Using LocalBitcoins.com

[BitCoiner2012]

I'm misunderstanding. I put up ads for cash, and it wants me to escrow the coins into their account? Are they insane? I have heard too many bad things and apparently scams are beginning to become rampant on that site.

Is there a site in which matches individuals to meet and exchange cash and BTC at the same time?

[greendots]

just set your ad to meeting in person.

[BitCoiner2012]

just set your ad to meeting in person.

I did I thought. I thought I posted that successfully, then posted  (or tried to) an online ad, but that said I couldn't because my balance wasn't there. But when I click to read the thread between me and user, it claims something about I need to deposit some BTC... to an escrow wallet for htis transaction.....

[greendots]

just set your ad to meeting in person.

I did I thought. I thought I posted that successfully, then posted  (or tried to) an online ad, but that said I couldn't because my balance wasn't there. But when I click to read the thread between me and user, it claims something about I need to deposit some BTC... to an escrow wallet for htis transaction.....

If you are selling btc.. then yes you need btc in your wallet for escrow. If you are buying btc.. then u dont need any in your wallet.

[arbitrage001]

The wallet on localbitcoin cost money. And buying/selling with ad cost around 1% fee.

You don't have to send all your coins there in 1 batch. Just send what you are comfortable with.


If you have a lot of coin to sell, it is always better to send the coin to exchange and sell yourself. Anyone offering to buy and sell from you will charge you a mark up and escrow fee.

[Abdussamad]

If you are selling btc.. then yes you need btc in your wallet for escrow. If you are buying btc.. then u dont need any in your wallet.

If you are selling online then you need a minimum of 1btc in your lb wallet. If you are selling for cash then you don't need any in the wallet. Also the escrow service is only for online transactions so if anyone asks for it for an inperson transaction just refuse outright. There is another service called the transaction service that is designed for inperson transactions.

You have to use either transaction service or escrow to get rated and their is a 1% fee to the advertiser for either service. Go through the FAQ with a fine toothcomb to understand all this. Personally I don't trust their escrow service because some people have had a bad experience with it so be cautious.

[BitCoiner2012]

If you are selling btc.. then yes you need btc in your wallet for escrow. If you are buying btc.. then u dont need any in your wallet.

If you are selling online then you need a minimum of 1btc in your lb wallet. If you are selling for cash then you don't need any in the wallet. Also the escrow service is only for online transactions so if anyone asks for it for an inperson transaction just refuse outright. There is another service called the transaction service that is designed for inperson transactions.

You have to use either transaction service or escrow to get rated and their is a 1% fee to the advertiser for either service. Go through the FAQ with a fine toothcomb to understand all this. Personally I don't trust their escrow service because some people have had a bad experience with it so be cautious.

So you are saying that the buyer opened the request and requested the online escrow with a cash in person buy? Possibly?

[Abdussamad]

So you are saying that the buyer opened the request and requested the online escrow with a cash in person buy? Possibly?

It hasn't happened to me but it has happened to other people. Someone posted about it on reddit.

All sorts of things happen on LB. That is why you need to understand how it all works to avoid getting scammed. The devil is in the details.

[odolvlobo]

I trade on LocalBitcoins a lot. It is not clear to me what the problem is that you are  describing so I'll write a quick summary.

If you want to sell bitcoins face-to-face:

1. Send enough bitcoins in your LocalBitcoins wallet to make a few sales (most people buy $100 in a transactions, but some buy more). The amount in your wallet will affect the high limit in your ad.
1. Create a local sell ad.
2. Someone will start a transaction.
3. You agree on a time and place to meet.
4. The buyer may request that you "fund" the transaction before you meet. It rarely happens, but it only means that you reserve the bitcoins for the transaction.
5. When you meet, the buyer hands you the money, and you "fund" the transaction (if you haven't already), and you "release" the bitcoins.
6. You will get a code that you give to the buyer. This code must match the buyer's code. If it does, you are done. If it doesn't, you have done something wrong.

If the buyer wants you to send the bitcoins to different wallet, then you don't "fund" and "release". Instead the buyer gives you the money and you send the bitcoins to the buyer's wallet. Then you wait for at least one confirmation.

If you want to buy bitcoins face-to-face:

1. Create a local buy ad.
2. Someone will start a transaction.
3. They will generally ask you to respond first, to make sure you are active.
4. They will "fund" the transaction.
5. You agree on a time and place.
6. When you meet, you give the money to the seller and he releases the bitcoins to you. You are done.

[BitCoiner2012]

I trade on LocalBitcoins a lot. It is not clear to me what the problem is that you are  describing so I'll write a quick summary.

If you want to sell bitcoins face-to-face:

1. Send enough bitcoins in your LocalBitcoins wallet to make a few sales (most people buy $100 in a transactions, but some buy more). The amount in your wallet will affect the high limit in your ad.
1. Create a local sell ad.
2. Someone will start a transaction.
3. You agree on a time and place to meet.
4. The buyer may request that you "fund" the transaction before you meet. It rarely happens, but it only means that you reserve the bitcoins for the transaction.
5. When you meet, the buyer hands you the money, and you "fund" the transaction (if you haven't already), and you "release" the bitcoins.
6. You will get a code that you give to the buyer. This code must match the buyer's code. If it does, you are done. If it doesn't, you have done something wrong.

