LocalBitcoins rose to fame as one of the first peer-to-peer crypto trading platforms, based in Helsinki, Finland. It functions as a simple platform where people can buy or sell Bitcoin (BTC) by responding to classified ads posted by other users of the platform. While it’s a great concept, it can be frustrating to use. Unfortunately, it’s no longer a suitable option for most traders thanks to its lack of features, verification requirements, and geographical restrictions. However, these issues can be fixed easily, which we will come back to later.
LocalBitcoins had a sort of cult following, as it acted as one of the main places that still allowed people to buy Bitcoins anonymously. However, as new legislation came into play, LocalBitcoins now verifies customer identities with traditional KYC processes, which angered a lot of old-school fans. Additionally, the option to buy Bitcoins with Cash was removed from the site. By 2019, the iconic trading platform had been overshadowed by new competitors like binance and Coinbase, but don’t let that fool you: Localbitcoin clone script is still considered a top trading platform even after its apparent fall from grace, which speaks volumes about how much people love the platform.
How LocalBitcoins Work?
LocalBitcoins is a peer-to-peer Bitcoin trading platform. It allows users to buy and sell Bitcoin through classified ads. The layout should feel familiar to anyone who has used online marketplace websites.
Every account in LocalBitcoins has access to a free Bitcoin wallet to carry out transactions. The LocalBitcoins wallet is an easy-to-use web wallet, that facilitates transactions between users of the same platform. All transactions are subject to fees that are automatically calculated according to the congestion level of the Bitcoin network. Irrespective of the size of the transaction. However, transactions between LocalBitcoins wallets are free of charge.
LocalBitcoins splits fund storage between cold wallets for security and hot wallets for quick and easy transactions.
Pros and Cons
Peer-To-Peer Bitcoin Purchases
Peer-to-peer purchases were one of the biggest selling points of LocalBitcoins back in the day. These purchases are fully decentralized, with no bank or similar 3rd parties getting involved. This keeps your transactions private.
No Buying Or Selling Fees
There are no fees for buying or selling Bitcoin on LocalBitcoins, so that’s one less barrier for investors to overcome. The platform does charge a 1% escrow fee on every completed trade after posting an ad, which you can avoid by responding to ads instead of posting your own.
Wide Variety Of Payment Options
The platform supports nearly all payment methods. Users can list the payment modes they’ll accept in their ads. And you can sort offers based on payment methods. The most notable exception is cash, which the exchange stopped supporting in 2019.
LocalBitcoins includes information on every user’s trading history, along with comments from other users, on their profile. This helps users find trustworthy and reputable traders and avoid shady people.
Risk Of Scams
Peer-to-peer trading is inherently vulnerable to scams and fraud, and many have tried to take advantage of this fact. For example, a Buyer can pay for Bitcoin using a reversible payment method, and after they get the Bitcoin, they’ll dispute the transaction as fraud.
Asks For Private Information
LocalBitcoins attempts to create a trustworthy vibe by having four account verification tiers based on how much identity verification a user has done, and it comes into play when determining the maximum amount you can trade per year. But people who use decentralized exchanges feel like this is an invasion of privacy, as anonymity has always been a big deal in these circles.
Only offers Bitcoin
The platform only supports bitcoin. This shows the age of the platform and the lack of updates to better deal with contemporary needs. The lack of crypto options was not much of an issue in the past, but with hundreds of cryptocurrencies available now, it’s nice to have more options.
Unlike other crypto exchanges that offer advanced trading tools, LocalBitcoins only does one thing: connect people who want to buy or sell bitcoin to other buyers or sellers. Although it gets the job done, other platforms can offer so much more to users, making LocalBitcoins look less lucrative by comparison.
So How Does White Label LocalBitcoins Clone Script Solve the Issue?
The business model followed by Localbitcoins is pretty solid, the only reason it’s not as popular as the rest of its competitors is that it lacks features and variety. This is where white-label clone scripts come in. By first cloning the original bitcoin exchange platform, with all of its functions and design flairs, these clones can then be further modified by adding whatever features and changes you think the original is missing, or getting rid of elements that you think are unnecessary, and generally improving upon what LocalBitcoins built, making it far better suited to take on big names like binance and coinbase.
What Is A Localbitcoins Clone Script?
It is basically an open-sourced code base that replicates the design and functions of LocalBitcoins. The key word is “open sourced”, meaning anyone can take the code, examine it, make improvements and modify it as they see fit. In fact, Several companies exist today, for the sole purpose of developing and customizing clone scripts, along with additional related services such as hosting and customer support.
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