[ANN] LocalBitcoins.com - a location-based bitcoin to cash marketplace

[giszmo]

+1

[Yurock]

Count my vote for PGP.

[justusranvier]

That would be wonderful. I don't care if the information being sent is sensitive or not - I want as much of  the email I receive to be encrypted.

[Johnathan]

Feature request: calculate a weighted average of and/or history of trading prices for each fiat currency.

I know that most people price their trades based on some formula using bid/ask/last prices from the major exchanges.  However, given the divergence in prices between Mt. Gox and other exchanges, it would be very useful to have a bid/ask/last/depth based on what local bitcoin traders have actually decided to set their prices to.

As the volume of local exchanges increases, this consensus could displace using unreliable centralized exchanges as a pricing mechanism, and instead show the market price when taking into account things like the risk premium of in-person trades and the delay times involved.

Another interesting set of data would be to plot the market price in different geographical areas vs. the average for that currency.

I'd contribute some BTC to a bounty for implementing this.

[Yurock]

Feature request: calculate a weighted average of and/or history of trading prices for each fiat currency.

I know that most people price their trades based on some formula using bid/ask/last prices from the major exchanges.  However, given the divergence in prices between Mt. Gox and other exchanges, it would be very useful to have a bid/ask/last/depth based on what local bitcoin traders have actually decided to set their prices to.

It can be exploited by creating several accounts and selling to self at an unreasonable price. The average will then go off. If exploiter is a buyer, he will make price go down. If he's a seller, he will make the price go up.

[Newar]

Feature request: calculate a weighted average of and/or history of trading prices for each fiat currency.

I know that most people price their trades based on some formula using bid/ask/last prices from the major exchanges.  However, given the divergence in prices between Mt. Gox and other exchanges, it would be very useful to have a bid/ask/last/depth based on what local bitcoin traders have actually decided to set their prices to.

As the volume of local exchanges increases, this consensus could displace using unreliable centralized exchanges as a pricing mechanism, and instead show the market price when taking into account things like the risk premium of in-person trades and the delay times involved.

Another interesting set of data would be to plot the market price in different geographical areas vs. the average for that currency.

I'd contribute some BTC to a bounty for implementing this.

Interesting idea, even if it could be potentially abused. Something for the API too ^^

You also might find this helpful: http://bitcoinaverage.com/             

[Johnathan]

You also might find this helpful: http://bitcoinaverage.com/             

Thanks, this is useful.

[Junko]

Hello,

Just started my first localbitcoins transaction/trade. I'm selling bitcoins to a buyer online via "Transfers with specific bank" and using the site's escrow service. I funded the escrow with my btc, but now I'm a little confused as to the meaning of the wording on the transaction dashboard/details screen and what I should do or look for at this point.

Specifically,

It says, Escrow status: Escrow enabled & funded. Safe to pay online.

 - Does this mean the buyer has put up the cash into the escrow and I can safely click the "Release transaction" button and that when I do, then funds will then be transferred into my bank account?
 - Or does it mean I need to confirm for myself by checking my bank account (BoA online banking) that the buyer transferred the funds into my bank account and that when I do confirm that the funds are in my bank account, then I should click the "Release transaction" button?
 - Or does it just mean that I fulfilled my end by funding escrow with btc and need to wait for Payment to be marked as complete?

I provided my bank account info needed for the buyer to transfer the funds into my bank account, but so far I haven't seen anything received.

So basically, do I need to wait to see that the funds have been sent into my bank account first before I release the transaction? Or has the buyer done his part and when I hit release, then the money will appear in my bank account?

[justusranvier]

Escrow is always for bitcoins.

It means your (as the BTC seller) bitcoins are locked up such that you can not cancel the sale yourself, and it's safe for the buyer to pay you.

[Junko]

Escrow is always for bitcoins.

It means your (as the BTC seller) bitcoins are locked up such that you can not cancel the sale yourself, and it's safe for the buyer to pay you.

I appreciate your help and explanation. But that is why I'm a little confused about the details page and what it is telling me. So are you saying that is for the buyer's information, telling him it's safe to pay me? But why then is there a "Release transaction" button for me to click along with a warning saying, "Be careful! Only release the bitcoins from escrow when you are sure you have received payment. There are sellers who try to trick sellers to release their bitcoins early." - if I already took care of my end of the bargain by funding escrow with btc?


So tell me if this is right, I just keep checking my bank account and when I see that the funds have been transferred into it, then I can hit the "Release transaction" button so the buyer can receive his/her bitcoins from escrow?

Sorry to sound so clueless. I just don't want to screw anything up for myself or the buyer. I thought I had read and understood everything before I started this process. I apparently missed the release transaction section. 

[justusranvier]

So tell me if this is right, I just keep checking my bank account and when I see that the funds have been transferred into it, then I can hit the "Release transaction" button so the buyer can receive his/her bitcoins from escrow?

Yes.

LocalBitcoins only handles the bitcoin portion of the sale they do not and can not know the status of the bank payments, cash transfers, or anything that isn't the movement of bitcoins.

Escrow is there to protect the buyer, so they can pay the seller with the assurance that the seller must deliver the bitcoins if payment is rendered.

As the bitcoin seller, it's up to you to make sure you actually get paid - LocalBitcoins can't take care of that for you.

Once you've been paid you release the bitcoins to the buyer using the button on the web site. The bitcoins will then instantly show up in the buyer's LocalBitcoins wallet.

