I know you are looking for alternatives to LocalBitcoins. Why not, as they have started restricting their services, limiting their features, and mandating lengthy verification for limitless trading.
We have enlisted the seven best platforms to help you find a suitable alternative to LocalBitcoins. So let us look at the list first.
- Paxful
- LocalCoinSwap
- BitQuick
- HodlHodl
- Bisq
- Binance
- KuCoin
Let us now go through each of one of them in detail.
Localbitcoins Alternatives 2022
1. Paxful
First on the list is Paxful, established in 2015 in the US, serving as a peer-to-peer Bitcoin exchange. Unlike LBC, Paxful currently offers more than 350 payment options and is available in more than 180 countries.
- Fee structure
In addition to Bitcoin, Paxful also offers Ethereum and Tether. It has nominal trading charges varying between 0.5% to 5% to sell cryptocurrencies, depending upon the payment group. In contrast, the cryptocurrency conversion fee on Paxful is 0.5%.
- Security
Paxful has enforced KYC verification procedures for most countries. Jumio, their security partner, uses 3D biometrics, AI, and machine learning to detect any fraudulent documentation. It requires identification documents and a selfie.
Paxful also implements an Anti-Money Laundering (AML policies), which requires IDs and proof of address verification. The platform offers two-factor authentication. If you belong to other countries, you will need to be verified if you trade above $1500.
BitGo is their wallet partner regarded as the most secure bitcoin wallet service. Additionally, the Escrow service helps build trust between platform users with its unique rating and fraud-eliminating system.
Escrow keeps the money in safeguard until the coins are handed over. It helps to protect buyers by requiring the coins to be handed upfront before any money switches hands.
- User interface & other features
Paxful’s interface is easy to use with all the necessary tools and options. Just click on the “New Order” button to open an offer with a seller or buyer. It has a built-in feedback and reputation system, which comes in handy to get an idea about who you are dealing with.
It also has an advertisement feature, which you can use to attract more buyers by listing the orders on Paxful’s Facebook or Instagram page.
- Customer Service
Paxful has excellent customer service, with a comprehensive FAQ section and around-the-clock monitoring of accounts.
2. LocalCoinSwap
Next on the list is LocalCoinSwap; it got on board in 2017 as a peer-to-peer cryptocurrency exchange platform in Hong Kong. It is a multi-currency exchange, allowing more than 300 payment methods in more than 190 local currencies, and works worldwide.
LocalCoinSwap currently offers to trade Bitcoin (BTC), Dash (DASH), Tether (USDT), Kusama (KSM), Polkadot (DOT), Ethereum (ETH), USD Coin (USDC), Dai Stablecoin (DAI), Paxos Standard (PAX), LCS Cryptoshares (LCS) to trade-in.
- Fee Structure
It charges 1% if you make your trade, but you are not charged if you respond to a trade offer.
0.00006 BTC and 0.0005 DASH are charged on every Bitcoin and DASH withdrawal with a minimum withdrawal limit of 0.00025 BTC and 0.001 DASH.
- Security
LocalCoinSwap is undoubtedly a secure platform providing Escrow service and two-factor authorization as a vital security aid offered by default.
It provides optional KYC and ID verification; customers may be asked for complete verification.
LocalCoinSwap offers a reputation system that provides a history of public trade transactions, helping you decide whom to trade. It also allows you to choose between custodial or non-custodial trading, giving you complete control over your cryptocurrency.
- User Interface & other features
LocalCoinSwap offers a standard and user-friendly interface. You can search for suitable trades based on the location and payment methods and filter them even further to your choices. Just type in the amount of cryptocurrency and initiate trading. It also provides additional instructions for new users to help them navigate through their first trade.
Once your request to trade is accepted, you can begin trading, and it’s that simple. It also offers a listing service for new Initial Coin Offering (ICO) tokens listed on the platform. At the time of listing, shareholders get an advanced airdrop of the new coin and access to new listing and unique offerings.
- Customer Service
LocalCoinSwap is just at your fingertips if you require any assistance. With its 24×7 dedicated customer support team, you are thoroughly guided in case of any problem. Also, they help you moderate disputes, and you can reach them on various platforms. They are pretty responsive and actively engage with the community.
3. BitQuick
BitQuick was established in 2013 and headquartered in Ohio, United States. In its early days, BitQuick was known as BuyBitcoins.US and it currently operates in 49 states in the US. BitQuick is a go option for those who want to buy and sell Bitcoin in cash and remain anonymous.
The exchange does not allow a wire transfer, debit card, or credit card.
- Fee Structure
BitQuick charges a 2% fee to purchase bitcoin but none for selling and a 0.0001 BTC mining fee.
