Coinbase vs. LocalBitcoins

[Enjorlas]

Why would a person choose between one over the other? Obviously one means face to face.. I get that. But because LocalBitcoins users usually charge +30% premiums, why would someone choose localbitcoins over Coinbase?

Basically, what are the pros and cons of each? And which would be better for buying one large lump sum of coins? Say, $30,000?

[1714027566]

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[1714027566]

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[BTCreward]

If you wanted to buy that large of an amount of bitcoin and wanted to do so immediately then coinbase is probably your best option. If you do not mind waiting some amount of time and do not mind splitting up your purchase into multiple transactions then LBC may be a better bet.

Additionally LBC tends to have a large number of scam attempts so you will need to know to take the appropriate precautions when dealing on LBC that are not applicable on coinbase. However coinbase tends to be very slow and you do run the risk that they will cancel your order(s)

[Enjorlas]

Thank you for the information. But I guess what I am asking is, why is LocalBitcoins worth the 30% premium?

[havecoch]

Well firstly , Coinbase requires verfications/bank linking etc. Localbitcoin is by far the easiest way to buy bitcoins for a new person.
And its not 30% premium. Most of the ads have between 3-10%

[BTCreward]

Thank you for the information. But I guess what I am asking is, why is LocalBitcoins worth the 30% premium?

It is a free market, and if people are willing to pay that much of a markup then there is no reason why sellers should not ask for that kind of markup.

If you are willing to not have to have to purchase the bitcoin immediately then you should not accept those levels of markups but instead charge a somewhat lower markup

[vm_mpn]

Thank you for the information. But I guess what I am asking is, why is LocalBitcoins worth the 30% premium?

Some of it is privacy I guess... Not everybody is willing to expose their personal and banking info to a 3rd party financial institution, credit agencies, government. Not to mention there is a limit on how much you can buy / sell weekly, and how long you will have to wait till full amount is finally credited to your account.

[SargeR33]

Some people will pay the premium price to maintain privacy. Although it baffles me when regular home users ask for so much ID on localbitcoins.

[odolvlobo]

If you are paying a 30% premium at Localbitcoins, then you should find another seller. If there are none, then become a trader yourself and undercut the competition.

[Kprawn]

Coinbase is not available or friendly to people outside of the USA. {Imo}

We keep on hearing horror stories of people's account being blocked. {The AML and KYC regulations is a big drawback for most}

LocalBitcoins are location friendly, but it comes with a risk. {You never know, if someone is going to scam you} The rating system can be faked.

I buy from BTC vending machines / ATM's ....but unfortunately they are not available everywhere. 

[bitkilo]

In one word privacy.
I have seen the prices on LBC and yes they can be a bit high but anyone charging +30% is going to have a hard time selling, most i see is about 12% mark up.
Coinbase wont let AUS customers link banks and buy yet but we have our own companies like Coinjar and their price is pretty fair, just don't forget to add the 10% gst tax we have to pay here.

Cheapest and most private way IMO would be buying coins direct from members on this forum, use escrow.
Bitcoin ATM are also a good way to buy BTC and still remain private.

[badjacks99]

if you are a gambler coinbase is not the one for you, i have read that they have locked users account that have frequented and used bitcoin gambling sites, for me thats a big no.

[mindless_drone]

Localbitcoins is a huge rip off. 15% to 30% above market last price. And some even want your passport or drivers license scans. I'm fucking serious.

It's a fucking joke of a site. It's just extortion to pay those prices. And besides cash in person there is no privacy. So I won't be using it again.

You also have to pay to change your phone number. Sorry but LBC is shit for buying Bitcoins.

[Harry Hood]

And what about when buying physical cryptos, you can't by physical crypto coins over an exchange, it has to be through a local "in person" transaction.