LocalCryptos is an exchange, a platform specialized in P2P exchange of bitcoin and ether, but with a special offer custody-free escrow transactions and end-to-end encrypted chat. In this guide, we will show you how to use LocalCryptos to buy and sell these cryptocurrencies.
Before we continue, it should be noted that this is the second part of two articles. In the first part – which you can read here – we analyze the features, advantages and operation of the platform.
To start using LocalCryptos you need to create an account. An account can be created from the platform, generating a web portfolio, or from a An Ethereum wallet, such as MetaMask, MyCrypto, or hardware wallets like Ledger. In our demo, we will create an account from the LocalCryptos platform via email.
Creating a LocalCryptos account
Accounts within LocalCryptos They are very easy to create, you will just need to go to the main portal, where you will need to select the “login” option at the top and once there, select “Don’t have an account yet? Let’s create one”, where you have to click on “Register with email and password”.
If you enter the portal in English, you can switch to Spanish from the language option you will see at the top
As you can see, the form to fill out is quite simple. However, there is something important to keep in mind about the password: the password used to log in is converted to a private key by a local encryption process and never leaves the web browser or is stored on servers. LocalCryptos, so if it is forgotten, it cannot be recoveredalthough it can be edited to change to another.
Finally, when you finish filling out the form, we click on “create account” and we will find a statement of residence, in which we are asked to declare whether we are Australian residents or not. If so, we will have to add 10% to the traded amounts, due to local tax.
The next step is the terms of service, which we will have to read and then click “continue” if we agree.
The next step is to confirm your email address, which works as a second authentication factor within the web browser; To do this, we will have to go to the registered e-mail box, where we will find the e-mail LocalCryptos with the “email confirmation” option. You press and that’s it, now we have our account ready.
It is recommended to confirm the phone number at the end of the account creation.
Import reputation from LocalBitcoin
One of the most relevant and impressive features it offers LocalCryptos is the ability to import the trading reputation we have gained into LocalBitcoins or Paxful.
The interesting thing here is that we don’t have to compromise our credentials on both portals, as just entering the username is enough. Of course, this process is not automatic, because once the user provides it, The LocalCryptos team will be in charge of verifying the data match and may request additional information.
To start importing our reputation from these other platforms, we will need to go to the configuration menu from the “Account” option that we will find in the top menu. There we will need to locate the “Import Reputation” option.
Here we will simply have to select the platform from which we import the reputation. The next step is to enter a username and that’s it. We just have to wait for the verification process to see the reputation on our account.
Inside LocalCryptos we will have individual wallets for bitcoin and ether, which we can consult from the “Wallet” option in the top menu. It is worth noting that when selling cryptocurrencies Funds are deposited into the collateral contract after the exchange is opened and its details are agreed upon between the parties. This happens from the platform wallet or from external wallets like MetaMask.
It is also necessary to clarify that LocalCryptos It does not process any kind of commission for deposits and withdrawals, since these portfolios are our property.. Paid commissions correspond only to mining concepts.
In order to receive funds, you will need to obtain a public address, either bitcoin or ether. We can find this address in the “account” option for the wallet of each cryptocurrency. Now you just need to share your wallet address and wait for the funds to be confirmed on the blockchain to see them available on your balance.
By default, your LocalCryptos wallet is configured to create a new address for every transaction you make to avoid being tracked, which may result in you needing to consolidate your cryptocurrencies spread over multiple addresses into a single address, which you can learn here.
To send or withdraw funds from LocalCryptos You will need to go back to the “wallet” menu and select the cryptocurrency to withdraw.
Once there, you’ll find the form we see here. In this form, as in any Bitcoin or Ether wallet, we will indicate the destination address, the amount to send and the confirmation speed. The latter refers to the total commission paid for mining.
Once it’s sent, all you have to do is wait for confirmation from the network and that’s it.
Open an exchange
On LocalCryptos, like other portals like LocalBitcoins, there are two ways of trading. The first are direct exchanges based on an ad already published by another user. This type of operation is faster, but you don’t always get the best exchange rate and you also pay a commission of 0.75% on total traded.
Another way is the possibility of publishing ads. In this case, we are the ones posting the ad. This type of transaction is not the fastest, but you usually get better rates and costs only 0.25% commission.
Start a direct exchange
To open an exchange of this type, we will have to go to the catalog of published ads from the “Explore” option in the top menu.
In this list, the first thing we’ll need to do is apply the necessary filters found at the top:
- Wanna: here we choose the type of transaction, whether it is a purchase or a sale.
- Crypto: cryptocurrency traded, ETH or BTC.