[Junko]

So tell me if this is right, I just keep checking my bank account and when I see that the funds have been transferred into it, then I can hit the "Release transaction" button so the buyer can receive his/her bitcoins from escrow?

Yes.

LocalBitcoins only handles the bitcoin portion of the sale they do not and can not know the status of the bank payments, cash transfers, or anything that isn't the movement of bitcoins.

Escrow is there to protect the buyer, so they can pay the seller with the assurance that the seller must deliver the bitcoins if payment is rendered.

As the bitcoin seller, it's up to you to make sure you actually get paid - LocalBitcoins can't take care of that for you.

Once you've been paid you release the bitcoins to the buyer using the button on the web site. The bitcoins will then instantly show up in the buyer's LocalBitcoins wallet.

Ahhh, ok. I get it now. Thank You very much for your help and clearing up how this works for me. 

[DannyHamilton]

Had someone try to scam me out of 55 bitcoins today at localbitcoins.  They claimed to be buying bitcoins, and wanted to use the "transaction service".  Once the transaction was funded they tried to convince me to "send a picture of our contact/trade page for verification purposes".

When I ignored that request, they followed up with a phone call and played dumb about the "release code".  They just wanted me to send a picture of the page so they could verify.  They didn't think having a picture of a green release button would be a problem.

I explained why I couldn't.  Then I sent them a carefully framed image that had the release code cropped out.

They claimed they were on there way and would be at the meeting place soon.

After a half hour of waiting I sent a txt asking if they were still planning on showing up, and they txt back "yes".

After another half hour of waiting, they still hadn't arrived and they stopped responding to txt messages.

I'm guessing that their account at localbitcoins is a throw away fake account, and that the phone they were calling and txting from was a "burner", but for what it's worth here's the info so others can avoid being caught in this scam attempt:

localbitcoins ID: sucraM
phone: 913-200-1331

If anyone can identify this person, I'd love to file interstate fraud charges against them.

[justusranvier]

Why would you try to sell 55 BTC to someone with no trade history?

[DannyHamilton]

Why would you try to sell 55 BTC to someone with no trade history?

If they'll bring the cash and meet face-to-face, why not?

Sure, I wasted an hour of my time, but I've had many successful transactions in excess of 20 bitcoins with individuals that were making their first ever purchase through localbitcoins and had no history.

I don't see how it's any different than selling my used car for $6000 to someone who sees my ad in a paper or calls the phone number from the window of my car.  Such an individual wouldn't have any "trade history" either.  I'm not sure I understand your surprise?

[justusranvier]

If they'll bring the cash and meet face-to-face, why not?

Sure, I wasted an hour of my time, but I've had many successful transactions in excess of 20 bitcoins with individuals that were making their first ever purchase through localbitcoins and had no history.

I don't see how it's any different than selling my used car for $6000 to someone who sees my ad in a paper or calls the phone number from the window of my car.  Such an individual wouldn't have any "trade history" either.  I'm not sure I understand your surprise?

I guess it depends on your personal safety preferences.

I don't want to exchange more than $1000 in cash with someone I've never met before. Higher limits are reserved for people on my Trusted list.

[DannyHamilton]

If they'll bring the cash and meet face-to-face, why not?

Sure, I wasted an hour of my time, but I've had many successful transactions in excess of 20 bitcoins with individuals that were making their first ever purchase through localbitcoins and had no history.

I don't see how it's any different than selling my used car for $6000 to someone who sees my ad in a paper or calls the phone number from the window of my car.  Such an individual wouldn't have any "trade history" either.  I'm not sure I understand your surprise?

I guess it depends on your personal safety preferences.

I don't want to exchange more than $1000 in cash with someone I've never met before. Higher limits are reserved for people on my Trusted list.

Anything over $1000 and I use a few safety precautions.

I require that we meet somewhere with a security presence (typically in a Casino bar although a bank lobby or police station lobby are acceptable as well), and I bring a second person with me to help keep an eye out for anything suspicious.

[molecular]

Hello,

Just started my first localbitcoins transaction/trade. I'm selling bitcoins to a buyer online via "Transfers with specific bank" and using the site's escrow service. I funded the escrow with my btc, but now I'm a little confused as to the meaning of the wording on the transaction dashboard/details screen and what I should do or look for at this point.

Specifically,

It says, Escrow status: Escrow enabled & funded. Safe to pay online.

One must admit this message (intended recipient is the buyer of bitcoins) can be very confusing for the seller. Maybe it should not be displayed to the seller at all, instead it should read: "wait for buyer to transfer fiat currency, only then release the escrow"

[BurtW]

The localbitcoins user kagomeluvsu2 tried to scam me and wasted a bunch of my time.  He wanted me to send him a screenshot of our transaction "for security reasons".  Playing along I sent him the screen shot.  Then he had the balls to ask me to "click on the show button" and resend the picture.

His phone numbers are 281-891-3127, 913-200-1331 and 913-210-0571 in case anyone is interested.

[justusranvier]

The localbitcoins user kagomeluvsu2 tried to scam me and wasted a bunch of my time.  He wanted me to send him a screenshot of our transaction "for security reasons".  Playing along I sent him the screen shot.  Then he had the balls to ask me to "click on the show button" and resend the picture.

His phone numbers are 281-891-3127, 913-200-1331 and 913-210-0571 in case anyone is interested.

If you block that user, add negative feedback describing the scam, and then report the buyer as fraudulent through the support and contact form it will minimize the risk that someone gets scammed.