LocalBitcoin is a p2p platform for buying and selling cryptocurrency.
Cryptocurrency is simply a digital or virtual coin that is accepted as a legal tender, that is, it can be used as a means for payment of goods and services. It is any form of currency that exists digitally or virtually and uses cryptography to secure transactions.
It can also be regarded as a digital payment system that doesn’t rely on any bank to verify transactions. It functions as a peer-to-peer system that can enable anyone anywhere in the world to send and receive payment.
According to Wikipedia, a cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. Individual coin ownership records are stored in a digital ledger, which is a computerized database using strong cryptography to secure transaction records, control the creation of additional coins, and verify the transfer of coin ownership. It does not exist in physical form like paper money and is typically not issued by a central authority.
History/Key Event Around Bitcoin.
In 2009, the first decentralized cryptocurrency, bitcoin, was created by presumably pseudonymous developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash function, in its proof-of-work scheme. In April 2011, Namecoin was created as an attempt at forming a decentralized DNS, which would make internet censorship very difficult.
In June 2021m El Salvador became the first country to accept bitcoin as legal tender after the legislative assembly had voted 62-22 to pass a bill submitted by President Nayib Bukele classifying the cryptocurrency as such.
In August 2021, Cuba followed with Resolution 215 to recognize and regulate cryptocurrencies such as bitcoin.
Having discussed what a cryptocurrency is and some key events surrounding the history of Bitcoin. Let’s take a look at how to buy bitcoin on LocalBitcoins in Nigeria which is the purpose of this article, aimed at presenting you with the information you need to buy or trade bitcoin.
Note, there are ways to transact bitcoin across the globe using international gateways but our focus will be on the local. Without further ado, let’s take a trip.
To know what crypto trading is and how to invest, see What Is Crypto Trading? – Things You Should Know Before Investing in Crypto
How To Buy Bitcoin On Localbitcoin In Nigeria.
Before talking about the processes involved to buy bitcoin on LocalBitcoins, let’s see what it means, who are the founders etc.
What Is LocalBitcoins?
According to Wikipedia, LocalBitcoins is a peer-to-peer bitcoin exchange platform based in Helsinki, Finland. Its service facilitates over-the-counter trading of local currency for bitcoins. Users post advertisements on the website, where they state exchange rates and payment methods for buying or selling bitcoins.
Other users reply to these advertisements and make the payment in their specified payment method. As of December 2020, LocalBitcoins has over 1,000,000 active traders with a trading volume of 612 million US dollars between October and December 2020.
A Brief History Of LocalBitcoin
LocalBitcoins was founded in June 2012 by Jeremias Kangas. He implemented an escrow system for the marketplace by the end of 2012. The website started generating revenue at the beginning of 2013, now as of 2020 there are an average of 29,566 successful trades per day.
In 2018, LocalBitcoins headed the list of best financially performing companies in Finland arranged by the local specialized publication Kauppalehti.
In 2014, 2016, and 2018 people who used the site were arrested for money laundering and related crimes.
In January 2019, hackers stole bitcoin worth $28,200 from users’ LocalBitcoins accounts.
LocalBitcoins was able to identify and solve the case immediately, announcing so to its users. On the same day, LocalBitcoins shared that LocalBitcoins accounts were safe to use and emphasized the importance of two-factor authentication.
In November 2019, LocalBitcoins.com got registered as a Virtual Currency Provider by the Finnish Financial Supervisory Authority.
The website offers a service to facilitate the locating of Bitcoin users, who can meet for a person to person trading of bitcoin. The site is suggested for casual traders seeking more privacy. The site uses an escrow system, and the transfer of bitcoin is made after funds are received in the seller’s account.
LocalBitcoins has a reputation system for users and an escrow and conflict resolution service.
How To Buy Bitcoin On Localbitcoin In Nigeria.
Step 1. Register
Register an account with LocalBitcoins. You get a free and secure online bitcoin wallet. No additional apps are needed. If you have an existing account already, you don’t have to repeat the process. You can skip this and go to the next step.
Step 2. Search For Advertisements Tab
Go to the main page and in the search box fill in the form with the amount you want to buy in your currency, and your location and choose a payment method. If you’re not sure how you want to make the payment, choose “All online offers” as your payment method. The site will, on its own, automatically generate a list of bitcoin traders available in your region.
Step 3. Select An Advertisement
From the list of advertisements, choose one from a trader with a good reputation score and a high amount of trades. The response time indicator shows if a trader replies within five minutes (green), within 30 minutes (yellow) or slower than 30 minutes (grey). You can click the ‘Buy’ button to view more information about an advertisement.
Step 4. Pay The Seller
After you press the ‘Buy’ button to purchase your desired quantity, you’ll see more information about the advertisement, including the terms of the trade. Read through them before submitting the trade request, if you don’t agree with them you can go back to the previous page and choose another advertisement.
To start the trade, type in the blue box how much you want to buy, enter a message for the seller and click the Accept terms and send the trade request button to start the trade. Be sure you’re ready to pay when clicking the button, if you don’t pay before the payment window is over, the trade will be automatically cancelled.
Step 5. Mark Payment Complete
Once you have made the payment, click the I have paid button. Once the trader has verified that your payment has been received your Bitcoin will be released from escrow and they are instantly available in your LocalBitcoins wallet.
And that’s all there is to it, congratulations on your first Bitcoin trade.
The Advantages Of LocalBitcoin
- The largest peer-to-peer Bitcoin trading platform
- 4,000 new members sign up every day
- Escrow services that protect both parties in transactions
- An automated trading application
- Easy and fast process
- A reputation system for screening buyers and sellers
- Access to a global network
Localbitcoins With Security
LocalBitcoins does not share your information. It allows you to buy and sell Bitcoins while maintaining your privacy.
LocalBitcoins will confirm that you are logging in from the same web browser. When you are using a different web browser, it will require email verification to log in.
All members with LocalBitcoins have a ranking for their reputation. It shows the history of your trading activities with the other parties in the transaction.