LocalMonero Review; P2P Monero Exchange
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Cryptocurrency exchange is a means of exchanging or trading digital currencies for other assets such as fiat money or other digital currencies. The exchange rates and prices of the cryptocurrencies are determined in an open market. Factors such as demand, supply, public perception and the cost of mining and securing a given cryptocurrency influence the price of that cryptocurrency.
Exchange transactions can be carried out either physically or online using the numerous exchange platforms available. However, most transactions are carried out online hence choosing the right platform to trade in is paramount to achieving success in the business.
What is LocalMonero?
LocalMonero, similar to LocalBitcoins, is a Monero dedicated cryptocurrency exchange service that enables users to find buyers and sellers dealing in Monero and exchange their local fiat currencies for Monero. To achieve this, users post advertisements of either buying or selling Monero and the platform connects them to other users who need those services.
LocalMonero also enables its users to find buyers and sellers of Monero locally in their country. This can facilitate easier exchange of Monero either using cash or through more convenient local payment methods.
The company is based in Hong Kong and was founded in August 2017 by a group of Monero enthusiasts from Hong Kong. LocalMonero services are supported in all countries worldwide.
Trading on LocalMonero
- Local Monero only supports either buying or selling of the Monero (XMR) cryptocurrency in exchange for fiat money. LocalMonero supports all fiat currency in its areas of operation worldwide such as USD, CAD, EUR, GDP, JPY, KES and many more.
- LocalMonero has transaction limits for either buying or selling that differ from one fiat currency to another. These limits are however specified by the advertiser when placing the advertisement. The user also defines all the terms of trade including exchange rates/ prices on the advertisement.
- A user must have at least 0.35 XMR in his/her wallet to have his/her advertisement displayed to the public. This is because poorly funded wallets cannot be able to open trades.
- Any buying and selling disputes that may arise during the trading process are handled by LocalMonero’s support staff. Disputes are resolved by carefully examining terms of trade, evidence of payment, user reputation and any other relevant user data. LocalMonero advises its users always to check the reputation score and number of previous trades done by a given trader to get the most reliable and reputable trader to buy coins from.
LocalMonero supports numerous payment methods. These methods can be either global or local. Global payment methods include Gift card, bank transfer, MoneyGram, Skrill, Apple pay, Cryptocurrency transfer to and from other Monero wallets, Worldremit, Neteller, Perfect money, Payoneer, SolidTrustPay, PayPal, Venmo, Western Union and many more.
Local payment methods differ from country to country and may include the use of Credit cards, cash by mail etc. Common local payment methods include Walmart gift card, M-Pesa, Cash, ATMs, Advcash, CashU, Xoom, Dwolla, Payza, and OneCard.
All transactions carried out on LocalMonero are entirely irreversible hence users should be careful and choose payment methods with the lowest risk.
LocalMonero does not charge any fees for registration of an account and buying or selling of Monero(XMR) in the platform. All payments done to users of other LocalMonero wallets are not charged.
LocalMonero charges users who post an advertisement on the platform a fee of 1% for every successful trade. The platform also charges a network transaction fee for all transactions made to other Monero wallets outside the platform. This fee changes from time to time depending on the value of Monero. At the time of writing the fee was 0.013189150 XMR and is deducted from the user’s LocalMonero wallet. LocalMonero added a service that allows users to choose low transaction priority, which lowers the fee to ~0.003 XMR. So most people never pay more than ~0.003 XMR for withdrawing.
The following table summarizes LocalMonero fees charged for various operations and transactions.
|Service Provided by LocalMonero||Fees Charged|
|Account Registration||No fee|
|Buying Monero||No fee|
|Selling Monero||No fee|
|Posting advertisement||1% of the advertised trade (Deducted after a successful trade)|
|Transaction to another LocalMonero Wallet||No fee|
|Transaction to other Monero Wallets||0.003-0.01 XMR network fee|
When creating an account, the platform requires only a username and a password for the new user. Provision of an email is optional. It also employs an optional Time-based one-time password (TOTP) in a two-factor authentication procedure where the user gets a backup long string numerical password.
