One of the most trusted ways to buy bitcoins is through LocalBitcoins. It’s a destination where buyers and sellers meet and a large number of them sell bitcoins via PayPal for others to use. However, its prices are much higher than that of VirWox.
Following are the steps that you will need to follow to complete a bitcoin transaction on LocalBitcoins.
Step 1: Log Onto LocalBitcoins:
To buy local bitcoins, head over to LocalBitcoins.com and enter the amount of USD (or any other currency), select your country and select “PayPal” as your payment method.
Step 2: Select Your Seller:
You should now be seeing a list of sellers willing to accept PayPal. You can run by them one at a time and here are some factors to look into:
- Feedback Score - It is located under the seller’s name. here you can see the feedback about the seller. We recommend conducting transactions with only high feedback sellers.
- Trade Limits - Every seller has a minimum/maximum amount they are willing to trade.
- Payment Window - The time you have left for making a payment and marking that payment ‘done’ after you initiate the trade.
Step 3: Verify Credibility of The Seller:
For credibility verification of a seller, click on “see feedback”.
With these points, you can find out if the seller is trustworthy or not.
- Trade Volume of confirmed Trades- Be sure to check that the number of trades is in proportion to the number of partners.
- Trusts- The higher this value, the better.
- Blocks- A higher number of “blocks” than “trusts” is not a good sign.
- Verifications- If a person has his ID/Passport and other personal details verified, then he can be trusted.
Certain sellers will require you have an initial reputation in order to buy from them so they can avoid scams or fraud. This means that you will have to conduct some small transactions to prove your legitimacy.
Step 4: Finalize The Trade:
Once you’ve chosen your seller, enter how much you are willing to buy and click on “Send trade request”.
Step 5: Payment:
You will be taken to the “Payments” page and you’ve got to “mark the payment complete” on the invoice.
Once this step is finished, the seller will verify your payment and you will receive BTC in your wallet.
Things to know:
- Local Bitcoins also offers “Bitcoin escrow service” to protect you from fraud.
- You might not be able to buy from every seller of your choice because serious sellers have serious requirements, such as account age, minimum no. of sales, etc.
- Bitcoins are reflected “Instantly” into your LocalBitcoins wallet once they’ve been released.