Localbitcoins.com is a excellent option for purchasing #Bitcoin. If you're new to localbitcoins or bitcoin in general, there are some precautions you should take to protect yourself from scams.
The site is actually an escrow service that connects buyers and sellers who wish to trade and offers many payment methods. The prices on the site generally differ from those on the exchange. Why? Think of it like a convenience store, but for bitcoin. You'll pay a different premium based on the payment method you select.
Keys to avoid getting scammed.
1) ALWAYS enable 2 factor authentication in the security settings tab.
2) NEVER google localbitcoins, simply type the site in your browser localbitcoins.com.
Why? Because a few lowlife scammers have created fake sites which look like the official one, they advertise it with search engines.
Why? Because a few lowlife scammers have created fake sites which look like the official one, they advertise it with search engines.
3) AVOID giving out your email address for trades, the site has a chat feature built in.
Why? The same lowlife scammers will eventually send you fake emails that appear to be from localbitcoins in an attempt to get you to click a link which, leading you to an unofficial site that will steal your bitcoin.
4) NEVER click a link in an email that claims there is an issue with your account, log in to localbitcoins, click support and see if there is a message from the admin.
5) Pick a trader based on reputation versus price. Look for traders with 500+ trades and 98% or better feedback and 1 year history. The more reputable trader might cost a little more, but the added security is worth it.
6) NEVER respond to an offer posted on the forum, most are fake accounts with no trade history who will direct you off site and out of escrow protection.
7) NEVER sell your bitcoin for PayPal, it's easy to reverse the payment.
8) ALWAYS follow all of the payment instructions fully. If it asks for a photo of a receipt as proof of payment, send it. Some ask for specific text written on the receipt, comply. It proves that you are the person who purchased it and that you know you are buying bitcoin. If you don't follow the terms, you risk loosing the funds or having them held for a specified time.
9) NEVER mark a trade as paid until after you have completed all terms on the ad. You'll generally be required to resubmit your trade request. You do risk being referred for an account ban for marking paid without complying with the terms.
10) ASK questions if you need more detail on the payment terms.
This isn't foolproof, but you are much more likely to have a pleasant trading experience if you follow this.
