LocalCoinSwap Review 2024

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LocalCoinSwap is a P2P cryptocurrency platform which allows users to engage in direct transactions, bypassing traditional intermediaries and third parties. In this review, we will delve into the features, benefits, and potential considerations associated with LocalCoinSwap, shedding light on how this platform works and whether it is worth exploring for UK traders.

Our Take

• LocalCoinSwap will appeal to investors looking to buy, sell and swap popular tokens with a good choice of payment methods
• The exchange’s escrow protection, dispute resolution and custodial/non-custodial trading is reassuring to some degree
• However, we always recommend reputable crypto brokers given the safety concerns associated with crypto exchanges
• Fees are also not the most competitive at 1%, even though the exchange does offer discounts
• The lack of demo account and limited customer support options are further drawbacks compared to alternatives

Crypto Tokens

LocalCoinSwap offers a limited selection of 13 cryptos, which is not as wide as some of the bigger brands like Coinbase and Kraken, both offering 60+ tokens.

Nonetheless, the exchange offers the most popular coins alongside some other interesting options which you can buy or sell: Bitcoin (BTC), Ethereum (ETH), Dash (Dash), Polkadot (DOT), Kusama (KSM), Tether (USDT), Dai Stablecoin (Dai), USD Coin (USDC), Paxos Standard (PAX), Nexo (NEXO), CELO (CELO), Celo Dollar (cUSD), and their own LocalCoinSwap Cryptoshares (LCS).

LocalCoinSwap Fees

The fees for LocalCoinSwap differ from those you would expect to find with a traditional exchange.

We were pleased to see that registering for an account, depositing crypto, and buying or selling crypto are all free. However, there is a 1% fee for posting an offer, which is not competitive when compared to the 0.6% fee charged by HODL HODL.

Traders should also be aware that whilst the Bitcoin wallet is free to use, there is a fee for broadcasting the transaction on the Bitcoin network. This is the industry standard.

I was pleased to see some additional perks for trading certain tokens. For example, there are no withdrawal limits or transaction fees for ETH trading. In addition, trading with TRX or TRC20 tokens reduces the blockchain fee by 50%.

How To Buy & Sell Crypto

I found the process to buy and sell crypto at LocalCoinSwap quick and straightforward:

1. Create an account with instant sign-up and you will be directed to your free Bitcoin wallet. Log in, then select ‘Create Offer’
2. Choose your trade type including whether you want to buy or sell crypto
3. Choose your cryptocurrency and the location you’d like to trade within
4. Choose a base currency, which is the fiat currency you’d like to pay or receive funds in
5. Choose your payment method for the trade
6. Control your trade limits such as the minimum and maximum trade sizes
7. Set your trading terms including all of the conditions you require for trading
8. Submit your photo ID for verification

 

Funding Methods

We were impressed that LocalCoinSwap allows you to buy crypto using more than 300 payment methods including cash in hand, bank transfer, debit card, credit card and PayPal.

The decentralised nature of the exchange also means you can use gift cards from Amazon, Google Play or iTunes. This helps the brand stand out from competitors.

With that said, traders do have an increased responsibility to keep their funds safe at peer-to-peer exchanges like LocalCoinSwap. As such, there are a few things we recommend keeping in mind:

• Chargeback: If you are buying crypto, you should use a payment method that can facilitate chargebacks, such as PayPal. This means you have access to fund recovery, should something go wrong.
• Proof of payment: Due to the peer-to-peer aspect of crypto trading, we recommend only using payment methods that come with proof of payment. This means if a seller claims no payment has not been provided, you can supply proof when making a claim.
• Region: Crypto can be traded across the world, but not all of LocalCoinSwap’s payment methods will be available in the UK. For British traders, we recommend using secure and reputable online payment methods like PayPal.

We liked that there are no withdrawal or deposit limits for using LocalCoinSwap which gives users much more freedom than some other exchanges.

Trading Platform

LocalCoinSwap operates an easy-to-use and secure dashboard, designed to facilitate peer-to-peer cryptocurrency trading. The platform integrates various features and functionalities to enable anonymous users to seamlessly buy and sell cryptocurrencies directly with each other. There are also no lengthy verification or KYC requirements, which will be a plus for users looking to get started quickly.