- Method of payment– Preferred payment method from more than 40 available methods.
- Location: the country where the ads we are interested in were published.
- sort by: ad row. It is recommended to filter by “price” so that ads are displayed from the highest to the lowest price in the case of sales, and vice versa in the case of purchases.
Now, with the sorted list, we’ll analyze the information about each ad:
- The first column shows a lightning bolt and phone symbol, which means that the user is aiming for a quick response and a request to verify the phone number in order to open a trade. Then we see your username and the number of completed transactions. If we click on the username we can see their reputation.
- The second column shows the payment method you are working with.
- Next, we’ll see the state and city from which the ad was posted.
- In the fourth column, we will find the amounts of foreign exchange limits.
- Finally, we have a button to initiate an exchange, be it a buy or sell. The button displays the value of 1 BTC in local currency.
Once we understand this, all we have to do is find an ad that fits our needs and get started.
This is the data we will find when starting a transaction. Please note that The minimum exchange amount is 2 USD per rate per day. Register the exchange amount, initial message and click “start transaction”.
When we start the exchange, we will see. Since we buy, In the status box we read that the first step is “Seller deposits ETH”, which means the seller must deposit the funds into escrow before we proceed with escrow.
In this regard, we must also consider this caveat: Do not transfer anything until the deposit is confirmed within Escrow. If we make a transfer, there is no guarantee that the other user will make a corresponding deposit.
If we are the seller, we will need to post funds as collateral. by choosing the wallet from which we will send funds.
After the funds are confirmed in the contract of guarantee, escrow, it remains for us to deposit their equivalent in local currency, because in this case we are buying. After payment, press the “Mark as paid” button.
It is important to note that we will have a time frame for payment. If we are not sure whether we can pay within that period, it is preferable to cancel the exchange. At the end we will be able to see the balance in our wallet.
If we’re the one selling, we’ll see a “release funds” option, which transfers the escrow funds to the buyer. This operation is irreversible. We must release only at the moment when we confirm that the agreed amount has been deposited.
Finally, we just have to leave a little review by choosing an emoticon that defines our opinion about the seller/buyer and that’s it.
Place an ad on LocalCryptos
Posting an ad is pretty easy because There are no requirements, no need to have funds in our portfolio or generate a certain trading volume., as required by other platforms. With a simple registration, we can start publishing ads.
To publish an ad, we go to the Offers option – from where we can manage published ads – and select “Create a new offer”. The first thing will be to choose the type of advertisement, be it buy or sell, along with the cryptocurrency to be traded.
Next, we need to choose an ad location. By default, the platform detects our approximate position and suggests it, however, we can manually set another location.
The next thing will be to choose a payment method, which may vary depending on the geographic location of the ad.
Now we need to select the fiat currency of the ad. Depending on the selected geographic location, the system suggests the local currencybut we can define it manually.
The next step is to choose how to define the final buying or selling price of the cryptocurrency in the ad. In LocalCryptos we have two ways:
- Dynamic Market Price: here we will choose an exchange market like Bitfinex, Binance, Kraken or any other. We then set a percentage margin on the selected market price. For example, We choose Kraken plus 2% and the price will vary depending on the price of the cryptocurrency on this exchange.
- Adjusted equation: We can set the base price through a rather complex equation.
In our case, we will choose the simplest option, which is “Dynamic market price (easy)”. In the next window, we set the percentage margin and choose whether to apply it above or below the reference price. Then we choose the stock exchange from which the reference price will be taken. Before moving forward, we need to click on “Confirm Price”, which will show us the current exchange rate.
Now we will need to establish trade limits, which are the minimum and maximum limits between which we are willing to make transactions, either buying or selling.
We’re almost done. Next, we will need to provide a title for the ad and terms of trade. Here we must be explicit in the conditions required when opening the stock exchange with us.
In this part we have to specify the hours we will be available to serve interested parties in our ads. Remember to select the correct time zone of the country you are in.
Finally, we have to choose which type of user can open an exchange with us.
When everything is ready, all we have to do is press “Confirm details” and we will successfully publish the ad.
From the offers menu, we can see the different ads that we have published. Besides, From the “Exchange” menu, we can manage different offers that other users open with us from our published ads.
It is very easy to use LocalCryptos, which is evident from the first registration. In addition to this, it is worth highlighting its fluid interface that offers a great user experience.
LocalCryptos leaves nothing but good impressions. While perhaps the liquidity it has, at the time of writing this guide, is not on par with other portals, the trading tools it offers, such as non-custodial escrow, suggest it will become a leading platform.