after that. Anyone still holding coins there should check the withdrawal status through the site's own notices rather than assume the window is open.

I wrote the original review in late 2021. The notes at the top of the old page already warned that the service was being discontinued. Here is what it was like while it ran.

How Did LocalBitcoins Work?

LocalBitcoins is a straightforward platform designed for buying and selling Bitcoin directly with other people. Traders set their own prices, which can sometimes be higher or lower than the market rate, giving you the opportunity to find a good deal. You can also select traders based on the payment methods they offer, and many support Interac e-Transfer, making it convenient for Canadians.

How Did LocalBitcoins Registration And Verification Work?

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. 

After signing up for LocalBitcoins, you’ll receive a verification code via SMS, which you’ll need to enter to activate your account. Once verified, you can trade up to 1,000 EUR per year without additional steps.

If you wish to increase your trading limit or deposit Bitcoin to your account, you’ll need to verify your account further. LocalBitcoins offers several verification tiers, each with a different annual trade volume allowance. For instance, the next tier allows trading up to 20,000 EUR per year, but requires you to provide a government-issued ID and answer questions about your trading activity.

Unfortunately, when buying or selling Bitcoin on LocalBitcoins, some traders may require you to provide ID and proof of address before they agree to trade. These requirements vary by trader and can be reviewed when you click “buy” next to their offer. It’s important to check these details beforehand to make sure you’re comfortable with the trader’s conditions.

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

What Did LocalBitcoins Cost?

Using LocalBitcoins is free for buying and selling Bitcoin, and transferring funds to other LocalBitcoins wallets is also free. However, sending Bitcoin to external crypto wallets incurs a small network fee.

When trading, you have the flexibility to choose the lowest-priced offer if you’re buying Bitcoin, or the highest-priced offer if you’re selling.

If you want your trade advertisement to appear in search results for buying or selling offers, you’ll be charged a 1% fee on the trade volume for each completed transaction. This fee applies only to those creating advertisements.

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

How Did You Pay And Get Paid On LocalBitcoins?

LocalBitcoins is exclusively for Bitcoin and does not support fiat currency or other cryptocurrencies. To sell Bitcoin, you’ll need to deposit Bitcoin into your account first.

If you’re looking to buy Bitcoin, you’ll agree to a trade with a seller and use their preferred payment method to transfer the funds. LocalBitcoins provides flexibility, allowing you to choose traders who accept Interac e-Transfer, PayPal, or other payment methods that suit your preferences.

Was LocalBitcoins Safe?

I thought so while it was open. LocalBitcoins used an escrow system: when you started a trade, the agreed Bitcoin was locked in escrow. If the other side did not complete their part, you did not lose your coins. The seller released the Bitcoin once they confirmed payment, and you could file a dispute if they did not. Each trader also carried a rating and trade history, and you could switch on two-factor authentication for the account.

Peer-to-peer trading always carried a different risk from an exchange: you were paying a stranger's bank account. Scammers used reversible payments and fake payment screenshots, which is why I always tell people to confirm funds have actually landed before releasing anything. Our guide to common crypto scams in Canada covers those tricks.

What Were The Pros And Cons Of LocalBitcoins?

What Were The LocalBitcoins App And Support Like?

At the time of my review the Android app had a 3.7-star rating from 127 ratings and the iOS app 3.9 stars from 27 reviews, with some login complaints. It showed buy and sell offers, your wallets and your trading activity. Support worked through online tickets, and the average reply took one to three days.

What Should You Use Instead Of LocalBitcoins In Canada?

If you liked paying with Interac e-Transfer and wanted to avoid fat spreads, start with the registered platforms below. For Bitcoin only, sent straight to your own wallet, Bull Bitcoin and Bitcoin Well are the nearest equivalents on my ranking.

See the full best crypto exchanges for Canadians ranking, or take the exchange quiz.