How to

Learn how to deposit and withdraw bitcoins from LocalBitcoins

Key facts:
  • Users who create ads pay 1% commission for each operation performed.

  • LocalBitcoins offers you an in-house personal bitcoin wallet to perform sales operations.

This is the second part of a 3 article series that will allow you to learn how to use LocalBitcoins. In this chapter, we’ll explore how to manage your bitcoins within the platform: how to receive and send funds, manage public addresses, and view transaction history.

You can read the first part of this tutorial here, What is it and how to register on Localbitcoins and the third here, Learn how to buy and sell bitcoin with LocalBitcoins.

LocalBitcoins allows you to manage your funds as if it were a traditional cryptocurrency wallet, since you have the basic tools that a wallet can offer. However, take it into account The private keys of each public address you generate are stored and managed by LocalBitcoinsyou don’t have access to them.

The reason for having a wallet within LocalBitcoins is that at the time of opening a transaction, say a purchase, the total exchange amount in BTC is blocked from the seller’s account and goes into an escrow property owned by the company. . This prevents the seller from running away with our bitcoins after the payment has been made as the funds will only be released with the consent of both parties.

Content

Manage funds on LocalBitcoins

To access the wallet within LocalBitcoins, you just need to select the Wallet option from the top menu.

We go directly to the Send Bitcoins section of the wallet menu, which we will explain later. Wallet menu which has three different sections: Send Bitcoins, Receive Bitcoins and Transactions. We will explain each of the modules starting with Receiving Bitcoins.

I receive bitcoins

This is extremely simple not only for LocalBitcoin, but in general, because the only requirement is to have a public bitcoin address, which we can find in the section Receiving Bitcoins.

At the top we will find the public address. We will send the funds here. By clicking on the QR Code for mobile option, we can see the same address in its QR code abstraction, which makes it easy for you to scan with your mobile phone camera.

Las addresses are valid for 1 year, but beware, this is only for LocalBitcoins, Bitcoin addresses do not expire. Also, as a security measure, every time you log in, LocalBitcoins will generate a new public address, so third parties cannot know the total amount you have on the platform.

Every time you need to deposit money into your LocalBitcoins account, use a new address as a privacy measure.

Also, remember that LocalBitcoins charges a commission for each deposit which you perform from external addresses, but transfers between platform accounts do not pay any commission. You can see the current value of this commission in the Incoming Transactions and Commissions section.

The fee may vary depending on the status of the Bitcoin network

After sending bitcoins to your account, you have to wait for a total of 3 network confirmations before you can see the amount shown in your wallet.

Send bitcoins

The case for sending bitcoins is also quite simple. The first thing will be to indicate the destination address in the Bitcoin account address field, and then the amount expressed in BTC in the field below. In this way, we will see how the Amount field will display the equivalent value in the fiat currency of the country we are connecting to, at the current exchange rate.

Commission rates are imposed by LocalBitcoins based on network congestion, to ensure your shipment is confirmed as quickly as possible.

To finish, you just need to click on Continue, where we will be asked to enter a password to confirm the shipment and that’s it.

Review transactions

Within LocalBitcoin, we can keep a monthly record of movements within the platform, be it withdrawal, deposit, purchase, sale, among others; something like keeping accounting records of funds on the platform.

The information here is organized as follows:

  • In the first column we will see an icon that identifies whether the row corresponds to a deposit (+) withdrawal ().
  • Date: Date and time of the transaction
  • Received BTC: Received amount in BTC.
  • BTC Sent: Amount in BTC sent.
  • Description: Details of the completed transaction. In the case of internal transactions, we will see the label “Internal Transaction”.
  • Fee amount for BTC deposit: The fee is charged per deposit from an external address.
  • At the bottom we will find the total income, expenses and commission payments.

The table we see corresponds to the current month. At the bottom, as can be seen in the image, we can see the transactions made in previous months by simply selecting the month of interest.

Asset management tips

First of all, please note that you do not own the BTC private keys stored here, i.e. to some extent you do not own the funds stored here, so it is recommended not to store large amounts inside the platform.

Another important thing is to not reuse addresses when depositing. This is to preserve privacy, because if someone could know the public address you use for deposits, they can know the total amount in your LocalBitcoins account.

Read the first part of this guide What is it and how to register on Localbitcoins and the third part Learn how to buy and sell bitcoin with LocalBitcoins to learn more.

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