- Security
If you want to purchase bitcoins higher than $400 at a time and $999 per day, you have to get verified via call or SMS; below those limits, no identification is required. Basic identification details are made mandatory for KYC and Anti Money Laundering in the US.
- User Interface & other features
The User Interface of BitQuick is quite unique and straightforward. To buy a bitcoin, enter the amount you want to purchase and click ‘CONTINUE,’ then deposit cash through a supported bank in the seller’s bank account. Once the seller receives the amount via bank transfers in their account, they will directly release Bitcoin in your BitQuick’s wallet.
And to sell Bitcoin, complete a sold form from BitQuick, and send the amount of Bitcoin to the escrow address provided in the order when fulfilled. Then Receive funds from the buyer’s bank account, then release Bitcoin after you confirm the transaction.
- Customer Service
The Customer support at BitQuick is pretty remarkable. With a quick response and helpful guidance, it also lists an informative and valuable guide that comes in handy to introduce new users to the platform and facilitate trades on the platform.
There are also business hours allocated, 8 am to 10 pm on weekdays and 9 am to 8 pm on weekends. Additionally, they have excellent Email support but, unfortunately, no telephonic services.
4. Hodl Hodl
Next on the list is Hodl Hodl, a peer-to-peer global Bitcoin exchange platform. Came into the business in the year 2018, established by two experts in fintech and software development, is registered in London.
Hodl Hodl allows users from around the world. However, as it is a Bitcoin trading platform, countries not compatible with Bitcoin are by default restricted from trading.
- Fee Structure
The Trading fees of Hodl Hodl range from 0.5% to 0.6%, users signing up with a referral code get 0.55% as default trading fees, and the verified traders 0.5%. The least amount of Bitcoin one can buy 0.001 BTC.
- Security
Hodl Hodl is among those exchanges that take security as a priority. They ensure that the contracts are escrow enabled, with two-factor authentication and a separate transaction password.
During trades, the fund is locked in escrow because of which to release; one would require two private keys to authenticate. One key belongs to the seller and the other to the buyer.
There is an optional verification; going through verification will reward you with discounts on fees. However, without the KYC, you can still trade with unlimited access.
- User Interface & other features
UI is quite simple yet subtle, with all the necessary tools and options on the front page itself. Create an offer in the filter offers section, enter the location, payment type, amount, payment method, and other categories, then click on ‘Create your offer.’
Hodl Hodl currently accepts almost all fiat currencies and altcoins; you can choose your preferred method from more than 200 payment options available. You can earn commissions with a referral program and enjoy discounted transaction fees when your referee trades.
- Customer Service
Hodl Hodl aims to resolve any issues or complaints in a time frame of 24 hours. You can open a dispute or send an Email to get in touch with a representative. You can also watch their tutorials on youtube to learn using the platform.
5. Bisq
Bisq is an open-source trading platform founded in 2014, where you can buy and sell bitcoin in exchange for national currencies and is supported worldwide.
It is a peer-to-peer and fully decentralized exchange that offers trading services. It works on a Decentralized Autonomous Organization (DAO) model in accordance with blockchain technology and with no centralized authority on top of it.
- Fee Structure
Traders, holding BSQ get a discount of approximately 60%. The trading fee is based on the maker/taker model. For Bitcoin 0.0012/ 0.0088 and BSQ 0.05/0.35.
The combined Bitcoin trading fee rate is 1% and BSQ 0.4%. The fee to avoid dust is 0.03 BSQ.
- Security
An open-source and fully decentralized exchange needs to take its security seriously, and BSQ just does that. You encrypt your wallet and set a password to access it on this platform.
Bisq connects the buyer and seller; therefore, it doesn’t hold your assets. You don’t need to connect your bank account or personal crypto wallet directly to trade bitcoins.
You can also restore your wallet and the assets into a new BISQ wallet. Just note down your wallet’s seed words and the date it was created mentioned on the ‘Backup your wallets seed words’ page.
In case you cannot recall your password, you can use the seed words and the wallet creation date to restore the coins to a new wallet. Bisq doesn’t require any verification procedures.
- User Interface & other features
Bisq comes in the form of an application available for Windows, IOS, and several versions of Linux, which you can directly download on your device. UI is relatively hassle-free, functional, and easy to use. It supports over 120 cryptocurrencies.
You can keep coins in the wallet enabled by the software on cold storage or transfer them to the wallet of your choice. The exchange allows you to trade a minimum of 0.06 Bitcoin with an absolute minimum security deposit of 0.01 Bitcoin.
- Customer Service
Bisq offers a three-tier dispute resolution service in case any problem occurs. It has a toll-free number where you can make a telephonic inquiry and reach them via Email and Twitter.
6. Binance
A well-known name in the crypto world, Binance was founded in 2017, and claimed to be one of the largest cryptocurrency exchanges globally by reputable sources.