The user is then required to download an authenticator application, scan the QR code in the application to acquire a six-digit one-time password to be used to verify and allow access to the user’s account.
A six-digit backup code is also provided as the only means of recovering an account in case the user loses his or her password.
What special features does LocalMonero have?
LocalMonero is unique from other exchanges in that it is more focused on maintaining the anonymity and privacy of its users. It has a Tor hidden service where transactions done on this service are not publicly visible on the blockchain hence concealing a user’s identity. The site can be accessed through a .onion domain name that offers faster browsing speeds as opposed to normal tor services.
LocalMonero also has I2P (Invisible Internet Project) which has nothing to do with IP address verification, it’s just cryptographically more secure than Tor. They conduct no IP verification on any of their portals.
Is LocalMonero Safe?
The platform has received positive reviews from the user community due to its focus on maintaining the anonymity and privacy of the user while offering an easier way to buy and sell Monero coins.
There have not been any significant reports of LocalMonero scam or users being scammed on the site. This is because LocalMonero trades are protected by escrow which ensures a seller does not scam the buyer of Monero in a given transaction.
The company has not provided any information regarding its usage so far. However, usage is expected to be low since the company is still young and has a lot to prove.
LocalMonero uses a two-factor authentication method to verify users and allow access to user accounts. This involves the provision of a minimum eight-digit password.
The platform also uses Cloudfare’s advanced Distributed Denial of Service (DDoS) security as a protection and mitigation factor against web attacks.
How is LocalMonero’s customer support?
LocalMonero users enjoy average customer support that can be reached by sending an email to their help desk. LocalMonero’s response time is within 24 hours after a request has been made.
LocalMonero’s handling speed
Transactions made between LocalMonero and other Monero wallets usually take between ten to sixty minutes. Transactions may take longer especially when the Monero network is experiencing congestion. Transactions carried out between LocalMonero wallets are processed instantly.
How to use LocalMonero
There are two possible instances when using LocalMonero that is either for buying or selling Monero.
How to buy coins using LocalMonero
- Create an account on the platform- Click on the buy option on the main page and fill in the buying information such as the amount to buy in your currency, location and the payment method. Click search. The platform processes the provided information and displays a list of advertisements from which the trader can choose from. After this, the user can then click on the ‘buy’ button to view more information about the selected advertisement.
- The site will then display the terms of trade of the advertiser. If the buyer agrees to the terms, then he/she can go ahead and click ‘send trade request’ button to initiate the trade.
- The buyer can then agree with the seller on the most convenient payment methods. The buyer’s payment will be processed by the site and verified by the receiver. After this, the Monero coins bought will be moved from the escrow and transferred to the buyer’s LocalMonero wallet.
How to sell coins using LocalMonero
- Click on the ‘sell’ option on the main page and fill in the selling information which includes the amount you wish to sell in your currency, your location, and the preferred payment method. Click search.
- The platform will then process the filled in information and display a list of suggested advertisements from different prospective buyers. The seller can then select the buyer with the best reputation and trading history by clicking on the “sell” button of that advertisement.
- The platform will then display the terms of trade of the advertiser. If the seller agrees to these terms, then he/she can go ahead and click on the “send trade request” button to initiate the trade. The buyer will then request payment details from the seller after which he/ she will make the payment. The seller can then verify payment after which he/she can release the bought coins to the buyer by clicking on the “release monero” button on the page.
LocalMonero exchange is a highly efficient person to person platform for exchanging fiat currency for Monero or vice versa. It is suited for both beginners and high rollers enthusiastic about Monero since it supports trading using either fiat money or Monero cryptocurrency.
The platform is still new and hence has not been adequately tested and proven as a reliable trading platform by the user community. Investors should, therefore, be cautious and trade low amounts with minimal risk.
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