The platform is designed to handle the trading process with no delays, including order matching, transaction execution, and fund management while incorporating features such as smart contracts and escrow services to ensure the integrity of transactions.

I found the exchange dashboard easy to navigate, with simple filtering tools when buying or selling cryptos, such as location and payment method. I also liked that you can sort the listed vendors by popularity or price.

Mobile App

I was pleased to see that LocalCoinSwap offers a mobile app, though sadly it is only available to download onto Android phones via the Google Play Store. This is a major drawback for users with an Apple device like an iPhone or iPad.

Nonetheless, it’s good to see that all the features available in the web dashboard are available via the app, including buy/sell functionality as well as the wallet. The interface is also pretty clean and easy to navigate.

Demo Account

We were disappointed that LocalCoinSwap does not offer a demo account. This means no opportunity to fully test and explore the brand before depositing funds. This is a serious drawback compared to more established crypto brokers.

On a lighter note, you can sign up easily using just your email address and browse the dashboard without depositing any money first.

LocalCoinSwap Security

LocalCoinSwap gives you a public overview of every trader so you can see a history of their transactions before you choose to purchase crypto from them. Importantly, make sure to only trade with users that have a high customer feedback score as scams are common in the crypto trading market.

The brand also offers escrow protection to traders, meaning a third party distributes the currency, not the broker. In addition, our team were reassured to find that LocalCoinSwap holds 95% of cryptocurrency in cold storage, which helps protect client funds.

Yet despite the reassuring measures, we cannot give LocalCoinSwap a good safety score due to the high risk of bad actors in the crypto exchange industry. They do not have the track record and reputation or more established brokers.

Regulation

As expected from a decentralised exchange, LocalCoinSwap is unregulated. UK traders should note this means limited recourse avenues should the firm behave inappropriately.

Your funds are not protected.

Bonuses

While testing the platform, we found that LocalCoinSwap offers a referral bonus. This means if you refer another client to them, you will be rewarded with up to 20% commission on the trade fees when your referred friend trades.

Overall, this is not likely to be a lucrative bonus but it could be worth doing if you know someone who wants to join.

Extra Tools & Features

I was pleased to see some free and fairly detailed educational resources at LocalCoinSwap, including video tutorials and trading guides.

There is also an Academy covering various topics from blockchain to crypto wallets, which you can also subscribe to via the LocalCoinSwap mailing list.

Overall, we liked the education on offer though it would be nice to see a wider variety of resources, webinars or blogs to compete with other brands like PrimeXBT.

LocalCoinSwap also has a calculator that allows traders to check what Bitcoin is worth in GBP, USD, AUD or EUR. This gives you an accurate BTC conversion rate which we found very useful, especially in GBP as UK investors.

Customer Service

We were pleased to find that LocalCoinSwap offers 24/7 customer support via an online request form, accessible from your account.

However, the lack of an email address, telephone number or live chat option is disappointing. There is a decent FAQ section, covering topics including what to do if you forgot your password and enabling login security, though the section is not as thorough as some others we have seen.

Overall, we think LocalCoinSwap needs improvement in this area.

Company Details & History

LocalCoinSwap is a decentralised peer-to-peer cryptocurrency exchange platform where users can buy and sell digital assets directly with each other, without the need for intermediaries or centralised authorities.

LocalCoinSwap supports a modest range of cryptocurrencies, including market leaders Bitcoin and Ethereum and lesser-known altcoins like Polkadot and Nexo.

The platform’s goal is to facilitate trading securely and transparently by utilising smart contracts and escrow services. These features provide a degree of trust and security to users, helping to protect funds during transactions.

Additionally, LocalCoinSwap supports a global user base by allowing clients from different countries to trade with each other.

Should You Trade Crypto With LocalCoinSwap?

We found that LocalCoinSwap was an interesting solution for UK traders seeking an average range of cryptocurrencies and GBP-supported payment methods. The exchange offers attractive discounts and educational material for beginners, though fees are not the lowest in the market. In addition, we would like to see improved customer support and better oversight to match up to competitors.

FAQ

Article Sources

LocalCoinSwap Website

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