It has more than 350 other cryptocurrencies available apart from Bitcoin and a variety of products like futures trading, margin trading, etc.
On Binance, you get a varied selection of trading options, fiat currency, and order types for relatively lesser fees.
- Fee Structure
Trading Fees on Binance follows a maker/taker fee module structure. Maker fees vary between 0.1% to 0.02% and taker 0.1% to 0.04% depending on the level your trading volume belongs. Binance is also offering a 25% discount for BNB holders.
Standard trading services charge 0.1% each time you trade. If you hold BNB in your account, the transaction fees will automatically be deducted from your BNB balance. You can even get a 25% discount when you do this.
Other fees are associated with the withdrawal or payment methods you choose, lying between 0% to 4.5%, and $15 for US customers for wire transfers.
- Security
Binance offers two-factor authentication via the google authenticator application or SMS services. It also provides an address whitelisting, which allows withdrawals to only those addresses already designated in your address book.
There is an optional KYC; if you want a daily withdrawal limit of more than 2 BTC, you have to comply with the verification procedures. Binance is also equipped with a device management system and can restrict devices if it senses something fishy. It also provides FDIC insurance on all US dollar balances.
- User Interface & other features
Binance offers a variety of toolsets, including real-time charting tools with moving averages and exponential moving averages, available on all your devices as an application and website.
You can also access your portfolios and trade history and order books and price charts at your fingertips. The interface is quite responsive and quick.
- Customer Service
They have a pretty robust Customer service available 24×7 for all your queries and assistance. You can reach them via raising a ticket, Email, and Twitter. The Binance team is quite responsive on all of these platforms.
7. KuCoin
Next up is Kucoin, a Seychelles-based cryptocurrency exchange founded in 2017, offering a wide range of digital assets. Kucoin offers many trading products and provides more than 200 cryptocurrencies and 400+ markets.
- Fee Structure
The trading fee structure in Kucoin is based on the maker/taker fee model. It follows a leveled format, depending on your spot trading volume ranging from -0.005 to 0.1% for the maker and 0.025 to 0.1% for the taker. Its fees are comparatively lower than others charging up to 0.50% per trade. An additional 20% discount is being offered when you pay with KCS.
- Security
In addition to features like two-factor authentication and password encryption by default, KuCoin also offers an option of separate passwords for trading. Giving you an extra layer of security.
KuCoin offers optional KYC allowing transactions of 2 BTC per day without any verification.
- User Interface & other features
Traders can access Kucoin through the online portal or mobile apps for Android and IOS. The UI is easy to work with an average user’s requirements kept in mind. It offers a variety of tools for trading. Once you log in, you can view markets, buy crypto, trade, lend crypto, etc.
The platform supports a variety of order types. It has also introduced a trading Bot feature to aid the trading process.
- Customer Service
KuCoin offers a help center to help users find assistance. It also provides multiple ways to seek support. You can directly contact them via phone and email and talk to them via chat to solve basic issues.
Now that we have gone through the best LocalBitcoins alternatives, we should compare which Paxful and Localbitcoins will be better for you.
Is Paxful or LocalBitcoins better?
Paxful is undoubtedly the perfect LocalBitcoins alternative; as we have discussed, let us now compare them.
- Local Bitcoin is unavailable in the US, whereas Paxful does.
- Paxful does not charge you if you are a buyer; on the other hand, LocalBitcoins doesn’t charge both sellers and buyers.
- Paxful is way ahead in supporting payment methods, with more than 350 of them, unlike Localbitcoins, which supports only a bunch of payment methods.
- Both of the platforms are reasonably secure, with state-of-the-art security measures implemented.
That has been discussed, is Localbitcoins ever hacked? Let’s find out.
Is Localbitcoins hacked?
It will be shocking to know that, yes, Localbitcoins was hacked. On January 26, 2019, a thread appeared on Reddit stating about the hack, where the users lost 8 BTC (over $28000).
Localbitcoins then took down its forum, temporarily disabling transactions to stop further stealing. Calling a third-party software responsible for the problem, the breach lasted for 5 hours.
However, the company took precautionary steps and advised customers to enable two-factor authentication in their accounts.
To Conclude
Looking for alternatives isn’t bad, especially when better options are available. Trading on only a particular exchange for a very long time can be limiting, and putting all your funds in one place can be a risky decision, too, as you will be liable to the terms and conditions of that exchange.
Whereas when you diversify you can enjoy various services and also in case of a sudden change in the exchange’s terms you won’t get affected much.
The platforms we discussed are very competitive in terms of the services they provide and technologically advanced. So if you are someone using LocalBitcoins for a long time now, make sure to check these platforms.
I am sure you will have a great experience doing so!!
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