8 Alternatives to LocalBitcoins in 2020
As fall rolled around, LocalBitcoins, a Finland-based P2P bitcoin marketplace, prepared a rather unwelcome surprise for its users. Following the changes in the Finnish legislature, they had to tighten the rules concerning user verification. Sure, LocalBitcoins hardly had any choice in the matter. And yet many of its users frustrated by major inconveniences are already searching for a better LocalBitcoins alternative.
It’s not all about the inconvenience, though. The updated rules require that users provide personal information, such as full name, country of residence, email and phone number. Doesn’t seem all that unreasonable, right? But here’s the kicker: if your yearly traded value is over 1000 Euro, you’ll have to go through a complete KYC process that requires providing a personal ID.
Unsurprisingly, many users see these new measures as a threat to their privacy and start thinking of trading their bitcoin elsewhere. Thankfully, there are quite a few places to choose from. And that’s exactly what I am going to talk about here.
LocanCoinSwap is a community-owned platform that trades bitcoins and altcoins. This is probably one of the biggest LocalBitcoins competitors on the market today. What’s more, it’s a great example of flexibility in a P2P environment, with more opportunities and bonuses for the platform users.
As a P2P digital currency trading platform, LocalCoinSwap has a lot in common with LocalBitcoins. Both marketplaces operate globally. Both of them offer a decent level of security, including multi-factor authentication. There is no limit for deposits and withdrawals for either of them.
Now let’s see what makes LocalCoinSwap stand out:
- Unlike LocalBitcoins, this marketplace offers a 100% return on profit from 1% commission. In case you are a happy owner of the platform’s unique token called LCS Cryptoshare, you get guaranteed dividends that get distributed among all token owners every 3 months. It’s safe to say that right now it’s the only peer-to-peer marketplace that offers this kind of profit distribution system.
- When it comes to the choice of payment methods, LocalCoinSwap is far ahead of LocalBitcoins. Over 250 payment methods to trade bitcoins and altcoins sound impressive and is a huge advantage for the platform users.
- In view of the recent verification policy change at LocalBitcoins, LocalCoinSwap rules are a relief. Here KYC process is optional which allows users to trade freely without feeling like their privacy is at threat.
- Aside from two-factor authentication, LocalCoinSwap offers cold storage for over 95% of its funds.
- The marketplace gives its traders a chance to get up to 30% profit from commission on transactions.
Bitsquare is one of the oldest digital currency marketplaces. While all platforms of this kind offer various levels of decentralized trading, Bitsquare makes it real. I mean, the platform doesn’t even have a central server. This provides security of the highest level, which is definitely a huge pro for bitcoin traders. No wonder it took two years to build the platform.
It should be mentioned that Bitsquare isn’t the most user-friendly platform to use. This is something to keep in mind if you are new to this. What’s more, trading often takes a while, sometimes over a day.
And there’s one more important thing: to use Bitsquare, you’ll have to download certain software to your computer. Not a dealbreaker by any means but this certainly doesn’t make it more convenient to use.
Here’s what it can offer:
- Bitsquare takes privacy seriously. This is why it utilizes Tor services and encrypts all personal data submitted by users.
- The marketplace supports transactions in national currency. For this purpose, they use decentralized debiting. It’s when a seller, a buyer, and a moderator all have secret codes to perform a transaction. In case one of the traders does something wrong during a transaction, moderators have a right to interfere and settle any disputes. This kind of arbitration makes each transaction much more secure and prevents scam activity.
- It’s the only fully decentralized marketplace that supports trading bitcoins, altcoins, and fiat currencies without using any proxy tokens.
BitKan is a China-based cryptocurrency trading platform with an emphasis on the Chinese market. Sure, this might sound like something that speaks against using it. But in fact, BitKan is an ever-growing platform with an online exchange that supports regional traders all over the world. Any user can choose a person they want to trade with, contact him and make a transaction happen.
Unlike many other P2P bitcoin marketplaces, BitKan offers a bit more than just digital currency trading. You can use it to exchange bitcoin and altcoin, monitor the cryptocurrency market and/or view infographics and bitcoin-related news.
- BitKan uses escrow to ensure its user data security. This is one of the reasons why many traders consider it a better option than LocalBitcoins.
- Traders can perform transactions with small amounts. Trading with larger amounts will require going through the KYC process.
- The marketplace offers easy and hassle-free transactions that take no more than a few minutes.
- Both hot and cold wallets are available separately. Real-time data backup and antivirus security are definitely a great pro when you need your personal data and your funds to stay safe.
- Low commission fees.
- Mobile support. BitKan offers an application for iOS and Android you can easily use for trading and as your bitcoin wallet.
- Unique KAN token. You can purchase the BitKan token (KAN) to gain access to the BitKan Premium program. KAN opens the door to unique premium content.
Previously known as BuyBitcoin.us, BitQuick is a US-based P2P marketplace. It’s not new to the bitcoin exchange market and has enough legitimacy and security to make it one of the most reliable peer-to-peer platforms. However, there’s a fly in the ointment: it’s only available to US traders only.
If it’s a non-issue for you, you might be pleased to know that this cryptocurrency exchange means business and protects its users from scam. As it often happens, there is a price to pay for this. BitQuick may not be as fully decentralized as some other marketplaces, but it’s definitely worth checking out.
- BitQuick interface is very easy to use even if you are new to the whole cryptocurrency trading business.
- The marketplace offers a simplified three-step bitcoin purchase and sale process that makes trading significantly easier and faster.
- BitQuick has a 2% commission fee for transactions. That’s a rather hefty commission but that’s what you pay for proper escrow process in America.
