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

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Peer-to-peer (P2P) marketplaces are great for buying bitcoin without a centralized or decentralized exchange. Exchanges require some technical knowledge to operate, but P2P marketplaces simplify things.


If that sounds like you, it’s time to learn the step-by-step process to buy bitcoin on LocalBitcoins, one of the best P2P crypto marketplaces in the world.


1. Set up a LocalBitcoins account and get verified

Centralized exchanges also offer platforms for P2P bitcoin trading, and you can check out how to buy bitcoin using Binance P2P if you prefer that. However, just like on Binance, the first step to buying bitcoins on LocalBitcoins is to create an account.

Congratulations if you already have one, you can skip 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 phishing attacks abound these days. Note that all screenshots in this guide have the address bar so you can see it clearly.
  2. Click on Register in the upper right corner or scroll down and click on the blue Create an account if you are an individual and not a company. This guide is focused on individual users.
  3. Provide the required details, i.e. username, email address and password. As a general rule, your password should be easy to remember but hard for anyone to guess. It is important that you use a working email address as you will need to verify it later.
  4. If your password is created correctly according to the instructions, continue and check the small box below to accept the LocalBitcoins Terms of Service and Privacy Policy. After that, check the I am human box just below to prove that you are human. Next, check all the boxes that apply in the drop-down list, then click the Check bottom button.
  5. Once you click Verify, the Continue button lights up. Select it and go to the next step. On the next page, the first verification page, you will get a popup asking if you want to save your password. Again, this is completely up to you.
  6. The system will immediately send an email to your registered email address. Go to your mailbox and click on the link in the email to verify that you are the owner. This is the first check.
  7. Once you click on the link, you will be redirected to the confirmation page and will see that your email is confirmed. Click the Continue button to continue. As indicated on the page, you will be required to provide profile information, verify your phone number, provide information about your occupation and PEP, the type of activity you wish to perform on the platform, and provide verification of identity, and you’re done. .

2. Look for offers

After completing the required verification, the next step is to search for available offers. To buy bitcoin, you will need to search for offers (unless you are creating ads as a merchant). Immediately after logging in, you will be redirected to the Search offers default page.

  1. Enter your transaction specifications, including the currency and payment method you wish to use, then click Search offers.
  2. All available offers matching your search will be displayed.
  3. You can then browse the available offers, select a seller whose conditions suit you and click on the To buy button on the far right of the ad. Usually those with the best deals in terms of price are on top, so the first deal you see is the cheapest, and you can take it if you agree to the seller’s terms.

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  4. You will still need to enter the amount you wish to spend in your fiat currency of choice and see the bitcoin equivalent that will be assigned to you in advance. This is based on the seller’s price, which is usually slightly higher than the official market price.

3. Send your funds in exchange for Bitcoin

Now, if you are comfortable with the offer, the next step is to make a payment for bitcoin. Next, write the information required by the seller, then click on the button to accept the conditions and send an exchange request.

If the seller is comfortable with you (based on several factors, including reputation), they will accept your trade and you can finalize the payment. It may take some time for bitcoin to be deposited into your wallet. You can then use it to buy things with bitcoin or keep it as an investment.

Remember to transfer to a more secure personal wallet as soon as you receive the bitcoin, as the LocalBitcoins wallet is not completely safe. Cold wallets are preferred as they are generally safer than hot wallets.

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

How to report issues on LocalBitcoins

There are generally no issues with transactions on LocalBitcoins. However, there may be a misunderstanding regarding the agreement in some cases. This could be due to seller delays releasing the bitcoin you paid for, mostly because they haven’t received payment or are trying to be fraudulent.

Fortunately, LocalBitcoins has a system to prevent and resolve these issues.

First, the bitcoin you paid is stored in an escrow account and the seller has no control over it when you mark the transaction as paid. Therefore, you can “Initiate a Dispute” and LocalBitcoins will review it. If it is credible, the locked bitcoin will be returned to you.

  1. Navigate to the trade you are having trouble with and click Report this ad on the right of the page.
  2. Enter the email address you want to use for the contact. Your registered email address is added by default. In the message box, clearly write the issues you are having with the trade. Include screenshots of conversations and other details that you think will help your case, and click the Report an ad bottom button.

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

Why not try LocalBitcoins?

LocalBitcoins remains one of the most popular P2P bitcoin trading methods. It’s fast, secure, and you’ll likely get a great price for buying bitcoin using a wide range of payment options. What’s not to like?

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