LocalCryptos: review of the p2p trading platform for exchanging cryptocurrencies, reviews, trading instructions

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LocalCryptos is a peer-to-peer marketplace (p2p exchanger). Any registered user can place his own ad to buy or sell cryptocurrency on it. This method is justifiably called more secure than trading through centralized crypto exchanges, which can be hacked by hackers or closed by government agencies.

Official site – localcryptos.com/ru/

Btcnewsweb.com has studied in detail the features of this service. It was previously known as LocalEthereum and only allowed Ether to be traded. But in November 2019, a rebranding took place, the name was changed to LocalCryptos, a new cryptocurrency for trading (BTC) was added, as a result of which the service was called a direct competitor to LocalBitcoins. EOS, Litecoin and Dash are planned to be added soon. You do not need to verify your account on LocalCryptos: you only need to confirm your email.

The platform is based on the escrow principle (escrow). It guarantees the safety of finances for the buyer and the seller. Until the seller deposits cryptocurrency, the buyer does not pay for the application. At the same time, the seller must transfer the crypt only after he sees the money in his account. If the payment has not been received, then either party can open a dispute. The administration will study it and return the funds to the original owner.

The technical details of the transaction depend on the chosen cryptocurrency. For Ethereum, these are smart contracts, for Bitcoin – P2WSH transactions. Private keys are not stored on LocalCryptos servers, and therefore cannot be stolen if compromised.

Basic information about LocalCryptos

NameLocalCryptos
Former nameLocalEthereum
Official sitelocalcryptos.com/ru/
Productsp2p platform, wallet
Year of foundation2017
Place of registrationAustralia
The name of the companyLocalEthereum Pty Ltd
Russian languageThe site is partially translated
Working with fiat moneyYes
Fiat currenciesAll global currincies
CryptocurrenciesBitcoin, Ethereum. Plans for Dash, Litecoin, EOS
Payment optionsBank transfer, Alfa cash-in, cash, international transfer, gift cards, Yandex.Money, AdvCash, Alipay, Cardless Casg, Efecty, IMPS, Interac e-Transfer, M-PESA, Mercado Pago, Moneygram, Payeer, PayPal, PayNow , PayTm, QIWI, SEPA transfer, Skrill, UPI, Swish, TransferWise, WebMoney, Venmo, Western Union, WeChat Pay
Commissions on transactions0.25% from the creator of the ad, 0.75% from the responder
Withdrawal and deposit feesNetwork fees
VerificationNot needed
SafetyEscrow escrow. Two-factor authentication, e-mail and phone number binding. Private keys are not stored on servers.
Mobile appNo
Telegram bot for tradingNo
ContactsChat in telegram https://t.me/ru_localethereumdotcom, mail contact@localethereum.com, feedback form on the website https://localcryptos.com/ru/contact
Assessment from Profinvestment.com8 out of 10

Features and risks

p2p trading on LocalCryptos may seem daunting at first glance, but it is not. It is even simpler than trading on traditional centralized cryptocurrency exchanges. On a centralized crypto exchange, a user deposits an account and places an order on the open market. When the order is executed, the funds received can be withdrawn.

In p2p, traders buy without a third party, directly from each other. If one of the parties does not fulfill its obligations, then the other can turn to the arbitrator for help by opening a dispute (dispute). The arbiter will study the actions of both parties and make a decision.

Care must be taken as there are scammers using the refund feature – buyer cancels their payment after Escrow is released. In order not to get into such a situation, it is recommended to trade with users who have good ratings and reviews, as well as not to use unsafe payment methods (these include PayPal).

Registration on the website localcryptos.com

To create an account on LocalCryptos, click Sign In in the upper right corner and then Don’t have an account? Let’s create one ”under the login form.

You can register using an e-mail and password, using the standard method, or using an existing Eth-wallet (via Ledger, WalletConnect, Portis, Fortmatic).

After creating your account, you must indicate if you live in Australia. Non-residents choose the first answer.

It is also necessary to confirm the e-mail if the registration was carried out through it. The link was sent to the specified address (if it is not in the inbox, then check the spam folder).

Personal Area

To access your LocalCryptos personal account, click on the “Account” button.

The section includes the following blocks:

  1. Profile. Here you can set a description about yourself (Blurb), change the associated e-mail, set a phone number, enable or disable sound notifications and push notifications.
  2. Security Here you can change your password and two-factor authentication method (email confirmation or Google Authenticator app).
  3. Web wallet. Here you can enable the function of generating a new ETH (BTC) address for each trade, as well as set up the main fiat currency.
  4. Invite your friends (Invite your friends). Access to the referral program. When you click on the “Referral program” button, a form will open, where you must specify a list of all those places where you plan to use the referral link. Only after considering the application, the administration will issue you a referral link. The link helps to earn 20% of the commissions from each invited user.
  5. Import reputation. If you are an active user of the LocalBitcoins or Paxful platforms, then you can import your reputation from there so as not to start from scratch on LocalCryptos.
  6. Logout. Sign out of your account.

