Beware of LocalBitcoins.com

[BurtW]

I am not against competition, far from it.

I ask because I am curious:  what exactly do they think will make people use their service instead of someone else (localbitcoins for example).

In other words:  what is their unique selling proposition?  What sets them appart?  What makes them better?

If they do not have a differentiating factor then they are just a "me too".  Nothing wrong with that really but I won't move to another site unless it is better in some way.

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[madken7777]

I am not against competition, far from it.

I ask because I am curious:  what exactly do they think will make people use their service instead of someone else (localbitcoins for example).

In other words:  what is their unique selling proposition?  What sets them appart?  What makes them better?

If they do not have a differentiating factor then they are just a "me too".  Nothing wrong with that really but I won't move to another site unless it is better in some way.

Localbitocin unique position is let local buyer and seller trade with each other rather than relying on the traditional banking system to use wire to transfer money aboard to one of the main exchanges to buy and sell.

[BurtW]

I am not against competition, far from it.

I ask because I am curious:  what exactly do they think will make people use their service instead of someone else (localbitcoins for example).

In other words:  what is their unique selling proposition?  What sets them appart?  What makes them better?

If they do not have a differentiating factor then they are just a "me too".  Nothing wrong with that really but I won't move to another site unless it is better in some way.

Localbitocin unique position is let local buyer and seller trade with each other rather than relying on the traditional banking system to use wire to transfer money aboard to one of the main exchanges to buy and sell.

You are not following the thread.  I use localbitcoins all the time.  I know them.  I trust them.  My questions are directed at http://www.100bit.co.in/

I am asking http://www.100bit.co.in/ what they are planning to do that will be better or different than localbitcoins.  I ask them because they advertized in this thread about localbitcoins.

[BitCoinDream]

I am not against competition, far from it.

I ask because I am curious:  what exactly do they think will make people use their service instead of someone else (localbitcoins for example).

In other words:  what is their unique selling proposition?  What sets them appart?  What makes them better?

If they do not have a differentiating factor then they are just a "me too".  Nothing wrong with that really but I won't move to another site unless it is better in some way.

+1

I also want to know the same

[steelbuzz]

You never posted any real evidence of people being arrested for simply trading BitCoin through localbitcoins....

Pretty sure he just made it up because he's naive and paranoid....

[ben1]

I've never had any real problems with localbitcoins.com, if I can move the cash out of my account I know it's legit and can release btc, if not then I don't. So simple. Although I've had several scam attempts that caused my btc to be locked up for a few days, and some check return fees, but I'm okay with that. I want the buyer experience to be priority so we can get more btc adoption. More competition for localbitcoins would also be awesome, as long as the UX for buyers is good.

[ajareselde]

You never posted any real evidence of people being arrested for simply trading BitCoin through localbitcoins....

Pretty sure he just made it up because he's naive and paranoid....

doesnt have to be. little bit of paranoya is good for you.
you never know who you are going to meet, so its good to be carefull.
personaly all my experiences were just awesome.

[joshraban76]

Even if the trade is ok, you might end with fake cash.

Although I was using LB before, but now, I stuck with trustworthy exchangers.

[BurtW]

Even if the trade is ok, you might end with fake cash.

Although I was using LB before, but now, I stuck with trustworthy exchangers.

If it is a large transaction then I just have them meet me at my bank, I have the bank teller count and check the money, release the BTC, then usually deposit some and keep the rest.  For smaller transactions I test any bills that feel "funny" to me with a special marker.

Easy solutions to the "fake money issue", which it turns out is not a real concern after all.

[coinmaster222]

This doesn't sound like a real world story to me. I really feel like most stuff in the op are just hyperboles. I trade there frequently and I haven't experienced any of the problems portrayed there.

[joshraban76]

Even if the trade is ok, you might end with fake cash.

Although I was using LB before, but now, I stuck with trustworthy exchangers.

If it is a large transaction then I just have them meet me at my bank, I have the bank teller count and check the money, release the BTC, then usually deposit some and keep the rest.  For smaller transactions I test any bills that feel "funny" to me with a special marker.

Easy solutions to the "fake money issue", which it turns out is not a real concern after all.

May you elaborate more about this

"For smaller transactions I test any bills that feel "funny" to me with a special marker."

[Harley997]

wtf!??!!? Are you absolutely SURE there are undercover police trying to nab people simply for buying BTC?

I seriously SERIOUSLY doubt it..... 

I think it is actually police nabbing people for selling it without following AML/KYC laws.

There is a case in FL where some guy was selling BTC at a massive markup and the UC told him that he was going to use the BTC for very illigal purposes. They arrested him on a bunch of charges, all related to selling BTC.

[Jamie_Boulder]

I don't understand why people don't just buy from trusted exchanges instead of going to the trouble to meet someone IRL with not only a chance of getting scammed but paying a lot more for the BTC then they're worth (at time of purchase).

[BiTJack]

Wow thanks for the heads up man. I have used that exchange couple of times but i didn't know the buyer can cancel the trade and seller can't thats not good. I'll sure think again dealing in future there.

[ShakyhandsBTCer]

I don't understand why people don't just buy from trusted exchanges instead of going to the trouble to meet someone IRL with not only a chance of getting scammed but paying a lot more for the BTC then they're worth (at time of purchase).

People want to make trades in an uncentralized fashion

[Harley997]

I don't understand why people don't just buy from trusted exchanges instead of going to the trouble to meet someone IRL with not only a chance of getting scammed but paying a lot more for the BTC then they're worth (at time of purchase).

If you deal with a "trusted" exchanged you still have the possibility of getting "GOXed"

[BitCoinDream]

Wow thanks for the heads up man. I have used that exchange couple of times but i didn't know the buyer can cancel the trade and seller can't thats not good. I'll sure think again dealing in future there.

Where did u get this part that says a Seller cant cancel a trade ?

[BurtW]

Wow thanks for the heads up man. I have used that exchange couple of times but i didn't know the buyer can cancel the trade and seller can't thats not good. I'll sure think again dealing in future there.

Where did u get this part that says a Seller cant cancel a trade ?

If the seller has set it up for full escrow then the seller cannot cancel the trade.  This feature is used when the people are not going to meet face to face (bank transfers, WU, PayPal, etc.).  I always meet face to face for cash so I do not use the full escrow service.  Instead I simply fund the transaction to show that I have the BTC ready for the buyer, we meet, they give me the cash, I count it, then I release the BTC to them.  Simple.  If they don't show I just cancel the transaction and my BTC are released back to me.

If you use the site correctly there are no issues.  It is a great site.  Use it all the time.  Never had any issues at all.

[letprice]

The #1 Problem with their site is the Escrow service - localbitcoins.com requires sellers of BTC to put their coins in Escrow - this is a huge F#&K%!G MISTAKE.

So you want to say the whole localbitcoins things are fake where every day hundreds of successful transaction performing..!?

[BurtW]

The #1 Problem with their site is the Escrow service - localbitcoins.com requires sellers of BTC to put their coins in Escrow - this is a huge F#&K%!G MISTAKE.

This is not true.  You are not required to put your coins in escrow.  The seller might choose to put the coins in escrow because the buyer might request that, or because the buyers might feel more comfortable but for in person cash face to face transactions simply funding the transaction without turning on the escrow function works just fine.