- The platform offers a decent level of security. First of all, it’s quite a reputable actor in the cryptocurrency exchange market. Second of all, it doesn’t allow traders to use the platform as a wallet: all currencies exchanged go straight to the users’ third-party wallets.
- There’s no need to sign up to trade. When you initiate a transaction, you get a personal PIN code that allows you to accept, change or cancel the transaction.
Bitspark.io is a platform that allows exchanging cash to crypto. It was established in 2014 and now can boast multiple cash points all around the world that help users to exchange, hold or send cryptocurrency.
The platform has a team working in Ukraine and Hong Kong and it has already made the following achievements including:
- Launch of new stablecoins;
- Creation of a brand new mobile app;
- Update of the web platform;
- Setting up cash points in many countries;
- Partnering with Okra Solar.
The service has launched two coins such as SparkDEX and Zeph Token. You can obtain them next to other coins exchanged by the platform.
If you want to convert cash into crypto using Bitspark.io, it is enough to open the website and find a box on the upper right side of the landing page. A user should enter the amount of cash he is ready to spend and choose the currency. The platform supports such popular fiat money as USD, AUD, EUR, GBP, HKD, PHP, SGD and such cryptocurrency as ETH, ZEPH, BTS, and BTC.
It is possible to buy Bitcoin and other popular cryptocurrencies on the platform using a mobile app. There are special locations of the platform called Cash Points where users can buy and sell crypto. Such cash points can be opened by everyone (both individuals and stores) – it is enough to apply for that on the official website of the service. It is worth mentioning that users should register on the service to be able to make transactions there.
Users can get and sell crypto on Bitspark in three ways:
- Hold and exchange cryptocurrency stablecoins;
- Send P2P, cash-out cryptocurrency or pay bills using it;
- Exchange between cash and crypto.
When it comes to fees, there is a standard exchange fee of 1.5% on Bitspark. Moreover, there is a depositing and withdrawal fee of 0.5% for fiat currency and it is absolutely free to deposit or withdraw cryptocurrency (you will pay only a networking fee). The exchange process is almost instant and you can withdraw your funds instantly if it is a cryptocurrency or cash point. Cash withdrawal may take up to one day.
The payment methods are different and depend on the currency you would like to deposit and withdraw. There are no limits when it comes to cryptocurrency, but the maximum amount to cash out in fiat money is HKD100,000. Cashing out via a shop or agent requires verification if you withdraw over $1,000.
As a P2P bitcoin exchange, Paxful has a lot in common with LocalBitcoins. Here all traders can create and accept bids and trade cryptocurrency using the hidden payment feature. While it’s not as completely decentralized as many bitcoin traders would like it to be, the platform developers took special care to make the trading process as transparent and easy as possible.
On the other hand, it might take a while to find a seller with acceptable rates. Paxful allows sellers to set their own commission rates based on the type of currency. Sometimes these rates are over the top, especially when buyers use gift cards.
- Paxful offers a wide choice of payment methods, including bank transfers, credit/debit cards, PayPal and more.
- There is no commission fee for buyers, but sellers are free to choose their own rates. On the other hand, sellers pay 1% of the transaction amount. There is also an added commission for sellers who transfer bitcoin from one account to another.
- There is feedback in the form of reviews and comments on each seller, which helps to choose the right one for you.
- Registration is extremely easy. The platform doesn’t require any personal data but your email, name and preferred payment method. In case you have a gift card and want to use it, you won’t even have to verify your account.
- The platform offers a decent level of security ensured by the Comodo system. All traders’ funds are protected by escrow.
- Paxful has great customer support you can contact both via email or over the phone.
- It’s possible to trade from any place worldwide.
HodlHodl is a relatively new peer-to-peer bitcoin and litecoin exchange based in Latvia. One of its key features is that it doesn’t store any cryptocurrency on its servers. All transactions happen directly between traders. Thanks to the multisignature escrow system users don’t need to worry about the safety of their personal data or their money. The fact that it’s extremely easy to sign up and that verification is optional are what makes it a great alternative to LocalBitcoins.
- HodlHodl takes every measure to make sure that all transactions are safe and scam-free.
- The platform has a commission fee of 0.6% for all transactions.
- HodlHodl prioritizes privacy and anonymity of traders and transactions, so there’s no need to provide them with any personal information, leave alone your ID.
- Unlike Bitcoins, this marketplace doesn’t require that you make the first deposit before you start trading.
- All traders, both sellers and buyers, can rate each other and leave some feedback about each other.
Liberalcoins is also one of the newer marketplaces that positions itself as a platform for localized trading, no matter where your location is. Basically, if you want to find a bitcoin or altcoin trader in your area, you can easily do it via this platform, contact them and meet personally or perform all transactions electronically. This doesn’t exclude the possibility of trading with people from any other corner of the world, of course. In many aspects, Liberalcoins is quite similar to LocalBitcoins. That is, except for the fact that this cryptocurrency exchange is more privacy-oriented.
- The marketplace is quite user-friendly but might be confusing for someone who has no idea how peer-to-peer trading works.
- As many reliable cryptocurrency exchanges, Liberalcoins has an escrow system to protect your transactions.
- Liberalcoins offers hot wallets for storing your bitcoin and/or altcoin. However, it’s not recommended to store your digital currency here for a long time.
- Low commission fees (only 0.5%).
- Large number of available payment methods. And in case you can’t find your preferred payment method on the list, you can add it yourself.
- No annoying pop-up ads.
LocalBitcoins has been hugely popular for many years. In fact, it still remains one of the largest cryptocurrency exchanges on the web. However, in the world of digital currency privacy means a great deal. So it’s likely that due to the recent changes, people will be looking for other places to trade their bitcoin and/or altcoin.