There is also a button here that allows you to completely delete the account.

Working with a wallet. Withdrawal and replenishment

Access to the wallet on LocalCryptos is via the “Wallet” button in the top menu.

Select the cryptocurrency of interest to open a window like this:

To withdraw cryptocurrency to a third-party wallet, specify its address, the required amount of currency, as well as the commission that affects the inclusion of the transaction in the nearest block.

To replenish your account, send a strictly selected cryptocurrency to the address indicated on the right side of the screen.

If you need to find out your private key, click on the button next to the address for deposits, then confirm the action and the key will be displayed.

Buying and selling cryptocurrency on LocalCryptos

To buy or sell cryptocurrency from the main page of the LocalCryptos website, go to the “Browse” section or click “View the marketplace”. In your personal account, click “View”:

The default is to display all currently existing ads. You can choose to display only buy or sell bids. Also, the filters at the top of the page allow you to select cryptocurrency, payment method, location. Sort by price or popularity.

The announcement table includes the following information:

✅   Seller (buyer) nickname.

✅   The approximate number of transactions made by him on the site.

✅   Available payment methods.

✅   Location – country and city.

✅   The range between the minimum and maximum transaction amount.

✅   The rate of the cryptocurrency set by the seller in relation to the fiat currency of his choice.

You should also pay attention to the icons in front of the seller’s nickname. For example, lightning means that the seller responds and transacts very quickly. And the phone means that for work you need to link a phone number to your account.

Clicking on the nickname will display a full profile of the seller (buyer) with all available offers and reputation, including reviews from the Local Bitcoins platform:

After choosing an offer, click on the Buy / Sell button (Buy or Sell) in the last column of the table. You will be redirected to the deal page. There you can see detailed information about the seller and a specific offer, as well as respond to it.

Example of buying cryptocurrency BTC

Select a seller’s offer, click Buy.

Enter the amount of fiat or cryptocurrency to be given in the form on the left, add a message to the seller, if necessary, and click “Open Trade”.

After that, the price is blocked and a dialogue is created between the seller and the buyers. There you can communicate about the transaction, and after the currency arrives at the escrow account, go to payment transactions. When a merchant deposits funds into an escrow account, a 120 minute timer will start. During this time, the buyer must, in turn, send money, otherwise the transaction will be canceled and the seller will take his finances.

The seller will write the details for payment in the dialogue. These data are strictly confidential and encrypted; only the administration has access to them in case of a dispute. After sending the funds, click on the “Mark as Paid” button on the payment page. When the seller confirms the receipt of the payment, the buyer’s order will be sent from the escrow account.

If you have problems with the receipt of money, you can apply to arbitration. At this moment, the computer automatically transmits to the arbiter a digital key (identification key), which allows the transaction to be allowed in any direction, as well as a key that can be used to decrypt the history of messages between buyers and sellers.

How to create an ad

You can not only respond to offers from other traders, but also create your own. Main advantages: commission for creating an order is only 0.25%, not 0.75%; the ability to set your own conditions and a favorable price.

To create an ad:

  1. Go to your LocalCryptos account and click the “Offers” button in the top menu.
  1. Select the type of transaction (Buy / Sell) and cryptocurrency (Bitcoin / Ethereum).
  2. Specify the country and city.
  3. Select the type of payment and currency.
  1. Set the exchange rate. You can choose a dynamic change depending on the market situation. For example, 3% higher than the Binance exchange. Or custom, according to its formulas.
  1. Set a limit: the minimum and maximum amount of one trade.
  1. Set a title. For example, “Selling BTC from 500 rubles.”
  2. Indicate the conditions. For example, “Transfer by one transaction only from your wallet”.
  1. Set the time when the ad will be shown.
  1. Choose who can open a deal with you: all users or with a verified phone number.
  2. Check all data and publish your ad.

Commissions

LocalCryptos provides commissions for the maker and taker (the creator of the ad and the one who responds to it). The maker’s commission is 0.25% of the transaction amount. For a taker, 0.75%.

There are no commissions for deposit and withdrawal of funds, with the exception of the standard commission for miners, which can be adjusted manually.

Advantages and disadvantages

Pros: ✅

✅  Secure p2p system based on escrow (escrow).

✅  Support for a large number of payment methods.

✅  Low fees.

✅  Lack of account verification.

✅  Ease of buying and selling cryptocurrency.

✅  The wallet does not store the user’s private keys.

Cons: ❌

❌  There is still a small selection of available cryptocurrencies.

❌  Incomplete translation of the site into Russian, including the help section.

Conclusion and feedback

While still LocalEthereum, the LocalCryptos platform gained popularity – users liked the user-friendly interface, high level of security, and no need to verify an account. Now, after rebranding and adding new cryptocurrencies, it has every chance of becoming the main competitor to LocalBitcoins. More than 100 thousand users from all over the world are already using the LokalCryptos platform.

LocalCryptos reviews on Trastpilot (4.5 overall):

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