how does local bitcoins work?

[kashish948]

hi
this will be the first time i will be buying via cash deposit from localbitcoins
so how does this actually work?
i deposit money in the sellers bank and tell him that i have paid. what if the seller refuses to send bitcoins? is there an escrow? any experiences with the localbitcoin escrow?

thanks!

[quone17]

It's really easy.  I was nervous too but I used it like 3 times in the last couple weeks and it was perfect.  The key is to look for people with the most and best feedback, that means they won't screw you and they know what they're doing.  Yes, you click how much you want to buy and then their account information appears on your screen.  Then you take your cash to the bank and put it in their account number.   THere's nothing fishy about this, banks don't care because they're getting cash.  Then you get a receipt and sometimes the other person asks you to e-mail them a copy of the receipt and you sign back on and mark that you have paid.  Then they release the BTC into your wallet on localbitcoins and then you can withdraw it to your own wallet or wherever you want right away.  I was pleasantly surprised.

[MtFox]

Go find someone who lives in your place. Place an order with him. You can use the PM system to set terms and other things. Once the payment is made, Localbitcoins will release the escrow.

[Hash72]

is that means when you buy for EX By OKPAY ... How localbitcoin escrow the process because you pay to seller

[MtFox]

is that means when you buy for EX By OKPAY ... How localbitcoin escrow the process because you pay to seller

They will escrow the amount of Bitcoin the seller is selling. Of course the seller must agree to enter an escrow. 

[cryptoisdafuture]

It's really easy.  I was nervous too but I used it like 3 times in the last couple weeks and it was perfect.  The key is to look for people with the most and best feedback, that means they won't screw you and they know what they're doing.  Yes, you click how much you want to buy and then their account information appears on your screen.  Then you take your cash to the bank and put it in their account number.   THere's nothing fishy about this, banks don't care because they're getting cash.  Then you get a receipt and sometimes the other person asks you to e-mail them a copy of the receipt and you sign back on and mark that you have paid.  Then they release the BTC into your wallet on localbitcoins and then you can withdraw it to your own wallet or wherever you want right away.  I was pleasantly surprised.

If I am selling through an escrow on LocalBitcoins, and they deposit into my bank account for IRS purposes how do I explain the sudden extra money in my bank account?

[x86Daddy]

It's really easy.  I was nervous too but I used it like 3 times in the last couple weeks and it was perfect.  The key is to look for people with the most and best feedback, that means they won't screw you and they know what they're doing.  Yes, you click how much you want to buy and then their account information appears on your screen.  Then you take your cash to the bank and put it in their account number.   THere's nothing fishy about this, banks don't care because they're getting cash.  Then you get a receipt and sometimes the other person asks you to e-mail them a copy of the receipt and you sign back on and mark that you have paid.  Then they release the BTC into your wallet on localbitcoins and then you can withdraw it to your own wallet or wherever you want right away.  I was pleasantly surprised.

If I am selling through an escrow on LocalBitcoins, and they deposit into my bank account for IRS purposes how do I explain the sudden extra money in my bank account?

just tell the truth. you sell bitcoin. I think many people known about bitcoin now so that is normal

[cafucafucafu]

Here is a step to step guide:

1. Send your bitcoin to your localbitcoins wallet, you will require 3 confirmations.

2. Request for a trade which matches your payment type, in your case cash deposit.

3. Wait for confirmation of payment from the person you are trading with, for cash deposit you should be able to see funds instantly.

4. Click release funds.

Good luck trading.

[cryptoisdafuture]

It's really easy.  I was nervous too but I used it like 3 times in the last couple weeks and it was perfect.  The key is to look for people with the most and best feedback, that means they won't screw you and they know what they're doing.  Yes, you click how much you want to buy and then their account information appears on your screen.  Then you take your cash to the bank and put it in their account number.   THere's nothing fishy about this, banks don't care because they're getting cash.  Then you get a receipt and sometimes the other person asks you to e-mail them a copy of the receipt and you sign back on and mark that you have paid.  Then they release the BTC into your wallet on localbitcoins and then you can withdraw it to your own wallet or wherever you want right away.  I was pleasantly surprised.

If I am selling through an escrow on LocalBitcoins, and they deposit into my bank account for IRS purposes how do I explain the sudden extra money in my bank account?

just tell the truth. you sell bitcoin. I think many people known about bitcoin now so that is normal

If I wanted to report it to IRS, why wouldn't I just sell it via Coinbase or some standard exchange? Am I missing something?