If the buyer wants you to send the bitcoins to different wallet, then you don't "fund" and "release". Instead the buyer gives you the money and you send the bitcoins to the buyer's wallet. Then you wait for at least one confirmation.

If you want to buy bitcoins face-to-face:

1. Create a local buy ad.
2. Someone will start a transaction.
3. They will generally ask you to respond first, to make sure you are active.
4. They will "fund" the transaction.
5. You agree on a time and place.
6. When you meet, you give the money to the seller and he releases the bitcoins to you. You are done.

Okay, I was under the impression I did not have to use the escrow system. If that's the case I am using the wrong service.

Thank you!

[DannyHamilton]

Okay, I was under the impression I did not have to use the escrow system. If that's the case I am using the wrong service.

Thank you!

For face-to-face cash exchanges?  You don't.

The localbitcoins "transaction service" is there as an option, but there is no need to use it nor is there any need to have any bitcoins in your localbitcoins wallet either.

I buy and sell bitcoins at localbitcoins regularly, and my localbitcoins wallet has 0 bitcoins in it.  Only about 10% of the people I've exchanged with have requested that I use the localbitcoins "transaction service", the rest just give me the bitcoin address from their wallet, and I send the bitcoins directly from my wallet to theirs when we meet.

It sounds like you didn't create your ads correctly.

[Abdussamad]

^^ For online sales you need to have at least 1 BTC in your wallet. For in person exchanges you don't. But if you want to get rated on LB you need to use either their transaction service for in person exchanges or their escrow service for online exchanges.

Note the transaction service is not an escrow service.

[FullLife]

^^ For online sales you need to have at least 1 BTC in your wallet. For in person exchanges you don't. But if you want to get rated on LB you need to use either their transaction service for in person exchanges or their escrow service for online exchanges.

Note the transaction service is not an escrow service.

If you read through a lot of the scam stories, you'll figure out pretty quickly that it's pretty much people not being smart or using common sense when dealing with transactions.  The way their system is setup, it's actually next to impossible to be scammed if you don't use any reversible payment methods (Paypal, Dwolla, etc).

[Abdussamad]

If you read through a lot of the scam stories, you'll figure out pretty quickly that it's pretty much people not being smart or using common sense when dealing with transactions.  The way their system is setup, it's actually next to impossible to be scammed if you don't use any reversible payment methods (Paypal, Dwolla, etc).

People get blinded by greed so no doubt they are at fault too. But LB's system is complicated and users don't take the time to read about it. Just see this thread for proof. And FYI I am guilty of this too. I complained to LB that my online sell ad wasn't showing up and they linked to their FAQ where it talks about the need to deposit 1 BTC.

Also LB is in a constant battle with scammers. Take that recent screenshot scam where scammers trick users into sending them screenshots of the backend where the escrow release code is shown. LB responded by hiding the release code under a link. Scammers responded by shamelessly asking their marks to click on the link before taking the screenshot!

[FullLife]

If you read through a lot of the scam stories, you'll figure out pretty quickly that it's pretty much people not being smart or using common sense when dealing with transactions.  The way their system is setup, it's actually next to impossible to be scammed if you don't use any reversible payment methods (Paypal, Dwolla, etc).

People get blinded by greed so no doubt they are at fault too. But LB's system is complicated and users don't take the time to read about it. Just see this thread for proof. And FYI I am guilty of this too. I complained to LB that my online sell ad wasn't showing up and they linked to their FAQ where it talks about the need to deposit 1 BTC.

Also LB is in a constant battle with scammers. Take that recent screenshot scam where scammers trick users into sending them screenshots of the backend where the escrow release code is shown. LB responded by hiding the release code under a link. Scammers responded by shamelessly asking their marks to click on the link before taking the screenshot!

The whole SS scam thing had me cracking up.  If people just took the time to read through what's on the site, they'd realize that giving that code away is the last thing you want to do.  I understand what you're saying though.  I don't think it's really a matter of their site being too complicated.  I think most people just want to jump on there and takeoff without reading through everything.  It could be out of laziness or impatience or whatever.  You'd think that people would be more careful when their own money is at stake though.

[mrkent]

In my perhaps over 100 online transactions at localbitcoins, I haven't gotten scammed once. I'd even say that I rarely even see people try (although one did try yesterday, I don't remember the case before that). The key is really just to stick to payment methods you know and if it's too good, it probably is.

[arbitrage001]

Bank to bank transfer isn't safe.

The receiving side takes the blame if anything goes wrong.

[mrkent]

Bank to bank transfer isn't safe.

The receiving side takes the blame if anything goes wrong.

Nice release times arbitrager. Is your system automated? If so, how do you get live bank data?

[cornish_will]

is anyone having troubles with localbitcoins? i am lol

[FullLife]

is anyone having troubles with localbitcoins? i am lol

What kind of troubles?